MITI and the Japanese miracle

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tion. It has been suggested that these "seniors" might have had some influence over the transportation officials who had to review Tokyu's * plans. Some incumbent officials might even have been thinking of entering the Tokyu* empire when they retired.

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Thus one reason for the private sector's participation in amakudari is the extensive licensing and approval authority (kyoninkaken) of the government. Companies believe that having former bureaucrats among their executives can facilitate obtaining licenses from the ministries. The Ministry of Construction exercises licensing authority over the building industry, the Ministry of Transportation over rail and air transport and the bus and taxi business, the Ministry of Finance over the banks, and MITI over the key industriessteel, electric power, and chemicals in the 1950's, automobiles and appliances in the 1960's, advanced electronics in the 1970's, computers, robots, and new sources of energy in the 1980's. With this in mind it becomes understandable that whereas during the 1950's and 1960's very few ex-MITI officials joined foreign-affiliated firms, during the 1970's, with MITI's new commitment to the "internationalization" of the Japanese economy, ex-MITI officials began to appear in Matsushita-America, IBM Japan, and Japan Texas Instruments.

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It is misleading to consider this type of government-business relationship a form of "corruption"; it is, rather, an adaptation by private business to a particular governmental environment. The same adaptation occurs in other countries, although in the United States the preferred insiders are ex-congressmen rather than ex-bureaucrats (except in the defense industries). Thus, during the 1970's Albert Gore, Sr., a former senator, became a lawyer for Occidental Petroleum; Paul Rodgers, former chairman of a House public health subcommittee, became a member of the board of Merck and Company; and Brock Adams, former congressman and secretary of transportation, became a lawyer for Trans World Airlines.

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This preference for congressmen rather than bureaucrats in the United States merely reflects the market rationality of the American system as contrasted with Japan's plan rationality.

Preferential access to the government for the strategic industries in Japan is not an unintended consequence of the developmental state; it is in fact an objective of the developmental state. This is the true significance of amakudari. A cost of the system is occasional misuse of access to gain some private advantage. Nonetheless, from the Japanese point of view, the advantages of amakudari for smooth policy formulation and execution outweigh this cost. The Japanese refer to consultations between ex-bureaucrat seniors and their incumbent