The Fable Of The Keiretsu And Other Tales Of Japan We Wish Were True

Consists of an abstract and the introduction from a larger work.

For Western economists and journalists, the most distinctive facet of the post-war Japanese business world has been the keiretsu, or the insular business alliances among powerful corporations. Within keiretsu groups, argue these observers, firms preferentially trade, lend money, take and receive technical and financial assistance, and cement their ties through cross-shareholding agreements. In The Fable of the Keiretsu, Yoshiro Miwa and J. Mark Ramseyer demonstrate that all this talk is really just urban legend. In their insightful analysis, the authors show that the very idea of the keiretsu was created and propagated by Marxist scholars in post-war Japan. Western scholars merely repatriated the legend to show the culturally contingent nature of modern economic analysis. Laying waste to the notion of keiretsu, the authors debunk several related “facts” as well: that Japanese firms maintain special arrangements with a “main bank,” that firms are systematically poorly managed, and that the Japanese government guided post-war growth. In demolishing these long-held assumptions, they offer one of the few reliable chronicles of the realities of Japanese business.

What the authors offer is a thoroughgoing analysis clearly demonstrating that, whatever economic path developing countries pursue, imposing Western-style antitrust regimes will engender uncertainty, chill economic behaviour, and foster an unhealthy climate for business. They employ the influential error-cost methodology to appraise the performance of competition policy and to show how such a policy creates irresolvable tensions in fragile economies with weak institutions - economies characterized by informal rules of business practice, long-standing symbiotic business-state relationships, and unpredictable state action. They mount a powerful critique of the arguments of neo-institutionalists (who fail to recognize the vulnerable nature of emerging market economies) and competition `advocates' (who presume to stand ready and vigilant to enforce competition policy on state entities). --

Yoshiro Miwa asks whether a state can correct market failures and in particular critically analyses the performance of the Japanese economy as a result of state intervention within it. In order to examine the capacity of the state to promote growth, Miwa examines the Japanese machine tool industry, the government's role in promoting this sector and government efforts to achieve growth in small and medium sized enterprises in Japan.

'Recent events have rendered Japan's lost decades all the more relevant to the rest of us. Rick Garside, in this wide-ranging and accessible account, explores the political economy of Japan's great stagnation with an eye toward describing how other advanced economies can avoid going down the same path.' – Barry Eichengreen, University of California, Berkeley, US 'Professor Garside's timely book transcends the national preoccupation suggested by its title. From one viewpoint this is a case study (admittedly on a grand scale) of the experience of one country in one historical period. But in analyzing the dynamic relationship between Japan's post-war economic miracle and its chronic stagnation from the 1990's he offers a penetrating insight into the links between profound and embedded institutional and ideological influences, global upheaval, and almost disastrous national economic performance. Hence, Japan's Great Stagnation – the unfolding story of that country's declining experience from masterful economic power to seeming economic paralysis – provides us with an all-too familiar scenario with which to approach the contemporaneous ills of the world's developed economies. The interaction between banking crises, unwieldy institutions (especially, but not only, financial institutions), policy frailties, and stagnating demand – all conspired to create crisis and then handicap or prevent recovery. And the familiarity of the story is aggravated by the global financial crisis which now threatens to engulf us. History never fully repeats itself, but Professor Garside's illuminating examination of Japan's recent experiences must surely provide important points of relevance for the world's current malaise. He is to be congratulated on the depth and scope of what he has achieved – and for its relevance to what we are experiencing.' – Barry Supple, University of Cambridge, UK This timely book presents a critical examination of the developmental premises of Japan's high-growth success and its subsequent drift into recession, stagnation and piecemeal reform. The country, which within a few decades of wartime defeat mounted a serious challenge to American hegemony, appeared incapable of fully adjusting to shifting economic circumstance once the impulses of catch-up growth and the good fortune of an accommodating international environment faded. The banking crises, spiralling government debt, and stagnant growth experienced by major industrialized nations in recent years have evoked renewed interest in Japan's economic denouement since the 1990s. To many, Japan's drift into recession and financial crisis during the early 1990s, and later into stagnation and prolonged deflation, demonstrated precisely what not to do when fashioning remedial policy. This book details the legacies of Japan's high-growth success and how they affected Japan's capacity to cope with shifting national and international circumstance from the 1980s. It reviews the contentious debates over the causes and consequences of the 'bubble economy' and the 'lost decade', and assesses the extent to which reforms since 1997 have been compromised by lingering attachments to Japan's distinctive post-war political economy. Providing an analytical overview of both the high growth and recessionary periods and of subsequent reform agendas, this timely book will appeal to students, academics and researchers of economic history, development and politics, particularly those with an interest in Japan and Asian studies more generally.

This collection of Japanese fairy tales is the outcome of a suggestion made to me indirectly through a friend by Mr. Andrew Lang. They have been translated from the modern version written by Sadanami Sanjin. These stories are not literal translations, and though the Japanese story and all quaint Japanese expressions have been faithfully preserved, they have been told more with the view to interest young readers of the West than the technical student of folk-lore. At all times, among my friends, both young and old, English or American, I have always found eager listeners to the beautiful legends and fairy tales of Japan, and in telling them I have also found that they were still unknown to the vast majority, and this has encouraged me to write them for the children of the West. Y. T. O.

This book is a timely reminder of the more fundamental determinants of capital accumulation and innovation. It provides a mixture of conceptual, empirical, historical and methodological approaches to the relationship between institutions, institutional change and economic development.

This fascinating collection of short stories focuses on aspects of Japanese life before the Meiji Restoration. Written in 1871, the book provides an introduction to Japanese literature and culture, both through the stories (all adapted from authentic Japanese sources) and Mitford's extensive supplementary notes. Also included are Mitford's eyewitness accounts of a selection of Japanese rituals, including harakiri (seppuku) and marriage, along with a selection of fairy tales and a sampling of sermons. Compiled just as the age of the Samauri was ending, this collection of tales provides an intriguing look at the now-lost customs and worldview of the denizens of old Japan. The author writes, "It has appeared to me that no better means could be chosen of preserving a record of a curious and fast disappearing civilization than the translation of some of the most interesting national legends and histories, together with other specimens of literature bearing upon the same subject. Thus the Japanese may tell their own tale, their translator only adding here and there a few words of heading or tag to a chapter, where an explanation or amplification may seem necessary. I fear that the long and hard names will often make my tales tedious reading, but I believe that those who will bear with the difficulty will learn more of the character of the Japanese people than by skimming over descriptions of travel and adventure, however brilliant. The lord and his retainer, the warrior and the priest, the humble artisan and the despised Eta or pariah, each in his turn will become a leading character in my budget of stories; and it is out of the mouths of these personages that I hope to show forth a tolerably complete picture of Japanese society."