The Political Economy of Japan Bradley M. RICHARDSON

country's traditional dependence on foreign imports of many of the raw materialsneeded for industrial production. Currently Japan imports nearly all of its energyneeds; imported crude oil contributes 99.5% of Japan's requirements, while the figurefor coal is 92%. Other minerals are also scarce in Japan: the dependency ratio foriron ore is 100%, while that for copper –the only metal of importance mined in Japanis98.9%. Over half of Japan's food needs are also met by imports, with feed grains,corn, wheat and soybeans leading the way (12).Japanese Governments Economic Plans. Japan's economy was severelyweakened during World War II: plants and facilities were damaged or destroyed, andwork was disrupted by mobilization and flight from the cities. Many of the initialpolicies of Japanese government after the end of the war were concerned with repairof physical facilities and the more complex task of reviving an economy whose basicinstitutions were disrupted and disorganized. In the early postwar era Japan alsosuffered from loss of former sources of critical raw materials. In contrast with theimmediate postwar years, the decades of the 1950s and 1960s were generally aperiod of consolidation and growth. Throughout the 1950s and most of the 1960s, theJapanese government was supportive of economic growth, at times at the expenseof alternative policy choices.From the 1950s on, the Japanese government endeavored to promoteeconomic growth through various macro-economic policies and by sectoral programsaimed at development of specific industries. An alternative policy commitment to amajor rearmament was essentially rejected after an intense debate. Specificgovernment economic tools, including government bank loans, tax incentives andtrade protection, were developed and deployed to foster modernization and growth.Indicative economic planning began in Japan in the 1950s (13). Five majorplans were developed and promulgated by the Economic Planning Agency between1955 and 1967 (Figure 1), and other plans have followed over time. Indicative plansset economic goals and do not provide sanctions for non-compliance. Like theirFrench counterparts, the Japanese plans served as broad outlines for guidance ofpublic and private economic activity rather than as compulsory programs. Japan'splans were essentially large-scale development forecasts buttressed by elaboratestatistical references and supplemented by programs for growth in specific sectors inquite a few cases. The plan documents contained specific target figures foreverything from farm crops to the output from specific major industries. The plansalso contained sections on infrastructure, public works and social programs needs.Each of the plans had a special focus and target slogans, such as catching up withBritain (1953-1957) or the doubling of incomes (1960-1967). As time went on and theeconomy prospered, and new needs in environment protection or social securitybecame obvious, the concerns addressed by the plans shifted more to non-economicgoals in the quality of life and welfare areas. The planning process continues even