Japan's Industrial Policy

In the international economy, Japan is one of the country in Asia that the economy is very advanced level and can even rival the United States. Yet we know that after World War II, Japan's economy is so degenerated vital industries were destroyed. But, within a period that can be said briefly, Japan emerged as new actors in the world economy is so advanced that its export markets and flooding the world market. Japanese success certainly can not be separated from its history, where the government is sponsoring major businesses with the intent to catch the Japanese from the west, and the businessmen receive government assistance to open. In its development, in the 1930s the military government forced the businessman to be a government stooge for the sake of war. However, during the American occupation, the concept of freedom in business is introduced so that government interference in business is not as strong as before.

Today, the industrial policy and administrative guidance is very helpful in increasing the Japanese economy after World War II. All regulations and policies are made, of course, be decided by considering all aspects of the industry. According to Marcus Noland, there are five instruments of industrial policy by the Japanese government to promote industry, including the protection of competition on foreign markets, the provision of direct subsidies, provision of special assistance from the government, tax policy, and access to credit.

When viewed from the agricultural industry, it is clear visible presence of government protection of agricultural products, although there has been an open process of liberalization of the import market of agricultural products. Japan is a country that can be said to geographically not possible to pursue the agricultural sector. Therefore, the Japanese import many agricultural products from other countries, especially America. Although the Japanese feel that they're quite liberal in opening markets to U.S. imports, but U.S. still feels not enough and think Japan is too protectionist of their agricultural products, particularly in rice products. Japan imposed Food Security, where they are very careful at all of their food security so that Japan rejected the importation of rice because Japan imposed a 100% self-sufficient in rice. Relation to the government and the agricultural industry, the government is very supportive of this field and many provide subsidies to agricultural producers and protect agricultural markets against imports of market competition. But, now, can be said that the agriculture industry is the industry's most inefficient and most widely contributed a great loss to the state. This is because the subsidies provided by the government too much and at the same time international pressure (U.S.) to open lines of rice import trade.