The Industrial Policy of Japan

ABSTRACT Japan has been characterised as the most successful industrialised country in its ability to attain growth in GNP, even during a world recession. This article explores the background to the Japanese economic success of postwar years. It emphasises in particular the part played in that success by the Japanese banking sector and cheap credit extended to expanding industries. The article discusses the respective roles of the Ministry of Trade and Industry and the Ministry of Finance. It concludes that both domestic and international pressures are producing changes within the Japanese economy which are reflected in alterations in the tasks and influence of these institutions.