IEA 13th World Congress, 9- 13 September, 2002 - Lisbon - Portugal Session VIIIC: Political Economy 13 September 2002 Structural Reforms and Economists in Japanese Government: From the 1990s to the Present Contents Introduction Economists in the Public Policy Arena, 1945-1990 More Economists in Policy Making, 1990-2000 Changes in the Attitude of Japanese Economists by Aiko Ikeo School of Commerce, Waseda University Nishiwaseda, Shinjuku-ku, Tokyo 169-8050, Japan E-mail address:
[email protected] JEL Classification System B2 History of Economic Thought since 1925: B20 General H1 Structure and Scope of Government: H11 Structure and Scope of Government 0 August 14, 2002 Structural Reforms and Economists in Japanese Government: From the 1990s to the Present by Aiko Ikeo, Waseda University This paper mainly examines Japan's current structural reform process, starting from around 1990. It discusses the deliberation process for the promotion of economic reform, and shows how Japanese economists have been involved in the reforming process and policy making. Shedding light on the role of economists in the government contributes to a better understanding of the on-going structural reform in Japan. Introduction It is sometimes argued that economic reform processes proceed very slowly in Japan. Actually the private, industrial sector makes some adjustments whenever the economic environment changes. In contrast, the public sector can be changed only by political resolutions to conduct 'structural reforms', which usually include economic, fiscal and administrative reforms. Prompt changes call for determined actions by decisive politicians who devote themselves to making a better society, by honest bureaucrats who serve the country faithfully, and by impartial economists who have a keen sense of the benefit to consumers, the international environment, and the feasibility of reform process.