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INFORMATION TO USERS This manuscript has been reproduced from the microfilm master. UMI films the text directly from the original or copy submitted. Thus, some thesis and dissertation copies are in typewriter face, while others may be from any type of computer printer. The quality of this reproduction is dependent upon the quality of the copy submitted. Broken or indistinct print, colored or poor quality illustrations and photographs, print bleedthrough, substandard margins, and improper alignment can adversely affect reproduction. In the unlikely event that the author did not send UMI a complete manuscript and there are missing pages, these will be noted. Also, if unauthorized copyright material had to be removed, a note will indicate the deletion. Oversize materials (e.g., maps, drawings, charts) are reproduced by sectioning the original, beginning at the upper left-hand corner and continuing from left to right in equal sections with small overlaps. Each original is also photographed in one exposure and is included in reduced form at the back of the book. Photographs included in the original manuscript have been reproduced xerographically in this copy. Higher quality 6" x 9" black and white photographic prints are available for any photographs or illustrations appearing in this copy for an additional charge. Contact UMI directly to order. UMI University Microfilms International A Bell & Howell Information C om pany 3 0 0 Nortfi Z e eb Road, Ann Arbor Ml 48106-1346 USA 313,'761-4 700 800, 521-0600 Order Number 9120646 The break-up and privatization policy of the Japan National Railways, 1980—87: A case study of Japanese public policy-making structure and process. (Volumes I and II) Choi, Eunbong, Ph.D. The Ohio State University, 1991 UMI 300 N. Zeeb Rd. Ann Arbor, MI 48106 NOTE TO USERS THE ORIGINAL DOCUMENT RECEIVED BY U.M.I. CONTAINED PAGES WITH SLANTED PRINT. PAGES WERE FILMED AS RECEIVED. THIS REPRODUCTION IS THE BEST AVAILABLE COPY. The Break-up and Privatization Policy of The Japan National Railways, 1980-87: A Case Study of Japanese Public Policy-making Structure and Process Volume I Dissertation Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of the Ohio State University By Eunbong Choi, B.A., M.A. ***** The Ohio State University 1991 Dissertation Committee Approved by Bradley M. Richardson (Chair) William Liddle ÿ ^LA, ^ Advisor Richard Gunther Department of Political Science To my Husband, Sons, Philip and Samuel, and Parents ii ACKNOWLEDGMENTS The author would like to express her deepest gratitude to her graduate advisor, Professor Bradley M. Richardson, for his close guidance and supervision of this entire work. The author also appreciates the thorough review of this manuscript and comments by her graduate studies committee members. Professors Richard Gunther and William Liddle. Special gratitude is extended to Professor Duk Kyu Jin at Ewha Women's Univeristy for his encouragement. The author also thanks those who favorably responded to the interview requests and helped her successfully carry out her research in Japan. Without their generous cooperation and valuable suggestions, this study would not be complete. Several people supported the author in other valuable ways, as well. Among them, the author particularly wishes to thank Tetsudaro Kuramitsu and Hiro Kim for their Japanese assistance, and Tobi Taylor for her skillful editing of the final draft. Finally, the author would like to express her deepest thanks to her family, who have provided her unfailing support for years. iii VITA December 30, 1958............. Born - Seoul, Korea 1981........................... B. A. Department of Political Science, Ewha Women's University, Seoul, Korea 1983........................... M.A., Department of Political Science, Ewha Women's University 1981-1983...................... Graduate Teaching Associate, Department of Political Science, Ewha Women's University 1988........................... M.A., Department of Political Science, The Ohio State University 1984-1989......................Graduate Teaching Associate, Department of Political Science, The Ohio State University Fields of Study Major Field: Political Science Studies In Comparative Politics (Politics In Democratic System, Politics of the Developing World: Professors B. M. Richardson, R. W. Liddle, and R. Gunther) and Political Theory (Traditional Political Theory, Normative and Critical Theory: Professor John Champlln) iv TABLE OF CONTENTS PAGE ACKNOWLEDGEMENTS..................................... iii VITA................................................... iv LIST OF TABLES........................................ viii LIST OF FIGURES...................................... ix GLOSSARY OF TERMS.................................... x CHAPTER I. INTRODUCTION: THE SCOPE AND METHOD OF THE STUDY 1. The Research Problem......................... 4 2. Review of the Literature........................ 10 2. 1. Theories of the Japanese Political Process. 10 2. 1. 1. The Elitist Model '................ 10 2.1.2. Departing from the Elitist Model..... 13 2.1.3. The Bureaucracy-Dominant Model........ 14 2.1.4. The Corporatist Versus Pluralist Approaches............................ 19 2. 1. 5. A Mixed Nature......................... 31 2. 2. Publications on the JNR Reform............. 36 3. The Research Design............................. 40 3. 1. Research Purposes. ....... 40 3. 2. The Conceptual Frameworks of the Study.... 45 3. 2. 1. The Institutional Perspective......... 45 3.2.2. The Political-Actor Perspective....... 49 3. 3. The Formation of the Study................. 53 4. Research Methods and Data....................... 55 4. 1. The Use of Library Resources.............. 56 4. 2. The In-Depth Interview Method............ 58 CHAPTER II. ENVIRONMENT 1. Intr iuction..................................... 61 2. Eccromic Condition...,.......................... 62 2. 1. Worsening National Finance................. 62 2.2. Deficit-Financing Budget................... 64 2.3. The 2 Ks' Deficit........................... 67 2.3.1. Rice Economy............. 68 2.3.2. Welfare Policy......................... 73 3. Mid-Term Political Concerns.................... 82 3. 1. Direction of Change........................ 82 3. 1. 1. Trend to the Small Government......... 82 3.1.2. Stagnation of Pluralist Politics...... 85 3. 1. 3. Positive Government..................... 86 3.1.4. Conservative Critics................... 87 3.2. New Thought............................... SO 3.3. Administrative Reform History In Japan.... 95 3.3.1. The Administrative Management Agency (The Management and Coordination Agency) 97 3.3.2. Work Porce Control. ................... 100 3.3.3. The First Provisional Commission of Administrative Reform.................. 102 3.3.4. Why Not Successful. ..... 105 3. 4. Measure of Tax Increases................... 109 3. 4. 1. A Political Taboo....................... 109 3.4.2. Tax Structure........................... 113 3.4.3. Tax Policy.............................. 115 3.5. Administrative-Financial Reform In the 1980s.............................. 118 3. 5. 1. Toward a New Direction................. 119 3. 5. 2. Political Approach...................... 122 3. 5. 3. Political Spotlight on the JNR........ 126 3.5.4. Public Campaign....................... 130 4. Long-Term Political Structure.................. 133 4. 1. Mirror on Political Leadership............. 134 4. 1. 1. Cooperative Leadership................. 134 4.1.2. Changes Under the Nakasone Premiership............................. 139 4. 1. 3. The Belief System of Nakasone.......... 142 4.1.4. The 1986 System......................... 147 4.1.5. The Upshot of the 1986 System......... 151 4.1.6. What Did Nakasone Do?.................. 154 4. 2. The LDP In Policy-Making.............. 155 4.2.1. Party's Leading Posts.................. 157 4.2.2. Policy Affairs Research Council....... 160 4. 2. 3. Zoku Politics........................... 166 4. 2. 4. Factions................................. 183 4.3. Bureaucratic Tradition...................... 195 4. 3. 1. The Question of Relative Power........ 196 4.3.2. Dual Structure of Administration...... 199 4. 3. 3. Public Advisory Bodies................. 205 4.3.4. Public Advisory Bodies In the JNR Affairs..................... 210 4.3.5. Function of the Informal Meeting...... 211 4. 4. Business Influence In Politics............. 216 5. Conclusion....................................... 221 vl CHAPTER III. THE JNR AS A MULTI-FACETED PROBLEM: DESCRIPTIVE OBSERVATION 1. Introduction................................ 224 2. Background of the JNR Sectlonallzing Privatization Policy........................... 225 3. Scope of Problem................................ 227 3. 1. Financial Crisis............................ 228 3. 2. Erosion of Monopoly......................... 232 3. 2. 1. Local Railway Operation............... 232 3. 2. 2. Freight Operation.................. 235 3. 3. Unstable Labor-Management Relations....... 238 3.3.1. Labor Relation Law................. 239 3.3.2. Various Labor Unions in the JNR.. 241 3.3.3. Interrelations of Labor Unions in the JNR................ .. ...... .... 243 3. 3. 4. Mistaken Labor Policies........... 246 4. Context of Problem. ............... .. .......... 249 4. 1. Overall Organizations of Railways......... 249 4. 2. Institutional Arrangements of the JNR 252 4.2.1. General Characteristics of Japanese Public Corporation System............. 252 4.2.2. Structural Obstacles in the