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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. University Microfilms International A Bell & Howell Information Company 300 North Zeeb Road. Ann Arbor. Ml 48106-1346 USA 313/761-4700 800/521-0600 Order Number 9420982 Policy change and political leadership in Japan: Case studies of administrative reform and tax reform Lee, Myon Woo, Ph.D. The Ohio State University, 1994 Copyright ©1994 by Lee, Myon Woo. All rights reserved. 300 N. Zeeb Rd. Ann Arbor, MI 48106 POLICY CHANGE AND POLITICAL LEADERSHIP IN JAPAN: CASE STUDIES OF ADMINISTRATIVE REFORM AND TAX REFORM DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Myon Woo Lee, B.A., M.A. The Ohio State University 1994 Dissertation Committee: Approved by Bradley M. Richardson (Chair) William Liddle ~ /Xdviser Anthony Mughan Department of Political Science Copyright by Myon Woo Lee 1994 To My Parents and My Wife ii ACKNOWLEDGMENTS I would like to express my sincere appreciation to Professor Bradley Richardson for his guidance and insight during the various stages of this study. I also deeply appreciate the suggestions and comments of Professors William Liddle and Anthony Mughan. 1 am intellecatually indebted to all of my interview respondents, but special thanks should go to Sadake Koroke and Yanagizawa Hakuo for their support and encouragement. The editorial assistance of Tae Ho Kim and Steve Nichols is gratefully acknowledged. It is my privilege and duty to acknowledge the unshakable faith of my parents in my study. To my wife, Keum Ok, I am grateful for her willingness to endure with me for the vicissitudes of my endeavors. I dedicate this study to my parents and my wife. To my children, Changwon and Sumin, I thank them for their understanding of my broken promises. VITA March 1, 1960 ....................................................... Bom - Seoul, Korea 1983 ......................................................................... B.A., Seoul National University, Seoul, Korea 1992 ......................................................................... M.A., The Ohio State University, Columbus, Ohio Fields of Study Major Fields: Political Science Studies in Comparative politics, political theory and Japanese political economy TABLE OF CONTENTS DEDICATION.................................................................................................. ii ACKNOWLEDGMENT ................................................................................... iii VITA ................................................................................................................ iv ABBREVIATIONS .......................................................................................... xi CHAPTER I. INTRODUCTION: THE SCOPE AND METHOD OF THE STUDY 1. Leadership Effects in Japanese Policymaking Process................................... 7 2. The Cases: Administrative Reform and Tax Reform...................................... 18 3. Conditions for Leadership Development in Policymaking............................... 21 3.1. The Models of Policy Change................................................................. 21 3.2. Leadership Literature ................................................................................. 25 3.3. Framework of Analysis............................................................................. 29 4. The Methodological Notes................................................................................ 31 v CHAPTER II. THE LEGAL AND INSTITUTIONAL STRUCTURE 1. The Constitutional Role and Status of the Prime Minister.............................. 34 2. The Institutional Surroundings of Japanese Prime Minister........................... 37 2.1. The Process of Presidential Election in the LDP...................................... 38 2.2. The Office of Prime Minister..................................................................... 44 2.2.1. Public Advisory Bodies........................................................................ 50 2.3. The Policymaking Flow.............................................................................. 54 2.3.1. The "Zoku" Politics.............................................................................. 60 2.3.2. The Structure of the LDP.................................................................... 63 3. Leadership Circulation under the LDP Regime: Ascriptive Tendency.......... 64 3.1. Frequent Leadership Circulation in Japan................................................. 65 3.2. The Predominance of the LDP.................................................................... 68 4. Summary ............................................................................................................. 70 CHAPTER III. CASE ONE: ADMINISTRATIVE REFORM 1. Introduction.......................................................................................................... 73 2. The Fukuda Cabinet............................................................................................ 75 2.1. The Process of Fukuda Administrative Reform....................................... 75 2.1.1. PM Fukuda's Initial Moves............................................................... 75 2.1.2. Opposition Responses......................................................................... 78 vi 2.1.3. The "Nishimura" Plan and the Follow-Ups....................................... 80 2.2. Fukuda Leadership: Its Elements and Environments.............................. 83 2.2.1. Issue Commitment: Extent and Direction.......................................... 83 2.2.2. Ideologies, Goals, Motivations, and Personality............................... 85 2.2.3. Resources and Strategies...................................................................... 89 2.3. Summary ....................................................................................................... 93 3. The Suzuki Cabinet............................................................................................. 95 3.1. The Process of Suzuki Administrative Reform......................................... 95 3.1.1. Formation of the PCAR...................................................................... 95 3.1.2. The PCAR Third Report...................................................................... 103 3.2. Suzuki Leadership: Its Elements and Environment................................. 112 3.2.1. Issue Commitment: Extent and Direction........................................ 112 3.2.2. Ideologies, Goals, Motivations, and Personality............................... 114 3.2.3. Resources and Strategies...................................................................... 115 3.3. Summary ....................................................................................................... 120 4. The First Nakasone Cabinet............................................................................... 123 4.1. The Process of Nakasone Administrative Reform................................... 123 4.1.1. Activities of the PCAR and the Formation of the PCPAR............. 124 4.1.2. Subsidies Reduction ............................................................................. 129 4.1.3. Tax Increase and Budget Making....................................................... 134 vii 4.1.4. Administrative Integration.................................................................. 139 4.1.5. Privatization of Special Companies................................................... 142 4.2. Nakasone Leadership: Its Elements and Environments........................... 147 4.2.1. Issue Commitment: Extent and Direction......................................... 147 4.2.2. Ideologies, Goals, Motivations, and Personality............................... 148 4.2.3. Resources and Strategies ........................................................................ 152 4.3. Summary ....................................................................................................... 155 5. Conclusion.......................................................................................................... 157 CHAPTER IV. CASE TWO: TAX REFORM 1. Introduction........................................................................................................