Notes Introduction 1. Businessweek, June 26, 1989. 2. Businessweek, July 17,1989. 3. Clyde Prestowitz, Trading Places, pp. 11, 27. 4. Japan 1989: An International Comparison. 5. Ibid. 6. See Eugene Kaplan, Japan: The Government-Business Relationship for the most detailed account of this thesis. See Marvin Wolf, The Japanese Conspiracy, for a highly polemical version. 7. For the best account see Hugh Patrick and Henry Rosovsky, Japan: The New Economic Giant. • 8. Akio Morita and Shintaro Ishihara, The Japan That Can Say No, xeroxed copy. 9. Ibid., pp. 8-14, 19-26,52-60. The growing emotionalism with which Japanese respond to foreign criticism of Japanese neomercantilism is vividly reflected in the chapters by Ishihara, who makes a range of unfounded and/or highly irresponsible assertions such as "the roots of the US - Japan friction lie in the soil of racial prejudice", "Americans behave more like mad dogs than watchdogs", "the only reason why they could use the atomic bomb on Japan was because of their racial attitude toward Japan", "the US Congress is too hysterical to trust", or "Americans suggest the possible physical occupation of Japan in case Japan engages in semiconductor trade with the Soviet Union". Ibid., pp. 11, 12, 18, 52, 65. 10. Japan 1989. 11. Economist, April 29, 1989. 12. See William Nester, The Foundations 0/ Japanese Power, 1990. 13. Chalmers Johnson, The Industrial Policy Debate, p.5. 14. Yamamura, 1989. 15. Mordechai E., Keirinin, "How Closed is Japan's Market?: Additional Evidence", World Economy, vol.11, no. 4, July 1989, p.539. 16. Economist, September 6, 1989. 17. Robert Lawrence, "Does Japan. Import too Little: Closed Minds or Markets", Brookings Papers in Economic Activity, No. 2, Washing­ ton, 1987. 18. Keirinin, op. cit., pp. 537-538. 19. Japan 1989. 20. Economist, August 12, 1989. 21. New York Times, November 20, 1989. 22. Japan Economic Journal, November 11, 1989. 23. Japan Economic Journal, November 11, 1989. 24. Japan Economic Journal, November 11, 1989. 25. Japan Economic Journal, October 8, 1989. 255 256 Notes 26. See William Nester, Japan's Growing Power, 1989. 27. Japan 1989. 1 Neoclassical versus Neomercantilist Economics: 1. Freedom House Survey 0/ Political Democracies, 1989. 2. Adam Smith, Wealth 0/ Nations, 1776. 3. Scott and Lodge, p. 73. 4. Ibid., p. 74. 5. Ibid., p. 94. 6. Ibid., p. 94. 7. Freidrich List quoted in John Spanier, Games Nation's Play. 8. Ibid., p. 355. 9. Kanemitsu. 10. Scott and Lodge, op. cit., p. 96. 11.. Patrick, p. xiii. 12. Chalmers Johnson, ed. The Industrial Policy Debate, 1984, p. 3. 13. Leipzinger, 1988, p. 123. 14. Scott and Lodge, op. cit., pp. 71-72. 15. Chalmers Johnson, MITl and Japan's Economic Miracle, pp. 17-18. 16. Chalmers Johnson, The Institutional Foundations 0/ Japanese Indust­ rial Policy, in Barfield and Schambra, eds The Politic o/lndustrial Policy, American Institute for Public Policy Research Washington, DC 1986, p. 201. 17. Johnson, op. cit., 1982, p. 17. 18. Scott and Lodge, op. cit., p. 72. 19. Zysman 1983, pp. 55-95. 20. Okimoto, in Patrick, op. cit., p.40. 21. Quoted in Scott and Lodge, op. cit., p. l33. 22. Ibid., p. 72. 23. Johnson, op. cit., 1984, p. 3. 24. Fleteher Forum. 25. Scott and Lodge, op. cit., pp. 80-95. 2 Japanese Neomercantilism 1. World Herald, August 16, 1989. 2. Hugh Patrick, "The Future of the Japanese Economy," Journal 0/ Japanese Studies, Summer 1977, p.239. 3. Chen, 1979, pp. 183-84. 4. Friedman, The Misunderstood Miracle, pp. 6, 8. 5. US New and World Report, June 5, 1989. 6. Ronald Dore, Flexible Rigidities, p. 5. 7. Ibid., p. 1. 8. Akio Morita and Shintaro Ishihara, The Japan That Can Say No, xeroxed copy, p. 64. 9. Omaha World Herald, August 6, 1989. One might think that the Notes 257 members of anational culture which has evolved for over 1,500 years might be a little more secure about their national identity. For an in-depth discussion of the interrelated problems of Japanese identity, culture, and nationalism, see William Nester, The Foundations of Japanese Culture, chapter 13. 10. John Henderson, Foreign Enterprise in Japan: Laws and Policies p. 98. 11. J. A. A. Stockwin, Dynamic and Immobi/ist Politics in Japan. 12. Takashi Inoguchi and Tomoaki Iwai, "Zoku Giin" No Kenkyu, Tokyo Nihon Keizai Shinbunsha, 1987. 13. Seizaburo Sato and Matsuzaki Tetsuhisa, Jiminto Seiken, Tokyo: Chuo Koronsha, 1986. 14. Allinson, p. 327. 15. Daniel Okimoto, p. 145. 16. Japan 1989. 17. Ibid. 18. Okimoto, op. eit., p. 230. 19. Chalmers Johnson, MIT1 and Japan's Economic Miracle, p. 12. 20. Kent Calder's 1988 study of amakudari revealed that while most bureauerats parachuted into the top 500 corporations, many moved into medium-sized, less established firms. These bureauerats serve as a seed-bed of expertise and influence for firms that normally cannot attract the top college graduates. Industrial Group firms, on the other hand, increasingly do not need to employ large numbers of ex­ bureauerats because they have already established powerful ties with policymakers. The result may not be quite the "equalization" of political and economic power between the industrial groups and other Japanese firms that Calder asserts, but clearly the imbalance is less unequal. The most notable effect of the scattering of influential ex­ bureauerats across Japan's economic spectrum is to enable declining industrial sectors to prevent extensive restructuring and the emergence of free markets demanded by foreign countries. Kent Calder, "Elites in an Equalizing Role: Ex-Bureaucrats as Coordinators and Inter­ mediaries in the Japanese Government-Bus Relationship," Compara­ tive Politics, vol. 21, no. 4, July 1989. 21. Japan Economic Journal, June 17, 1989. 22. Okimoto, op. cit., p. 90. 23. Ibid., p. 140. 24. Japan Economic Journal, June 17, 1989. 25. See Friedman, chapter 4 for an excellent discussion. 26. Japan 1989. 27. Okimoto, op. cit., pp. 187, 191. 28. Ibid., p. 19. 29. Johnson, op. cit., p. 10. 30. Quoted in OECD Annual Report, Paris, 1972. 31. Quoted in Scott and Lodge, op. cit., pp. 95, 138. 32. White and Wade, 1988, pp. 5-7. 33. Hayden in Okimoto, p. 91. 34. Hamada 248 Yamamura. 35. Johnson, op. cit., p. 29. 258 Notes 36. Ibid., p. 17. 37. Ibid., p. 247. 38. Henderson in Saxonhouse, pp. 131, 132. 40. Johnson, op. cit., p. 65. 41. Henderson, 138, 139 Saxonhouse. 42. White and Wade, 1988: pp. 7-8. 43. Bobrow and Chan, 1986: p.51. 44. New York Times, November 24, 1989. 45. Japan Economic Journal, August 19, 1989. 46. Henderson in Saxonhouse, op. cit., p. 135. 47. Friedman, op. cit., p. 73. 48. Okimoto, op. cit., p. 65. 49. New York Times, November 24, 1989. 50. New York Times, November 2, 1989. 51. See William Nester, The Foundations of Japanese Power, 1990. 52. Johnson, op. cit., p. 36. 53. Ibid., p. 48. 54. Henderson, op. eit., pp. 131,133. 3 For their Money and Votes: 1. Alvin Toffter's, The Third Wave, provides the most thorough account of these changes. 2. Economist, February 20, 1988. 3. Hillman, p. 43. 4. Consumer survey favoring protection. 5. Hall, History of Japan. 6. Selling into prostitution. 7. Castle, p. 153. 8. George, p. 421. 9. Donnely. 10. George, op. cit., p. 411. 11. Hrebrenaur, Baerwald. 12. Consumer group fronting farmers. 13. Castle, op. cit., pp. 136, 321. 14. Ibid. 15. Ibid. 16. Ibid., p. 103. 17. Hillman, op. cit., pp. 47-50. 18. Castle, op. cit., p. 630. 19. Ibid., pp. 64-67. 20. Ibid., p. 248. 21. Hillman, op. cit., p. 52. 22. Castle, op. cit., p. 70. 23. Ibid., p. 75. 24. Japan Economic Journal, April 16, 1988; July 2, 1988. 25. Japan Economic Journal, December 17, 1988. 26. Far Eastern Economic Review, April 7, 1988. Notes 259 27. Japan Economic Journal, December 17, 1988. 28. Ibid. 29. International Herald Tribune, May 13, 1989. 30. Japan Economic Journal, December 10, 1988. 31. Ibid. 32. Ibid. 33. Economist, October 22, 1988. 34. Japan Economic Journal, February 27, 1988. 35. Japan Economic Journal, October 15, 1988. 36. Economist, October 22, 1988. 37. Japan Economic Journal, December 10, 1988. 38. Japan Economic Journal, October 15, 1988. 39. Ibid. 40. Economist, February 27, 1988. 41. Economist, August 20, 1988. 42. Economist, April 30, 1988. 43. Laumer, p. 261. 44. Economist, August 13, 1988. 45. Economist, January 28, 1989. 46. Laumer, op. cit., p. 257 in Puget. 47. Woronoff. 48. Japan Economic Journal, March 12, 1988. 49. Economist, January 28, 1989. 50. Douglas, p. 108. 51. Laumer, op. cit., p. 265. 52. Economist, January 28, 1989. 53. Ishida, p. 323. 54. Economist, January 28, 1989. 55. Ishida, op. cit., pp. 323-340. 56. Ibid., p. 326. 57. Businessweek, May 8, 1989. 58. Japan Economic Journal, May 17, 1989. 59. Japan Economic Journal, June 10, 1989. 60. Ibid. 61. Economist, December 17, 1988. 62. Businessweek, March 14, 1988. 63. Japan Economic Journal, March 12, 1988. 64. Economist, January 28, 1989. 65. Economist, January 31, 1987. 66. Japan Economic Journal, March 12, 1988. 67. Ibid. 68. Economist, April 29, 1989. 69. Japan Economic Journal, January 9, 1988; February 13, 1988. 70. Far Eastern Economic Review, March 24, 1988. 71. Japan Times, November 16, 1987. 72. Far Eastern Economic Review, January 7, 1988. 73. Economist, April 29, 1989. 74. Economist, April 29, 1989. 75. Japan Economic Journal, January 30, 1988. 260 Notes 76. Los Angeles Times, April 3, 1988. 77. Japan Economic Journal, February 13, 1988. 78. Ibid. 79. Ibid. 80. Japan Economic Journal, January 23, 1988. 81. Ibid. 82. Japan Economic Journal, June 10, 1989; Economist, April 29, 1989.