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How has Japan's industrial strategy evolved over time


Production was emphasised over private consumption and measures like government subsidies were instituted to make industrial investment profitable. High tariffs were prohibited because of an 'unequal' treaty with the US. Japan did not obtain tariff autonomy until 1911. .
             It was during this time that the themes of modern Japanese industrial policy emerge. After a decade and a half of direct state operation of economic enterprises, Meiji Japan began to shift away from state entrepreneurship to collaboration with privately owned enterprises, favouring those capable of adopting new technologies and who could contribute to economic growth. In the pre Second World War era this collaboration between state and private sectors took the form of close government ties to the zaibatsu (privately owned industrial empires).
             The government induced the zaibatsu to invest in areas where it felt the most development was needed. The zaibatsu pioneered the commercialisation of modern technologies in industry and achieved economies of scale in manufacturing and banking that were on par with the rest of the world. Also the promotion of the zaibatsu led to a much needed increase in competition in the Japanese economy.
             By the 1930's when the political parties were under heavy attack by the militarist lobby, both the civilian and military bureaucracies extended the scope of their activities. The decade and a half from 1930 to 1945 ended with the consolidation and increase in power of the bureaucracy. .
             However by the end of the war this bureaucratic organisation had to face fierce domestic criticism for the disasters it brought to the nation. But unusually although it didn't escape from the Allied reforms unscathed a part of the original bureaucratic apparatus- the economic ministries, emerged with even greater powers. The occupation authorities known as SCAP (Supreme Commander for the Allied Powers) eliminated the major rival of the economic bureaucracy i.


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