Chapter

Globalization, finance, and economic nationalism: the changing role of the state in Japan

Takaaki Suzuki

in Globalization and Economic Nationalism in Asia

Published in print June 2012 | ISBN: 9780199646210
Published online September 2012 | e-ISBN: 9780191741630 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199646210.003.0005
Globalization, finance, and economic nationalism: the changing role of the state in Japan

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This chapter explores how economic nationalism in Japan has changed in the last 30 years and where it might be heading in the future. It looks at state intervention, which Japan has perfected by deftly combining state action with large private corporations. However, prolonged stagnation since the late 1980s condemned this approach and replaced it with neoliberal policies. This chapter counterintuitively argues that despite scaling back the role of the state in many economic regulatory and welfare-related areas actually increased. Relying on financial and macroeconomic policies since the early 1980s, the chapter shows that globalization and financial liberalization were accompanied by the creation of several powerful state-backed institutions entrusted with substantial financial resources and a wide range of regulatory authority that go well beyond what is deemed “prudential regulatory” safeguards. However, such policies consistent with economic nationalism failed to deliver on its promises of growth and social stability.

Keywords: Japan; financial liberalization; regulatory authority; neoliberalism; financial policies; macroeconomic policies; social stability; growth

Chapter.  11205 words. 

Subjects: Business and Management

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