chapter  3
25 Pages

Postwar Patterns of State-Market Relations

ByGuoli Liu

Post-war Japanese socio-political and economic development is dramatically different from that of the pre-war case. The pre-war Japanese political system was by the standards of the time predominantly authoritarian. The post-war Japanese institutions and behaviors compare favorably with those of other contemporary democracies. In Japan, the post-war national consensus was economic catching-up with the West. For Soviet regime, the top priority was to achieve military and strategic parity with the United States. Every economic system is influenced by endogenous and exogenous factors. The degree of a regime’s ability to control is the main difference between endogenous and exogenous factors. Japanese government officials are skeptical of the complete free market principles. Reforming the Soviet economy was a central task of perestroika. Since the mid 1950s, there have been several serious efforts at reforming the centrally planned economic system. In Japan, the Meiji reformers overcame the fear of market insecurity by initiating state capitalism first and selling state enterprises to private entrepreneurs.