chapter  5
26 Pages

The Japanese Model: Limits and Lessons for Russia

ByGuoli Liu

This chapter argues that Russia can follow Japan’s example and draw lessons from it as Japan learned from the West. In particular, it sees special opportunities in the following specific areas: indicative planning, industrial policy, private ownership, pragmatism, intensive growth, separation of state and party, and international competition. The dramatic growth of the Japanese trading state in the postwar era has attracted increasing attention from the international community. Indicative planning is a key link in Japanese state-market relations. The Japanese economy is predominately privately owned. At the initial stage of modernization, the Japanese government directly engaged in industrial undertakings. A key to the success of the Japanese economy is that there are clear-cut rules for winners and losers. Among advanced economies, the Japanese are famous because of the protectionism they practiced in guarding their infant industries against foreign competition. The vitality of the Japanese market first of all is reflected in the competitiveness of Japanese products in the world market.