ABSTRACT
The conclusion chapter presents some closing thoughts covered in the preceding chapters in this book. Hirao Koji represents two extremes of Japans encounter with the century just past. He spends most of his career as a strategic lender working for one of the classic instruments of directed credit, the Long-Term Credit Bank. He is well couched in the logic and principles of industrial policy. By the end of his career, as managing director of LTCB, he was there to see it fail and be taken over by the Japanese government, as part of the general collapse of Japans post-war economic model. There was little difference between the thinking of the Chinese and Japanese governments, Xie added. Both economies were centrally managed. In China, 40 per cent is socialist and 60 per cent is capitalist. Within ten years the Chinese and Japanese economies would be so closely integrated that they would have to deal with political and security issues in new ways.
