ABSTRACT
Japan's industrial organization positively contributed to high economic growth, and it created friction between the market and the environment, which has become the cause as well as the consequence of the fragility of public action and social welfare. The Japanese economy is often said to possess outstanding adaptability. The foundation of Japan's postwar industrial organization was laid when the zaibatsu were dissolved. The holding companies, which had been at the center of the zaibatsu control, were dissolved by the Holding Company Liquidation Commission, and the Law for the Elimination of Excessive Concentrations of Economic Power was enacted as a special law. The postwar industrial policy which had incorporated elements of economic control into the market mechanism in a complex form led to the creation of a growth accelerating system of producer sovereignty. In this system of industrial organization unique to Japan, an important role was played by the administrative guidance in the name of fixed-investment adjustment.
