The spectacular postwar development of the Japanese steel industry is frequently cited as an example of successful industrial policy. The Japanese steel industry has achieved and sustained its present state, in significant part, through a government-sanctioned system which restrains competition in the domestic market. Government policies, particularly those of the Ministry of International Trade and Industry (MITI), played a critical role in this expansion. MITI deserves much of the credit for the postwar reconstruction of the steel industry and its subsequent rapid expansion in the 1960s. In addition, the Long Term Credit Bank of Japan channeled a substantial volume of government funds into the steel industry for equipment acquisition and long-term working capital. One of the most distinctive features of the Japanese steel industry is the significant number of greenfield steel mills of large scale constructed after 1960 at prime seaside locations where transportation costs are lowest.