The Japanese government is becoming less involved in shaping
industrial policy - but what does this imply for the openness of
Japanese markets to foreign competition?;In an extensive study of
"post-development" Japan, Ulrike Schaede argues that, contrary to
what many have suggested, the reduced role of government regulation
may not result in more open markets. Instead, as has happened
throughout Japanese history, deregulation and the recession of the
1990s have once again led Japanese trade associations to assume
important regulatory functions of their own. They do this through
"self-regulation" - setting and enforcing the rules of trade for
their industries, independent from the government. As a result,
many Japanese markets are now effectively governed by incumbent
firms, in particular in terms of structuring the distribution
system. As the record of post-war antitrust enforcement reveals,
Japan's antitrust system considers most activities of
self-regulation, other than outright price-fixing, as legal.
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