The Japan Policy Research Institute held its first of three workshops on
Japanese Management of Technology Polices and Practices, at the University of
San Diego Sept. 15-16. The program was entitled "Japanese Industrial Policy:
Praxis and Polemics," although my general sense is that it was more polemics
than praxis.

I've included my thumbnail sketches of the talks, not including panel
discussions and Q&A.

The workshop was co-sponsored by the New Mexico US-Japan Center. The second
workshop is Oct 13-14 at the University of New Mexico and includes Alice Amsden,
Skip Orr, Mark Tilton, Sen Bingaman and return visits by Chalmers Johnson and
Steve Clemons. The third workshop is Dec. 8-9 in D.C.; for more info, E-mail
.

Joel West
UCI Graduate School of Management

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Summary of Talks

"Japanese Capitalism: The Intellectual and Ideological Controversy" Chalmers
Johnson, president, JPRI
Japan had faster growth than the U.S. in the postwar era, and today has larger
higher per capita capital investment, savings rate, and total foreign aid. Why
has Japan been so economically successful? There are three possible
explanations: 1) Japan's industrial policy; 2) U.S. priorities during the Cold
War; 3) Japan's culture adjusting to the threat of Western imperialism. All
three are discussed.

"The Regulatory Environment of Japanese Industrial Policy" Marie Anchordoguy,
Associate Professor, Jackson School, Univ. Washington
Want to cover four points: 1. What do we mean by the term "industrial policy"?
2. Why such a vigorous debate in the U.S.? 3. Japan's industrial policy today.
4. Role of industrial policy in Japan's economy. Don't think if industrial
policy changes this means core ideology will change. Even with planned changes
in economy and industrial structure, Japan still is likely to use government-led
industrial policy to effect such changes.

"Japan's Strategic Use of Foreign Aid"
David Arase, Pomona College; author of Buying Power
Although Official Developmental Assistance (ODA) has a humanitarian side,
Japan's ODA (concentrated in S.E. Asia) has been driven by several key
objectives for Japan, including penetrating developing markets, gaining the
upper hand vs. the U.S. and improving the competitiveness of post-endaka
Japanese industry.

"The Ministry of Finance's Role in Industrial Policy" Eamonn Fingleton, author
of Blindside
The Japanese economy is still successful, despite boosterism of the U.S. press
that say U.S. industry has "come back." The financial system has problems but
this has little effect on the real economy. Japan continues to emphasize
manufacturing, which provides a good mix of jobs, rather than the American's
misguided interest in services. Who's in charge? Still the Ministry of Finance,
where bureaucrats are not losing their grip on power.

"Japanese Industrial Policy as seen from Southeast Asia" Andrew MacIntyre, UCSD
IR/PS
We've seen good economic growth in SE Asia [excluding Singapore in this
analysis], not as good as the NIC's and NE Asia, but still strong. The reason
that experts give for Japan and elsewhere is the existence of a strong,
incorruptible bureaucracy fighting for the national interest, but in SE Asia the
bureaucracy is sometimes strong but mostly "permeated" by clientilist interests
- and they still have done well. Japan has important influence but it hasn't
conquered Asia; the U.S. has influence and would have key trade allies if it
didn't always upset people.