FREE ESSAY ON JAPAN INC.

JAPAN INC.

INSIDE JAPAN INC.
In 1960 Japan was ruled by the conservative LDP. Nabuski Kitchie ran the LDP, a man who
had been jailed as a war criminal during the occupation. His comeback can be attributed
to his pre-war contacts in big business. Kitchie believed to survive Japan's economy had
to grow. I order to do so Japan's businesses had to be disciplined. Kitchie gave
directives to the ministry to pass on to the heads of big business. These directives were
much like orders from a general. 
Some Japanese people began to rebel against the growing central control the nation was
taking. They feared that democracy was being overridden for the sake of economic
prosperity. Other groups began to voice opinions regarding the direction they felt Japan
should move in. There were many forces pulling at Japan, political demonstrations,
walkouts and strikes in Japan's largest industries. This was a time of crisis in modern
Japanese history. 
The Japanese had signed a treaty with the United States, which scattered military bases
and nuclear weapons throughout Japan. Fearing the United States would use Japan as a
battleground for the Cold War, they were against the renewing of the treaty. Kitchie
however, believed with the Americans responsible for their national security, they could
use their resources to build their economy. Kitchie met with President Eisenhower and
assured him the treaty would be passed by the time of his visit to Japan. Fearing the
protests could affect the passing of the treaty Kitchie used his power in nefarious ways
to insure the passing of the treaty. As a final attempt to stop the passing of the
treaty, the Socialist politicians tried to barricade the speaker in his chambers to
prevent the vote. Kitchie sent in troops to escort the speaker to the Diet Chamber to
proceed with the vote. Because there were no Socialists in the Chamber at the time of the
vote the treaty was ratified. Upon hearing the news, Japanese students attacked the
government in a huge protest. During this protest a student was killed. Due to the
anti-American theme of the time President Eisenhower cancelled his visit to Japan.
Kitchie was completely embarrassed and resigned just five days after the treaty was
ratified. 
Labor unions became a thorn in the side of big business. Despite legal agreements between
the unions and business to the contrary 1200 workers were laid off. Picket lines made
national attention after a man in line was stabbed. To further complicate national
matters, a right wing fanatic assassinated Umajio Asanuma, the leader of the Socialist
Party at the podium of the Diet Chamber. This forced Japan to realize that they had to
unite the people to insure economic growth.
To bring unity to Japan enters a bureaucrat Ikeda Hayato. At this time big business and
the government were on the same team. MITI, Ministry of International Trade and Industry,
was the primary Japanese government agency charged with the formulation and execution of
industrial policy (Pacific Century, page 257). MITI decided Japan's future was dependent
on electronics. Supported by the government, the Japanese were able to invent new
products. The government let big business form kaitsu, grouping of banks, manufacturers
and distributors. These kaitsu would violate anti-trust laws in the United States, but
worked for Japan's economy. Japanese companies shared technology and resources to
accelerate the economy. Japanese products entered the American markets, and began to
affect American companies. Japan concentrated on technological advantages and low prices,
where the United States concentrated on customer service; as a result Americans lost
jobs. 
Between 1985 and 1992 the United States spent over 30 billion dollars on military bases
to defend Japan. During that same period Japanese companies spent more than one hundred
billion buying American businesses and real estate. They went on to buy over 41 million
dollars of the United States growing debt. They are 120 million people working in harmony
for the sole purpose of building economic power for Japan Inc., which have succeeded in
making Japan a world economic power.