Research On The Evolution Of The Japanese Government Regulatory Policy

The essence of the market economy is the economy in contract; the market economyis also a basic mode of resource allocation. The market plays a fundamental role in theresource allocation. After World War II, Japan made the post-war reform, and recoveredthe market economic order, but also accompanied by strong government intervention andregulation. Government-led market economic system combined the market mechanismand government regulation to popularize Keynesian economic policies at the macro areas.At the same time, in order to support and promote the development of the micro-economy, maintain market order, the government made intervention in themicro-economic. During this period, the regulatory policy of Japanese governmentmainly focused on the protection and support of domestic industries, promoting industrialrevitalization and economic development, in order to achieve the target to catch up withthe European countries and the United States. The competition policy is relatively weak.The combination of Government regulation and market mechanisms provided a stableenvironment for the development of the Japanese economy.Since the1970s, with changes of the external conditions, the acceleration in theprocess of economic globalization, and the innovation in science and technologyinnovation, there were structural contradictions appeared in Japan. The National-ledgrowth model is increasingly unable to meet the demand of the international market.High regulation brought about the high cost, inefficiency; closed non-trade goodsindustry accounted for the vast majority of the national economy, then the countryincreased heavy burden. Outdated regulatory system caused the rigid structure, andleaded to economic stagnation. Economic thought is the mapping of economic practice,and practice of regulation is with the impact of economic thought. Under the impetus ofthe new liberalism, such as the United States, Britain and other mature market economiesstarted the process of regulatory reform firstly, and gradually evolved into a global trend.Japan followed this step, compared with the administrative reform and the privatizationprocess of public enterprises, to expand regulation relaxation.In the1990s, after the bustling bubble economy, the problem of non-performing loans and deflation made the Japanese economy hovering at the bottom for a long time.The initial implementation of the regulation eased because of the economic downturn,people thought that government regulation stifled innovation and entrepreneurial spirit,and hindered economic development. But to inhibit the expansion of the regulation inderegulation way is not very successful. In the twenty-first century, the relaxation of theregulation was eventually replaced by regulatory reform and comprehensive regulatorypolicy. Japan regulation practiced Alleviate Regulation, that relaxed regulation-basedeconomic, to the development of regulatory reform, which strengthened regulation andsocial spheres regulation reform in local areas; and then to improve overall regulatoryquality, in order to success the stage of regulatory governance.However, the outbreak of the sub-prime mortgage crisis in the United States hasshaken the new liberal belief regulation reform, especially accompanied with severe EastJapan large earthquake, people began to reflect on the impact by neo-liberalism to Japan,and then to fix the target of Regulatory Reform: regulatory Reform ultimate goal is to thepeace of mind and security of the people, regulatory reform has been the shift from asingle system of supply-side reforms to meet the demand side of the system, and to seekto improve the quality of the regulatory reform.With the same, regulatory reform is also part of the restructuring of China’seconomy and society as a whole. Since the reform opening up, the Chinese governmentmade great progress of regulating in the practice field, but at the same time, regulatoryagencies not only separated from the Government, and even some areas there was still noindependent enterprises; government under the lack of constraints and supervision held alarge number of the approval rights, so government expanded rent-seeking space.Government used form of regulation involve in many of the matters that should belong tothe market, and market allocation of resources became into the resources of theGovernment’s decision to invest and objects, resulting in a mismatch of resources. Thispaper attempts to study the experience of the historical evolution of regulatory policy inJapan, to present useful enlightenment on Regulatory Reform in China.This paper adopts the method of combining normative analysis and empiricalanalysis, case studies and other methods to analyze the evolution of Japan’s regulatory policy in the different periods of time spanning over half a century. This paper workingthrough the historical background of the different periods of the Japanese governmentregulation policy, regulatory policy, regulatory agencies, and regulatory performanceclarify attempt to express a comprehensive and deeply understanding of the Japaneseregulatory policy.This article consists of seven chapters. Where:Chapter1is an introduction, including the issues revealing, the meaning ofRegulation and Regulatory Reform, the literature review, the significance of this research,methods and innovation, the basic content of this paper and structural arrangements.Chapter2expresses the theoretical framework between regulatory, government andmarket relations. This chapter discusses the impact of regulatory easing and RegulatoryReform Evolution of Economic Thoughts from laissez-faire to market regulations, to theRegulatory Reform under the influence of the new liberalism, with the reflection of thetwenty-first century liberalism.Chapter3discusses the state intervention until after the war to the1980s. TheWartime control system to postwar regulatory system, the government strengthens theindustrial policy and weakens competition policy under such system, while promotingrapid economic growth brought the crux of regulation, such as the market closed,industry monopoly, and regulatory capture.Chapter4discusses the expansion of the regulation easing in the1980s by the newliberalism. This chapter expresses the external reason due to regulatory easing firstly;Secondly, it shows the crux of the problem in the regulatory easing action; once again, itraises the main features of this phase of regulatory easing with administrative reformsand public enterprises privatization of regulatory easing. There are conduct JapanTelecom, Japan Rail, Japan Airlines case analysis; Finally, it analyzes "regulation to easethe promotion plan" by the Hosokawa cabinet to the Mori cabinetChapter5discusses Japan Regulatory Reform toward regulatory easing from themid-1990s to the early21st century. This chapter puts forward the urgency of reformswith the domestic and international reasons; secondly, the study focused on theregulatory governance structure of the Koizumi era establishment; thirdly, it analyzes the performance of the regulatory Reform by the use of case studies and internationalcomparative perspective.Chapter6discusses Japan Regulatory Reform, which is with the impact ofneoliberal correction. The first analysis of the motivation for this shift is primarily due tothe impact of the U.S. subprime mortgage crisis and dynamic Japanese earthquake, andthen it indicates the direction of reform. That is the Regulatory Reform profit for thelivelihood of the people.Chapter7is the main conclusions and revelation. There are the main conclusionsfrom the evolution of Japan’s regulatory policy on the basis of the above analysis, andthen there are overviews of China’s revelation.