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Banking policy breakdown and the declining institutional effectiveness of Japan's Ministry of Finance: Unintended consequences of network relations
Bibliografi
Author:
Okimoto, Daniel I.
(Advisor);
Amyx, Jennifer Ann
Topik:
POLITICAL SCIENCE
;
PUBLIC ADMINISTRATION|ECONOMICS
;
FINANCE|HISTORY
;
ASIA
;
AUSTRALIA AND OCEANIA
Bahasa:
(EN )
ISBN:
0-599-06859-0
Penerbit:
Stanford University
Tahun Terbit:
1998
Jenis:
Theses - Dissertation
Fulltext:
9908703.pdf
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Abstract
This dissertation analyzes Japanese postwar banking policies, focusing in particular on the Ministry of Finance's capacity for effective policy adaptation in the period 1972-1998 with organizational structures and highly dense network relationships that took shape and hardened during the earlier era of rapid economic development and growth. The study argues that the ministry's network of informal, dense, opaque and pervasive relationships have constrained it in important ways in the 1980s and 1990s, impeding intended progress in the financial sector and producing incentives for the ministry to adopt forbearance and forgiveness in dealing with troubled financial institutions. The study further identifies a breakdown in the norms surrounding these relationships in the 1990s and the effect of this development upon policy outcomes. The study arrives at its conclusions through a detailed institutional analysis of the Ministry of Finance. Drawing upon archival research, extensive interviews with bureaucrats, private sector representatives and elected politicians, and an analysis of the entire set of career histories of MOF officials attaining positions of division chief or higher from 1946-1993, the study constructs a typology of amakudari networks and traces the origin and evolution of four particularly important MOF network relationships. The study further examines the microfoundations of bureaucratic behavior in the ministry and finds that individual interests of MOF bureaucrats are intertwined with institutional interests in such a way that the focal point of decisionmaking for the individual becomes the organization and individual bargaining power becomes enhanced by forming associations. Furthermore, the study argues that this system of network relationships brings pressures to bear on individual decisionmaking processes within the MOF which then become translated into institutional policy decisions. While the study finds that a number of the problems afflicting the Japanese banking system in the 1990s parallel those underlying past and current banking crises elsewhere in the world, it also finds that the ministry's network relationships prove crucial explanatory variables for (1) the magnitude of Japan's banking crisis in comparative perspective and (2) why the resolution of this crisis continues to elude the nation nearly eight years after its inception.
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