708-Chaudhari Technical Institute, Gandhinagar - Gujarat ...

Foodstuffs 406.12 5199.42
Iron ore & concentrates 1356.58
LNG 3471.85
Machinery 13316.64 4825.71
Manufactured goods 8784.81 5378.60
Raw materials 946.15 4765.88
Source: Japan Ministry of Finance
Blanks indicate either zero values
or no directly comparable data.
8 ROLE OF GOVERNMENT
Japan’s system of economic management is probably without parallel in the
world. Though the extent of direct state participation in economic activities are
limited, the government’s control and influence over the business is stronger
and more pervasive than in most other countries with market economies. This
control is exercised primarily through the government’s constant discussion
with business and through the authorities’ deep indirect involvement in
banking. Consultation is mainly done by means of joint committees and
groups that monitor the performance of, and set targets for, nearly every
branch and sector of the economy. Japanese bureaucrats utilize broad
discretionary power rather than written directives to offer “administrative
guidance” in their interaction with the private sector in order to implement
official policies. However, since the early 1990s, efforts have been made to
limit the use of such unwritten orders, which have been castigated for creating
an atmosphere of collusion between the authorities and big business.
There are several agencies and government departments that concern
themselves with such aspects of the economy as exports, imports,
investment, and prices, as well as with overall economic growth. The most
important of these agencies is the Economic Planning Agency, which is under
the Ministry of Economy, Trade, and Industry (until 2001 the Ministry of
International Trade and Industry) and, apart from monitoring the daily running
of the economy, also is responsible for long-term planning. The practice of
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