Big Business Lobbying in Japan: The Case of Central Bank Reform

The political activities of the business community in Japan have not received the scholarly attention they deserve. Because of the paucity of information and the lack of serious studies, the nature of the political power of Japanese business is poorly understood. The popular notion that big business is influential in politics is quite correct, but just how the influence is exercised, or how much influence can be brought to bear in a particular field of policy, or what conditions limit or augment business influence are far from clear. This paper seeks to single out some of the important conditions affecting the impact of business influence in Japanese government and politics. The case approach is used, and the case is the abortive effort toward central bank reform. Even though this episode concerns only a small portion of the government machinery and the single field of monetary policy, it nevertheless demonstrates the methods commonly employed by business to reach decisions within its own group, the competition with others encountered in persuading the government to act, and the strength of bureaucratic forces resisting change. The simplicity of this case is an advantage in depicting the conflicting groups and the influence they were able to exert. Later studies may reveal more of the pattern of business action on other economic problems and in other areas of government and politics. The bank case showed the great influence of group and personal loyalties as well as the power of one of the government ministries.