Chapter 2. Japanese Policy Making in a World of Constraints

As Japan moved into the twenty-first century, it found its position and options within the world economy and within Japan fundamentally changed. In contrast to most of the postwar era, which had been a period of growing opportunities, the 1990s and early twenty-first century were characterized by growing constraints. Legal, political, and economic changes both within and outside Japan had narrowed the possibilities for policy makers and corporations seeking to protect firms and sectors from the challenges of an ever more competitive marketplace.