Abstract

The Japanese are becoming much more explicit about how their form of capitalism differs from the Anglo-American model. The key differences are: managerial autonomy from the interests of stockholders and employees; social priorities that favor producers over consumers; industrial policy, meaning the development, guidance, and supervision of industry by the government; and the strong Japanese state, whose legitimacy derives from its accomplishments rather than from public consent. The Japanese version of capitalism is fully viable and likely to prevail over its competitors.