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๐ŸŽŽhistory of japan review

Ministry of International Trade and Industry

Written by the Fiveable Content Team โ€ข Last updated September 2025
Written by the Fiveable Content Team โ€ข Last updated September 2025

Definition

The Ministry of International Trade and Industry (MITI) was a Japanese government agency established in 1949, responsible for formulating policies related to trade, industry, and economic growth. MITI played a vital role in Japan's post-war economic recovery and the rapid industrialization that transformed the nation into one of the world's leading economies by the 1970s.

5 Must Know Facts For Your Next Test

  1. MITI was instrumental in Japan's post-World War II economic miracle, helping to coordinate resources and promote key industries like steel, automobiles, and electronics.
  2. The agency employed a close relationship with private industry, providing subsidies and protection while fostering innovation through research and development.
  3. MITI facilitated exports by negotiating trade agreements and establishing favorable conditions for Japanese companies in international markets.
  4. The organization was restructured in 2001 into the Ministry of Economy, Trade and Industry (METI) to adapt to changing economic conditions and globalization.
  5. One of MITI's key strategies was the 'Selective Import Policy,' which restricted imports of certain goods to protect domestic industries during their growth phases.

Review Questions

  • How did the establishment of MITI influence Japan's post-war economic recovery?
    • MITI was crucial for Japan's post-war economic recovery as it provided strategic guidance and support for industrial development. By coordinating resources and promoting key sectors like manufacturing, MITI helped facilitate rapid industrialization. This approach not only revitalized the economy but also laid the foundation for Japan's emergence as a global economic power.
  • Discuss the relationship between MITI and private industry in Japan's economic growth.
    • The relationship between MITI and private industry was characterized by collaboration and mutual support. MITI provided subsidies, regulatory guidance, and protectionist measures to nurture key industries, while private firms contributed innovation and efficiency. This partnership enabled Japan to develop competitive advantages in various sectors, leading to significant economic growth during the latter half of the 20th century.
  • Evaluate the long-term impacts of MITI's policies on Japanโ€™s economy in the context of globalization.
    • MITI's policies had lasting impacts on Japan's economy, shaping its industrial landscape and global competitiveness. However, as globalization increased in the late 20th century, some of these policies faced criticism for hindering adaptability. The shift towards a more open market under METI highlighted challenges in balancing protectionism with global competition, influencing how Japan navigated its economic strategy in an interconnected world.