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Pacific Affairs: An International Review of Asia and the Pacific
Japan and Industrial Adjustment in Asia: Overproduction Problems in the Synthetic Fibre Industry
By Hidetaka Yoshimatsu
Abstract
This article uses a case study of the synthetic fibre industry to examine why and how the Japanese government has committed to resolving overproduction problems in Asia. The Japanese Ministry of International Trade and Industry (MITI), which increased its interests in overproduction problems in Asia after the early 1990s, conducted surveys of production capacity in major Asian fibre production countries and economies, and deepened the recognition of a likely oversupply of major synthetic fibres. Indeed, though MITI's initiative seemingly aimed to resolve the 'regional' production problems, it was also undertaken with the premise of assisting in the sound implementation of industrial adjustment in the 'domestic' textile industry. In addition, MITI's initiatives were based on the developmental state paradigm. The commitments were sustained by the perception that some kinds of government-led coordination were necessary for the sound development of synthetic fibre production, because free market competition tended to lead to market disruption. MITI also adopted a 'developmental' method in setting up a consultative forum comprised of government officials and private representatives. While MITI and synthetic fibre producers shared the objective of resolving overproduction problems in Asia, they did not manage to coordinate their efforts effectively. This failure stemmed from their inability to forge a reliable relationship with each other in response to the import pressures on the industry.