Changes for a new age

RULING elite everywhere seek to perpetuate themselves; in Japan, it is more so. Japan has a clearly discernible ruling class, and the survival of the Japanese system in modern times, is the continued protection of the administrative class by keeping the criteria for membership almost exclusive. "Connections" are crucial to life in Japan. Connections often provide the key to admission to desirable schools, or to finding good jobs. Graduating from the University of Tokyo (Todai), especially its law department, means being automatically hooked up to a huge network of connections. The world of the Todai law department graduates, and graduates of the law department of the University of Kyoto, are highly exclusive. When it became clear in the prime ministerial contest of 1972 that Kakuei Tanaka would be the rival to Takao Fukuda, a prominent Todai graduate who had reached the apex of the finance ministry, Taizo Ishizaka, chief of the Keidanren, the top organisation of entrepreneurs, strongly objected. Even though Tanaka was one of the most successful self- made businessmen in Japanese history, Ishizaka declared, "we cannot give the position to a man who is an ignorant labourer".

It is an irrefutable fact of history that the meteoric raise of Japan after World War II was largely due to the role of the State and the paternalistic attitude of the government. The present day bureaucrats may not be identical with the warrior bureaucrats of the Tokugawa Sogunate (1603-1868) or even the new, University- trained imperial bureaucrats of pre-war Japan, but they have been, until recently, largely above the law. Key decisions in the ministry are taken by permanent bureaucrats rather than by the politicians of the Diet and the Cabinet. Even the Prime Minister is not expected to make policy statements of his own; rather he works closely with the bureaucracy and enunciates what various industries advise him to do. A colossus that was once hailed as the "midwife" to the country's spectacular economic success, the bureaucracy is now coming under increasing attacks for stifling the development of a more dynamic and open Japan.

Since the mid 1990s, the Japanese bureaucracies have been accused of immaturism, exclusivity and venality, and blamed for Japan's continuing economic stagnation. But this wholesale loss of faith in the competence and integrity of the bureaucracy is extremely dangerous because the bureaucracy still has an important role to play. The Japanese bureaucracy is a profession in the sense that it is "still a clearly defined, self-governing occupation". However, Japan's socio economic system, which has developed over more than 50 years since the end of the World War II, has reached its limit in the midst of contextual changes, both in Japan and abroad. It is therefore necessary that Japan's government and administrative agencies undergo a major reform in scope and content.

The current reforms of Japan's administrative system, which has come into force from January 6 this year, have their origin in November 1996, when the then Prime Minister Ryutaro Hashimoto announced a package of five reforms. These dealt with administrative organisation, economic structure, fiscal reforms, the financial structure and social security; but he placed administrative reforms at its centre. It is part of the efforts to restructure Japanese society, which has been bound by webs of restrictions and customs for much of the second half of the 20th Century. At stake is the prestige of three successive Japanese administrations - those of Prime Ministers Ryutaro Hashimoto, Keizo Obuchi and currently Yoshiro Mori.

The bureaucracy of Japan did not simply preserve its influence; it steadily spread its wings and consolidated its pre-war patron of bureaucratic dominance. In the hey days of the post-war period, it was a minimal government in numbers, with just about 1.7 per cent of the working population being in government, and given to the promotion of free enterprise under general direction. Today, it is about five per cent in numbers and is all pervasive. The reforms will see a reduction in civil service personnel by 25 per cent over the next 10 years, while decentralisation of bureaucracy and regulated reforms will be steadily pursued. The aim is a "lean government", which would entail plunging a scalpel into the body of the state. It is a moot point if this would succeed, as no bureaucracy in any country would submit itself to a hara kiri, voluntarily and willingly. To restructure national administrative organisations, the number of ministries and agencies will be largely bound, consolidated and reduced by nearly half, from the current one office (Prime Minister's office) and 22 ministries and agencies to one office and 12 ministries and agencies. The earlier system hampered inter-ministerial coordination and by the reduction and merger of more than one ministry or agency, a policy coordination system is hoped to be established.

It is felt, even in Japan, that no amount of reduction in the number of ministries and agencies will succeed unless government offices become more responsive to the needs of times and each and every civil servant undergoes a change of consciousness.

Administrative Reforms will not end with the reorganisation of the central bureaucracy. It will be incomplete without restructuring government-backed corporations. The ruling coalition plans to introduce a bill in the Diet for abolishing all 78 such corporations. Government-funded corporations benefit from large budget outlays and fiscal investments and loans. They are a hotbed of vested interest and support the much maligned practice of retired government officials taking up high posts. It is likely to be a long time before differences of opinion in the government and the ruling alliance on this issue are sorted out.

The most important purpose of the reorganisation is strengthening cabinet functioning. The reform is intended to replace bureaucratic leadership with political leadership in national affairs. The reform will establish Prime Minister's authority - to make proposals at cabinet meetings on foreign policy, national security, economic and fiscal policy and the government budget. The cabinet office will have a group of experts, headed by the Prime Minister, and will include cabinet ministers, academics and private sector officials as well. This Advisory Council can be considered a watchdog organisation to ensure that reforms are carried out in accordance with the final report of the Administrative Reforms Council. But Prime Minister Mori, in a move to strengthen his leadership, has also commissioned a group of officials from the government and the ruling coalition of the Democratic Party, New Komeito and the New Conservative Party. If this group were to operate concurrently, this will weaken the influence of the advisory group in the cabinet office and will frustrate the declared purpose of the administrative reforms. Administrative Reforms has been referred to as an "art" rather than a "science".

Two factors will play a decisive role in the outcome. One is the spirit in which the reforms are implemented. The era of classical bureaucracy in which bureaucrats lead politicians, has ended. The bureaucracy itself appears to be eager for reforms. Second, there is also a groundswell of support for the reforms among the public and elected politicians. The problem is how the framework created would be used - how it will be given a soul. But, the reorganisation in itself will not end bureaucratic leadership in national affairs. It has to be backed by political leadership and clear thinking about Japan's future. Japan stands at the starting line and only time will show how well the new administrative reforms have been implemented.

N. KRISHNASWAMI

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