Japan's Capitalism: Creative Defeat and Beyond

Among the many (usually lengthy) works on the subject of Japan's post-war economy, this slim (pp277) volume is outstanding. The well-connected, Harvard-educated Tsuru was intimately involved in many of the landmark events described, especially the shaping of economic policy during the Occupation years. Throughout this lively and original analysis of economic policy-making and its political contexts, he provides an invaluable insider's view. Tsuru's socialist sympathies mean he is not just another capitalist apologist, ready to overlook the social costs of Japan's high-speed growth, but neither is he an ideologue unable to recognise the achievements. His approach is humane, often refreshingly personal, and anchored by a profound knowledge of his subject. There are insights throughout, such as the way the credit squeeze imposed in 1949-50 by Joseph Dodge helped revive the zaibatsu, by knocking out their competition, at a time when declared US policy was the elimination of the old corporate cartels. Anyone interested in understanding how Japan's economy took off and where it might be headed now should read this book.