Overcome 'the Government faliture'

作为一个中国人还是很受启发的，非常学术，很好的一本书。简单总结下，说说自己的看法。

1 Why countries need industry policy in the first place? And what is government failure?

There is no certain way of not yet developed coutry to develop its own economy, the Washington consensus along with other recommandatins will be effective only under certain prerequisites which are usually not available in a not yet developed coutry. That's why coutnry needs industry policy to support the structure refrom and similar economic changes. However different coutries are not in the same position to conduct these refrom policies, there is only limited time, capacity and political resources, policy innovation is crucial factor for one coutry's sucess. And there is a risk for government failure, say, corruption.

Japan must have done something right to overcome all these problems. Based on its own cultrue and history codition(I strongly believe which is not determinat. I felt the ideas like the cultrue of a country contributes to the success of the economy, like the culture of East Asia. Which is ridiculous, Western are 'Western' is because they did something right rather than they are brone in the right place, Japan surely proved it, and that's one of the reason I like this book.)

Although History and culture are not the decisive factor, it shapes the politics and economy of a certain coutnry, it made different policy has the different costs. For instance, the 'auro' of Samurai and Todai definitey lower the cost of the 'core group' of leaders to form a certain method of leading government-business relation.

'Todai connection means that both government offices and board rooms are staffed by men who share a common outlook', I believe everyone would pay attention to the 'old boy network' of this book. organization culture, governmentalized class, vertical relation between junior and senior officers, even marriage(Keibatsu) are definitely an effective way to lower the cost of policy, keep the brianchild of each others alive over periods and overcom the government failue espicially during the harsh time.

These division of core society, powerful bereaucracy and board members and the peripheral society, the public are not special for Japan. But one of the most important thing is what did Japanese do with this social arrangement. It could be an advantage or the lucrative chance for curruption.

Rationalization of economy, and developing policy, that's what they did.