Germany and Japan: Stalled on the Road to the Liberal Market Model?

In the space of ten short years, Germany and Japan have gone from paragons of economic success to models of political paralysis. In both countries, reformers call for a decisive move toward the liberal market model, yet find themselves frustrated with their governments' inability to act. This deadlock reflects the normal operation of German and Japanese democracy, and not its failure, for Germany and Japan are fundamentally divided over the merits of the proposed liberal reforms. As a result, Germany and Japan proceed with reforms slowly and cautiously, they package delicate compromises, and they design reforms to preserve the core institutions of their respective economic models as much as possible. Steven K. Vogel is Associate Professor of Political Science at UC Berkeley. He specializes in the political economy of the advanced industrialized nations, especially Japan. His book, Freer Markets, More Rules: Regulatory Reform in Advanced Industrial Countries (Cornell University Press, 1996), won the 1998 Masayoshi Ohira Memorial Prize. He has written extensively on Japanese politics, industrial policy, trade and defense policy. He has taught previously at the University of California, Irvine and Harvard University. He has a B.A. from Princeton University and a Ph.D. in Political Science from UC Berkeley.