The state and the associational order of the economy: The institutionalization of cartels and trade associations in 1931-45 Japan

The existing literature on the impact of the state on the associational order has emphasized the state's concern on the implications of the associational order to the public goods and the role of the associational order as a policy tool of the state. However, few studies have investigated what particular characters of the state shape the pattern of the associational order. Through a historical analysis, this study highlights three important factors related to the state that contributed to the the rise of the associational order in Japan during the Great Depression and World War II. First, the shift of the state preference from protecting the liberties of private enterprises toward maintaining political stability in economic crisis and controlling resource allocation in war was the ultimate driving force behind the rise of associational order. Second, the constitutional order of the Japanese state, which involves not only the organization, composition, powers, and limitation of the state's executive, legislative, and jurisdictional branches, but also the people's liberties defined by the constitution, was strongly influenced by the continental legal tradition. This structurally shaped the Japanese pattern of the associational order. Third, the institutionalized legal and economic beliefs of property rights provided ideological support to the rise of the associational order.

Duke Scholars

Author Bai Gao Sociology