Terence Kealey

“MITI, far from being a uniquely brilliant leader of government/industrial partnership, has been wrong so often that the Japanese themselves will concede that much of their growth derives from industry's rejection of MITI’s guidance. MITI, incredibly, opposed the development of the very areas where Japan has been successful: cars, electronics and cameras. MITI has, moreover, poured vast funds into desperately wasteful projects. Thanks to MITI, Japan has a huge overcapacity in steel - no less than three times the national requirement. This, probably the most expensive mistake Japan ever made in peacetime, was a mistake of genius, because Japan has no natural resources: it has to import everything; the iron ore, the coal, the gas, the limestone and the oil to make its unwanted steel. Undaunted, MITI then invested in giant, loss-making (£400 million losses by 1992) 5th generation supercomputers at the precise moment that the market opened for the small personal computer; and MITI' s attempts at dominating the world's pharmaceutical and telecommunications industries have each failed. Nor is this just anecdote. In a meticulous study of MITI’s interventions into the Japanese economy between 1955 and 1990, Richard Beason of Alberta University and David Weinterin of Harvard showed that, across the 13 major sectors of the economy, surveying hundreds of different companies, Japan's bureaucrats almost invariably picked and supported the losers.”
― Terence Kealey, The Economic Laws of Scientific Research