The iron triangle
First, we need to establish what the concept of the iron triangle entails. Japan rebuilt its economy after the Second World War. During this period of high economic growth, western scholars sought an explanation for the economic success of Japan. They argued that the government, the bureaucracy and business worked together very closely. This close cooperation between the three actors is commonly known as an ‘iron triangle’ (Johnson, 2005). There are strong linkages between the three ‘sides’ of these iron triangles. The actors in the iron triangle usually work together towards a common goal. They need each others’ resources in order to achieve these …show more content…
It facilitates the cooperation between these institutions which can create the best outcome for all involved. As companies get lucrative contracts with the government, who in turn creates employment, economic growth and electoral gain through their cooperation within the iron triangle (Colignon & Usui, 2001, pp.865-867; Carpenter, 2015, pp.5-10; Amyx & Drysdale, 2003, pp.1-10). For example, for a long time the Japanese iron triangle seemed to succeed in creating a strong and resilient post-war economy. The real gross nation product of Japan increased rapidly and the Japanese economy became a global competitor in the 1970s (Flath, 2014, pp.75-97). The cooperation of the iron triangle seemed to generate positive results for the post-war Japanese society. However, underneath the negative effects were spreading and consolidating themselves in the structure of Japanese