Japan’s Construction Lobby Activities - Systemic Stability and Sustainable Regional Development

Abstract

The term "construction state" has been used, to refer to a system of vested interests in construction activities that embraced Japan at different geographical levels of scale. A system of collusion between politicians, bureaucrats, and businessmen evolved and led to massive government spending on public works projects. Its pace and scope have resulted in fiscal crisis and environmental devastation and have aroused the opposition of local residents. This paper will analyze the construction-related networks of relationships of the central actors in the so-called "iron triangle" ofpolitics, bureaucracy and construction business, and its influence on regional development. We shall theorize that sustainability will remain an unattainable ideal in regional development as long as the stability of the "construction state" is preserved by certain formal and informal elements in Japan's politicoeconomic system. These elements, however, have until now remained comparatively stable, despite of some reform initiatives.