Public Corporations in Japan
| Date | 01 June 1982 |
| Author | The Administrative Management Agency |
| Published date | 01 June 1982 |
| DOI | 10.1177/002085238204800205 |
| Subject Matter | Articles |
Public Corporations in Japan
UDC : 35.078.4 (52)
by
THE ADMINISTRATIVE
MANAGEMENT AGENCY
I. THE HISTORY AND PRESENT
ordinary public employees, is granted to em-
SITUATION OF INDEPENDENT
ployees.
PUBLIC ORGANIZATIONS
B. Independent Public Organizations
1. Overview
a. Public Corporations (&dquo; Tokushu-Hojin &dquo;)
In industrialized nations, there is a general
&dquo; Public Corporations &dquo; are established by
tendency towards expansion in the sphere of
the national government under special laws
governmental functions within the areas of
as instruments for performing tasks required
social and economic policy; and these func-
by the State, when those particular tasks are
tions, in many cases, .are entrusted to organ-
better managed in the form of a profit-making
izations that are independent of administrative
enterprise, or more efficiency in performance
agencies.
is likely to be produced than under direct
The
government control or more flexibility in
same is true of Japan, where indepen-
financial or
dent organizations have been established
personnel
to
management is required
than is normally possible under the laws and
carry out governmental functions some of
which
regulations pertaining to government agencies.
are of a social and economic nature.
There are two
Predominant
types of public corporations:
amongst such organizations are
those established
the so-called &dquo; Tokushu-Hojin &dquo;
by direct authorization of the
or &dquo; public
law, and those set
corporations &dquo;.
up on the initiative of an
establishment committee appointed by the
In Japan, governmental functions are cur-
government.
rently carried out by the following types of
While public corporations are under the spe-
organizations.
cial supervision of the government because of
their public responsibilities, they are granted
(1) National Government
autonomy and flexibility in management for the
A. General Administrative Organs
purpose of performing efficiently.
of the Government
The establishment of each public corporation
is mandated by the government. However,
First of all, there are the administrative
the features of these corporations, in terms
organs of government. There are areas within
of the mode of control by the government,
governmental functions which could be ad-
the financial aid, and the content of their
ministered by independent organizations se-
business activities, vary to a considerable
parate from government agencies. In Japan,
extent.
government agencies, without resort to estab-
lished independent organizations, take direct
b. Authorized Corporations (&dquo; Ninka-Hojin &dquo;)
charge of schools, hospitals, education and
training institutions, research institutions, and
Authorized corporations perform similar
organs for inspection and authorization. Many
public functions to those of public corporations.
of these are operated by &dquo; attached organs &dquo;
Under the provisions of special laws, they are
of government agencies and are often financed
established in limited number subject to the
by special government accounts. In addition,
authorization of competent ministers. Some
there are five national enterprises managed
of them carry out public service functions
by the national government : the Postal Service,
similar to those of public corporations. While
National Forestry Service, Alcohol Monopoly,
the establishment of public corporations is
Printing, and the Mint. These organizations
mandated by the national government, author-
enjoy flexibility in their financial management
ized corporations are created by the voluntary
while labor-management relations are governed
initiative of private persons. Under this cate-
by special laws under which the right of col-
gory are corporations that carry out, under the
lective agreement, which is not allowed for
auspices of the government, the promotion of
138
private sector activities of importance to so-
Nippon Telegraph and Telephone Public Cor-
ciety, insurance, research, government-aided
poration were established. (These businesses
corporations dealing with business activities of
had previously been under the direct manage-
local public entities, societies of certified pro-
ment of the government). Financial organiza-
fessionals (e.g., certified public accountants)
tions were established for aiding imports and
and mutual benefit associations for public
exports, industrial development, small and me-
employees.
dium-sized businesses, agriculture, forestry,
fisheries, and housing construction. Special
c. Other Corporations
companies such as the Electric Power Develop-
ment
These include
Company, Japan Air Lines Co., Ltd., and
corporations established ac-
Kokusai Denshin Denwa Co. (International
cording to the provisions of special laws. How-
Telephone and Telegraph Corporation) were
ever, there are no limitations to the number
also established
that
during this period.
can be established.
Also included here
are public-interest corporations established un-
The following ten years (1956-1965) saw
der the Civil Code, and performing public
the establishment of public corporations in
functions.
charge of public works, such as road construc-
tion and the development of water resources,
(2) Local Government
as well as social and economic programs and
Local
research activities.
As a result, the total
government functions are carried out
number of
by several types of organization. In
public
some
corporations increased to
104 by 1965 compared to only 21 in 1946.
cases, local public entities are directly in charge
of them (water supply, transportation, etc.).
After 1966, public corporations for atomic
In other cases, independent organizations
energy development, space development and
authorized by special laws and regulations per-
for the construction and management of a new
form certain functions (Local Development
airport or berths for international container
Corporation, Local Road Public Corporation,
freighters were created.
etc.). Public functions are also implemented
by public-interest corporations established
The growth in the number of public cor-
under the Civil Code, with financial support
porations came to a halt after reaching a peak
from local public entities.
of 113 in 1967; since then there have been
several reorganizations and the policy of res-
’
’
2. History
traint in the establishment of public corpora-
tions...
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