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Spending Without TaxationFILP and the Politics of Public Finance in Japan$
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Gene Park

Print publication date: 2011

Print ISBN-13: 9780804773300

Published to Stanford Scholarship Online: June 2013

DOI: 10.11126/stanford/9780804773300.001.0001

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The Politics of FILP Reform, 1990–2001

The Politics of FILP Reform, 1990–2001

(p.177) Seven The Politics of FILP Reform, 1990–2001
Spending Without Taxation
Stanford University Press

The collapse of Japan's economic bubble and prolonged economic stagnation in the 1990s contributed to increasing financial pressures within the Fiscal Investment Loan Program (FILP) system. FILP itself came under increasing political attack, and the issue of reforming the various parts of the FILP system emerged as a divisive political issue both within the conservative camp and across party lines. This chapter explains how the issue of FILP reform emerged on the political agenda. It examines how the government's various attempts to reform the FILP system met political and bureaucratic opposition resulting in uneven and partial reforms. The collective result of these reforms was a rationalization but also a reinforcement of the FILP system.

Keywords:   Japan, Fiscal Investment Loan Program, fiscal policy, financial reform

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