Research on Independent Administrative Institutions in Japan

Since the 1990s, due to public finance crisis and governmental bodies had grown large and powerful, but efficiency declined, OECD countries tried to reform the government. The common trends are governments take leading roles, responsible for policy making and control. The others not belong to” Schlichte Hoheitsverwaltung” tend to transform into Independent Administrative Institution or Agency. According to the rational, it is more efficient, more flexible and better in serving quality. Facing the emerging challenges from international and domestic communities, in November 1996, Prime Minister Hashimoto established the Administrative Reform Council as an advisory body, a usual procedure to undertake the major administrative reform in japan. The Administrative Reform includes two tasks: reduction of number and amalgamation of ministries and agencies and established Incorporated Administrative Institution (IAI). The basic idea of this system is to separate policy or program implementing functions from policy-formulation functions of the government and to allow more flexible, autonomous and business-alike management for policy implementation, transparency and to ensure efficiency and effectiveness. This study will focus on these current efforts from Incorporated Administrative Institution, and the administrative reforms since 1996 in Japan. According to the study, there are some obvious deficiencies in IAIs. For instance, there are two types of IAIs, particular and non-particular, based on the employees who may or may not have the status of civil servants. Differences from those two types IAIs are quite vague, basically based on political decision. Otherwise, the lack of congressional oversight from citizens. The most critical problem is amakudari (revolving door), retired civil servants obtain jobs with private industry or public organization -like IAIS-often those which they had dealt in their public capacities. Since a long time ago, this is a normal aspect of administrative life in Japan. The Administrative Corporation developed in Taiwan since 2004, Japan’s synopsis may be one of some positive reference to the future.