[lehighguy]

Japanese governmental control is the economy is not like it is in Europe. It is in support of capitalism and free markets, though the government has tried to direct capital and investment in specific industries it deems essential. This approach worked very well during the developemental stages, but has led to problems in modern times. This has a lot to do with the fact that this kind of governmental direction is great when the people in power are right, and bad when they aren't right. Japanese tradition and governmental medling are partly to blame for the long nature of the current recession.

I would point out that Japanese governmental involvement was in a purely pro-business framework. The same can be said of SK and Taiwan, where the government was decidedly involved but on the side of business (knowing this would provide better living standards for their people in the long run). This is in contrast to the anti-business framework of modern day France or other european economies. Can you really see a 35 hour workweek in Japan? Or 6-week vacations? Or huge entitlement programs? Japanese economic success relied on effective government leaders helping to focus the efforts of thier business leaders in order to promote more effective capitalism, not crush it as you European's would do.

I can't speak about Germany since I don't know as much about their economy.