In the case of upstream industries such as petrochemicals, iron and steel, oil refineries,
and cotton weaving, MITI had a stronger grip because of its control over imported
materials. Government intervention took the form of individual industry laws or
administrative guidance. However, the experiment based on limiting competition,
coordinating investment, and attaining collusive oligopoly had not succeeded as MITI
had intended. Backed by vigorous market expansion, new private sector entrants
wrecked MITI’s plans of limiting competition. We can conclude that the MITI’s
industrial policy did not work as had been intended, particularly with respect to limiting
competition, because of the unexpected level of market dynamism.