During the last decade of the 20th century, Japan's economy stagnated. The recession that followed the collapse of the asset-price bubble (1987-90) hit bottom in October 1993, but the economy remained flat through the end of 2000, with no visible signs of a lasting recovery.
Numerous prescriptions have been written to end the chronic slump, but none have proved effective. Those remedies -- generous public-works spending, the zero-interest-rate policy, mild deregulation, etc. -- have done almost nothing to boost growth. The economy seems to be suffering from a deep illness that cannot be treated with over-the-counter drugs.
Curing that illness, it is argued, requires surgery, or structural reform. Market fundamentalism -- survival of the fittest through free competition -- is the best and only way to revive the economy, say those who believe the market is almighty. These market fundamentalists hold that Japan's systems and practices, designed as they are to avoid competition, should be replaced by new systems and practices similar to those of the United States.