Difference between revisions of "Dangou (Japan)"

{{infobox

  | nameofpractice = Dangou/Dango

  | location = Japan

  | imagemap = Japan map.png

  | imageflag = Japan flag.png

  | authorofpiece = Shuwei Qian

  | authorinstitution = School of Slavonic and East European Studies, University College London

}}

 

'''''Original text by Shuwei Qian'''''

 

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''Dangou'' (sometimes spelt ''Dango'') consists of two Japanese ''kanji'' characters, ''dan'' meaning ‘dialogue’ and ''gou'' meaning harmony. Originally, the meaning of ''dangou'' was consultation or conference, but the meaning has changed and come to refer to a practice of cartel- a mutually agreed position to pre determine the successful bid for a contract within the Japanese procurement system. Thus, its equivalent English term is bid rigging.

 

Over time, ''Dangou'' has been viewed as part of the unique political culture and history of Japan. For this reason the Japanese mode of doing business is simply explained to Westerners by the word ‘''dangou shakai''’ meaning ‘society’. In the first instance it is necessary to explain ''dangou''’s embedment with Japanese society throughout history as part of the ‘iron triangle’. The ‘iron triangle’ here represents the relationship between politicians, government bureaucrats and business. The triangle functions in the following way: businesses take it in turns to win competitive bids, operating from a position of strength because they are armed with the prior knowledge of the ceiling price of the bid, which has been leaked to them in advance by government bureaucrats. In return for the information, the bureaucrats are guaranteed a high-profile position in the company after retirement. Meanwhile the politicians who are responsible for the public construction programmes receive a kickback (Black 2004: 603<ref>Black, W. 2004. ‘The dango tango: why corruption blocks real reform in Japan’, Business ethnics quarterly, 14: 603-623.</ref>). The retired bureaucrats are called ''amakudari'' (descents from heaven). This ‘iron triangle’ has its origins in ancient Japanese culture, but was also influenced by behaviours found in the centralised Soviet style of management (Ross 1994: 64<ref>Ross, L. 1994. ‘Understanding the Japanese way: a new look at the dango shakai’, World affairs, 157: 63-78.</ref>). A second reason for ''dangou''’s popularity is the fact that with the exception of big firms and tycoons, the major part of the Japanese economy consists of small and medium sized businesses, often family businesses, that have endured from one generation to another. Apart from being part of a personal network, ''dangou'' embodies a benign practice for the purpose of helping small firms survive harsh competition from business giants. Another contributory factor that explains ''dangou''’s unshakable position in society is the age of globalization. In the process of globalization, traditional Japanese businesses perceive themselves to be under constant attack from international corporations, thus practicing ''dangou'' provides them with protection (Black 2004: 611<ref>Black, W. 2004. ‘The dango tango: why corruption blocks real reform in Japan’, Business ethnics quarterly, 14: 603-623.</ref>). In the opinion of ''dangou'' participants, ''dangou'' has saved the Japanese economic environment from being polluted by outsiders and prevented unpredictability and instability in the global market (Ross 1994: 65<ref>Ross, L. 1994. ‘Understanding the Japanese way: a new look at the dango shakai’, World affairs, 157: 63-78.</ref>).

==References and Bibliography==