LESSONS NOT YET LEARNT: The Fukushima Nuclear Accident and Japan’s Bureaucracy

The Fukushima nuclear accident was a man-made disaster, the root cause of which was regulatory capture. This was the conclusion of the National Diet of Japan Fukushima Nuclear Accident Independent Investigation Commission. However, the factors behind regulatory capture have not yet been examined, and there is a possibility that an accident similar to the Fukushima nuclear accident could occur again, albeit to a lesser extent. Responsibility for regulatory capture lies primarily with the regulatory authorities, namely, the government and bureaucracy.Taking the electricity industry regulation as an example, the author points out the inherent problems with it and demonstrates that the government and bureaucracy have not truly learnt the lessons of Fukushima. Furthermore, he warns that chronic delays in regulatory change and ineffective regulations are dragging on the Japanese economy.The author concludes by recommending specific regulatory actions for Japan's electricity industry, which is characterised by consistently high electricity prices, as well as fundamental reforms for effective regulatory administration.