Examining the Political Influence of Large Companies and Citizens' Groups: The Case of the Movement for Lowering the Maximum Interest Rate

Abstract

It is generally thought that large companies have a more powerful influence on policy making than citizens’ groups in contemporary Japan. In 2006, however, it was decided that the maximum interest rate should be lowered, which the groups aiding victims of consumer lending asked for but which the consumer loan companies strongly opposed. How did ‘weak’ citizens’ groups win against ‘strong’ large firms? Through analyzing this case, this article examines the political influence of large corporations and citizens’ groups.
  This article is organized as follows. To begin with, it traces the history of regulations on the maximum interest rate. Next, it depicts the political process of abolishing the ‘gray-zone’ interest rates in 2006. Finally, it examines the resources of the consumer loan companies and the success factors of the groups aiding victims of consumer lending by comparing this case with the case of ‘defective cars problem’ analyzed by Hideo Otake.