The Multiple Agency System in Japan’s Development Administration

Abstract

The theory presented in the fourth chapter raises several questions to be investigated empirically. Does the second working hypothesis hold for our empirical case? How does the multiple agency system function in the concrete case of the Japanese development administration? Is the agency cost in the Japanese development administration higher than in a single agent system? Before addressing these questions, the role of trust as an institution within the Japanese development administration needs to be discussed. Only if the institution trust plays a significant role can informal trade take place and the complete theoretical model be applied.