Japan institutionalized economic payments to secure Okinawan acquiescence to U.S. bases

Evidence

After reversion in 1972, Tokyo increased the rent it paid to the more than 30,000 private U.S. base landowners by 600 percent,” easily exceeding market value. Then, writes Cooley, “construction companies and their subcontractors colluded with the prefecture and Tokyo to apportion and undertake hundreds of … new public works and development projects.” “This quid pro quo” of economic investment in exchange for local acquiescence to the U.S. presence “has since become institutionalized,” says Cooley, “and remains a hallmark of Okinawa’s relations with the Japanese mainland.” — David Vine, Base Nation_ How U.S. Military Bases…, 872

Categorization

  • XREF: Connects to Milgrom’s law merchant chapter on institutions emerging where information and incentives need structuring — here the bribe system institutionalizes acquiescence.