The fact that officials enrich themselves at public expense is not considered to be more than a minor evil in Japan and the rest of East Asia, because people expect these same officials to manage the resources of the state in a wise and efficient manner. There is an ongoing debate in East Asia over the virtues of open, Western-style bureaucracy versus the paternalistic «crony-capitalism» found in Japan. Apologists for «crony-capitalism» admire the way that officials can easily and freely channel funds to pet industries and projects without having to engage in raucous policy debates in public. However, in this very freedom, lies the source of danger.

The muckraking journalist Lincoln Steffens, who exposed Tammany Hall-style corruption in American cities a century ago, defined «privilege» as the essential problem of corruption. What Steffens meant by «privilege» was that those with money get access to government resources; those who don't pay up go without. This is why corruption has to be taken seriously: privilege skews the way the state assigns its resources. Herein lies the key to modern Japan's mismanagement. Official support doesn't go to those who need it but to the privileged – those who pay bureaucrats the most. Looking forward to amakudari rewards, officials lavish funds on building up massive overproduction in one old-fashioned industry after another, rather than support new business involving services and the Internet. The pachinko industry hires ex-policemen as amakudari, and pachinko parlors overrun the country. River Bureau officials profit from dams, so dams go up by the hundreds. Useless monuments sprout and the seashore disappears under cement because of the privileged position of construction companies. The shady money flowing into officials' pockets is molding the very look of the land.