[Reading] The Philosophy of Policy Part 3

Publication Information

• Title: The Philosophy of Policy

• Author: Takeshi Nakano

• Publisher: Shueisha

• Release Date: 2025/1/24

• Hardcover: 352 pages

This article is Part 3 of a series of introductory articles on "The Philosophy of Policy".

• [Reading] The Philosophy of Policy Part 1: Mainstream Economics is Not Science

• [Reading] The Philosophy of Policy Part 2: Roy Bhaskar's Philosophy of Science

• [Reading] The Philosophy of Policy Part 3: What is the State, What is Policy

• [Reading] The Philosophy of Policy Part 4: Incorporating Polanyi's Philosophy of Science

• [Reading] The Philosophy of Policy Part 5: The World of Complex Systems

• [Reading] The Philosophy of Policy Part 6: What is Politics

The sense of impasse felt even by bureaucrats

The author, Takeshi Nakano, is an active bureaucrat at the Ministry of Economy, Trade and Industry and a critic.
He is originally a prolific writer, but between last year and this year, he has written two books that are likely important to him as well. One is "Introduction to Schumpeter" and the other is this book, "The Philosophy of Policy." I have already written an introductory article regarding "Introduction to Schumpeter".

And this book is also a bestseller that is still in the top 10 on Amazon in the fields of political science and introductory economics (as of 2025.05.16).

Nakano is a famous MMT proponent. He has published several books on MMT. If Nakano, who is an active bureaucrat, were tied down by the fiscal balance theory of mainstream economics...

This book refutes that mainstream economics is not science, and discusses what kind of philosophy of policy should replace it.

Of course, this book is a work on the philosophy of excellent public policy, but at the same time, can't you hear the laments or grievances of talented bureaucrats who are forced to do boring work, unable to move because they are tied down by various things that cannot even be called science—pseudo-science—or by rules and council decisions? (Or is it just my own hearing, as I have poor hearing...💦)

Talented bureaucrats do not fall down for nothing.

This book is by no means an easy read, but it is not so difficult that it is impossible to get through either.
I especially want young people aiming to become bureaucrats and those interested in social science to read it (...and that is just me being an old busybody...💦).
For those who do not like spoilers, I will post the table of contents, so please jump to the section you wish to see. Thank you.

Summary so far

Chapter 4 of this book is about the state, and Chapter 5 is about policy.

Chapter 1 of this book discussed how mainstream economics cannot be a science, Chapter 2 discussed Roy Bhaskar's philosophy of science (=transcendental realism), and Chapter 3 discussed Roy Bhaskar's philosophy of social science (=critical realism).

The characteristic of Roy Bhaskar's philosophy of science is that knowledge is a human activity, and scientific truth—the mechanism that generates natural phenomena—exists separately. According to Roy Bhaskar,

a society in which social science can be a science is one where the social structure that is the subject is autonomous from the individual humans who explore or act upon the social structure, p90. This is analogous to Bhaskar's transcendental realism (realism regarding natural science), where knowledge is a human activity and the mechanism that generates natural phenomena exists separately.

So, what would a philosophy of state policy look like if it were based on Roy Bhaskar's philosophy of science (including social science)?

(Hereafter, in this series of articles, I will not distinguish between Roy Bhaskar's philosophy of science and his philosophy of social science, and will call it Roy Bhaskar's philosophy of science. The author of this book, Nakano, distinguishes between the two, calling them transcendental realism and critical realism, respectively. He says that critical realism is the application of transcendental realism to social theory, p122. Perhaps that is the mainstream terminology in the West as well. However, critical realism itself is not widely known in Japan, and I myself confused the two many times while reading this book. Therefore, I have dared not to distinguish between the two and will call it Roy Bhaskar's philosophy of science. Alternatively, I will call the application to social theory literally an application of Roy Bhaskar's philosophy of science or an application of Roy Bhaskar's philosophy of science to social theory. By doing so, I aimed to have the term 'Roy Bhaskar's philosophy of science' itself remain in the memory of the readers of this article. I thought that was the most important thing for reading this book).

What is the state?

Chapter 4 of this book discusses the state.
According to the author, Takeshi Nakano, there is still almost nothing that discusses what the state is and what state policy is based on Roy Bhaskar's philosophy of science, p121 (it seems there are some that discuss what the state is from the perspective of international relations, p127). In that sense, this book, "Philosophy of Policy", could also be a book that contributes significantly to social science based on realism. I wonder if he has presented this at academic conferences or published papers overseas? Actually, I would like him to. Or perhaps an English translation of the book itself.
...But putting my wishes aside...

Flow of this chapter

The author, Nakano, introduces historical sociology to discuss what the state is, based on Roy Bhaskar's philosophy of science. He also introduces the concept of social emergence as a supplementary role. These two are the crux of this chapter, but before that, he introduces the question and position of whether the state should be regarded as a structure or as an agent, and furthermore, the concept of semi-regularity.
Also, after introducing historical sociology and social emergence, he explains why the nation-state is so powerful. This part is also the crux of this chapter.
After that, as is customary, he explains how mainstream economics cannot be a science even from the perspective of this chapter's flow. I will not include this final part in this article, but if you are interested, please refer directly to the book.

How to grasp social reality

Bhaskar's philosophy of science argues that not only the phenomena we experience directly, but also structures, powers, and mechanisms that govern actual phenomena, things that can only be experienced indirectly also exist, p121-p122. And it starts from the ontological question of what social reality is essentially. It then states that social reality has the following three characteristics, p122.

• Three characteristics of social reality

  • The existence of society depends on human activity. Society does not exist where there is no human activity.

  • Since society depends on human activity, it is transformable and not immutable.

  • Because humans are influenced by society, humans are also transformable beings.

　Therefore, social science must deal with the relationship between society and the individual (or group), or the relationship between structure and agency p122. The concept of "emergence" is important in understanding the relationship between structure and agency (e.g., structures can exhibit functions beyond the sum of their agents). Also, social structures reproduce themselves (morphostasis) and transform (morphogenesis) p123.

Position

　The reproduction and transformation of social structures are caused by the activities of agents. Therefore, a point of contact between agents and social structures is necessary p123. Bhaskar calls this point of contact a "position-practice system". It is a system consisting of the "positions" occupied by individuals (places, functions, rules, duties, rights, etc.) and the "practices" (activities, etc.) carried out through the occupants of those positions p123. Rights and duties arising from positions affect the actions and resources of others. This is called power.　
Social reality is a complex and emergent structure arising from the entanglement of positional power. Social reality is essentially an "open system" (conversely, a "closed system" is a field where causal relationships are controlled, like a scientific experiment).

Semi-regularity

　Society is essentially an "open system" and uncertain, but if there were no rules at all, social life would not be possible. Repetitions of specific actions and fixed patterns of behavior exist widely p125. This is called semi-regularity and is emphasized in the application of Bhaskar's philosophy of science. Semi-regularity takes the form of "when event X occurs, sometimes, but not always, event Y occurs" p125. Humans living their daily lives, seek to gain safety and security by maintaining predictable, constant patterns of behavior and stable social relationships p126. This semi-regularity becomes an important concept when discussing national policy p126.

Is the state a structure or an agent?

　Those who apply Bhaskar's philosophy of science to social theory seem to prefer to regard the state as a structure. It is also more consistent with social reality and more convenient.　"By invoking the concepts of 'stratification' and 'emergence',
the state is a 'structure' that has emerged from various social relations and formed a hierarchy" p128.

• The advantages of viewing the state as a structure composed of complex social relations

  • (1) The statetakes on various forms depending on the era and region

    • For example, feudal states, civic states, empires, nation-states, etc.

  • (2) The state can be understood without reducing it to specific actors and without reifying it as a monolithic entity.

    • The state is a reality that emerges from the complex social relations woven together by actors.

State Actors

If the state is a "structure," then the state cannot be the "actor" of policy. It is not the state that plans and executes policy, but politicians, governments and public institutions, and the officials who belong to them. In this book, they are collectively referred to as "state actors" p129.

State Policy

National policy is defined as " state actors partially regulate an open system society to activate a mechanism that generates specific policy effects" p131.
I will leave the specific examples for later.
If national policy is defined in this way, the next point of discussion is " how can state actors possess the power to partially regulate an open system society?" p131.
To answer this question, the author, Nakano, introduces insights from " historical sociology".

Historical sociology

Historical sociology focuses on social relations while simultaneously providing a perspective that the form of the state differs and changes depending on the era and region p131. This is compatible with Bhaskar's philosophy of science.
Historical sociology states that there are two dimensions to power.

• Two Dimensions of Power

  • Despotic Power

    • Distributive power of state elites over civil societydistributivepower

    • derived from the range of actions state elites can take without routine negotiation with civil society groups

  • Infrastructural Power

    • The institutional capacity of a central state to penetrate its territory and logistically implement decisions

    • coordinating social life through state infrastructurecollective power, power through society

    • This allows the state to be perceived as a centralized and fundamental set of institutions that penetrate its territory

Based on these two types of power, historical state forms can be classified into the following four types.

• Four Representative State Forms

  • Feudal State Despotic power: weak, Infrastructural power: weak

  • Absolutist state, Empire Despotic power: strong, Infrastructural power: weak

  • Authoritarian state Despotic power: strong, Infrastructural power: strong

  • Bureaucratic/Democratic state Despotic power: weak, Infrastructural power: strong

According to historical sociology, state actors increase infrastructural power, which includes the division of labor and coordination within the government, education, currency, weights and measures, information and communication, and the transport of personnel and resources, and provide strategic opportunities to reproduce and transform the state. The feasibility of policies implemented by state actors depends on the infrastructural power possessed by the state.

So, what is required for a state to enjoy infrastructural power?

According to historical sociology, it is the state's "functional diversity," "necessity," and "territorialized centralization." These are called the prerequisites for a state's infrastructural power.

• Prerequisites for the state's infrastructural power

  • Diversity of functions: implying that the state has an emergent character and is an open system

    • The rules and functions of the state are diverse, including the maintenance of domestic order, national defense or aggression, the maintenance of communication infrastructure, and the distribution of scarce economic resources.

    • For this reason, state actors are involved in multilayered power relationships with various interest groups. To that end, state actors secure room to maneuver between these power relationships.

    • The source of state power lies in "embedded autonomy."

  • Necessity of the state: semi-regularity is required

    • Historical sociology states that society requires the activities of state actors and state structures in order to protect life and property.

    • The state is a relatively stable and enduring social structure and can be the most powerful protective device for human safety.

    • The practice of accessing, maintaining, or transforming the rights and obligations of citizens is policy (p. 136).

  • Territorialized centralization: semi-regularity is required

    • Territorialized centralization is unique to the socio-spatial and organizational structure of the modern state (p. 136).

    • State actors manage individuals, groups, and resources within their territory, mitigate international pressure through surveillance and border control, and partially regulate open-system societies, reducing uncertainty regarding citizen safety (p. 137).

    • However, it is better to understand borders not as impenetrable iron walls that let nothing through, but as porous and full of loopholes. As argued, globalization is limiting the state's ability to control borders and shaking the foundations of stable state structures (p. 137).

    • Social identity is assigned to not only humans but also objects based on their location. Examples include identification cards, driver's licenses, banknotes and coins, and wedding rings (pp. 136-137). It can also be understood that territory is an extension of this.

Embedded autonomy, which is the source of state power, is an important concept. It is long, but I will quote the explanation below.

Theory of Social Emergence

Next, the author, Nakano, introduces the theory of 'social emergence' (p138-p140). 'The reduction of social groups emerges from the process of complex interactions among individuals, and social reality forms a hierarchical structure of that emergence' (p138). Huh? It certainly seems to have an affinity with Bhaskar's philosophy of science. And, it shows a hierarchical structure like the figure below.

And 'state actors, through their given "position",access and exercise the autonomous power born from the state structure, therebypartially regulating the state as an open system and guaranteeing the... safety of the citizens' p140. And, he says, 'this is precisely the practice calledstate policy' p140.←This is important!!

In other words, in this book, from here on, when referring to social hierarchies orthe state as a structure, it can be assumed thata hierarchical structure like the one above is envisioned and that things are built upon it.

Globalization

Based on Roy Bhaskar's philosophy of science, while also incorporating insights from historical sociology and social emergence,what the state is has been discussed. The application of Roy Bhaskar's philosophy of science to social theory can also be applied to the analysis of social reality beyond the state, such as international society (p140).
In historical sociology, social reality beyond the state is divided into the following three categories (p140) (to put it simply, these are three categories of international relations).

• Social reality beyond the state

  • Influencing the structure of the state and the actors such as domestic companies and individuals

  • International networks

    • Relations between states:A "structure" that has "emerged" from interactions between states

      • "Hard geopolitics" such as war, peace, and alliances, as well as "soft geopolitics" such as trade agreements and cross-border air pollution

      • The UN, the European Union (EU), the World Bank, etc. (these exist based on multilateral treaties).

    • Transnational networks

      • Networks formed across borders and without being constrained by national borders

    • Global networks

      • Networks that span the entire world, or at least the majority of it

Supranational networks and global networks are defined as "emerging as structures because non-governmental actors such as corporations, non-profit organizations, and individuals interact with other actors across national borders," p. 141.

Nation-state

This book does not use the term 'ethnicity.' However, it distinguishes between modern states and nation-states. While most modern states aspire to be nation-states, there are also states that are not nation-states. The author, Nakano, constructs this explanation regarding nation-states very carefully. But, to put it simply here... modern states are composed of the power of pluralistic actors, p. 142. However, as can be easily imagined by looking at the diagram of social emergence, language and culture (Level D) are the foundation of the nation, and Level E, which is a historically materialized social emergence, becomes the foundation of the state, p. 144. A discrepancy arises there, p. 146.

Even so, the nation-state "has proven remarkable resilience," p. 147, and the nation-state is the political system most capable of powerfully implementing policy, p. 147. This could be called the conclusion of this chapter, What is the state?.

On the flaws of mainstream economics

Regarding this part, the argument is developed in relation to the theory of the state in this chapter, but please refer to the book for details.

What is policy?

The fifth chapter of this book discusses policy.
As explained in the previous major section, What is the state?, the state is a "structure" and not an "actor." The actors of state policy are "state agents" such as politicians or the government, other public institutions, and the staff belonging to them. And state agents can use the autonomous power arising from the state structure to partially regulate society, which is an open system, p. 158.
The author, Takeshi Nakano, calls this understanding a "realist theory of public policy," p. 158. And surprisingly, the author, Nakano, says that state policy plays a role as an analogy to experiments in natural science, p. 164.

State policy and experiments

The author, Nakano, says, "If an experiment in natural science is to intervene in nature and make its mechanism operate, then state policy also intervenes in society and makes its mechanism operate," p. 164. I hope you will refer directly to the book for a detailed discussion. I will only record the conclusion here.

The 'retroactive' in 'retroactive inference' in the quote above has the same meaning as the 'retroactive' described in the major section of the previous article, "Transcendental Realism: Bhaskar's Philosophy of Natural Science." Roughly speaking, it means tracing back phenomena to find the cause.

The above quote is one step before the conclusion of this chapter. The quote details its content.

　The author, Nakano, goes one step further and mentions the discretion of state actors.

　What is suggested by the term 'specific state structures' above is, of course, bureaucratic/democratic states (a detailed explanation of the above is on p134). Furthermore, Nakano states,

　The author, Nakano, also discusses in detail the affinity between Bhaskar's social-theoretical application of natural philosophy and complex systems theory, as well as the flaws of "rule-based policy." I hope you will consult the book directly for details.

Future plans...

　Next time, I plan to introduce the fine-tuning of Bhaskar's social-theoretical application of natural philosophy based on Polanyi's theory (plans are subject to change, so things may not go exactly as stated).

Whether inside or outside of quotations, the distinction between bold and regular text was made by the author of this article. Regarding numbers in the text, whether inside or outside of quotations, the author of this article has used either kanji numerals or Roman numerals based on which was judged to be easier to read at the time. Also, please note that errors in wording and clarity of expression are corrected as needed.

Bonus: For those who want to broaden their perspectives or deepen their knowledge

I will post some things that caught my interest after a quick search. There are some books I haven't read yet, but I hope they are helpful for your reference.

Works by Takeshi Nakano

MMT-related

Others: Works by Takeshi Nakano

As a writer and an active bureaucrat, Takeshi Nakano is so prolific that one wonders, 'How does he find the time to write all this?' Here, I pick out the things that caught my attention.

I bought it but haven't read it yet. I'm hesitant because of its thickness.

I would like to read this.

An active bureaucrat can openly criticize the policies of their own government. I hope we can continue to guarantee that kind of freedom of speech in the future.

Interview article

The author speaks: Video

Milton Friedman

The infamous Chicago Boys and the Argentine economy that was ruined by them.

Works by Roy Bhaskar

An introductory book on Bhaskar's philosophy of science by another author

Historical sociology

The author, Takeshi Nakano, mentions Michael Mann and cites insights from historical sociology. People who can write general histories are amazing!

Theory of social emergence

The author of Social Emergence, Keith Sawyer, is a researcher of social emergence and has also published a book on applying emergence to classroom teaching. It must be an interesting class.

Extra: Irish whiskey named Busker

When you search on Amazon, the first thing that comes up for 'Busker' is Irish whiskey. It seems to have a good reputation. Should I try it?
Apparently, it's commonly available at Aeon and Don Quijote.

Rumor has it that the red one is particularly floral and delicious...