The post-war Japan sought to emulate the American education system and in doing so, embarked on a new venture in public education.In the 1950s, the education system flourished, and much hope was placed in public education as a social institution.However, beginning in the second half of the 1970s, the character of public schools was said to have begun to change.The reason for this change can perhaps be attributed to the larger, fundamental change that Japanese society~undergoing at the time. The issue of today is that of the "Third Educational Reform "- in other words, the introduction of market principles into the educational system.There is much debate regarding this "Third Educational Reform,"criticism included.However, it is imperative to understand that this "Third Educational Reform" is not a phenomenon that occurs. in a vacuum, rather, it is one which is highly linked to the past, especially the changes that began in the late 1970s.As such, I would like to lead you through the history behind the current developments in the Japanese educational system, as well as to discuss the conditions in which the Japanese educational system finds itself today.