For years the phrase "from the public sector to the private sector" has been used in the context of politics and the economy. In April 1985, Nippon Telegraph and Telephone Public Corp. and Japan Monopoly Corp. were privatized, becoming NTT and Japan Tobacco respectively. In April 1987, Japanese National Railways was privatized and split into six JR passenger service companies and one JR freight transport company.
Prime Minister Yasuhiro Nakasone's Cabinet oversaw the privatization of the these three public corporations as part of administrative reform.
Under the initiative of Prime Minister Junichiro Koizumi's Cabinet, Japan Highway Public Corp. and the three-division postal services were privatized. National universities were reorganized as independent administrative corporations and their teaching staff lost their public-servant status, as did the employees of research institutes and various public organizations belonging to government ministries after they became independent administrative corporations.