During the period from 1981 to 1983 the Provisional Commission for Administrative Reform (PCAR) made five recommendation reports on the privatization of public enterprises in Japan. The Privatization Act of 1984 implemented some of the those recommendations but in many intances deviated from the PCAR's recommendations. The three major public enterprises to be privatized were

• Japan Tobacco and Salt Public Corporation (JTSPC): The PCAR recommended that the JTSPC be made into a corporation. Initially the Government would own all of its shares but the Government would sell shares to the public. The JTSPC had a monopoly on the growth and importation of tobacco and tabacco products. The PCAR recommended that this monopoly be phased out over time. The Government's privatization involved the maintaining of the monopoly in the growth of tobacco but allowed for more opportunity for private companies to import tobacco and tobacco products. The Government maintained a dominant ownership share.
• Nippon Telegraph and Telephone (NTT): The PCAR called for the creation of a corporation and the eventual sale of all shares by the Government. The program implemented involved very slow sale of shares by the Government with the Government retaining one third of the shares.
• Japan National Railways (JNR): The Government followed the PCAR recommendations and broke JNR into seven blocks, six being passenger companies and one a freight company. There was to be no shares held by the Government. The privatization of JNR involved a special problem because of its large debt. The debt was passed on to freight line and three passenger lines on the main island of Honshu. The corporations which replaced JNR were:
  • East Japan Railway Co.
  • West Japan Railway Co.
  • Tokai Railway Co.
  • Hokkaido Railway Co.
  • Kyushu Railway Co.
  • Shikoku Railway Co.
  • Japan Freight Railway Co.