Development of the Mekong Region as Part of Japan's Diplomatic Strategy for East Asia

Japan's active engagement in the development of the Mekong region since the 1990s needs to be understood not only from an economic but also from a diplomatic perspective. Japan seeks to collaborate with ASEAN in facilitating multilateral “political dialogue” in the Asia-Pacific region and building an East Asian order based on “universal values” such as democracy and the rule of law, and the Mekong region could be the “weakest link” of ASEAN. After outlining Japan's twenty-year undertaking to cultivate Mekong-Japan cooperation, the author suggests that it is time to broaden the scope of the cooperation and accelerate Japan's “proactive contribution to peace” policy to cope with the changing security environment.     

Addressing Japan's future challenges: A proposal for a comprehensive strategy

This report is the product of a June 1994 independent research project that focused on addressing reform and other challenges facing Japan, and on charting a comprehensive course for the future. Referring to the many uncertainties of the post‐Cold War world, the project members emphasize the urgent need for wide‐ranging political, economic, administrative, and social reform. Though not without cost, enacting such measures will “contribute to Japan's ability to concentrate on both domestic problems and the many complex issues facing the world today.” Chairman of the project was Yasuhiro Nakasone. Other members are listed below.     

Japan's fiscal policy and the East Asian financial crisis

Japanese economic policy has been identified as one possible cause of the East Asian financial crisis that began in July 1997. In this article, Yoichi Okita, Professor of Economics at the National Graduate Institute for Policy Studies, Tokyo, discusses Japan's role in the recovery of East Asian economies. Can and should Japan contribute to that recovery? To what extent is the recession in Japan an important cause of slow recovery in the region? Okita explores and develops the concept of economic policy coordination. Although changes in the Japanese economy were not the origin of the East Asian crisis, he says, prolonged stagnation in Japan is, nevertheless, a drag on the economies that are in trouble. However, one country's fiscal actions alone cannot solve the crisis; rather, all countries in the region should work together to redress the problem.     

Japan as the “Indispensable Nation” in Asia: A Financial Brand for the 21st Century

This article addresses Japan's global financial “brand.” It first examines the concept of a national “brand” and the difficulties associated with creating a desirable image of a country among outsiders. It adopts an instrumental concept of branding, which focuses on the behavior that the national image should elicit from foreign countries. It also notes that effective branding must accurately reflect reality. For Japan, the goal should be to promote economic cooperation where mutual interests exist. Efforts should be focused on East Asia, where mutual economic interests are least fully realized, and where Japan's national image appears to be an important stumbling block. Japan should seek to demonstrate the potential for transition to a “post-developmental” financial model and to be the “indispensable partner” for regional cooperative and development initiatives. This will require continued progress in cleaning up and improving the competitiveness of Japan's financial institutions and financial system.     

Yasuhiro Nakasone Proposal on Maritime Security in East Asia

Maritime security in East Asia is essential to the peace and prosperity of the world. Today, serious problems in this domain have arisen in the region. Resolving these problems is a pressing issue that impacts not just the region, but also the preservation of the peace and prosperity of the entire globe. Despite this urgent need, cooperative frameworks for preventing problems from arising in the first place—as opposed to mere security regimes for deterring conflicts—have yet to be organized. To preserve a maritime security order in East Asia that is based on laws and rules, mechanisms based on mutual trust must be arranged for deterring and preventing conflict.

Based on the foregoing, the Institute for International Policy Studies (IIPS) has been engaged in research on problems of maritime security in East Asia. In December 2015, IIPS held the High-Level Conference on Maritime Security in East Asia and unveiled the “Yasuhiro Nakasone Proposal on Maritime Security in East Asia” (the “Nakasone Proposal”). This paper will discuss the “Nakasone Proposal” and the background to its formulation, as well as the institute's future endeavors.     

The political economy of the dollar and the yen in East Asia

From the early 1980s until 1997 large amounts of Japan's current account dollar surplus were invested in U.S. Treasury securities. This economic relationship developed into an “alliance” sustained by the economic policies of U.S. and Japanese authorities. The U.S.-Japanese alliance indirectly promoted East Asian export-led growth during 1985–95. However, policies associated with the U.S.-Japanese alliance also contributed significantly to the 1997 Asian financial crisis. During the past years Japan has launched a number of initiatives for aid and regional monetary co-operation with the aim of internationalising the yen and redirecting regional current account surplus flows to go within the region, rather than being invested in the United States. The article assesses the viability of this regional challenge to U.S. monetary hegemony.     

The Japan‐US alliance and the Asia‐Pacific region

For the past fifty years the Japan‐US alliance has provided the framework for Asia‐Pacific security, says Jusuf Wanandi, Chairman of the Centre for Strategic International Studies in Indonesia and former research fellow at IIPS. The region's political and economic dynamics are changing, Wanandi says, and the Association of South East Asian Nations (ASEAN) supports an increased Japanese security role, with regional organizations acting as a conduit. But before Japan will win the confidence of some Asian neighbors, he says, Japan must open its economy, reform its domestic politics, and come to terms with its militaristic past.     

Pitchers and catchers: Politicians,bureaucrats, and policy‐making in Japan

Yasuhiro Nakasone draws on his five years as Prime Minister of Japan and over forty‐five years as a member of the Diet's Lower House to analyze some of the fundamental characteristics of Japan's policy‐making process. He asserts that Japan urgently needs to reconstruct this process, so that political decisions are entrusted to elected politicians rather than to unelected bureaucrats. But he stresses that politicians must also have the responsibility to stand up for their principles, and be willing at times to go against the popular consensus. Yasuhiro Nakasone is chairman of IIPS and a member of the House of Representatives. He was assisted in the preparation of this article by IIPS Visiting Research Fellow Philipp Schuller, a doctoral candidate at Oxford University. An earlier and partial version of this article appeared in the October 1994 issue of Intersect.     

The United States and East Asia in an age of financialization

This article starts from Peter Gowan's notion of a Dollar-Wall Street Regime (DWSR) characterized by financial deregulation, the dollar as the world's currency, large international capital flows, and frequent financial crises. The author argues that the DWSR has relied on a special economic relationship between the United States and East Asia, characterized by large East Asian trade and current account surpluses with the United States and the investment of East Asian dollar holdings in U.S. capital markets. For some time both parties benefited from this relationship, but eventually it gave rise to financial crises in East Asia. Thus, Japan's financial crisis around 1990 and the 1997/98 East Asian financial crisis are both related to economic over-accumulation caused by the buildup of currency reserves through trade with the United States. Attempts at East Asian monetary integration since 1997 are viewed as a potential challenge to the DWSR. These attempts have however been blocked or rendered harmless by regional divisions as well as by U.S. resistance. While an East Asian political challenge to theDWSRis unlikely for the time being, the special U.S.-East Asian economic relationship may become substantially weakened by the growing problems of the U.S. economy.     

Japan's security strategy: Meeting the needs of a new era

A new era has dawned, but the US and Japan remain in a security relationship of parent to child, says Toshiyuki Shikata, professor of inter‐cultural studies at Teikyo University and retired lieutenant general in Japan's Ground Self‐Defense Force. He draws on his familiarity with security issues to examine Japan's strategic challenges in the new era, Japan's role in the alliance, and Japan's defense modernization. He denounces avoiding international security responsibilities due to alleged constitutional constraints, and says that a seat on the UN Security Council would allow Japan to share the full risks and responsibilities in discharging international obligations.     

Russia and the United States: Still cold in Northeast Asia?

The US has been reluctant to acknowledge Russia's relevance to the Asia‐Pacific, the author says, because “too little time has passed since the interests of these two former adversaries collided in the region.” Russia has the longest Pacific coastline and borders with China, Japan, Korea and Mongolia. Despite the end of the Cold War, however, Russia is still not an integrated participant in Northeast Asian economic cooperation. Vladimir Ivanov is a Visiting Fellow at the Economic Research Institute for Northeast Asia in Niigata. He argues that Russia has made a clear choice between “guns and growth,” and that the country should be allowed to come in from the cold and join this region's development.     

A Middle Power's Roles in Shaping East Asian Security Order: Analysis of Japan's Engagement from a Normative Perspective

East Asia is currently in a transitional period. Recognizing the challenges presented by China's rise to the current regional order, existing literature analyses the security situation in Asia by focusing on the material aspects of power distribution between the US and China. Few works substantively discuss the roles played by middle powers such as Japan in shaping the regional order and how they can deal with the challenges of great power competition and threats to the global rules‐based order. By employing Japan's involvement in the South China Sea issues as a case study, this article examines how a middle power attempts to shape or underpin the regional security order and if such attempts are effective. The investigation of Japan's engagement illustrates that a middle power's practical support can indirectly and gradually contribute to sustaining and defending the regional “rules‐based order”.     

Post-War Japan and Asianism

In recent years there has been lively debate over the concept of an Asian community. Historically, however, an Asianism that espouses the notion of “Asia for the Asians” has been around for a long time. This article examines post-war Japan's return to Asia from the perspective of Asianism. The Asianism of post-war Japan was manifested in Japan's eagerness to advance into the vacuum created by the withdrawal of the Western European nations from Southeast Asia. However, this came up against Asia's own brand of Asianism, which emphasized independence first and foremost. It was the loss of its underpinnings by this latter brand of Asianism, as from 1970 onward, colonial rule and the political leaders who shouldered independence disappeared from the face of Southeast Asia, that lent impetus to Japan's advance into the region.     

The Asian scholar and the American crisis

Abstract

National development strategies in many Third-World countries in recent years have tended to emphasize a number of Japanese-pioneered patterns, among them management methods and export-oriented industrialization. Both have been seen as crucial to Japan's rise as an industrial power; and, during the past decade, export-oriented industrialization has been behind the rise of the Asian “Gang of Four”—South Korea, Hong Kong, Taiwan, and Singapore.     

Rethinking Colonialism and the Origins of the Developmental State in East Asia

Previous studies on economic development in East Asia focus exclusively on the recent period (since the 1960s) and posit that East Asian “miracles” were largely a result of the state's exceptional capacity to implement consistent industrial policy. Yet, they neglect the question of the origins of the developmental state. To confront this neglect, this article makes a macro-historical comparison between Northeast and Southeast Asia, highlighting colonialism, the role of income inequality, and subsequent socio-economic transformations. It is argued that a crucial historical phase for new economic trajectory was the decolonisation period when East Asian countries had an opportunity to break away from negative colonial legacies. This article sheds new light on the ways in which colonialism shapes long-term economic development in East Asia.     

Geopolitics and Soft Power: Japan's Cultural Policy and Cultural Diplomacy in Asia

Japan's cultural policy and cultural diplomacy in Asia has changed dramatically over the past one hundred years, from actively introducing and imposing Japanese culture during its empire-building period, to essentially avoiding the promotion of Japanese culture in Asia for most of the postwar period due to fears of being seen once again as engaged in cultural imperialism, and more recently, to supporting and encouraging the export of Japanese contemporary culture and lifestyle in order to attain “soft power.” Looking at the fluctuations in Japan's cultural policy over these three periods allows us to understand how Japan has used cultural policy to further its geopolitical goals and more basically how it has viewed the role of “culture” in the context of its relations with Asian neighbors. In a broader sense, the Japanese experience shows that cultural policy, even when inward-looking, is not isolated from a country's geopolitical position and its ambitions in the world, regardless of the political system under which it operates.     

The European Union (EU) in Asian Security: Actor with a Punch or Distant Bystander?

The EU calls itself a “soft power,” making “soft power” contributions to Asian security. That is undoubtedly what the EU is and does in Asia and the track record of European contributions to Asian peace and stability through economic and financial as well as development aid and technical assistance over the decades is not unimpressive. As will be shown below, over recent years Brussels and the Union's individual member states have sought to increase their involvement and role in Asian “hard security,” attempting to get rid of its reputation of being security a “free-rider” enjoying but not sharing the burden of US regional security guarantees. While the EU will continue to be a “hard security” actor in Asian security within limits, it is advised to concentrate its security cooperation with like-minded partners such as Japan and the US as opposed to hoping that talking to Beijing on regional or global security issues produces tangible results. As will be shown below, it clearly does not as Beijing continues to conduct very assertive and at times aggressive regional foreign and security policies insisting on the “principle of non-interference” in Chinese domestic and foreign policies. Consequently, EU influence on Chinese foreign and security policies in general and its increasingly aggressive policies related to territorial claims in the East China and South China Seas will continue to exist on paper and paper only.     

Clarifying the right of collective self‐defense

Since the 1950s the Japanese government has irrationally claimed that the Constitution bars it from exercising the right of collective self‐defense, says Seizaburo Sato, IIPS research director. International law clearly gives Japan the right to exercise both individual and collective self‐defense, says Sato, but the Japanese government's official view does not conform with this law. Sato sees the right to exercise collective self‐defense as essential to Japan's security, and argues that Japan should immediately declare this right. Then, taking all necessary time and in accordance with post‐war Japan's founding ideals, Japan should amend the Constitution.     

Asia's deepening financial crisis: Japan as a critical uncertainty

Japan's response to the economic crisis in East Asia is critical, not only for Japan itself but also for the Asia‐Pacific region and for the world. Kent Calder, Special Advisor to the US Ambassador to Japan, argues that the massive Japanese economy can potentially serve as a locomotive for the region, and as a sturdy fire wall to prevent the crisis from spreading. To do this, Japan must stimulate its economy, open markets further to Asian imports, and strengthen its financial system. If it fails, Japan could become part of the problem, instead of part of the solution.     

The Four Principles that Formed the Basis of Friendly Relations between Japan and China: The China Policy of the Nakasone Yasuhiro Government

This article examines Nakasone Yasuhiro’s policy toward China as a politician, including his remarks in the Diet before appointment as prime minister as well as exchanges with Chinese leaders during his prime ministership. Nakasone raised Japan-China relations to a level called a “honeymoon” in the 1980s, at which time the four principles of Japan-China relations were shared and there was the prospect of continued friendly relations into the 21st century. Behind the emergence of this era was not only Japan’s support for China’s economic development through ODA, but also the closeness of the stances that both Japan and China held toward the Cambodia and Korean Peninsula issues at the end of the Cold War. This may have been because there was the possibility for both parties to share information and mutually support each other. Nakasone actively talked not only with Hu Yaobang but also leaders such as Deng Xiaoping and Zhao Ziyang. However, as Nakasone’s partner Hu Yaobang was dismissed and the Cold War approached its end, the “honeymoon” between Japan and China came to an end, and the four principles by Nakasone and Hu gradually became just one frame of history.