Japan in Global Politics and Economy

1950s-present

Geo-politics: reluctant, subordinate actor

•From armed and aggressive tounarmed and pacifist (and passive, subordinate?)

•Resistance and accommodation to US pressures to ally

WHY?

1. trauma of war

Geopolitics: reluctant power•Astonishing shift: from armed and aggressive to unarmed

and pacifist, passive

•Resistance and accommodation to US pressure to ally

WHY? 1 trauma of war

2. It worked!

Underlying tensions of pacifist US ally• Post 9-11: higher profile military deployments– Special (limited term) enabling legislation– Indian Ocean in 2001; Iraq 2004-09 (about 600 troops)– Majority public support for these steps, it seems

• Significance:– Hollowing out of constitution?

– A pragmatic recognition of need for US alliance rather than positive support for US policies

“Seamanship for Peace and Love”

http://www.youtube.com/watch?v=nNdPPEwguDQ&NR=1

Japan and Asia/non-West

•Attractive idea of solidarity with Asia •prewar roots•Postwar efforts:

•Bandung Conference•Normalization with Korea, China•Aid to SE Asia, Africa

•Ongoing legacies of mistrust•Comfort women: reluctance to acknowledge•Nanjing massacre: loud minority of deniers•Textbook controversies: negative cycle of recrimination

Close integration into global, capitalist economy

Context: -remarkable global expansion -open trade regime

volume of trade up150x, 1938-1989

Successful separation of politics and economics

By 1980s: “learning from Japan”

• Ezra Vogel best seller “Japan as Number One: Lessons for America”

• Just-in-time production• Total quality control• Education• YET

Integration into global economy

Tensions, from 1960s-present: chronic friction

-disputes over trade and capital liberalization

-disputes over NTB (non-tariff barriers)

-harsh recriminations: Theodore White article

Economy: Japan’s “Lost Decade” and lessons for America

Prelude: The bubble era, 1985-90

•Strong GNP: up 55% over the decade

•Gold leaf sushi wrap

•Land prices boom

Economy: Japan’s “Lost Decade” and lessons for America

The bubble bursts: 1991-->

Economy, 2003-2007•Relatively strong GDP growth:

2003-2007 annual growth averages over 2%

•Unemployment falls under 4%•Exports rise

•Especially to China

Explaining Japan’s “Lost Decade” (ver. 1)

1. Systemic crisis:the bankrupt “1940ssystem”

•system that once worked,-developmental state-interfirm networks as dynamic-long-term labor commitments

•Stopped working? -rigid state role-ineffective finance system-inflexible corporate organization

Explaining Japan’s “Lost Decade” (ver. 2)

2. Policy failures drag down a gradually changing but still-viable system

•Slow response to financial crisis•Tax increase choked off recovery in ‘98•Eventually, through trial and error, got it right

Lost decade lessons for America?

negative

Lost decade: lessonsfor America?

positive

Robert Feldman, Morgan StanleyResearch report, 11/27/2008