Japan in Global Politics and Economy 1950s-present

Geo-politics: reluctant, subordinate actor From armed and aggressive to unarmed 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 (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” NdPPEwguDQ&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 up 150x, 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, 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: >

Economy, Relatively strong GDP growth: 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 “1940s system” 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: lessons for America? positive Robert Feldman, Morgan Stanley Research report, 11/27/2008