1. Japan in Global Politics and Economy 1950s-present

2. 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

3. 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!

4. 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

5. “Seamanship for Peace and Love” http://www.youtube.com/watch?v=n NdPPEwguDQ&NR=1

6. 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

7. Close integration into global, capitalist economy Context: -remarkable global expansion -open trade regime volume of trade up 150x, 1938-1989 Successful separation of politics and economics

8. 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

9. 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

10. 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

11. Economy: Japan’s “Lost Decade” and lessons for America The bubble bursts: 1991-->

12. Economy, 2003-2007 Relatively strong GDP growth: 2003-2007 annual growth averages over 2% Unemployment falls under 4% Exports rise Especially to China

13. 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

14. 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

15. Lost decade lessons for America? negative

16. Lost decade: lessons for America? positive Robert Feldman, Morgan Stanley Research report, 11/27/2008