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Japanese foreign economic policy: the domestic bases for international behavior

Published online by Cambridge University Press:  22 May 2009

T.J. Pempel
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By many criteria, Japan is weak internationally. As a consequence one would expect its foreign economic policy to have been marked by limited choice, weakness, and constant vacillation in the face of external pressures. The domestic political structures of the country, however, have for most of the period since World War II permitted wide choice, strength, and consistency. A corporatist coalition of finance, major industry, trading companies, and the upper levels of the national bureaucracy, coupled with the consistent rule of the conservative Liberal Democratic Party, the systematic exclusion of organized labor from formal policy-making channels, and the lack of social overhead spending, has permitted the Japanese state to function as official doorman determining what, and under what conditions, capital, technology, and manufactured products enter and leave Japan. The strengths acquired from such past policies make it likely that the Japanese state will remain capable of dealing with the increasing domestic and international threats to its capacity to make relatively autonomous choices about Japan's international economic behavior.

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Research Article
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International Organization , Volume 31 , Issue 4 , Autumn 1977 , pp. 723 - 774
Copyright
Copyright © The IO Foundation 1977

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References

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58 For an excellent discussion of this problem see Tsurumi, Yoshi, “Japan,” Daedalus, Special Issue: The Oil Crisis in Perspective Vol. 104 (Fall 1975): 113–27Google Scholar.

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65 Kunihiko, Ogawa, Kuroi Keizai Kyōryoku (Tokyo: Shimpō Shinsho, 1974)Google Scholar, goes into some of the more sordid arrangements involving former prime ministers' benefits from various reparations, for example, based on records of the National Diet. Olson, Lawrence, Japan in Postwar Asia (New York: Praeger, 1968), also provides some insightful examples of the sameGoogle Scholar.

66 Jun, Nishikawa, Shigen Nashonarizumu (Tokyo: Diyamondo-sha, 1974), pp. 3–38Google Scholar; Ogawa, passim. In 1975, 37 percent of Japan's exports and 49 percent of its imports came from Asia, , Zue, p. 147Google Scholar. One-quarter of its direct overseas investments were in South Asia; see Sangyōshō Sangyō Seisakukyoku, Tsūshō, Wagakuni Kigyō no Kaigai Jigyō Katsudō (Tokyo: Ókurashō Insatsukyoku, 1975), p. 234Google Scholar.

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70 My thanks to Alan G. Rix for a number of conversations on his on-going research into this area and for several unpublished drafts of papers in which he amply demonstrates this point.

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72 Among the most noteworthy are Indonesia, South Korea, and the Philippines. Taiwan does not receive “aid,” yet it is the recipient of many generous commercial packages which would appear to be tied to the common conservative and anti-Communist orientations of the leaders of Taiwan and Japan.

73 It is perhaps interesting to note, for example, that a project now under discussion between the Ministry of Transport and the Indonesian government to provide navigation equipment in the Malacca Straits involves equipment that is produced only by Japan's Fujitsū.

74 My calculations from “Zuhyō ni miru Sengo Sanjúnenkan no Senshin Rokkakoku Keuizai no Suii,” Ekonomisuto 1 March 1976, p. 80.

75 Zue, pp. 96–98.

76 Sautter, Christian, Japan: Le Prix de la Puissance (Paris: Editions du Seuil, 1973)Google Scholar, translated into Japanese, as Japon: Sono Keizairyōku wa Honmono ka? (Tokyo: Sangyō Nōritsu Tanki Daigaku Shuppan, 1974), p. 60Google Scholar.

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85 Ministry of Education, Educational Standards in Japan, 1970 (Tokyo: Ministry of Education, 1971), pp. 145–46Google Scholar; Pempel, T.J., “The Politics of Enrollment Expansion in Japanese Universities,” Journal of Asian Studies Vol. 33 (11 1973): 67–86CrossRefGoogle Scholar.

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87 Boltho, pp. 84–93; Blumenthal, T., Saving in Postwar Japan (Cambridge: Harvard University Press, 1970)CrossRefGoogle Scholar; Mizoguchi, Toshiyuki, Personal Savings and Consumption in Postwar Japan (Tokyo: Kinokuniya, 1970), inter aliaGoogle Scholar.

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89 My calculations from Japan Statistical Index, various years.

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91 On the different measures, see inter alia, Bieda, , The Structure and Operation of the Japanese Economy, p. 41Google Scholar.

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94 Ekonomisuto,1 March 1976, p. 83.

95 Noguchi, Chapter 1.

96 Vishwanathan, Savitri, Normalization of Japanese-Soviet Relations, 1945–1970 (Tallahassee: Diplomatic Press, 1973), pp. 101 ffGoogle Scholar; Hunsbergei, Warren, Japan and the United States in World Trade (New York: Harper and Row, 1964), pp. 213–14Google Scholar.

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98 Based on the US-Japan Trade Council, United States Exports to Japan and United States Imports from Japan (various dates).

99 Gilpin, , U.S. Power and the Multinational Corporation, pp. 109–11Google Scholar; Langdon, F. C., Japan's Foreign Policy (Vancouver: University of British Columbia Press, 1974)Google Scholar; Patterson, Gardner, Discrimination in International Trade: The Policy Issue, 1945–1965 (Princeton: Princeton University Press, 1966), pp. 272–307, inter aliaCrossRefGoogle Scholar.

100 Halliday and McCormack, pp. 11–12.

101 Kiause and Sekiguchi, in Patrick and Rosovsky, p. 419.

102 Ozawa, pp. 74–75; The Japan Economic Journal, 10 October 1972.

103 Fukui, , Party in Power, p. 229Google Scholar.

104 Langdon, p. 178.

105 Haruhiio Fukui, “Tanaka Goes to Peking,” in Pempel, Policymaking in Contemporary Japan.

106 Halliday and McCormack, p. 232.

107 On Tyumen, see Curtis, Gerald L., “The Tyumen Oil Project and Japanese Foreign Policy,” paper presented at the Research Conference on Japanese Foreign Policy, Kauai, Hawaii, 14–18 01 1974Google Scholar; Hitchcock, David Jr., “Joint Development of Siberia: Decision-Making in Japanese Foreign Relations,” Asian Survey Vol. 11 (03 1971): 279–300CrossRefGoogle Scholar.

108 Curtis, “The Tyumen Oil Project and Japanese Foreign Policy.”

109 It should be noted that most of these pressures which did conflict with Japanese domestic political thrusts had their own domestic motivations. Most notably, pressures against Japan to reduce exports came as a consequence of organized economic groups within the relevant states. Correspondingly, pressures for liberalization of capital movements and imports came from businesses most likely to take advantage of these changes. Nothing surprising should be found in this observation; it is simply a reaffirmation of the domestic sources of much of international behavior.

110 Zue, p. 201.

111 On voluntary restrictions, see Patterson, pp. 307–17; Lynch, John, Toward an Orderly Market: An Intensive Study of Japan's Voluntary Quota on Cotton Textile Exports (Tokyo: Sophia University, 1968)Google Scholar, passim; Bergsten, C. Fred, “On the Non-Equivalence of Import Quotas and Voluntary Export Restraints,” in Bergsten, , New World Trade Policy, pp. 239–71Google Scholar.

112 Consider only the major problems posed for the Japanese budget by government support for rice prices to meet the political demands of farmers. See Michael W. Donnelly, “Setting the Price of Rice: A Study in Political Decision-Making,” in Pempel, Policymaking in Contemporary Japan.

113 The comments of Joseph S. Nye, Jr., and Stephen D. Cohen at the Conference on Foreign Economic Policy of Advanced Industrial States were particularly helpful in developing this point. More generally, see Simmel, Georg, Conflict and the Web of Group-Affiliations (New York: Free Press, 1955)Google Scholar and Coser, Lewis, The Functions of Social Conflict (New York: Free Press, 1956), passimGoogle Scholar.

114 Zue, p. 102.

115 Margaret McKean, “Pollution and Policymaking,” in Pempel, Policymaking in Contemporary Japan.

116 See, as examples: Economic Planning Agency, Basic Economic and Social Plan: 1973–1977 (Tokyo: Government Printing Office, 1973)Google Scholar; Shingikai, Sangyō Kōzō, Sangyō Kōzō no ChōkiBijon (Tokyo: Tsúshó Sangyó Chósakai, 1975)Google Scholar.

117 The Economist, 4 December 1976, p. 104.

118 See especially Beigsten, C. Fred, “The Threat from the Third World,” “The Threat Is Real,” and “The Response to the Third World,” Foreign Policy Vols. 11, 14, 17 (Summer 1973Google Scholar; Spring 1974; Winter 1974–75).

119 See the sources cited in fn. 116 plus Japan External Trade Organization, Japan: Into the Multinationalization Era (Tokyo: Press International, 1973)Google ScholarPubMed, and Japan as an Export Market (Tokyo: JETRO, n.d., probably 1972)Google Scholar; Tsūshō Sangyōshō Sangyō Seisakukyoku, Wagakuni Kigyō no Kaigai Jigyō Katsudō; Tsūshō Sangyōshō Tsūshō Seisakukyoku, Keizai Kyōryoku no Genjō to Mondaiten, Chapter 2; Tsūshō Sangyōshō, Tsūshō Hakusho 1975, passim, but esp. Part I, Chapter 2 and Part II, Chapters 2 and 3, inter alia.

120 My thinking on this point has been helped considerably by discussions with Richard Rosecrance. A more optimistic perception of the role to be played by new international forces, particularly the multinational corporation, can be found in Diebold, John, “Multinational Corporations: Why Be Scared of Them?” Foreign Policy Vol. 12 (Fall 1973): 79–95CrossRefGoogle Scholar.

121 Shishido, Toshio, “The Framework of Decision-Making in Japanese Economic Policies,” in Perspectives on U.S.-Japan Economic Relations, Taylor, Allen, ed., (Cambridge: Ballinger, 1973), p. 205Google Scholar.

122 Ibid.

123 Japan Transport Economics Research Center, Illustrated Transport Economy of Japan, 1974 (Tokyo: Japan Transport Economics Research Center, 1974), pp. 40–41Google Scholar.

124 Tsurumi, p. 124. On the oil shock and its domestic political consequences, see also Juster, Kenneth I., “Japanese Foreign Policy Making During the Oil Crisis,” (unpublished honors thesis, Department of Government, Harvard University, 03 1976)Google Scholar.

125 See inter alia Varon, Bension and Takeuchi, Kenji, “Developing Countries and Non-Fuel Minerals,” Foreign Affairs Vol. 52 (04 1974): 497–510CrossRefGoogle Scholar; Moran, Theodore H., “New Deal or Raw Deal in Raw Materials,” Foreign Policy Vol. 5 (Winter 1971–1972): 119–34CrossRefGoogle Scholar; Krasnei, Stephen D., “Oil is the Exception,” Foreign Policy Vol. 14 (Spring 1974): 68–84CrossRefGoogle Scholar; Weinstein, Franklin B., “Multinational Corporations and the Third World: The Case of Japan and Southeast Asia,” International Organization Vol. 30, No. 3 (Summer 1976): 373–404CrossRefGoogle Scholar.