THE INTERNATIONAL RELATIONS OF JAPAN
Also by Kathleen Newland THE SISTERHOOD OF MAN
The International Relations of Japan Edited by Kathleen Newland Department of International Relations London School of Economics M MACMILLAN in association with Palgrave Macmillan
Millennium Publishing Group 1990 Softcover reprint of the hardcover 1st edition 1990 978-0-333-53456-4 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 33--4 Alfred Place, London WClE 7DP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 1990 Published by MACMILLAN ACADEMIC AND PROFESSIONAL LTD Houndmills, Basingstoke, Hampshire RG21 2XS and London Companies and representatives throughout the world Typeset by Latimer Trend & Company Ltd Plymouth British Library Cataloguing in Publication Data International relations of Japan. l. Japan. Foreign relations. Policies of government I. Newland, Kathleen 327.52 ISBN 978-0-333-53457-1 ISBN 978-1-349-21016-9 (ebook) DOI 10.1007/978-1-349-21016-9
To Caroline Martin whose knowledge of Japan grew with mine and will soon surpass it v
Contents Notes on the Contributors x Acknowledgements xi 1 lntn)ducdon 1 Kathleen Newland l Where Does Japan Fit In? S Robert Gilpin The Japanese Challenge 6 The Lessons of the Past 9 Japan's Economic Strategy 15 Conclusion 21 3 Money and Inftuence: Japanese Power in the International Monetary and Fmancial System l3 Eric Helleiner Japan as Creditor to the World 23 State Control of External Assets 27 Importance of the Intemationalisation Process 33 Implications for Japanese Power: Structural Power 36 Conclusion 38 4 The Japanese Industrial Presence in America: Same Bed, Different Dreams 4S Michael Hodges Japanese Investment in the United States: Emollient or Irritant? 46 Japan's FDI in Perspective 49 The Changing Nature of Japanese FDI in the United States 53 US Policy toward Inward Investment: A Case of Benign Neglect 54 Competition between the States for Japanese Investment 60 Anti-Trust as Industrial Policy 64 Trojan Horse or Scapegoat? The Future of Japanese FDI in the United States 65 vii
viii Contents s The lbird World in Japanese Foreign Policy 71 William Nester Japan's Foreign Policy and the Third World 71 Japan's Political and Economic Ties with the Third World 75 Bilateral and Multilateral Relations 78 Conclusion 96 6 Japan's Aid Diplomacy: Economic, Political or Strategic? 100 Juichi Inada Japan's Aid: Becoming More Political? 103 Aid Policy Making: The Facts behind Political Input 109 Commercial Interests: Myth or Reality? 113 Conclusion 117 7 Political and Economic Influences in Japan's Relations with China since 1978 121 Walter Arnold Hirschman's Trade and Investment Influence Effect Theory 122 Political and Economic Characteristics of Sino-Japanese Relations 124 The Influence Effect in Sino-Japanese Relations 126 Political Determinants of Sino-Japanese Economic Relations 132 Political and Economic Conflict 133 Crisis Management through Political and Economic Accommodation 138 Conclusion 140 8 Japan's Security Policy after US Hegemony 147 Tsuneo Akaha The Decline of US Hegemony 147 Japan's Perceptions of US Power 149 US Military Presence and Security Commitments in the Asia-Pacific Region 155 Perceptions of Security Threats to Japan 156 Broadening US-Japan Security Co-operation and Burden Sharing 158
Contents ix Troubling Defence-Trade Linkages 164 Conclusion 165 9 Stuck in a Mould: The Relationship between Japan and the Soviet Union 174 Wolf Mend/ The Legacy of History 174 Issues in the Post-1945 Relationship 178 The Gorbachev Phenomenon 194 Conclusion 195 10 Four Japanese Scenarios for the Future 206 Takashi Inoguchi Japan's External Role: Opinion Poll Results 208 Four Scenarios 210 Requirements for the Four Scenarios 217 The Four Scenarios Reconsidered 219 Conclusion 222 Index 227
Notes on the Contributors Tsuneo Akaha is Associate Professor of International Policy Studies at the Monterey Institute of International Studies, Monterey, California. Walter Arnold is Associate Professor of Political Science at Miami University, Oxford, Ohio. Robert Gilpin is Professor of International Affairs at the Woodrow Wilson School of Public and International Affairs, Princeton University, Princeton, New Jersey. Eric Helleiner is a doctoral candidate in International Relations at the London School of Economics. Michael Hodges is Senior Lecturer in International Relations at the London School of Economics. Juichi Inada is a Research Fellow at the Japan Institute oflnternational Affairs, Tokyo. Takashi lnoguchi is Professor of Political Science in the Institute of Oriental Culture, University of Tokyo. Wolf Mendl is Reader in the Department of War Studies, King's College, University of London. William Nester is Assistant Professor in the Department of Government and Politics, StJohn's University, Jamaica, New York. Kathleen Newland is a lecturer in International Relations, London School of Economics. X
Acknowledgements This volume has its origin in a special issue of Millennium: Journal of International Studies, which is published from the Department of International Relations at the London School of Economics. The special issue was very much a group effort. Michael Singer, then a deputy editor of Millennium, conceived the idea of a special issue on this subject in 1988, and brought it closer to fruition by proposing to the International Studies Assosciation that Millennium sponsor a panel on the international relations of Japan at the Convention of the ISA and the British International Studies Association in London in 1989. A number of the contributors to this volume participated in that panel, as did my co-editor at Millennium, Charles Armstrong. Other contributors were in the audience and took part in the discussion that later evolved into this book. The entire editorial team ofvol. 18 (1989) of Millennium contributed to producing the special issue. Book Reviews Editors Joan Dea and Ian Rowlands; Deputy Editors Scott Lichtman and Arne Wasmuth; Associate Editors Rebecca Grant, Fred Halliday, David Long and John Vincent; Business Manager Priya Mukherjee; and my co-editor Charles Armstrong. Of these, Rebecca, Ian and Charles were particularly closely involved. Spyros Economides and Hugh Dyer pitched in with much-needed help at crucial moments of the production process. Malory Greene, John Hannaford, Richard Jerram, Janet LeNoble and Sophia Okpala helped with proofreading. I am especially grateful to the authors in this volume, who produced their chapters on a very tight timetable and in a marvellous spirit of cooperation without any of the usual inducements to such an endeavour: no foundation grants, no expense-paid trips, no honoraria. Both their work and the work of the Millennium editorial team was entirely voluntary. The resources expended on this project consist solely of the time and dedication of the participants and the support given to them by their home institutions, along with the institutional support in kind provided to Millennium by the London School of Economics, in particular its Department of International Relations. I would also like to express thanks to Tim Farmiloe and Clare Wace at the publishers, who encouraged us to tum the special issue of Millennium into a book. Thanks also to the Royal Institute of International Affairs for permission to reprint the article by Takashi xi
xii Acknowledgements Inoguchi (Chapter 10), which first appeared in the Institute's journal, International Affairs. As ever, Jurek Martin helped in ways too numerous to mention.