This document summarizes the key discussions and conclusions from a conference on challenges and opportunities for Japan in the global economy. The conference highlighted that the global financial crisis requires an international response due to economic interconnectivity. Japan is well positioned to take advantage of opportunities from global turmoil due to its large cash reserves. However, Japan needs to engage more globally and demonstrate leadership on issues like climate change. Its relationship with China is also critical and both countries need to resolve bilateral issues to create a true partnership.
This document discusses the impact of the 2008 global economic crisis and G20 responses on sub-Saharan Africa. It finds that:
1) The crisis initially reduced demand, capital flows, and trade from developed nations, slowing growth in sub-Saharan Africa.
2) Stimulus packages in developed countries had unintended protectionist effects that further hurt African exports and trade.
3) However, African nations avoided major policy reversals, and growth has rebounded somewhat due to recovery in China and emerging markets.
4) The crisis accelerated Africa's economic ties shifting from the West to partners like China, though trade and aid ties to Europe and North America remain important.
1) The document discusses the need for improved policy coordination in several areas including the WTO Doha Round negotiations, climate change measures, and international development aid.
2) In the WTO, a lack of leadership from the US and tensions over agricultural subsidies have stalled negotiations, but a proposal for China and the US to make concessions could provide an opportunity.
3) There is a risk of emerging climate protectionism as countries consider border carbon taxes, which developing countries view as unfair, so monitoring tools are needed.
4) The fragmented international development aid system needs restructuring to be more effective and predictable, and agreements are needed with new donors like China on transparent approaches.
Political economy of asian financial crisisguitarefolle
1) The 1997-98 Asian financial crisis was a major shock to the region and economists, as countries like Thailand, Indonesia, South Korea and Malaysia experienced currency crashes and deep recessions.
2) There were debates around the causes, with some arguing it was due to macroeconomic issues like overvalued currencies, while others emphasized speculative attacks and contagion from country to country. A third view cited weaknesses in Asian financial systems and corporate sectors.
3) The crisis raised questions about the political economy factors in the region, including close business-government relations, levels of transparency, and how countries managed the adjustment processes and their consequences.
Causes of the 1997 South East Asian Financial Crises & its Impact on the Fina...Krutika Panari
The 1997 Asian Financial Crisis began in Thailand and spread to other Southeast Asian countries as well as Japan, South Korea and Russia. It was caused by currency speculation and excess foreign debt taken on by countries to finance real estate bubbles and investments. When Thailand floated its currency, it collapsed and investors fled the region, causing currencies and stock markets to crash across Asia. The IMF intervened but its austerity measures exacerbated recessions. The crisis had global impacts including the 1998 Russian crisis and LTCM collapse. It reduced confidence in globalization and international financial institutions.
This document provides an analysis of inflation targeting in Canada by comparing the country's economic performance before and after adopting inflation targeting in 1991.
The key points are:
1) Inflation was high and volatile in Canada in the 1970s-1980s, which led to the adoption of inflation targeting in 1991. Since then, inflation has been low and stable.
2) However, Canada's overall economic performance has been lackluster, with issues like anemic growth, high household debt, fiscal deficits, and current account deficits.
3) The document aims to re-evaluate inflation targeting based on how it has impacted other parts of the economy, not just inflation, as the central bank's
The Asian financial crisis began in Thailand in 1997 and spread to other Southeast Asian countries and Japan. Thailand's currency collapsed after it floated the baht and faced a severe debt crisis. As currencies and stock markets declined across the region, the IMF intervened with $40 billion for Thailand, South Korea, and Indonesia. The crisis exposed weaknesses from high foreign debt, currency pegs, and hot money inflows in these countries. It took over two years for the region's economies to begin recovering.
The Asian Financial Crisis began in Thailand in 1997 and spread to other Asian countries, sparking fears of a global economic meltdown. Thailand's currency collapsed under the weight of foreign debt, driving the country into bankruptcy. As the crisis spread, currencies and stock markets declined across Southeast Asia and Japan. The crisis stemmed from inappropriate borrowing by the private sector for speculative investments during a period of strong economic growth. When firms could not repay loans, creditors withdrew funds from the region, placing further pressure on currencies. The crisis exposed weaknesses like overvalued currencies, inadequate financial regulation, and heavy reliance on short-term external debts. Governments and the IMF implemented policies to stabilize currencies and financial systems while addressing rising unemployment and social impacts.
This document discusses the impact of the 2008 global economic crisis and G20 responses on sub-Saharan Africa. It finds that:
1) The crisis initially reduced demand, capital flows, and trade from developed nations, slowing growth in sub-Saharan Africa.
2) Stimulus packages in developed countries had unintended protectionist effects that further hurt African exports and trade.
3) However, African nations avoided major policy reversals, and growth has rebounded somewhat due to recovery in China and emerging markets.
4) The crisis accelerated Africa's economic ties shifting from the West to partners like China, though trade and aid ties to Europe and North America remain important.
1) The document discusses the need for improved policy coordination in several areas including the WTO Doha Round negotiations, climate change measures, and international development aid.
2) In the WTO, a lack of leadership from the US and tensions over agricultural subsidies have stalled negotiations, but a proposal for China and the US to make concessions could provide an opportunity.
3) There is a risk of emerging climate protectionism as countries consider border carbon taxes, which developing countries view as unfair, so monitoring tools are needed.
4) The fragmented international development aid system needs restructuring to be more effective and predictable, and agreements are needed with new donors like China on transparent approaches.
Political economy of asian financial crisisguitarefolle
1) The 1997-98 Asian financial crisis was a major shock to the region and economists, as countries like Thailand, Indonesia, South Korea and Malaysia experienced currency crashes and deep recessions.
2) There were debates around the causes, with some arguing it was due to macroeconomic issues like overvalued currencies, while others emphasized speculative attacks and contagion from country to country. A third view cited weaknesses in Asian financial systems and corporate sectors.
3) The crisis raised questions about the political economy factors in the region, including close business-government relations, levels of transparency, and how countries managed the adjustment processes and their consequences.
Causes of the 1997 South East Asian Financial Crises & its Impact on the Fina...Krutika Panari
The 1997 Asian Financial Crisis began in Thailand and spread to other Southeast Asian countries as well as Japan, South Korea and Russia. It was caused by currency speculation and excess foreign debt taken on by countries to finance real estate bubbles and investments. When Thailand floated its currency, it collapsed and investors fled the region, causing currencies and stock markets to crash across Asia. The IMF intervened but its austerity measures exacerbated recessions. The crisis had global impacts including the 1998 Russian crisis and LTCM collapse. It reduced confidence in globalization and international financial institutions.
This document provides an analysis of inflation targeting in Canada by comparing the country's economic performance before and after adopting inflation targeting in 1991.
The key points are:
1) Inflation was high and volatile in Canada in the 1970s-1980s, which led to the adoption of inflation targeting in 1991. Since then, inflation has been low and stable.
2) However, Canada's overall economic performance has been lackluster, with issues like anemic growth, high household debt, fiscal deficits, and current account deficits.
3) The document aims to re-evaluate inflation targeting based on how it has impacted other parts of the economy, not just inflation, as the central bank's
The Asian financial crisis began in Thailand in 1997 and spread to other Southeast Asian countries and Japan. Thailand's currency collapsed after it floated the baht and faced a severe debt crisis. As currencies and stock markets declined across the region, the IMF intervened with $40 billion for Thailand, South Korea, and Indonesia. The crisis exposed weaknesses from high foreign debt, currency pegs, and hot money inflows in these countries. It took over two years for the region's economies to begin recovering.
The Asian Financial Crisis began in Thailand in 1997 and spread to other Asian countries, sparking fears of a global economic meltdown. Thailand's currency collapsed under the weight of foreign debt, driving the country into bankruptcy. As the crisis spread, currencies and stock markets declined across Southeast Asia and Japan. The crisis stemmed from inappropriate borrowing by the private sector for speculative investments during a period of strong economic growth. When firms could not repay loans, creditors withdrew funds from the region, placing further pressure on currencies. The crisis exposed weaknesses like overvalued currencies, inadequate financial regulation, and heavy reliance on short-term external debts. Governments and the IMF implemented policies to stabilize currencies and financial systems while addressing rising unemployment and social impacts.
A Case Study Analysis on the Asian Financial Crisis of 1997 and Zapa ChemicalsSadman Ahmed
Asian Financial Crisis of 1997:-
The Asian crisis was one of the worst financial disasters in the history of Thailand. The investors moved away large sums money away, inflation spiraled out of control, and it ultimately put pressure on the exchange rates of the Baht. Due to Thailand’s problems alone, the effect of the crisis spread along different countries in Asia. The impacts prove how integrated the economies of today are. Much of the fault lies on the failed policies of the government and weak regulatory regime.
Zapa Chemicals (risk management)
The exchange rate exposure and the legal hurdles can be quite a burden when transferring funds across the borders. In the case of Zapa Chemicals, the tax filing problem did not help them to transfer funds. They didn’t know when exactly the funds would be available for receiving. The risk management of the firm is quite a hefty task for foreign companies to successfully pursue.
The document discusses the 1997 Asian Financial Crisis that originated in Thailand and spread to other Southeast Asian countries. It provides background on the "Four Asian Tigers" of high-growth economies prior to 1997. It then describes the events and impact of the crisis in Thailand, Indonesia, South Korea, Hong Kong, Malaysia and other nations. These included currency declines, falling stock markets, GDP declines and the need for IMF bailout packages. Causes of the crisis included easy foreign lending, real estate bubbles, and currency devaluations. The IMF was later criticized for its crisis response of imposing "structural adjustment" measures.
De ocampo presentation 3rd singapore global dialogue sep 12 (2)Manu Bhaskaran
Roberto De Ocampo was invited to speak at the 3rd Singapore Global Dialogue on whether the world economy is governable. He argues that the world economy is far more complex now than during the Bretton Woods system. Several financial crises starting in the 1990s demonstrated the interconnectedness of economies and impacted regions and the world. The rise of China and shift of economic power away from the US and Europe has further complicated governance. While the G20 aims to facilitate cooperation, it faces legitimacy issues due to its limited membership. True global governance will require continued evolution of international institutions and cooperation between powerful state actors like the US, EU, and China.
This document discusses the causes of the 1997 Asian financial crisis. It outlines two main arguments about the causes: fundamental weaknesses in Asian economies vs. financial panic and lack of a lender of last resort. It also discusses the roles of the IMF and Malaysia's response. The purpose is to review the key causes, compare the IMF and Malaysian strategies, and identify lessons learned.
This document provides an introduction and overview of the global economic meltdown of 2008. It discusses several key causes, including unsustainable consumption and borrowing in the US fueled by surpluses from other countries like China. It also cites the greed of investment bankers and failure of regulators. The crisis has had severe impacts around the world and shown the failures of both capitalism and communism. Moving forward, there is a need for a more sustainable and balanced economic system that benefits all people equitably.
1) The IMF faces many challenges as global economic and political power shifts, including rising populism, protectionism, and great power rivalry. It must adapt to remain relevant.
2) Key changes needed are rebalancing voting shares to reflect economic weights, increasing financial resources, and making the top leadership truly global and merit-based.
3) Ultimately, the IMF relies on countries cooperating in a rules-based global system. If that cooperation breaks down, the IMF's role will be difficult to maintain.
The document summarizes the 1997 Asian Financial Crisis. It began in Thailand due to a real estate bubble fueled by foreign capital inflows. When the US raised interest rates, capital fled Thailand, forcing the baht to float and devalue sharply. This triggered a financial crisis that spread to other Southeast Asian countries as currency devaluations made foreign debt more expensive. The IMF provided $40 billion in bailout loans to stabilize currencies in affected countries which included Thailand, Indonesia, South Korea, Hong Kong, Malaysia, and the Philippines.
The East Asian economic crisis in the late 1990s affected several countries in the region. It was caused by weak domestic policies, global financial liberalization, and speculative attacks on currencies with fixed exchange rates. Thailand was hit first as investors lost confidence in its currency, the baht. The crisis led to sharp declines in currencies, stock markets, and asset prices across Asia. It also had spillover effects globally. The IMF responded by providing loans with conditions for austerity measures, which deepened recessions. Countries have since rebuilt their economies and financial systems to be stronger against future crises.
The document summarizes the social impacts of the Asian financial crisis of the late 1990s. It discusses how the crisis led to rising unemployment and inflation, a decline in real incomes and household assets, and increases in poverty levels. Vulnerable groups like women, children, the elderly and migrant workers were disproportionately affected. Governments, communities, and households implemented various responses and coping mechanisms to deal with the economic hardship caused by the crisis.
The document summarizes the 1997 Asian Financial Crisis that affected economies in Southeast Asia. It provides background on the crisis, describing how currency devaluations in Thailand, Indonesia, and other countries led to a loss of over $100 billion from the region. This resulted in high unemployment, falling wages, and corporate and bank failures. A combination of factors contributed to the crisis, including risky private sector borrowing, currency speculation, and weak economic performance. Countries took measures like seeking IMF aid and reforming banking systems to overcome the crisis. The crisis indirectly impacted countries like India through slower global growth and affected Indian exports, while India was shielded by capital controls and a floating exchange rate.
FDI, economic decline and recovery: lessons from Asian Financial CrisisFarhad Hafez
This document summarizes a paper about the impact of foreign direct investment (FDI) on economic decline and recovery during the 1997 Asian financial crisis. The paper analyzes data from 10 Asian economies to test the hypotheses that higher FDI levels prior to a crisis can reduce economic decline during the crisis and speed up recovery. The results found FDI did help mitigate decline and boost recovery in some cases. The conclusion is that Asian countries' efforts to attract more FDI can help build more stable economic growth and resilience to future crises.
The Asian financial crisis was a period of financial crisis that gripped much of East Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.
Financial contagion refers to “the spread of market disturbances -- mostly on the downside -- from one country to the other, a process observed through co-movements in exchange rates, stock prices, sovereign spreads, and capital flows." Financial contagion can be a potential risk for countries who are trying to integrate their financial system with international financial markets and institutions. It helps explain an economic crisis extending across neighboring countries, or even regions.
The Asian Financial Crisis began in Thailand in 1997 and spread to other Asian countries. Countries had high debt levels, currency pressures, and collapsed asset prices as foreign capital rapidly pulled out. Thailand, Indonesia, South Korea, and other Southeast Asian countries were most affected. The IMF intervened and provided bailout loans with conditions of austerity measures, which some argue exacerbated recessions. While some countries recovered, the crisis highlighted the risks of heavy reliance on foreign capital inflows and foreign debt.
Dr. Michael Hasenstab provides an analysis of factors that will differentiate the recoveries of various countries from the global economic crisis. He believes emerging markets will recover more quickly than developed markets due to emerging markets' stronger domestic economies and less reliance on exports, more effective policy responses, and avoidance of issues like high public debt and private sector leverage plaguing developed nations. Recent economic trends support this view, with emerging markets showing stronger growth, job creation, and capital inflows. Hasenstab also discusses opportunities in foreign exchange and bond markets stemming from divergence in recoveries.
This document provides an introduction and overview of the global economic meltdown of 2008. It discusses several key causes, including unsustainable consumption and borrowing in the US fueled by surpluses from other countries like China. It also cites the greed of investment bankers and failure of regulators. The crisis has had severe impacts around the world and shown the failures of both capitalism and communism. Moving forward will require finding a new, sustainable economic model.
The document discusses the Asian financial crisis of the late 1990s. It describes how several Asian countries like Thailand, Indonesia, and South Korea were affected by currency collapse and economic recession after a period of strong growth and investment fueled by capital inflows. When investors noticed a lack of returns and bubbles in currencies and real estate, there was a massive flight of capital that plunged the region into crisis.
The document discusses steps the U.S., China, and Japan should take before the next G20 meeting to address the global financial crisis. It proposes:
1) Establishing an emergency currency peg between the dollar, RMB, and yen to stop competitive currency devaluations.
2) Creating a group of allied global central banks including the Fed, PBOC, and BOJ to provide currency swaps and act as a global lender of last resort.
3) Having global sovereign funds recapitalize key global corporations through partial nationalization to restore market confidence.
The document argues this U.S.-China-Japan agreement would provide a foundation for the larger G20 nations
The document discusses the Asian Financial Crisis of 1997-1998. It began in Thailand in May 1997 when the Thai baht collapsed due to speculative attacks. The crisis spread to other Southeast Asian countries such as Malaysia, Indonesia, and the Philippines. The crisis was caused by excess investment in these countries, fueled by export growth, that was financed by foreign capital in US dollars. This left countries vulnerable when their currencies collapsed against the dollar. The crisis had severe economic and political impacts, including falling GDP, high inflation, and the resignation of President Suharto in Indonesia. Countries received IMF support and implemented reforms to stabilize their economies and recover over the following years.
The document discusses Japan's strategy for responding to the European debt crisis at an upcoming G20 meeting. It recommends that Japan provide financial support to Europe at an appropriate scale and timing. Additionally, it argues that Japan should coordinate with China to make a large, allied financial contribution. Doing so could help strengthen Japan's relationships with China and other emerging economies as China's economic power grows. Taking a strategic, allied approach with China represents an opportunity for Japan to exert more influence as an Asian leader during the global financial crisis.
The Impact Of Japanese Great Recession On Foreign...Miles Priar
The Liberal Democratic Party dominated Japanese politics from 1955 to 1993, maintaining control of the government despite Japan's parliamentary democracy system. Key to the LDP's long rule was its strong leadership that closely resembled a single-party dictatorship. However, unlike authoritarian regimes, all of Japan's lawmakers were democratically elected. The LDP's dominance of parliament allowed it to control the government for 38 years through its leadership structure.
The document provides information about Japan's economy and political factors. It discusses Japan's status as the third largest economy in the world but one that is highly dependent on exports and vulnerable to external shocks. It notes that while Prime Minister Abe's economic reforms have helped growth, public debt remains very high and population aging is a concern. Key political factors discussed include Japan's stable one-party rule by the LDP and influence of bureaucratic ministries.
Individual Thesis: Signs of Japanification In South Korean Economy - Threats ...Hoonjae Gwak
Individual Thesis presented in the 32nd Korea-Japan Student Forum (KJSF) held in August 2016. I was the Coordinator of the Department of Economy in the 32nd KJSF.
A Case Study Analysis on the Asian Financial Crisis of 1997 and Zapa ChemicalsSadman Ahmed
Asian Financial Crisis of 1997:-
The Asian crisis was one of the worst financial disasters in the history of Thailand. The investors moved away large sums money away, inflation spiraled out of control, and it ultimately put pressure on the exchange rates of the Baht. Due to Thailand’s problems alone, the effect of the crisis spread along different countries in Asia. The impacts prove how integrated the economies of today are. Much of the fault lies on the failed policies of the government and weak regulatory regime.
Zapa Chemicals (risk management)
The exchange rate exposure and the legal hurdles can be quite a burden when transferring funds across the borders. In the case of Zapa Chemicals, the tax filing problem did not help them to transfer funds. They didn’t know when exactly the funds would be available for receiving. The risk management of the firm is quite a hefty task for foreign companies to successfully pursue.
The document discusses the 1997 Asian Financial Crisis that originated in Thailand and spread to other Southeast Asian countries. It provides background on the "Four Asian Tigers" of high-growth economies prior to 1997. It then describes the events and impact of the crisis in Thailand, Indonesia, South Korea, Hong Kong, Malaysia and other nations. These included currency declines, falling stock markets, GDP declines and the need for IMF bailout packages. Causes of the crisis included easy foreign lending, real estate bubbles, and currency devaluations. The IMF was later criticized for its crisis response of imposing "structural adjustment" measures.
De ocampo presentation 3rd singapore global dialogue sep 12 (2)Manu Bhaskaran
Roberto De Ocampo was invited to speak at the 3rd Singapore Global Dialogue on whether the world economy is governable. He argues that the world economy is far more complex now than during the Bretton Woods system. Several financial crises starting in the 1990s demonstrated the interconnectedness of economies and impacted regions and the world. The rise of China and shift of economic power away from the US and Europe has further complicated governance. While the G20 aims to facilitate cooperation, it faces legitimacy issues due to its limited membership. True global governance will require continued evolution of international institutions and cooperation between powerful state actors like the US, EU, and China.
This document discusses the causes of the 1997 Asian financial crisis. It outlines two main arguments about the causes: fundamental weaknesses in Asian economies vs. financial panic and lack of a lender of last resort. It also discusses the roles of the IMF and Malaysia's response. The purpose is to review the key causes, compare the IMF and Malaysian strategies, and identify lessons learned.
This document provides an introduction and overview of the global economic meltdown of 2008. It discusses several key causes, including unsustainable consumption and borrowing in the US fueled by surpluses from other countries like China. It also cites the greed of investment bankers and failure of regulators. The crisis has had severe impacts around the world and shown the failures of both capitalism and communism. Moving forward, there is a need for a more sustainable and balanced economic system that benefits all people equitably.
1) The IMF faces many challenges as global economic and political power shifts, including rising populism, protectionism, and great power rivalry. It must adapt to remain relevant.
2) Key changes needed are rebalancing voting shares to reflect economic weights, increasing financial resources, and making the top leadership truly global and merit-based.
3) Ultimately, the IMF relies on countries cooperating in a rules-based global system. If that cooperation breaks down, the IMF's role will be difficult to maintain.
The document summarizes the 1997 Asian Financial Crisis. It began in Thailand due to a real estate bubble fueled by foreign capital inflows. When the US raised interest rates, capital fled Thailand, forcing the baht to float and devalue sharply. This triggered a financial crisis that spread to other Southeast Asian countries as currency devaluations made foreign debt more expensive. The IMF provided $40 billion in bailout loans to stabilize currencies in affected countries which included Thailand, Indonesia, South Korea, Hong Kong, Malaysia, and the Philippines.
The East Asian economic crisis in the late 1990s affected several countries in the region. It was caused by weak domestic policies, global financial liberalization, and speculative attacks on currencies with fixed exchange rates. Thailand was hit first as investors lost confidence in its currency, the baht. The crisis led to sharp declines in currencies, stock markets, and asset prices across Asia. It also had spillover effects globally. The IMF responded by providing loans with conditions for austerity measures, which deepened recessions. Countries have since rebuilt their economies and financial systems to be stronger against future crises.
The document summarizes the social impacts of the Asian financial crisis of the late 1990s. It discusses how the crisis led to rising unemployment and inflation, a decline in real incomes and household assets, and increases in poverty levels. Vulnerable groups like women, children, the elderly and migrant workers were disproportionately affected. Governments, communities, and households implemented various responses and coping mechanisms to deal with the economic hardship caused by the crisis.
The document summarizes the 1997 Asian Financial Crisis that affected economies in Southeast Asia. It provides background on the crisis, describing how currency devaluations in Thailand, Indonesia, and other countries led to a loss of over $100 billion from the region. This resulted in high unemployment, falling wages, and corporate and bank failures. A combination of factors contributed to the crisis, including risky private sector borrowing, currency speculation, and weak economic performance. Countries took measures like seeking IMF aid and reforming banking systems to overcome the crisis. The crisis indirectly impacted countries like India through slower global growth and affected Indian exports, while India was shielded by capital controls and a floating exchange rate.
FDI, economic decline and recovery: lessons from Asian Financial CrisisFarhad Hafez
This document summarizes a paper about the impact of foreign direct investment (FDI) on economic decline and recovery during the 1997 Asian financial crisis. The paper analyzes data from 10 Asian economies to test the hypotheses that higher FDI levels prior to a crisis can reduce economic decline during the crisis and speed up recovery. The results found FDI did help mitigate decline and boost recovery in some cases. The conclusion is that Asian countries' efforts to attract more FDI can help build more stable economic growth and resilience to future crises.
The Asian financial crisis was a period of financial crisis that gripped much of East Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.
Financial contagion refers to “the spread of market disturbances -- mostly on the downside -- from one country to the other, a process observed through co-movements in exchange rates, stock prices, sovereign spreads, and capital flows." Financial contagion can be a potential risk for countries who are trying to integrate their financial system with international financial markets and institutions. It helps explain an economic crisis extending across neighboring countries, or even regions.
The Asian Financial Crisis began in Thailand in 1997 and spread to other Asian countries. Countries had high debt levels, currency pressures, and collapsed asset prices as foreign capital rapidly pulled out. Thailand, Indonesia, South Korea, and other Southeast Asian countries were most affected. The IMF intervened and provided bailout loans with conditions of austerity measures, which some argue exacerbated recessions. While some countries recovered, the crisis highlighted the risks of heavy reliance on foreign capital inflows and foreign debt.
Dr. Michael Hasenstab provides an analysis of factors that will differentiate the recoveries of various countries from the global economic crisis. He believes emerging markets will recover more quickly than developed markets due to emerging markets' stronger domestic economies and less reliance on exports, more effective policy responses, and avoidance of issues like high public debt and private sector leverage plaguing developed nations. Recent economic trends support this view, with emerging markets showing stronger growth, job creation, and capital inflows. Hasenstab also discusses opportunities in foreign exchange and bond markets stemming from divergence in recoveries.
This document provides an introduction and overview of the global economic meltdown of 2008. It discusses several key causes, including unsustainable consumption and borrowing in the US fueled by surpluses from other countries like China. It also cites the greed of investment bankers and failure of regulators. The crisis has had severe impacts around the world and shown the failures of both capitalism and communism. Moving forward will require finding a new, sustainable economic model.
The document discusses the Asian financial crisis of the late 1990s. It describes how several Asian countries like Thailand, Indonesia, and South Korea were affected by currency collapse and economic recession after a period of strong growth and investment fueled by capital inflows. When investors noticed a lack of returns and bubbles in currencies and real estate, there was a massive flight of capital that plunged the region into crisis.
The document discusses steps the U.S., China, and Japan should take before the next G20 meeting to address the global financial crisis. It proposes:
1) Establishing an emergency currency peg between the dollar, RMB, and yen to stop competitive currency devaluations.
2) Creating a group of allied global central banks including the Fed, PBOC, and BOJ to provide currency swaps and act as a global lender of last resort.
3) Having global sovereign funds recapitalize key global corporations through partial nationalization to restore market confidence.
The document argues this U.S.-China-Japan agreement would provide a foundation for the larger G20 nations
The document discusses the Asian Financial Crisis of 1997-1998. It began in Thailand in May 1997 when the Thai baht collapsed due to speculative attacks. The crisis spread to other Southeast Asian countries such as Malaysia, Indonesia, and the Philippines. The crisis was caused by excess investment in these countries, fueled by export growth, that was financed by foreign capital in US dollars. This left countries vulnerable when their currencies collapsed against the dollar. The crisis had severe economic and political impacts, including falling GDP, high inflation, and the resignation of President Suharto in Indonesia. Countries received IMF support and implemented reforms to stabilize their economies and recover over the following years.
The document discusses Japan's strategy for responding to the European debt crisis at an upcoming G20 meeting. It recommends that Japan provide financial support to Europe at an appropriate scale and timing. Additionally, it argues that Japan should coordinate with China to make a large, allied financial contribution. Doing so could help strengthen Japan's relationships with China and other emerging economies as China's economic power grows. Taking a strategic, allied approach with China represents an opportunity for Japan to exert more influence as an Asian leader during the global financial crisis.
The Impact Of Japanese Great Recession On Foreign...Miles Priar
The Liberal Democratic Party dominated Japanese politics from 1955 to 1993, maintaining control of the government despite Japan's parliamentary democracy system. Key to the LDP's long rule was its strong leadership that closely resembled a single-party dictatorship. However, unlike authoritarian regimes, all of Japan's lawmakers were democratically elected. The LDP's dominance of parliament allowed it to control the government for 38 years through its leadership structure.
The document provides information about Japan's economy and political factors. It discusses Japan's status as the third largest economy in the world but one that is highly dependent on exports and vulnerable to external shocks. It notes that while Prime Minister Abe's economic reforms have helped growth, public debt remains very high and population aging is a concern. Key political factors discussed include Japan's stable one-party rule by the LDP and influence of bureaucratic ministries.
Individual Thesis: Signs of Japanification In South Korean Economy - Threats ...Hoonjae Gwak
Individual Thesis presented in the 32nd Korea-Japan Student Forum (KJSF) held in August 2016. I was the Coordinator of the Department of Economy in the 32nd KJSF.
Maria Sharapova - CI - Current Global Financial Crisis & Its implication on I...Fatfat Shiying
This document discusses the current global financial crisis and its implications for Japan. It provides background on Japan's economy and history. It then discusses the causes and stages of the global financial crisis, including the collapse of the US subprime mortgage industry and housing bubble. It examines the impact of the crisis on Japan's international financial institutions, financial system, economy, exports, and government. While Japan was affected through impacts on its banks and stock market, its financial system was less directly exposed than other nations. The document aims to understand how the crisis impacted Japan and what can be learned from its experience.
This document summarizes the key discussions and conclusions from a conference on Japan's increasing global role. The conference brought together senior Japanese, EU, and US policymakers and business leaders. There was a debate around whether Japan is increasingly looking inward or remains an active global player. While Japan faces challenges like political instability and an aging population, it remains an important economic and political stakeholder internationally. Japan contributes significantly to global challenges like climate change and supports international institutions. However, it needs to better communicate its role and define its relationships with countries like China to overcome a sense of introspection and assume greater leadership.
This document summarizes the key discussions and conclusions from a conference on Japan's increasing global role. The conference brought together senior Japanese, EU, and US policymakers and business leaders. There was a debate around whether Japan is increasingly looking inward or remains an active global player. While Japan faces challenges like political instability and an aging population, it remains an important economic and political stakeholder internationally. Japan contributes significantly to global challenges like climate change and supports international institutions. However, it needs to better communicate its role and define its relationships with countries like China to overcome a sense of introspection and assume greater leadership.
This document summarizes the key discussions and conclusions from a conference on Japan's increasing global role. The conference brought together Japanese, EU, and US policymakers and business leaders. Key conclusions included that Japan will continue contributing globally but faces challenges taking a greater leadership role due to domestic political instability and an inward focus. Japan remains concerned by regional security issues like China's military growth. The document also discusses Japan's role in global economic prosperity and its bilateral relationships, particularly with the US and China. Japan needs to take bolder steps to define its regional role and overcome challenges to assuming greater international leadership.
The document discusses the shift in global economic power from developed to emerging markets. It notes that emerging markets now make up 24% of global equity market capitalization, attracted by higher growth prospects. Developed nations face decades of low growth and high debt levels from stimulus measures. Emerging economies like China, India, Brazil are seen as the next generation of growth engines, with investors pouring money into these markets. Going forward, emerging markets will play a more prominent role in the global economy and its management.
The document summarizes the global economic crisis, providing details on what an economic crisis is, the history of past crises like the Great Depression, common causes of crises, and the overall effects on countries. Specific countries that were heavily impacted by the crisis are discussed, such as Argentina, Australia, Thailand, and conclusions call for reforms to the international financial system to prevent future crises.
The document summarizes the 2008 Toyako G8 Summit hosted in Hokkaido, Japan. It discusses the agreements reached on climate change, aid to Africa, and other issues. However, it notes the summit failed to commit to specific emissions cuts or explain how aid promises would be delivered. It also questions whether the summit was a success or failure and analyzes problems with the outcomes. It raises questions about Hokkaido's plans to promote international business post-summit and the interests of foreign visitors to the region.
This is a presentation on Worldwide Financial Crisis made by Vinod Thomas, Director-General & Senior Vice President at the Independent Evaluation Group, World Bank. In the presentation, Mr. Thomas describes the reasons for the recent financial crisis, highlights the extent of damages, and discusses policy responses to the crisis.
Japan's economic situation in recent history has been characterized by both periods of remarkable growth and challenges. Following World War II, Japan experienced a period of rapid economic expansion, known as the "Japanese Economic Miracle," which propelled it to become the world's second-largest economy. This growth was driven by industries such as automobiles, electronics, and manufacturing. However, in the 1990s, Japan faced a prolonged economic downturn, commonly referred to as the "Lost Decade," marked by asset price deflation and sluggish growth. The government implemented various economic reforms and stimulus measures to address these challenges. In recent years, Japan has shown signs of recovery, with improved economic indicators, increased foreign investment, and efforts to stimulate innovation and entrepreneurship. Despite ongoing concerns such as an aging population and high public debt, Japan remains a major global economic player, known for its technological advancements and export-oriented industries.
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1. Report on Wilton Park Conference 933
JAPAN: CHALLENGES AND OPPORTUNITIES IN THE GLOBAL ECONOMY
Wednesday 22 - Saturday 25 October 2008
in association with The Foreign and Commonwealth Office, The Japan
Foundation, The Great Britain Sasakawa Foundation, The Department for
Business Enterprise and Regulatory Reform (BERR) and support from Virgin
Atlantic Airways Ltd.
Executive Summary
A group of senior Japanese, EU and US policy makers, opinion leaders and corporate
sector representatives gathered at Wilton Park against the background of the deepening
international financial crisis to discuss challenges and opportunities for Japan in the
global economy.
The key conclusions of the conference were:
•The current financial crisis has highlighted the interconnectivity of the global economy
which many believe requires a shared international response. There is a growing
realisation that the global financial crisis is increasingly impacting negatively on the
Japanese economy. This reinforces the feeling that ‘we are all in this together’.
•The rapid and concrete response by both the US and EU governments to the current
credit suggests they have already learned from Japan’s 1990s credit crunch experience.
There are further direct lessons for the US and EU including the need to ensure prompt
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2. disclosure of and disposal of bad debts to prevent further economic weakening.
•Japan, with its huge cash reserves, is in a strong position to take advantage of global
business opportunities resulting from the current global economic turmoil.
•Despite the growth of China, Japan will remain a dominant player in the Asian region
and may emerge as a ‘global balancer’ in the trilateral relationship between the US, EU
and Asia.
•Japan needs to re-engage globally with a more strategic mindset and awareness of its
national brand. It could demonstrate greater multilateral leadership on key global issues
such as climate change. If Japan is to ‘re-emerge’, a critical factor will be the nature of
its bilateral relationship with China. Japan and China need to resolve a number of
bilateral issues to create a real partnership of equals. Its relationship with China needs
to be conducted separately from relations with the US.
•In spite of some domestic opposition to globalisation, Japan’s democratic values and
respect for the rule of law, ensure that it will continue to be valued as a reliable, long
term partner by the EU, US and Asian partners.
The Credit Crunch: Japan’s Experience and Response
1. The 1990s is known as the ‘lost decade’ for the Japanese economy. One of the main
reasons why Japan performed so poorly in the 1990s was that financial institutions were
slow to disclose and write off non-performing loans caused by the collapse of the asset
price bubble. To that extent, one of the lessons from the Japanese experience is that
failure to disclose and dispose promptly bad debt will result in ongoing weakness in
economic activity. Many believe US and European countries are disposing of bad debts
more rapidly than Japan did in the 1990s as disclosure frameworks are generally
already in place. Furthermore, the market will be able to put a value on the portion of
bad debts that have been securitised. Even so, the US and European countries are
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3. probably in for several years of weak growth.
2. With the turmoil in the global financial system, the global economy faces the
most dangerous crisis since the 1930s. The International Monetary Fund (IMF) World
Economic Outlook’s forecasts for 2008 and 2009 have been revised sharply downward.
Whilst there is a low likelihood of another Asian financial crisis, an international
response to stabilise financial and money markets requires an ample injection of
liquidity, whilst avoiding excessive regulation.
3. Japan almost uniquely has been through a financial meltdown closely resembling
what most western economies are undergoing now. Japan’s experience suggests
aggressive monetary easing and the concentrated provision of large injections of public
funds into financial institutions can go a long way towards helping resolve financial
crises. However, compared with the Japan experience in the 1990s, US and European
responses to the current economic turmoil have been more rapid.
4. Some regard the current economic crisis as having ended the liberal international
economic system and globalisation. Nevertheless, globalisation will continue.
Competition and free open markets will remain core principles. The US’s global
standing has been tarnished, and it appears a paradigm shift to a new multi-power
international system may emerge reflecting the growing economic power of Brazil,
Russia, India and China (BRICs). As part of this process, a shift in the balance of global
wealth to Asia in particular is underway. Although Japan’s economy will constitute less
than 5% of global GDP by 2020, it is critical for Japan’s future success to accept the
inevitability of globalisation.
5. The extraordinary current market turmoil may in fact prove an opportunity for Japan.
Japan’s economy is in relatively good shape given its limited exposure to sub-prime
lending. Japanese banks and companies have large capital reserves and Japan’s
financial institutions are relatively stable. Japanese financial institutions have by and
large managed to keep their balance sheets in order. Japan’s overseas financial assets
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4. now total $5.4 trillion. Japanese financial institutions, as big players in both Japan and
globally, will be able to make a major contribution to the global economy in the future. In
the current economic crisis, Japan will increasingly be seen as a ‘white knight’ capital
provider. Japanese firms have the advantage of being regarded as co-operative, long
term partners, as witnessed by Nomura’s rescue of critical operations of Lehman
Brothers and Mitsubishi’s significant investment in Morgan Stanley.
6. If Japan is to succeed globally in this new era, it will need a new and more open
strategic mindset. The current crisis gives Japan a chance to access new, especially
developing country, markets. Investment and partnership are part of a competitive race
for leadership with China, South Korea and India which are moving aggressively into
new markets. More than 45% of Japanese exports now go to emerging economies,
where both infrastructure investment and consumer spending are likely to continue
growing solidly.
7. To address the future challenges of the global economy, Japan needs to attract more
Foreign Direct Investment (FDI) and promote Tokyo as one of the three major global
financial centres. Japan carried out a comprehensive reform plan for enhancing the
role and competitiveness of its financial market in 1998. The Japanese government has
set a target of increasing FDI to 5% of GDP by 2010.
Japan and Regional Challenges
8. Emerging economies are not ‘emerging’, but simply recovering their past
importance. In 1820, two thirds of total world GDP was generated in Asia (India
accounted for 40% and China 20%). By 2005, developed economies and emerging
economies’ share of global GDP was split 50/50.
9. The shift towards Asia will provide more opportunities than challenges for Japan.
Currently 60% of total Association of East Asian Nations (ASEAN) +3 trade is intra-
regional, and by 2010-2015, a vast free trade area will be a reality. However, the
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5. outsourcing of production presents a challenge to Japan with, for example, more than
30,000 Japanese firms operating in China alone.
10. Today, there is renewed ‘Japan bashing’, but this time primarily by the Japanese
themselves. Japan is experiencing political gridlock as it needs to deal with a new
global landscape. Japan should end the introspection detrimental to Japanese
national interests and which undermines Tokyo’s credibility with allies. The reluctance
to embrace economic reform is matched by a similar hesitation to assume a higher
international profile. There is little domestic support for playing a leadership role
internationally. This ambivalence is evident in the failure to develop an effective
regional strategy. Japanese diplomacy in Asia is generally perceived as being reactive
and hamstrung by domestic political constraints. Japan must learn to develop and
communicate its own strategy. Tokyo must embrace a more creative diplomacy that
plays to Japan’s strengths: creative, highly skilled individuals, innovative technological
solutions, and skilled and patient diplomacy. Realism is an essential element of this
approach. A policy that disregards the conservatism of the Japanese people and its
policy-making community will not succeed.
11. Four key threats face the Asia-Pacific region: a major global socio-political
backlash driven by inequality and the absence of democracy; war; climate change and
other environmental disasters, and the resurgence of protectionism. Japan must do its
part to mitigate these threats out of enlightened self-interest. Each of these threats
poses serious consequences for Japan. It is more vulnerable than the US or EU.
12. China, Laos, Myanmar, North Korea and Vietnam in particular are at threat from
growing inequality and authoritarian rule. Arguably the key long-term challenge is
building democratic structures and a pluralist political culture. Growing internet and
mobile phone usage nurtures more a sophisticated political culture and greater calls for
political freedoms.
13. Another key challenge is building an efficient security architecture for regional co-
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6. operation. Stability in the region, particularly in the Sea of Japan, is crucial for Japan’s
long-term economic well-being. There are already multilateral bodies, but regional
security organisations are needed. Greater stability in bilateral relations between Japan
and China as well as with North Korea need to be forged. The Japan-China relationship
obviously has the greatest strategic importance, but a truly equal partnership remains
elusive. With the gradual emergence of China as the dominant economic power within
the region, Japan (as a major economy with a mature democracy) will nevertheless be
an indispensable economic and political ‘balancer'. Japan should engage robustly in
regional initiatives in which it has vital national interests. Japan should view regionalism
as a way of engaging and restraining China. Japan needs to engage actively in regional
fora such as Asia Pacific Economic Co-Operation (APEC) and ASEAN + 3. With the
critical supportive role of Japan, an effective East Asian Community becomes a greater
possibility.
14. In the early 1960s, Japan was one of the world’s most stimulating intellectual
environments and many regarded it as highly ‘open’. Today, Japan is ironically
regarded as one of the most blatant globalisation ‘rejectionists’. History demonstrates
globalisation does move forward over time, but is temporarily thrown off track by wars
and other calamities. Given the potential to generate protectionist tensions, large trade
and financial imbalances between Asia and US are currently major concerns. If
protectionist pressures grow markedly as a result of the current recession, this will
adversely affect Japan given its large export sector.
15. Japan is ineluctably drawn into a nexus of political, economic and security ties
that would make it difficult for Japan to reconcile with protectionism. Japan is caught in
a tug of war between ties that increasingly bind it into regional and global operations
versus its domestic constraints. Japan’s approach to the liberalisation of its markets is
fundamentally non-ideological, pragmatic and ad hoc in nature. As such, Japan will
continue to seek and exploit opportunities to establish favourable trade opportunities.
Japan will become an increasingly integrated member of the global community. As of
November 2007, Japan had signed eight Free Trade Agreements (FTA) with countries
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7. chiefly in Southeast Asia. Lower labour costs will continue to force Japanese
manufacturing to seek host countries for the establishment of plants. As the economies
of other Asian countries grow stronger, denying access to Japanese markets will
become more difficult. Domestic fragmentation can paralyse political decision-making
in Japan. The growing diversification of interest groups continues to make decision-
making slow. Current domestic political and economic uncertainty makes any
political platform advocating trade liberalisation untenable.
16. If Japan is to adopt an explicit stance in favour of trade liberalisation, the national
mindset needs to change. It seems likely that Japan will follow a hybrid policy balancing
fundamental tenets that underpinned its society during its high growth period, and the
liberalisation of its markets which flow from its increasing global and regional ties.
Japan and the US
17. Close co-operation in US-Japanese relations is particularly important in helping
Japan address key international challenges. The US is Japan's largest trading partner
and Japan is the largest export market for the US after Canada and Mexico. The US is
the biggest investor in Japan and is Japan's largest destination for FDI. US-Japan
economic relations are currently so ‘calm’ that it is rather difficult to maintain a high level
of bilateral interest. Although there is little current trade friction, protectionist tensions
may increase in the US if its economy continues to deteriorate significantly. Japan’s
share of the total US trade deficit has decreased from its 70.8% peak in 1981 to 10.5%
in 2007. In contrast, China’s share of US trade increased from around 20% in 2000 to
32.4% in 2007. Even if the US becomes more protectionist, the main target would be
China, not Japan. Though in one sense positive for Japan, there is also a negative
implication as the US loses its economic focus on Japan. The conclusion of a Japan-
US Economic Partnership Agreement (EPA) would be an important symbol of stronger
ties between the US and Japan.
18. Although Japan and the US have shared perspectives with regard to security
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8. relations, the US-Japan alliance is underutilised and undervalued. It nevertheless
continues to be the cornerstone of US engagement with Asia and will continue to be so
under a Democratic Administration. New realities will oblige the US to work more
closely with allies; this is an opportunity for Japan. Global insecurities are compounded
by an assertive China, and a key issue for the US and China in their relationship is how
to deal with China. Japan and the US should work whenever possible with China, and
in so doing diminish Chinese apprehensions about the US-Japan security alliance.
19. Japan and the US can work together on modernising global organisations like the
United Nations to reflect better today’s, rather than the post-war, balance of power. The
two countries should also aim to ensure the successful completion of the Doha
Development Round of trade negotiations.
20. Japan’s technological know-how and its experience in improving energy efficiency
can contribute to an effective global climate regime. Japan’s contribution could be most
effective in this area, partly because it is the least political. Japan is a technologically
powerful nation which should undertake more scientific and technological research in
climate change. Asia is the most polluted part of the planet, and a major effort in green
science and technology would be a major contribution to the planet and to Japan itself.
Japan and Europe
21. The overall EU-Japan relationship is currently governed by an Action Plan which
runs until 2011. Although the two sides have declared a ‘strategic partnership’ and
continue to hold annual summit meetings, there is a sense that EU-Japan relations are
not as dynamic and productive as they might be. The present economic context
increases the need for international policy co-ordination with reliable partners. The EU-
Japan economic relationship cannot be looked at in isolation from the political
relationship. It consists of two global players with common values (such as the belief in
democracy, human rights, the rule of law and the market economy), and facing common
challenges. Both are economic and trading giants, and both are generally successful in
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9. influencing global issues such as climate change and gradually making headway on
peace and security and crisis management. Common challenges are: ageing societies,
energy security, and the need to boost competitiveness while maintaining high levels of
social, environmental and consumer protection.
22. In 2007, Japan was the EU’s fifth largest trading partner, accounting for 4.6% of the
EU’s two-way trade. The EU is Japan’s third largest trading partner with 13.4 % of
Japan’s two-way trade. Imports, exports and the overall trade balance have been
remarkably constant for the last 5 years. Although the EU’s deficit with Japan remains
persistently high (€34 billion in 2007), it has not been a political issue for a number of
years. Japan represents around a quarter of the EU’s global trade in services. The EU
has consistently been a net exporter of services towards Japan over the last 10 years.
FDI accounts for a low share of overall Japanese GDP compared to other OECD
countries, despite government targets to boost FDI. Japan accounts for less that 3% of
EU outward investment (€75 billion in 2006 out of €2,700 billion), and is the only country
with a FDI negative balance in 2006 (€13 billion).
23. Over the last four decades, Europe and Japan have emerged as leading world
powers, constituting between them around 40% of world GDP. The financial crisis
makes it all the more important to implement appropriate economic rules and
regulations. To achieve deeper economic integration, an Economic Integration
Agreement (EIA) of substance would be a great step forward in EU-Japan economic
relations. However, a fundamental problem lies with the fragmented nature of
Japanese Ministries: for there to be a realistic hope of success in negotiating an EIA,
there will need to be significant political will at the highest levels, building on good work
between regulators, business, stakeholders and government officials.
24. There much economic dialogue, co-operation activity and policy interaction going on
in different fields. The EU-Japan Regulatory Reform Dialogue (RRD) has the merit of
mobilising a broad range of government stakeholders. In some cases, there are
institutionalised in bilateral agreements. The Action Plan, for example, allows room for
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10. new issues such as consumer protection and safety at the April 2008 EU-Japan
Summit. The June 2007 summit focused on protection of intellectual property rights and
on innovation policy. A growing area for co-operation is higher education programmes
between universities.
25. There is still untapped potential in Japan for the EU to increase its investment in
Japan and its exports of goods and services. Crude measures of two-way trade and
two-way FDI flows as a percentage of GDP, confirms Japan is much less open towards
EU trade and investment than equally distant major economies. Progress in the RRD
sometimes feels slow but has contributed to a number of positive changes in Japan
(e.g. adoption of new rules allowing triangular mergers; recent improvements as regards
financial services regulation; increased Japanese interest in the ‘Better Regulation’
approach to law-making). In terms of broad economic co-operation, the picture is fairly
dynamic with new issues such as consumer policy and innovation being added. The
main focus remains on dialogue and exchange of information.
26. Japan remains an important partner for the EU but a focus on shared interests
and mutual benefits should be translated into more concrete cooperation to deliver more
together on the global stage. The RRD process can be made more forward-looking by
ensuring a more predictable regulatory environment for companies operating in the two
markets. A critical challenge is how to improve regulatory convergence, transparency
and predictability between the two. The EU Commission publishes an annual legislative
and work programme, but there is no equivalent initiative from the Japanese side (i.e.
there is no centralised government legislative programme published in advance which is
open to consultation; each Ministry is responsible for its own policy area). When
considering possible new initiatives in the trade and investment field from a European
perspective, it will be important to consider how to address the imbalances in terms of
market access and investment whether by a new Action Plan or by legal tools such as a
bilateral agreement.
27. Japan is one of the UK’s most important global partners sharing democratic and
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11. free market values and a key ally on many areas of foreign policy. The UK
Government’s 2006 strategy document for UK-Japan relations focused on climate
change, development, international security and science. The aim is now to focus on
why the UK-Japan relationship matters to the UK and drive the bilateral strategy forward
on three key pillars: keeping the UK as Japan’s top EU bilateral partner, encouraging
Japan’s engagement on global issues, and promoting Japan’s role as a regional and
multilateral player.
Future Co-operation on Global Challenges
28. Japan’s global visibility is declining. It needs a coherent foreign policy which
reflects the inter-relationship between national interest and national brand. There
seems to be a lack of country reputation management. Japan needs to move beyond
being seen as the ‘global banker ’. Economically speaking, the nation is seeking a rent
available only for those responsible for managing the global system. Hence Japan is
pursuing a seat at the United Nations Security Council. Japan needs a more prominent,
role and brand both in Asia and in Africa. It needs to contribute positively to any new
global financial regulatory regime or climate change initiative. It should stress its
peaceful and democratic credentials. Japan’s continued prosperity and self-esteem will
be based on maximising the potential of its young workforce.
29. Future global co-operation agreements will be driven by stresses on global
supplies and a heightened need for economic security. Multilateralism will be
strengthened by pro-activity on the part of one or more benign power players (e.g.,
Japan) and accommodating key emerging countries such as China and India. The
world needs stronger leadership and co-operation in providing global public goods in
adequate quantities. Japan's experience and track record provide a suitable base on
which to build leadership in the critical areas of international financial stability and
market efficiency; climate change; good governance in global institutions, and regional
integration.
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12. Martin Murray
December 2008
Wilton Park Reports are brief summaries of the main points and conclusions of a conference.
The reports reflect rapporteurs’ personal interpretations of the proceedings – as such they do
not constitute any institutional policy of Wilton Park nor do they necessarily represent the views
of rapporteur.
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