Issues and Problem in Japanese Politics

1. Money Politics--Corruption

    Very close relation between business and government
    Known as the Iron Triangle
 


 

    Symbolized by MITI (Ministry of International Trade and Industry)
        gov't tells companies what to make, who makes it,
        subsidizes loans, worker training,
            encourage corporate mergers or bankruptcy,
            restricts imports (protects market) through informal means.
        Note: in 2001, there was a reogranization in the Japanese government
            MITI was changed to METI (ministry of Economy, Trade and Industry)
            Reflects new policies of less direct government control of economy

    Ongoing corruption:  Lockheed  1971; Cosmos Recruit 1988
        ultimately undermined legitimacy of LDP

    Gov't lets banks maintain bad loans on their books; big problem
        like U.S. Savings and Loans crisis in the 1980's, but never solved
        This is the root of Japan's current finance crisis

2. Political Restructuring:

    reapportionment

    Party System:  Will dominant one-party system evolve into 2 party system or multiparty system?
 

3. Economic problems:

Bubble economy broke around 1990, economy in slump.
Maybe beginning to recover.

What is the problem, What to do?

a. International competition issues:
Japan's strategy was to export high value products
            made with high priced labor and brain power.
        Japan's prices were very high
        Now other places can compete (Taiwan, Korea, China)
        Shift manufacturing to China (more profits, more unemployment)
            This issue remains unsolved.

b. Internal business management issues -- incentives, labor resources
        keep permanent employment?  Allow layoffs, shifting jobs.
        incentives for entrepreneurship, creativity, flexibility

c. government fiscal policy:
    spent a lot of mony for infrastructure (roads, bridges, flood control), very little economic pay-off.

        d. Economic structural  reforms?
                 Price of rice, whether to allow imports of rice.
                 Maintain government leadership/control of the economy?
                 How to deal with banking crisis -- non-performing loans
 e. demographic issues
        graying of society
        new youth values of independence and fun
        f. Environment:
            Japan is a very small, crowded place for dirty industry:
                  Minimato ultimately made Japan conscious of pollution.
            Since the 1970's seem to be many improvements Web site of Japan Gov Min of Environment
 

4. Foreign Policy Questions:

    Background Notes

Japan's (McArthur) Constitution at Article 9 prohibits Japan from using force in foreign policy and from having regular military forces.
It has no "army" but does have a powerful "self-defense force"

Japan has treaty with US; US has military forces in Japan and provides nuclear umbrella.

Questions:
    1. Should Japan continue to have a foreign written constitution prohibiting normal military resources?  Should it revise or ammend its constitution?  Should Japan be more robust in international peace keeping?   Is it time to stop feeling guilting about invading China and other neighbors during WWII?

        pro:
           make Japan more independent of US
           have strategic power match economic power
           could undertake UN peace keeping missions
           could play larger role in UN
           maybe be permanent member of security council
        con:
          rearming would frighten China, other Asian neighbors (former victims)
            would trigger an Asian arms race

       The last government (Koizumi) did expand the role of Japan abroad
            provided support to US navy in military operations re: Iraq
            has been in UN peacekeeping  -- civilian police to East Timor
        Prime Minister Abe, started fall, 2006 may continue this direction
 

    b. Does Japan need to be more responsive to anxieties of neighbors
    school text book descriptions of history 1 ,  Yasukuni Shrine   1  - 2
    Should it be more like Germany?

    c. Relative importance of trade and political relations with U.S., China, Russia

    d. How to manage the potential threat of North Korea collapsing

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