Research Achievements

Excellent papers on Asian regional integration, which are prepared mainly by young researchers such as GIARI members, co-researchers, research fellows, and research assistants, will be published as working papers. Contributed papers, written in English or in Japanese, will be reviewed and examined by the editorial committee before publication. GIARI donates published papers to the libraries of Waseda and other related universities, research organizations, etc.

Japan and Management of the Transatlantic Crisis:
International Responses and Domestic Struggles

Takashi Terada(*) and Bernard Ong(**)
Graduate School of Asia-Pacific Studies, Waseda University

February 2011
[313KB]

(*)Professor, Organization for Asian Studies, Waseda University
(**)Asia Fellow, Global Institute for Asian Regional Integration, Waseda University
A revised version will be published by Contemporary Politics.

• Abstract
• Introduction
• Materialistic and ideational transformations of the international structure
• Japan’s responses to the crisis: domestic measures
• Japan’s responses to the crisis: external measures
• Proxy battle with China
• Conclusion

In addition to the perceived transformation of the international system brought about by the relative materialistic decline of the U.S. hegemonic power, the crisis has also intensified ideational rivalry and tensions between the U.S.-led capitalist model and the “Beijing Consensus”. This article aims to examine how the structural transformations in both materialistic and ideational contexts, symbolised by declining U.S. influence and growing Chinese voices, has influenced Japan, a key U.S. ally in the region and China’s regional competitor. Based on a neo-classical realist framework which stresses the need to analyse domestic political processes, this article sheds light on the influence of these structural transformations on Japan’s efforts to formulate its new growth strategies by rearranging policy priorities and engaging in regional and international collaborations. Since the crisis took place during a period which saw the demise of LDP’s five-decade rule and the advent of the DPJ government, the article analyses to what extent the economic stimulus programmes (launched by both old and new governments respectively) differed, and assesses how they have been effective in terms of stimulating domestic demands. The article also highlights Japan’s efforts under the crisisled structural transformations to involve fast growing Asian economies in its new growth strategy and to engage in the regional financial cooperation including the Chiang Mai Initiative Multilateralisation.