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731. Wage Coordination and the Welfare State: Germany and Japan Compared

Author:
Philip Manow
Publication Date:
12-2000
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Is there a relation between welfare state regimes and national wage setting systems? Peter Swenson in his research on the historical dynamics of the US-American and Swedish welfare state has recently claimed that such a relation does indeed exist. The essay aims to check if this also holds true for the German and Japanese case. In the post-war period both countries have established systems of wage-bargaining that are less centralized than the Swedish system, but in which wages are highly coordinated both within and across sectors, and, subsequently, in which wage compression is relatively high as well. Thus, both countries are confronted with the same problems of wage- and welfare-drift and of firms' exit from the 'solidaristic' or coordinated wage setting that are so typical for Sweden. At the same time the German and Japanese welfare state differ from each other in almost all dimensions. Thus, both cases seem to be ideally suited to provide for a plausibility-check of the Swenson hypothesis. The essay reaches the conclusion that there is indeed ample evidence that both the German and the Japanese welfare state contributed critically to the stability of wage coordination in the era of high growth after World War II. They thus have to be understood as an integral part of the German and Japanese post-war growth model.
Topic:
Economics, Human Welfare, and International Trade and Finance
Political Geography:
United States, Japan, America, and Germany

732. The Macroeconomic Experience of Japan Since 1990: An Empirical Investigation

Author:
Warwick McKibbin
Publication Date:
12-1999
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This paper outlines the macroeconomic experience of the Japanese economy since 1990. The MSG2 multi-country model is used to determine the extent to which the strong yen and growth experience of Japan over this period was due to underlying trends in the Japanese economy and to what extent shocks such as changes in the settings of monetary and fiscal policies in Japan and overseas, as well as the Kobe earthquake, played a role. It is shown that many of the key features of the Japanese economy over this period can be attributed to inappropriate macroeconomic policy settings in Japan as well as reflecting long term trends due to population changes and a maturing of the Japanese economy. In particular, it is shown that announcing expansionary fiscal policy in advance of implementation and exaggerating the extent of actual stimulus, tended to appreciate the yen and raise long term real interest rates which further reduced real GDP growth over the period. The extent to which macroeconomic policy rather than entrenched structural problems can explain the experience suggests that future prospects for the Japanese economy are not as bleak as sometimes predicted. Growth is unlikely to return to the high levels experienced in previous decades because of the maturing of the Japanese economy and low future population growth in Japan. This paper projects growth to be sustainable at around 2.5% per year over the next decade and a continual appreciation of the yen in both real and nominal terms.
Topic:
Economics and Political Economy
Political Geography:
Japan, Israel, and East Asia

733. Old Wine in New Bottles: The Pentagon's East Asia Security Strategy Report

Author:
Doug Bandow
Publication Date:
05-1999
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
To contain Soviet-led communism and, secondarily, to prevent a militarily resurgent Japan, Washington established a network of alliances, bases, and deployments throughout East Asia after World War II. By the 1990s the Soviet Union had imploded, China had become a reasonably restrained international player, and other communist states had lost their ideological edge. At the same time, the noncommunist nations had leaped ahead economically. Despite such momentous developments, however, U.S. policy remains fundamentally the same.
Topic:
Security, Foreign Policy, and Defense Policy
Political Geography:
United States, Japan, China, Washington, Israel, and Soviet Union

734. Japanese Entrepreneurship: Can the Silicon Valley Model Be Applied to Japan?

Author:
Katsuhiro Nakagawa
Publication Date:
12-1999
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Since 1992, the Japanese economy has been utterly stagnant, with signs of weak performance at every turn. Since 1997, Japan's economy has experienced negative growth, a situation unprecedented in the postwar era. Most large Japanese corporations have engaged in extensive restructuring during this period, which has in turn contributed to 4.8 percent unemployment—higher than rates in the United States. Further, in 1998, the closure rate of small companies (3.8 percent) exceeded the start-up rate of new business ventures (3.7 percent).
Topic:
Security
Political Geography:
United States, Japan, and Asia

735. Containment by Stealth: Chinese Views of and Policies toward America's Alliances with Japan and Korea after the Cold War

Author:
Yu Bin
Publication Date:
09-1999
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
At the height of the Cold War, the dominant Western theories of alliance building in interstate relations argued that alliances tend to be motivated more by an external need to confront a clearly defined common adversary than by the domestic attributes of alliance partners. The newly reinvigorated U.S.-Japan alliance, however, together with the newly expanded NATO, seems to depart from the conventional pattern by emphasizing shared democratic values and by maintaining a high degree of ambiguity regarding the goals and targets of the alliance. Although these new features of American-led military alliances provide an anchor in an other- wise highly fluid situation in the post–Cold War world, many Chinese foreign-and defense-policy analysts believe that U.S. alliances with Asian countries, particularly with Japan, pose a serious, long-term challenge, if not a threat, to China's national security, national unification, and modernization. The ambiguity of the revised U.S.-Japan security alliance means that it is at best searching for targets and at worst aiming at China.
Topic:
Security
Political Geography:
United States, Japan, Asia, and Korea

736. Crisis and Aftermath: The Prospects for Institutional Change in Japan

Author:
Rafiq Dossani
Publication Date:
08-1999
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Impelled in large part by the nearly decade-long stagnation of the Japanese economy, institutions in Japan are undergoing fundamental changes. When Professors Masahiko Aoki, of the Stanford University Department of Economics, and Henry Rowen, director of the Asia/Pacific Research Center, were talking about these changes, they realized that an international conference on the subject would be useful and informative. With funding from the Asia/ Pacific Research Center and the Institute for International Studies, a distinguished group of speakers, commentators, and participants was brought together for a one-day conference to look at institutional changes in three distinct sectors of Japanese society: the political system, the bureaucracy, and corporations.
Topic:
Security
Political Geography:
United States, Japan, and Asia

737. China and the U.S.-Japan and U.S.-Korea Alliances in a Changing Northeast Asia

Author:
Chu Shulong
Publication Date:
06-1999
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
The American security alliances with Japan and South Korea have been a major concern of China's foreign and defense policies. China's position toward the alliances is determined by its foreign policy and security theories, doctrines, and principles; by its approach to a regional security mechanism in the Asia-Pacific region; by its bilateral relations with countries in Northeast Asia; and by incidental issues such as territorial disputes in Asia in which it is involved.
Topic:
Security
Political Geography:
United States, Japan, China, Asia, and Korea

738. Japan-ROK Security Relations: An American Perspective

Author:
Michael J. Green
Publication Date:
03-1999
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
This monograph explores contemporary Japan-ROK security relations from the perspective of U.S. strategic interests in Asia. Japan and the Republic of Korea have been aligned but not allied since the beginning of the Cold War, and the United States has long been frustrated in its desire to strengthen the Japan-ROK leg of its network of bilateral alliances in Asia. The United States abandoned the goal of encouraging a formal U.S.-Japan-ROK alliance early on in the Cold War, and in the current strategic environment a trilateral alliance would probably be counterproductive. At the same time, however, the fluidity of East Asian security relations today has heightened the dangers of leaving the Japan-ROK security relationship in an ambiguous state. Closer Japan-ROK security cooperation will enhance U.S. efforts to maintain forward presence, manage diplomacy and potential crises on the Korean Peninsula, and integrate China as a cooperative partner in the region. In contrast, distant Japan-ROK relations would complicate all of these U.S. objectives. Hostile Japan-ROK relations, particularly in the context of Korean reunification, would have a spillover effect on Sino-U.S. relations and could return the region to the great-power rivalry of the last century.
Topic:
Security
Political Geography:
United States, Japan, China, Asia, and Korea

739. Asian Alliances and American Politics

Author:
Michael H. Armacost
Publication Date:
02-1999
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
The domestic politics of our Asian alliances is like the story of the dog that didn't bark. Though our defense ties with Japan and Korea were forged in the Cold War, nearly ten years after the Berlin Wall came down, few voices are being raised to amend, let alone terminate, either the Treaty of Mutual Cooperation and Security with Japan or the U.S.-Korea Mutual Defense Treaty. Although large numbers of U.S. troops remain in both countries, congressional criticisms of allied “free riding” are rarely heard. Our alliances with Japan and Korea provoke little discernible opposition from the Congress, the press, or the general public. Polling data suggests that public support for the alliances and for forward deployments in both countries remains high. And no prominent leaders of the Congress are threatening to link security concerns to outstanding economic issues with the Japanese or South Koreans—a tactic frequently utilized a decade ago.
Topic:
Security
Political Geography:
United States, Japan, Asia, and Korea

740. U.S. Policy Toward North Korea: A Second Look

Author:
Michael J. Green, James T. Laney, and Morton I. Abramowitz
Publication Date:
07-1999
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
In May, former Secretary of Defense William Perry traveled to North Korea with a comprehensive proposal to increase outside assistance for its isolated and declining Stalinist regime in exchange for steps by the North to reduce its threatening military posture. The Perry proposal was designed to test North Korea's intentions not only to abide by the 1994 Agreed Framework, which aimed to cap Pyongyang's nuclear ambitions, but also to stop further missile tests and military provocations. It is unlikely that North Korea will respond positively. The regime has survived for five decades only by maintaining a belligerent stance. Pyongyang has rebuffed South Korean President Kim Dae Jung's unprecedented efforts to improve North-South relations and has continued to produce military tensions, even in the wake of the Perry visit. But it is too soon to give up on a comprehensive package to reduce tensions with North Korea. Despite the illusion of self-sufficiency, or juche, the North is increasingly dependent on outside help to sustain itself. It is possible that over time Pyongyang will find no alternative to greater interaction with the outside world. Barring an increase in threatening North Korean actions, the United States should keep the Perry proposal on the table and continue to support Kim Dae Jung's policy of engagement. A second Taepodong missile test by North Korea would not violate any existing North Korean commitments, but it would significantly change the situation in Northeast Asia. We should make every effort to deter a launch, but if one takes place, the United States, Japan, and South Korea will have to examine ways to enhance defense against a different North Korean threat. South Korea should suspend new investment in North Korea and Japan should impose new sanctions and consider restrictions on financial transfers to the North. The United States should lower its diplomatic activity toward Pyongyang, keeping channels open, but forcing North Korea to provide incentives for greater dialogue. A missile launch should not end our attempts at diplomacy or cause us to forget that North Korea's relative military capabilities are in decline, but if a test is conducted business cannot continue as usual. Although a North Korean missile launch would do great damage to political support for the Korean Peninsula Energy Development Organization (KEDO) in the United States, Japan, and South Korea, it should not be a reason for us to abandon our commitments under the Agreed Framework. The Agreed Framework stands as the major bulwark against a return to the kind of calamitous military steps the United States was forced to consider in 1994 to stop North Korea's nuclear program. Inspections of suspicious underground facilities at Kumchangri in May revealed no North Korean violation of the Agreed Framework. Although we cannot assume from this that Pyongyang has forsaken its nuclear ambitions, we do know that implementation of the Agreed Framework remains the best approach to preventing nuclear weapons development in the North. In the end, there is no easy solution to the intractable North Korean problem. Efforts to reduce tensions and build North-South reconciliation have yielded little. We are strong enough to test inducements for change in the North, but our policy must be based on robust deterrence and close defense cooperation with our allies.
Topic:
Security, Foreign Policy, and Arms Control and Proliferation
Political Geography:
United States, Japan, East Asia, South Korea, North Korea, and Korean Peninsula