Politics and economy in the East Asia Political economy
Political economy is the study of the way in which a government influences or organizes a nation's wealth. Current concept of ‘political economy’
Contemporarily, political economy refers to different, but related, approaches to studying economic and political behaviors, ranging from the combining of economics with other fields, to the using of different, fundamental assumptions that challenge orthodox economic assumptions. International political economy
“International political economy" (IPE) is an interdisciplinary field comprising approaches to international trade and finance, and state policies affecting international trade, i.e. monetary and fiscal policies. Regionalism in Northeast Asia Map of East Asia Regionalism Economic regionalism in the East Asia Figure 1. Changing pattern of Korean exports Figure 2. Changing pattern of Korean imports Changing role of Japan and China on Korean trade China-Korea relationship Basic goals and policies on Korean peninsula
China’s goals China’s policies Japan’s goals Japan’s policies Korea’s goals Korea’s policies Territory problems in East Asia
Territory-Tokdo vs Takeshima (between Korea and Japan) Liancourt Rocks (Tokdo vs Takeshima) Liancourt Rocks (Tokdo vs Takeshima)
The Liancourt Rocks, also known as Tokto in Korean or Takeshima in Japanese, are a group of small islets in the Sea of Japan (East Sea). Liancourt Rocks are 217 km from mainland Korea and 250 km from Japan. (Wikipedia)
Sovereignty over the islets is disputed between Japan and South Korea. The islets are currently administered by South Korea, which has its Coast Guard stationed there. Is Tokto (Takeshima) Japanese territory ? (Japanese textbooks) Territory – 이어도(Socotra Rock- between Korea and China) Territory- Senkaku(釣魚島) (between China and Japan) Comparison of economic situation in the East Asia
Figure 3. Comparison of GNP among Japan, Korea and China (billion US $)
5000 4500 4000 3500 3000 Japan 2500 China 2000 Korea 1500 1000 500 0 2001 2002 2003 2004 2005 2006 Figure 4. Comparison of economic growth rate among Japan, Korea and China (%)
12
10
8 China 6 Korea Japan 4
2
0 2001 2002 2003 2004 2005 2006 Figure 5. Comparison of GDP per capita among Japan, Korea and China (US $) 45000 40000 35000 30000 Japan 25000 Korea 20000 China 15000 10000 5000 0
1994 1996 1998 2000 2002 2004 2006 Figure 6. Comparison of unemployment rate among Japan, Korea and China (%)
6
5
4 Japan 3 China Korea 2
1
0 2002 2003 2004 2005 2006 2007 Figure 7. Comparison of annual income of manufacturing worker in East Asia (%) 3000
2500
2000 Japan 1500 Korea China 1000
500
0 2001 2002 2003 2004 2005 2006 East Asia Summit
The idea of establishing a trade community within East Asia has had a long history.
Beginning in the 1940s, Japanese occupation in East Asia was followed up by the creation of an Greater East Asia Co- prosperity Sphere consisting of Asian nations. This idea was unsuccessful as it largely existed as an ideology to allow Japan to exploit the rest of Asia and partly instigated the Pacific theatre of World War II.
However, the intention of Asian integration did not end following the Japanese defeat.
Free trade area
Free trade area is a type of trade bloc, a designated group of countries that have agreed to eliminate tariffs, quotas and preferences on most goods and services traded between them.
It can be considered the second stage of economic integration. Countries choose this kind of economic integration form if their economical structures are complementary. Debate topic
Do three East Asian countries (Korea, Japan and China) need a FTA (Free Trade Agreement) ?
FTA: Is it good to the East Asia (Korea, China and Japan)?