Monographien Herausgegeben Vom Deutschen Institut Für Japanstudien Der Philipp Franz Von Siebold Stiftung Band 24, 2000

Monographien Herausgegeben vom Deutschen Institut für Japanstudien der Philipp Franz von Siebold Stiftung Band 24, 2000 Facing Asia – Japan’s Role in the Political and Economic Dynamism of Regional Cooperation Edited by Verena Blechinger and Jochen Legewie Monographien aus dem Deutschen Institut für Japanstudien der Philipp Franz von Siebold Stiftung Band 24 2000 Monographien Band 24 Herausgegeben vom Deutschen Institut für Japanstudien der Philipp Franz von Siebold Stiftung Direktorin: Prof. Dr. Irmela Hijiya-Kirschnereit Anschrift: Nissei Kôjimachi Bldg. Kudan-Minami 3-3-6 Chiyoda-ku Tôkyô 102-0074, Japan Tel.: (03) 3222-5077 Fax: (03) 3222-5420 e-mail: [email protected] Die Deutsche Bibliothek – CIP-Einheitsaufnahme Facing Asia – Japan’s role in the political and economic dynamism of regional cooperation / ed. by Verena Blechinger and Jochen Legewie – München : Iudicium-Verl., 2000 (Monographien aus dem Deutschen Institut für Japanstudien der Philipp Franz von Siebold Stiftung ; Bd. 24) ISBN 3-89129-506-5 © IUDICIUM Verlag GmbH München 2000 Alle Rechte vorbehalten Druck: Offsetdruck Schoder, Gersthofen Printed in Germany ISBN 3-89129-506-5 TABLE OF CONTENTS Foreword Irmela HIJIYA-KIRSCHNEREIT . 7 Preface by the Editors Verena B LECHINGER and Jochen LEGEWIE . 9 Will Japan Play a Leadership Role in East Asian Regional Political and Economic Integration? Kent E. CALDER . 11 Asian Expectations toward Japan’s Role in the Consensual Process of Regional Integration: The Case of the East Asian Economic Caucus Michio KIMURA . 21 Flirting with Regionalism: Japan’s Foreign Policy Elites and the East Asian Economic Caucus Verena B LECHINGER . 57 The Japanese Role in the Emerging Asia-Pacific Order: A Role for State and Non-State Actors? Glenn D. HOOK . 87 Non-Governmental Organizations (NGOs) in Southeast Asia and Japan: Organizing for Regional Democracy? Motoko SHUTÔ. 113 Japan’s Multilateral Assistance Leadership: Momentum or Malaise? Dennis T. YASUTOMO . 129 Changing Japanese Economic Policy toward East Asia in the Postwar Period Ryôkichi HIRONO . 147 5 Table of Contents Japanese Economic Policy in Asia: An Asian Perspective Teofilo C. DAQUILA . 175 The Effects of the Asian Crisis on Japan’s Manufacturing Foreign Direct Investment in Asia Shigeki TEJIMA . 199 Driving Regional Integration: Japanese Firms and the Development of the ASEAN Automobile Industry Jochen LEGEWIE . 217 The Role of Japanese Overseas Affiliates and Technology Transfer: Implications for Indonesia Shôichi YAMASHITA . 247 Financial Cooperation and Integration in Pacific Asia: The Role of Multilateral and Regional Organizations Werner P ASCHA . 263 The Need for Stronger Regional Financial Institutions in East Asia Jesus P. ESTANISLAO . 285 Action and Reaction, Direct and Indirect Leadership: Re-evaluating Japan’s Role in Asian Regional Cooperation Verena B LECHINGER and Jochen LEGEWIE.. 297 ABOUT THE AUTHORS . 325 6 FOREWORD Facing Asia – what better way is there of thinking about Japan’s position in the world on the threshold of the 21st century? When Japan was Facing Asia for much of the 1990s, was it seeing itself as somehow apart? When Japan is Facing Asia, does it express new directions for the future or reaf- firm existing boundaries? How does Facing Asia connect Japan and its main actors to broader political, socio-economical and cultural networks that set it on a grander stage? This book addresses these questions as part of Japan in Asia, a multi- disciplinary research project of the German Institute for Japanese Studies (DIJ). The establishment of the DIJ in 1988 by a decision of the Federal Ministry of Research and Technology – the present Federal Ministry for Education and Research – reflects a new awareness in Germany of the need for a better understanding of East Asia and Japan in particular. To this end, the DIJ conducts research in the fields of the humanities, the social sciences, and the economy of modern Japan. As a research institute lo- cated in Tôkyô, the DIJ benefits from close contacts with Japanese institutions and scholars, while also capitalizing on its growing worldwide networks in Japan-related research. In its endeavor to identify issues of special relevance from a European perspective, the DIJ launched its project on Japan in Asia in 1997. Given the geopolitical developments of the 1990s, Japan’s locus in the global context and the re-definition of its relations with Asia are of considerable interest. At the same time, the question of Japan in Asia, a question that is equally acute in the political, social, economic and cultural spheres, also implies changes in Japan’s relationship to Europe or the ‘West’. In the closely interrelated areas of politics and economics, we focus on the process of political and economic integration in Asia and Japan’s role within it. From the perspective of political science, we scrutinize the do- mestic debate concerning Japan’s future role in Asia and the influence of business and interest groups on Japanese foreign policy decision making. Economic relations between Japan and Asia in general, and on current changes regarding Japanese business networks within the Asian region in particular, are another important focus within this framework. Several conferences of the DIJ have highlighted aspects of our Japan in Asia research focus. A 1997 conference on the historical background of Ja- pan’s relations with its Asian neighbors examined the political, econom- 7 Irmela HIJIYA-KIRSCHNEREIT ical, social, and cultural dimension of the interactions of Japan and the Japanese with Asia, and the Asians. The conference was called ‘The Jap- anese Empire in East Asia and its Postwar Legacy’, as was the publication that followed the conference, Volume 22 in the DIJ monograph series edited by Harald Fuess. In 1999, a DIJ conference brought together experts dealing with the strategic responses by Japanese and European firms to a changing business environment in Southeast Asia in the wake of the Asian economic crisis. Jochen Legewie and Hendrik Meyer-Ohle edited the results of this conference under the title Corporate Strategies for South- east Asia after the Crisis: A Comparison of Multinational Firms from Japan and Europe (London: Macmillan, 2000). In 1998, the DIJ dedicated the tenth volume of its yearbook Japanstudien to ‘Japan’s new role in Asia’. Verena Blechinger and Jochen Legewie edited this volume which was one of the many other initiatives within this research frame. The DIJ has also been the site of a number of workshops and numerous individual publications by DIJ research fellows on the question of Japan in Asia. The most recent venture that focuses on Japan in Asia is a conference in April 2000 on ‘Con- tested Historiography’, the project of rewriting the history of World War II in Asia from feminist perspectives. Nicola Liscutin organized this conference and she will also edit a volume under the same rubric. The volume at hand grew out of an October 1998 DIJ conference that took place over two days in Tôkyô titled, ‘Regional Cooperation in Asia: Will Japan Stand Up to a Leadership Role?’. The DIJ gratefully acknowl- edges the cooperation of the Friedrich Ebert Foundation. Our thanks also go to the German Embassy for supporting the conference. Special thanks are due to Verena Blechinger, head of the DIJ Social Sci- ence section, and Jochen Legewie, head of the Economics section, for organizing an exciting conference and putting together a well-rounded volume. They are to be congratulated for the many successes of this volume. Most of all, they have shown that the much-belabored and often-invoked notion of interdisciplinarity is not a chimera. Rather, one can see here that it unfolds its synergetic energies from within a well-defined framework and agenda. Tôkyô, April 2000 Irmela Hijiya-Kirschnereit Director, DIJ 8 PREFACE BY THE EDITORS In the 1990s, there is clear evidence of increasing political and economic cooperation in Asia. The end of the Cold War and economic globaliza- tion have accelerated regionalization in Asia. Increasing economic inter- dependence and intense lobbying efforts by multinational corporations operating on a regional scale have made Asian governments realize the need to take political steps to increase cooperation and dialogue in order to preserve stability in the region. These developments have been stim- ulated by trends of regional integration in other parts of the world, i.e. Europe and North America. The 1997/98 Asian economic crisis further added to the dynamics of this process. It painfully illustrated the high degree of mutual dependence of Asian economies and hence the need for a closer regional cooperation in the future. The crisis also reinforced calls from inside and outside of Asia for Japan to take on a stronger leadership role in the process of regional cooperation. The articles in this book – all written in 1999 – take a closer look at the topic of cooperation at the institutional level of policy formation and co- ordination within a region. Addressing the various driving forces of regionalism and regionalization, the authors analyze attitudes and expectations of Asian political leaders and civil society and, examine the measures taken by state and non-state actors, i.e. by bureaucrats, politi- cians, and business to bring about closer political and economic cooperation in Asia. Rather than discussing this topic in general terms, the articles in this volume focus on the many facets of Japan’s role within this process. By doing so, the Japanese position toward regional cooperation in Asia is analyzed from political, economic and sociological points of view before being summarized in the final chapter. Throughout this volume, we understand Asia as the region made up by Northeast and Southeast Asian countries. We thus deliberately exclude countries like India or Russia, and do not take into account countries such as Australia, Canada or the United States that belong to the wider Asia- Pacific region.

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