EDITORS Michael J. Green Zack Cooper POSTWAR JAPAN Growth, Security, and Uncertainty since 1945 hn hk io il sy SY ek eh hn hk io il sy SY ek eh hn hk io il sy SY ek eh hn hk io il sy SY ek eh Postwar Japan —-1 —0 —+1 594-67311_ch00_3P.indd 1 12/20/16 4:45 PM hn hk io il sy SY ek eh hn hk io il sy SY ek eh hn hk io il sy SY ek eh hn hk io il sy SY ek eh -1— 0— +1— 594-67311_ch00_3P.indd 2 12/20/16 4:45 PM hn hk io il sy SY ek eh hn hk io il sy SY ek eh hn hk io il sy SY ek eh hn hk io il sy SY ek eh Postwar Japan Growth, Security, and Uncertainty since 1945 Editors Michael J. Green Zack Cooper ROWMAN & LITTLEFIELD Lanham • Boulder • New York • London —-1 —0 —+1 594-67311_ch00_3P.indd 3 12/20/16 4:45 PM hn hk io il sy SY ek eh hn hk io il sy SY ek eh hn hk io il sy SY ek eh hn hk io il sy SY ek eh Center for Strategic & International Studies 1616 Rhode Island Ave nue, NW Washington, DC 20036 202-887-0200 | www . csis . org Published by Rowman & Littlefield A wholly owned subsidiary of The Rowman & Littlefield Publishing Group, Inc. 4501 Forbes Boulevard, Suite 200, Lanham, MD 20706 w w w . r o w m a n . c o m Unit A, Whitacre Mews, 26-34 Stannary Street, London SE11 4AB Copyright © 2017 by the Center for Strategic & International Studies All rights reserved. No part of the book may be reproduced in any form or by any electronic and mechanical means, including information storage and retrieval systems, without written permission from the publisher, except by a reviewer who may quote passages in a review. ISBN: 978-1-4422-7973-5 (cloth alk. paper) ISBN: 978-1-4422-7974-2 (paperback) ISBN: 978-1-4422-7975-9 (electronic) The paper used in this publication meets the minimum requirements of American National Standard for Information Sciences— Permanence of Paper for Printed Library Materials, ANSI/NISO Z39.48-1992. -1— 0— Printed in the United States of Amer i ca +1— 594-67311_ch00_3P.indd 4 12/20/16 4:45 PM hn hk io il sy SY ek eh hn hk io il sy SY ek eh hn hk io il sy SY ek eh hn hk io il sy SY ek eh Contents Introduction vii Michael J. Green Part I. Japan’s Postwar Security Policies 1. What Is the Strengthened Japan- U.S. Alliance For? Defending and Advancing the Liberal World Order 3 Kazuya Sakamoto 2. The Case for an Alternative Strategy for Japan: Beyond the Article 9–Alliance Regime 19 Yoshihide Soeya Part II. Japan’s Postwar Economic Policies 3. Japan’s Economy and Policy in a Global Context: Postwar Experience and Prospects for the Twenty- First Century 41 Jun Saito 4. ­Will the Sun Also Rise? Five Growth Strategies for Japan 79 Yoko Takeda Part III. Japan’s Postwar Institutional and Development Policies 5. Multilateralism Recalibrated: Japan’s Engagement in Institution Building in the Past 70 Years and Beyond 131 —-1 Akiko Fukushima —0 v —+1 594-67311_ch00_3P.indd 5 12/20/16 4:45 PM vi Contents hn hk io il sy SY ek eh 6. Development Assistance for Inclusive Growth: A Field for Japan- U.S. Cooperation? 177 hn hk io il sy SY ek eh Akiko Imai hn hk io il sy SY ek eh hn hk io il sy SY ek eh Index 215 About the Editors and Authors 225 About CSIS 227 -1— 0— +1— 594-67311_ch00_3P.indd 6 12/20/16 4:45 PM hn hk io il sy SY ek eh hn hk io il sy SY ek eh hn hk io il sy SY ek eh hn hk io il sy SY ek eh INTRODUCTION Michael J. Green The Japan Chair at the Center for Strategic and International Studies (CSIS) has identified the development of human capital in the U.S.- Japan alliance as a central goal for the Center as a whole. Under that aegis, and with the support of the government of Japan, CSIS has for the past three years invited leading scholars and policy analysts from Japan to spend two weeks in Washington, D.C., where each worked with Dr. Zack Cooper to develop a stra- tegic paper in consultation with counter parts at CSIS and in the U.S. government, the Congress, and the academic community. The collected papers are then reviewed and edited as an annual volume that spotlights emerging Japa nese thinking on key security and economic issues facing our alliance. For their dedication to this ef- fort, Nick Szechenyi and Eri Hirano deserve g reat credit, as well as Jake Douglas, who spent countless hours reviewing the final product. In 2015 and 2016, CSIS invited distinguished Japa nese scholars to reflect on the evolution of Japa nese foreign, defense, and eco- nomic policy in the 70 years since the end of World War II and to draw some lessons for the coming de cade. Several broad themes knit their respective chapters together. First, the pillars of Japan’s reentry into the international community since 1945 remain no less impor tant seven de cades later: alliance with the United States; engagement with Asia; leadership in the United Nations (UN) system and other multilateral institutions; reliance on economic strength over military might; and expanding contributions to —-1 —0 vii —+1 594-67311_ch00_3P.indd 7 12/20/16 4:45 PM viii Introduction hn hk io il sy SY ek eh economic development in other countries. Second, however, Japan must make harder decisions about choices and priorities in each of hn hk io il sy SY ek eh these areas as China’s power grows and Japan’s own economy and hn hk io il sy SY ek eh society enter a more mature phase. Japan’s Cold War preference for hn hk io il sy SY ek eh avoiding risky entanglement in U.S. military strategy in Asia is now a liability as Japan itself has moved from the safer rear area to the front line of potential conflicts involving ballistic missiles and maritime threats to Japan’s own home waters and islands. Japan’s strategic relations across Asia are expanding, yet hampered in key countries like South Korea by continuing historical animosities. Multilateral diplomacy has become more complex as institutions and membership have grown and Beijing has learned to use proxies in Southeast Asia to block consensus on controversial issues, such as the South China Sea. Japan’s economy has pockets of unique strength, but will not grow sufficiently until policies are imple- mented to unlock the potential of women, entrepreneurs, and for- eign workers and investors. Japan’s generous official development assistance must now compete with new Chinese institutions and alternate rules for transparency and governance. The six chapters in this volume demonstrate the continuing viability of Japan’s postwar strategic choices but also the inevitability of adaption to challenging new circumstances. Part I of this volume features two chapters on Japan’s postwar security policies. In the first chapter, diplomatic historian Kazuya Sakamoto of Osaka University argues that a strengthened U.S.- Japan alliance must be the centerpiece of a more just and liberal world order. Professor Sakamoto is one of the leading protégés of Pro- fessor Masataka Kosaka of Kyoto University, who is Japan’s most prominent postwar realist scholar of international relations. Ko- saka had enormous influence with conservative pro- alliance poli- ticians in the ruling Liberal Demo cratic Party (LDP), but his views were not openly embraced by the so- called mainstream factions of the LDP that preferred a more careful relationship with the United States in order to reduce risk of entrapment in U.S. Cold War strat- -1— egies and give Japan greater freedom of maneuver in Asia. Pro- 0— fessor Sakamoto’s application of Kosaka’s logic to the con temporary +1— 594-67311_ch00_3P.indd 8 12/20/16 4:45 PM Introduction ix international security environment is compelling and reflects the hn hk io il sy SY ek eh current mainstream thinking in the LDP and the Japa nese govern- hn hk io il sy SY ek eh ment. Sakamoto welcomes the evolution of the U.S.- Japan alliance toward accepting an explicit role in regional security (operation- hn hk io il sy SY ek eh ally and not just in terms of hosting U.S. bases in Japan). He focuses hn hk io il sy SY ek eh in par tic u lar on Prime Minister Shinzo Abe’s decision to revise bi- lateral U.S- Japan defense guidelines and Japan’s own postwar pro- hibition on the “exercise of collective self- defense” in order to make U.S. and Japa nese forces more joint and interoperable— and in- separable in the event of regional crises. His argument is much broader than military strategy, however, focusing on the necessity for Japan to move beyond its earlier hesitance and clearly join what was once called the West in order to stand up for the very liberal international order that Japan itself benefited from over the past 70 years. Professor Yoshihide Soeya of Keio University offers a rich his- tory of Japan’s postwar diplomatic recovery in East Asia and calls for a more balanced approach between great power realism and cooperative diplomacy within Asia.