R u s s ia n -Ja p a n e se R e l a t io n s : W h a t R o l e fo r t h e F a r E a s t ? Rahul N ath M oodgal L ondon S chool of E conom ics and P olitical Science (LSE) J uly 2006 UMI Number: U615877 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI U615877 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 Russian-Japanese Relations: What Role for the Far East? Thesis submitted for the degree of Master of Philosophy (MPhil) Economics (Econ.) Rahul Nath Moodgal Master of Philosophy (Economics) [MPhil (Econ.)] Candidate Department of Government Faculty of Economics The London School of Economics and Political Science (LSE) The University of London Supervisor: Dr. J.R. Hughes July 2006 2 To my family and friends ACKNOWLEDGEMENTS Sincere thanks to the human, institutional and financial resources, all of whom are listed in the bibliography, that have been invaluable to this volume. Indeed, thank-you to all the friends, colleagues and individuals who have been present during this very long journey. Warmest thanks to John Wells - Department of Economics, University of Cambridge - and Loma Lloyd - Department of International Relations, University of Keele - for their consistent and unrelenting support, encouragement and time. My utmost gratitude to my dear friend of twenty-three years, Nishat Adat, for taking time out of her mad schedule as a BBC World Service Sports Producer and Presenter, with a global listenership of 151 million to her Saturday Sports World Show, to proof read my work. My heartfelt thanks to Jim Hughes - supervisor and friend - who provoked my interest in Russia while teaching me Russian politics at the University of Keele (1990-1993). On his move to the London School of Economics and Political Science (LSE) he was kind enough to take me on as his supervisee. He has been extremely generous with his assistance, knowledge, time, experience and encouragement. Most of all thank-you to my family and friends - to whom this is dedicated - without whom I would not have been able to undertake this project. Rahul Nath Moodgal, May 2006 4 ABSTRACT Historically, international relations texts were concerned with determining systematic approaches. Initially, it was assumed the entire system was homogeneous. Rarely were spatial differences and non-European studies considered. Over time this has changed as international relations evolved to include more actors. The rise and fall of powers has meant the epicentre of focus and literature continues to shift. Prior to the industrial revolution and European colonisation, the ancient empires of China, Mongolia and Italy took their turns in dominating the international political economy. The US replaced the European colonists. Since the end of WWH Japan has emerged as an economic superpower. Similarly, the rise of the East Asian Tigers and communism’s collapse attracted substantial attention. Indeed, trends and issues also generate attention and literature. During the Cold War, ideology, free markets, East versus West, North versus South, non-alignment, bipolarism, hegemony, the arms race and game theory were dominant. Since the 1990s, communism’s collapse, transition, democratisation, decentralisation, globalisation and multipolarity have all been in vogue. Moreover, the rise in global communications has meant international relations have become more transparent. With so much information (perhaps too much) trends are more visible. However, the end of bipolarity has meant international relations are no longer as predictable as they once were. Many theories of international relations, based around historical events, have been thrown out of the window. Similarly, theories about the state, statehood and sovereignty have changed. The domestic transition process of the former Eastern bloc has been accompanied by an international systematic metamorphosis that has made the domestic as unpredictable as the international, against a backdrop of increasing numbers of actors. The collapse of central authority has exacerbated the rise of regions and global relations. Classical theories that revolved around the state, such as statehood and sovereignty, are now in disarray. Within the state and international political economy there has been an exponential growth in actors that are responsible for changes in the nature and structure of relations. One such actor is the subnational region. This volume focuses on one such region - the Russian Far East [(henceforth the Far East) (see Figure A 1.2)] - and its role in Russian-Japanese relations (see Figure A l.l). Moreover, it looks at how roles might change. It provides the basis for building a model, concept, theory or notion that could be used as the basis for determining and/or investigating the roles regions can play in the changing international political economy. This volume is the culmination of ten plus years of work. Its intention is to examine the role that subnational regions, henceforth regions, can and do play in a changing international political economy. Changes in the international political economy mean regions now have the ability to play a role in international relations. In some cases they have entirely redefined the nature of relations. This raises the question as to whether regions have become actors in their own right - both within the state and the international political economy. This thesis investigates this and related issues, by using the Far East, as a case study vis-a-vis its relations with Japan (see Figure A1.3). Whether the Far East can truly be considered to play a role, in this case in shaping relations with Japan, is central to this piece of work. Indeed, although issues within Russia (local, regional, subnational, centre-periphery, national) and in North-East Asia complicate this study they do make for a more than interesting case study and one that is relevant to many themes and issues in international relations (see Figures A1.9 and A. 10). The Far East continues to be of interest to academics from all disciplines and policymakers alike. Russian-Japanese relations are a critical framework for understanding the development and the role of this region. Geographical proximity, historical interaction, complementary economics, the balance of power and the need for the resolution of a territorial dispute confirm this. Traditionally, studies about the Far East focused on the region’s resources within the context of North-East Asian geopolitics. There has been a continuous debate as to whether the region is Russia’s outpost or gateway vis-a-vis North-East Asia. Since Gorbachev’s 1986 Vladivostok and 1988 Krasnoiarsk speeches the Far East seemed destined to be a gateway. However, post-communist transition, centre-periphery conflicts and the reality of the anti­ resource thesis have thrown the region into disarray. The Far East’s resources are well documented; they form the basis for the renaissance of contemporary interest with the view to potential exploitation and local decision-making. Meanwhile, contemporary studies of Russian-Japanese relations have been dominated by the Kuril Islands/Northern Territories, but perhaps needlessly so (see Figures A1.4, A1.5, A1.6, A1.7, A1.8 and Appendix 2). 6 ABBREVIATIONS Amur Amurskaia Oblast’ (Amur Oblast or Amur) APEC Asia Pacific Economic Cooperation forum ASEAN Association of South-East Asian Nations ASN News Attorney Search Network News BBC-SWB British Broadcasting Corporation-Summary of World Broadcasts Chukotka Chukotskii Avtonomnyi Okrug (Chukotka Autonomous Okrug or Chukotka) CIS Commonwealth of Independent States CNN Cable News Network COMECON Council of Mutual Economic Assistance (or CMEA) CSCE Council for Security and Cooperation in Europe EBRD European Bank for Reconstruction and Development EIU-BR Economist Intelligence Unit-Business Russia EL-RFE Economic Life of the Russian Far East EU European Union Evreiska Evreiskaia Avtonomnaia Oblast’ (Jewish Autonomous Oblast’ or Evreiska) FESCO Far Eastern Shipping Company G7 Group of Seven G8 Group of Eight GATT General Agreement on Tariffs and Trades GNP Gross National Product IMF International Monetary Fund IWGIA International Work Group for Indigenous Affairs Kamchatka Kamchatskaia Oblast’ (Kamchatka Oblast or Kamchatka) Khabarovsk Khabarovskii Krai (Khabarovsk Krai or Khabarovsk) Koriak Koriaskii Avtonomnyi Okrug (Koriak Autonomus Okrug or Koriak) Magadan Magadanskaia Oblast’ (Magadan Oblast or Magadan) MNCs Multi-National Corporations NATO North Atlantic Treaty Organisation NGOs Non-Governmental Organisations OECD Organisation for Economic Cooperation and Development Primorie Primorskii Krai (Maritime Region or Primor’e) RFE Russian Far East RFE/RL Russian Far East/Radio Liberty RIA-Novosti Russian Information Agency-Novosti ROTOBO Japan Association for Trade with Russia and Central-Eastern Europe (formerly SOTOBO - Japan Association for Trade with the Soviet Union and the socialist nations of Europe) Sakha Respublika Sakha (Yakutia) {[Republic of Sakha (Yakutia)] or