Japanese Economic Nationalism Essay Example for Free

Japanese Economic Nationalism Essay Economic nationalism refers to the use of policies that are guided by the idea of protecting domestic consumption, labor, and capital formation, even when these policies require the imposition of tariffs in addition to other restrictions on the movement of labor, goods, and capital. In many cases, economic nationalism is opposed to globalization or unrestricted free trade. Economic nationalism could include doctrines such as protectionism and import substitution (Economic Nationalism, 2007). What is more, Japan is a master in the use of policies that define economic nationalism (Hall). To other nations around the world, Japanese economic nationalism appears as self-seeking behavior. Besides, this self-serving attitude of Japan can drive other nations also to feel particularly touchy about their own national interests with respect to Japan. Thus, Patrick J. Buchanan (1995) speaks for the American people: With the collapse of U. S. Japan trade talks, the hour of the economic nationalist may be at hand. In British Columbia, U. S. demands that Japan open her markets to more American autos and parts were rudely rebuffed. Japans top negotiator virtually dared us to impose sanctions. We will haul you up before the World Trade Organization. Tokyo warns; and there we will have you branded a violator of the free trade principles you so noisily preach – before an international tribunal you yourselves set up. Angry Clintonites intend to impose 100 percent tariffs on $6 billion of Japans exports. This JAPANESE ECONOMIC NATIONALISM Page # 2 doesnt even qualify as a spanking. Americans are in a mood for action; and the GOP should demand more serious sanctions. Enough is enough. In 1953, we had 60 percent of Japans auto market; by 1960, our share had been slashed to 1 percent. That is all we have now. Since 1970, Japan has purchased 400,000 U. S. cars, while selling us 40 million. Nationalism is emotion arousing. And, Luke S. Roberts (1998) seems to know about the subconscious roots of economic nationalism in the Japanese mind. According to the author, these roots lie in an eighteenth century concept of political economy referred to as â€Å"kokueki† or â€Å"national prosperity. † The concept of kokueki was articulated in Tosa, which was one of more than 230 Japanese domains that made up Japan during the Tokugawa period. The domains were autonomous with regards to internal administration. Nevertheless, they were often expected to sacrifice their own economic interests to meet obligations and services required by the shogun and his government. During a period of economic crises in the first half of the eighteenth century, Tosa was compelled to adopt mercantilist policies in order to protect its own wellbeing. The concept of kokueki was at the heart of these policies. In this way, Tosa looked upon itself as a nation instead of holding itself responsible for the economic wellbeing for all Japanese domains under the shogun (Roberts). By pursuing the interests of the domain instead of those of the entire government and the shogun, Tosa acted as a model for the rest of the Japanese domains who too began to look upon JAPANESE ECONOMIC NATIONALISM Page # 3 self-interest as a lucrative attitude. Tosa had thus prepared the ground for the overthrow of the shogun’s government. Eventually, the domain along with few others like itself engineered the fall of the Tokugawa shogunate in the year 1868. Furthermore, Tosa and partners extended the concept of kokueki from their domains to the entire country. This provided the new Meiji government with a model for the establishment of a nationally organized political economy (Roberts). Economic nationalism has worked for Japan for many years, and there is no law on earth against it (Hall). Even so, Buchanan (2006) complains about it once again: â€Å"China and Japan manipulate their currencies and tax polices to promote exports, cut imports and run trade surpluses at Americas expense. † Besides putting financial pressure on Japan, in the name of tariffs, America seems to have a less burdensome and more reasonable way to convince Japan to move toward liberalization. Tariffs are, of course, burdensome also for American consumers who love Japanese cars. The United States can convince Japan to move toward liberalization more easily by the use of reason, that is, by expressing the fact that economic nationalism did the nation no good when it was time for the Asian crises of the 1990s. Prior to Japan’s prolonged doldrums at the time, its economic nationalism was looked upon as its formula for success. But this changed when Japan saw that all of the nations that followed its formula were in crises during the 1990s (Hall). International support was the need of the hour. And so, Japan should have realized that nationalist economic policies have no place in an age of economic globalization (Hall). The fact that Japan did not see economical nationalism as the real problem, is the cause of Buchanan’s JAPANESE ECONOMIC NATIONALISM Page # 4 complaint. All the same, the author may discover that in order to see the changes that he wants to see through in the Japanese economic policies – it is best to appeal to Japanese reason, and put the facts before the country before another crisis occurs. After all, economic nationalism is to the mainframe computer as globalization and internalization are to the Japanese PC!