regional (developing) promotion theory and practice (2...

TitleRegional (Developing) Promotion Theory and Practice (2)－Taking Experience of Regional Promotion in Okinawa toSoutheast Asia－

Author(s) Yoshikawa, Hiroya

Citation 沖縄大学法経学部紀要 = Okinawa University　JOURNALOF LAW & ECONOMICS(7): 1-15

Issue Date 2006-10-31

URL http://hdl.handle.net/20.500.12001/6031

Rights 沖縄大学法経学部

Regional (Developing) Promotion Theory and Practice (II)

-Taking Experience of Regional Promotion in Okinawa to Southeast Asia-

Hiroya YOSHIKAWA

<Contents>

Chapter HI: Ways and Means for Developing Regional Activities into International

Cooperation

1. Development types of regional projects (Necessity of Chance and Initiative)

2. Importance of "Catalyst" that Promote a Regional Project to International

Cooperation

3. Conditions for continuation of regional activities as international cooperation

Chapter IV: Promotion of Local Industry, Conclusions and Problems

1. Why entrepreneurial spirit and procurement are necessary

2. Globalization, light and darkness for developing countries

3. Methods for Regional Promotion as Seen in Okinawa

and Regional Development in Southeast Asia

<Preceding chapters>

Foreword: Why are Regional Developing Promotion the Current Themes?

Chapter I: Drawing on Japanese and my Experience of Regional Promotion

Chapter II: Regional Activity and International Cooperation in Japan

<To be continued>

Proposal & Implementation: Regional Promoter upbringing, Educational Program

-Using the JICA-Net Development, Implementation and a Evaluation-

Chapter HI : Ways and Means for Developing Regional Activities into

International Cooperation

1. Development types of regional projects (Necessity of Chance and Initiative)

Let's mainly discuss latest cases (from 1999 to 2001) of regional projects and

Okinawa's projects that promoted to international cooperative projects. I will indicate the

locations of these projects on the Japanese map of Figure 4. I will analyze keys to

maintain projects and future issues and tasks to make them successful international

- 1-

o

I

DO I

Figure4

InternationalExcahngeProjects

-Cooperativeprojectscenteredon

localbodyandthecaseofOkinawa-

(R)Thenew

localbusiness

ofwine-making,

Fig:

4(8)

(R)The

city

hoststr

aine

ron

fixe

dnettr

aini

ngprogram,

Fig:

4(4)

(G)The

city

cooperatesto

solveenvironmental

pollutionproblem,

Fig:

4(5)

(A)Technologytransferoftraditional

iron

ware(Nanbutekki),

Fig:

4(1

)

(A)Learnthetechnologicoflacquerware,

Fig:

4(2)

(R)The

hosp

ital

hostsin

tern

medical

staf

f,Fi

g:4(3)

Classifiedprecedent

into

fourcategories>

(A):

Aidreceivingcountry

(R):

Concerntheregionalproject

(G):

General

internationalexchange

(H):

Historical

background

(H)Openingcontainerrouteandpromotebusiness,

Fig:

4(7)

TAIWAN V""

(H)Thanks

tothetradedepends

portopen

project,

Fig:

4(6)

projects. Based on the ward "Technology Transfer", I call the expansion from regional

projects to international projects "Regional Project Transfer".

Almost all regional projects started in order to solve fundamental problems of

region and to fulfill demands in a region. These are formed for own region at the

beginning. Analyzing the process that regional projects became international projects, you

find that there were a chance and initiative. Then what kind of opportunities and

initiatives is necessary to expand regional projects to international project?

Focusing on opportunities and initiatives, I classified precedent into four

categories.

(1) Projects formed with a request of an aid receiving country

The following cases are projects formed with request of an aid receiving country.

A person from these countries came Japan and saw regional projects. Sometimes people

from abroad directly see regional projects in Japan or some obtain information on

regional projects through media such as newspaper and television.

Case 1 : Technology transfer of Nanbutekki that is traditional ironware in Iwate

prefecture. In 1998, Hujimori, President of Peru came Japan and met governor

of Iwate prefecture and president of JICA. President Hujimori requested

cooperation at the time. Now Technology Center in Iwate prefecture hosts

trainee from Peru and JICA sends experts to Peru in Figure 4(1).

Case 2 : Myanmar ambassador in Japan saw production of lacquer ware in Narakawa

Village, Nagano prefecture and he requested cooperation on the technology.

Now trainees form Myanmar National Lacquer Craft University come to

Japan to learn the technology in Figure 4(2).

(2) Projects formed with initiative of people who concern the regional project.

The followings show that people concern regional projects took the initiative in

forming international cooperation.

Case 3 : Saku General Hospital in Usuda town has "contribution for international

medicine, especially for welfare and medicine in developing countries. " as its

principle. For the principle, the hospital hosts intern medical staff form

Southeast Asia in Figure 4(3).

Case 4 : "Fixed Fishing Net Training Program" in Himi city in Toyama prefecture

started by Mayer's initiative. The city hosts trainee form China and Costa

Rica. Fixed fishing net is green method of fishing. It is less harmful to the

environment. This project is to spread fixed fishing net method and to

manage aquatic resources properly in Figure 4(4).

-3-


(3) Concrete cooperation promoted form general international exchange

Many local public bodies have friendship town abroad and citizens visit each

other. The following cases are examples that general international exchange became

concrete cooperation.

Case 5 : Kitakyusyu city in Fukuoka prefecture is famous for the heavy and chemical

industries. The city experienced dreadful environmental pollutions. But it

cooperated with citizen, industry sector, and experts in academia and they

solved pollution problem. Now the city cooperates with Dalian city in China

to solve environmental pollution problem there. Originally, Dalian city was

friend city of Kitakyusyu city in Figure 4(5).

Case 6 : Port Open Project in Yonaguni Island, Okinawa.(*1)

I will explain this case and the following case in detail because I exactly

involved in them.

Yonaguni town is located in both Southernmost and Westernmost of Japan.

Even though sea separates Yonaguni town and Hualian city, Taiwan, but

they are only 100 km away from each other. They are friendship town and

friendship city to each other.

However Yonaguni town dose not have open port for trade probably because

of its small population that is 1,500. To visit Hualian city, people must take

a route via Naha city. The whole route is 1.200 km in Figure 4(6).

So we request open port permission to the central government and it

succeeded. Now Yonaguni town can trade with Hualian city. It is easies than

trade between Naha city and Hualian city. Thanks to the trade including

trade of daily goods, price for goods successfully declined 30% in Yonaguni

town. 90 people from Yonaguni town visited Hualian city in photo 1.

photo 1

SUCCESSFUL TRIAL:

Trial import of sundry goods

and furniture Arrived on the

deck of a freighter hauling

sand and gravel on Dec. 24,

1988.

- 4 -

I cooperated this project as an adviser. I advised mainly on research, study,

and policy but also on the way to carry this project out. I call this kind of

research style as "action research". I included business people and

entrepreneurs as participants of next paper "Method for Regional Promotion"

via JICA-Net Remote Technical Assistance System. This is because I try to

share the "action research" aspects.

(4) Project formed with historical background

The following shows historical background concerning both areas led the chance

for international cooperation.

Case 7 : Opening Container Route between Naha (Okinawa) city and Xiamen(China)

city.(*2)

I will explain this project with history of Okinawa in Figure 4(7).

About 600 yeas ago, Okinawa was independent Kingdom named Ryukyu.

After 1425, Okinawa had feudal relations with China. Ming Dynasty was a

suzerain for Ryukyu Dynasty. In 1427, Annam Dynasty in Vietnam also had

feudal relations with Ming Dynasty. So Ryukyu carried intermediary trade

among Asian countries.

Because of this economic expansion with trade established independence,

economic base and own identity and culture in Okinawa. I call this period

"grand trade era" and I think it was an ideal and great period for Okinawa.

(I named one relevant project as "Grand Trade Renaissance".)

But in 1602, Japan invaded Okinawa and prohibit intermediary trade. Then

the economy of Okinawa declined. Moreover, after world war It (After 1945),

U.S. Army ruled Okinawa. At the time, Okinawa lost freedom of trade and

independence. In 1972, Okinawa was given back to Japanese government, and

now waves of globalization reach to Asian countries including Okinawa. With

these circumstances, project to open a container route between Naha city,

Japan and Amoi city, China was suggested in order to reopen trade with

Southern China. At the same time, business people from both regions

established Okinawa-China Economy Exchange Association.

I took part in the association as an adviser and gave academic point of view.

Now Okinawa-China Assembly Hall is built in Amoi with Okinawa's fund. An

office for the trade is inside the hall and it is playing important role for both

regions.

A container ship takes a route trip once a week between two regions in photo

2 . It can convey much cargo and promote business opportunities.

- 5-


photo 2

OPENING CONTAINER

ROUTE:

A container ship takes

two regions, Naha city

and Xiamen city from

Apr. 13, 1994.

2 . Importance of "Catalyst" that Promote a Regional Project to International Cooperation

(f) Information and media

Aid receiving country firstly needs to know what kinds of regional project are

carried out in Japan. Information can be obtained through mass media, publications, and

people.

Especially specialty journals such as "Regional Development (Chiikikaihatsu)

[monthly]", "Study on Local Public Body (Jichitaigaku Kenkyu) [monthly]", "Regional

Information (Nikkei Chiiki Joho) [monthly]", "Community Planning", "FURUSATO",

"Study on Urban Problems (Toshimondai Kenkyu) [monthly]", and "Transport [monthly]"

are useful to obtain information. These journals introduce projects in a particular region

and projects of the same issue.

It takes much time and cost for aid receiving countries to obtain and translate

these journals. So it is good idea that JICA or other international organizations translate

the points of projects on these journals and make them available for aid receiving

countries.

Local public agencies and NGOs also provide information of their regional projects

on the homepages, publications, and newsletters. It is also good idea that JICA and other

international organizations make list of these regional projects and provide information.

(2) Coordinator to Form International Cooperation

On the contrary to (1) case, it is difficult to obtain information of regions in

abroad. When people carrying regional project want to have international partner, they

want know on regions in abroad. But they do not get used to search for information of

international cooperation and hard to figure out potential of economy in abroad.

So a coordinator to promote a regional project to an international project plays

an important role. For example, researchers m regional developing field, university

-6-

professors, or NGOs (non-governmental organizations) and NPOs (non-profit

organizations) for international cooperation can be good coordinators. The followings are

latest NGOs and NPOs for international cooperation.

(3) Volunteers and public corporations, such as NGOs, NPOs, and JICA

Former Members of Japan Overseas Cooperation Volunteers and public

corporations such as JICA, as well as NGOs, NPOs and JICA International Centers in the

regions, are geographically close to the scene of regional activities, and have relatively

easy access to information on such activities. For example, this course should make use of

the Okinawa International Center, which disseminates information to three Southeast

Asian countries.

Also, former members of the Japan Overseas Cooperation Volunteers, who are

distributed throughout the country, could well use their experience of working in

developing countries, the languages and other communications skills they learned there,

and their positive attitude to international cooperation, to serve as a catalyst.

Recently, many other groups have been working for international exchange and

cooperation. Examples include local authorities nationwide, groups established to further

human interaction, which mainly spring from the business world, international civil

NGOs, which support developing countries in work such as refugee assistance and disaster

relief, and volunteer activist groups which provide foreigners living in outlying areas of

Japan with counseling and language education.

These groups are oriented from the start towards international exchange and

cooperation, thus in many cases they have absolutely no connection with regional

activities. Nevertheless, they have networks, knowledge and communications expertise in

developing countries which could be a precious resource for linking regional activities with

international cooperation.

3. Conditions for continuation of regional activities as international cooperation

We have seen examples in which regional activities, triggered by conditions such

as those described above, develop as international cooperation, but these are often

transient. But what are the conditions for sustained continuation as international

cooperation?

(1) Matching the needs of the counterpart country

Regional activities are born of specific local needs, and develop from there.

Therefore, however successful the regional activity is, it will be difficult to develop it

further, unless the example is taken and adapted to conform to the needs and conditions

of the counterpart country to which it is transferred.

-7-


The examples presented above in Figure 4, which match the needs and conditions

of the counterpart country, can serve to illustrate this point.

The advanced traditional craft of Kiso lacquer ware, in Figure 4(2), is one example

which matches the need to improve the quality of Myanmarese lacquer ware crafts.

The new local business of wine-making in Ikeda, Hokkaido, in Figure 4 (8), is an

example of a startup making independent progress without central government subsidies.

This example attracted the attention of South American countries facing financial

difficulties, with similar needs and environmental factors, and trainees have been sent to

Ikeda.

As mentioned above, Okinawa is a sub-tropical archipelago, with natural

environmental conditions similar to those in Indonesia, the Philippines and Thailand. The

population characteristics include the highest birth rate in Japan and the highest

proportion of young people, which means the population also resembles the populations of

those countries.

Next, there is the social environment. As mentioned earlier, the relationship

between mainland Japan and Okinawa is similar to that between developed and developing

countries (a "North-South" relationship). Looking at Okinawa's social conditions from this

point of view, many of the social needs are the same as those in developing countries, and

regional activities are based on those needs. Thus, the regional activities in Okinawa can

be transferred to developing countries in ways that meet their needs.

(2) Benefits for regions

If the region which transfers projects as international cooperation does not gain

any concrete benefits, the cooperation will not continue, and it will not be widely

supported in the provider region.

Figure 4 (4) shows fixed-net fishing, which is a traditional cultural resource of

Himi, Toyama Prefecture. By using their fixed-net fishing techniques in international

cooperation, the people of the region were, able to rediscover the value of their community.

The city pursued international cooperation with the aim of promoting the identity of the

region and marketing it in Japan and abroad.

Regarding regional merit, Okinawa, which is located in the longest distance from

the mainland but the closest distance from foreign countries, has more concrete regional

benefits in the field of international cooperation projects.

Case 6, yielded a 30% reduction in living costs in the town of Yonaguni. Case 7,

enabled the direct import of various commodities from China, with a large saving in

transport costs. In addition, the use of shipping channels is now creating "international

trade industries of Okinawa".

When Okinawa tries to extend its operations to mainland Japan and expand them

in this way, there are shortages of local raw materials and labor for processing, and such

shortages are expected to worsen in future.

When that happens, the participating countries of this program, namely

Indonesia, the Philippines and Thailand, with similar natural conditions, will be able to

supply those needs. Also, development exports produced through cooperative projects with

Okinawa could compensate for Okinawa's problems of labor shortage and high wages,

making them more competitive when transferred to the Japanese mainland.

Members from the business people, the representatives of companies, who are

among the participants in this next paper (training course). They are here to search for

cooperative projects, identify success stories, even if they are small, and explain their

potential.

Chapter IV : Promotion of Local Industry, Conclusions and Problems

The preceding paper, chapter I , I would like to mainly discuss the first type "the

classification of regional development" in Figure 1(3), 2 (Preceding paper I , page 5,11),

namely the Regional Industry Promotion Type. I will explain the background, how this

type began and developed.

1 . Why entrepreneurial spirit and fund procurement are necessary

(1) Increase of service industry

Analyzing composition of industry with working population, you can see what

kind of work people in a region have.

Let's see the composition of industry in Japan. Before the world war II (before

1940), proportion of working population for agriculture, forestry and fishery had been

always over 50%. It is common with both in Okinawa and the mainland Japan. When you

refer to Japan, Okinawa is excluded in the period from after the world war II to 1972

because the U.S. Army ruled Okinawa after the war till 1972.

<The mainland Japan>

After the war, mainly from the mid-1950s to 1960s, proportion of the primary

industry declined rapidly and the secondary industry grew. In 1970, 19.3% of working

population was for the primary industry, 34.1% was for the secondary. Combination of

these two consists 53.4% of working population. In this period, Japanese economy changed

from agricultural society to industrial society.

<Okinawa>

-9-


The situation in Okinawa has been different from the one in the mainland Japan.

Construction work for the U.S. bases and service for the construction have large

proportion. The secondary industry has 21.1% share and 12.5% of all workers is for

construction. The rest 8.6% of the secondary industry was manufacturing and it was

obviously small proportion. The tertiary industry has 62.2% and it is large proportion

compared with 46.6% in the mainland Japan.

<Changes in industrial composition and advantage of Okinawa>

In 1980s, service industry, which generates no goods, grew rapidly. In 1990s, the

proportion of the tertiary industry reached to 59.3% and the proportion is the largest

among three categorized industries. Japan became service industrial society and

informational society.

However heavy industry led rapid economic growth in Japan, it decreased share

in the Japanese market. On the contrary, high-tech industry dealing light and thin goods

is prevailing. This shows a shift from heavy industry to software industry and service

industry. For example, companies of heavy industry such as the steel industry and the

shipbuilding industry expand their business to customer service business. They even carry

business out in the Disneyland. This change shows the shift in economic from supply side

to demand side and from sale-market to buy-market. The change also expresses a shift

form poor society to affluent society. Thanks to these shifts, now Okinawa has an

advantage to target at niche market. In the near future, these shifts will be happen in

Southeast Asian countries.

(2) Globalization of economy

Another big impact on regional industries is globalization of economy.

The Japanese economy has integrated into the world economy through important

events of economic history. In 1960, the exchange market and trade are liberalized. In

1971, a floating exchange rate system was introduced. In 1985, Plaza Accord was

established. Today Japan has 20% of world GNP and has great influence on world

economy. The income level of Japanese people became highest in the world and they

influence on world market. Japan imports raw material, parts and products. People and

companies in Japan directly invest to abroad. Many production sites are constructed in

abroad, too. The globalization of economy influences on regional promotions both directly

and indirectly. Goods making in a closed economic system now faces limits. It is

important to create industries which have worldwide competence. Now Okinawa has

advantage with its location. Okinawa is close to the border.

(3) Discovery of new merits in regional resources

Under the effect of globalization, economy will be open to both nationally and

-10-

internationally. Competition between regions will be much severe. I would like to explain

regional promotion with regional resources.

Concepts of resources are relative. Human activities make material resource.

Without human resources, resources are just natural materials. For example, without

human activities, coal is just a material or stone, and oil is just liquid. When natural

material provides some good for human, it is resource. In this respect, concept of resource

is not absolute. Here I call resource as "regional resource" when the resource plays

important role in regional promotion. When you take another look at regional resource

with this idea, you see that there are various resources in each region. Some people think

their region lacks resources but they need to have some more knowledge or ability to

make use of existing resources.

It is also important that regional resources exist not singly. Resources are

interacting with each other and forming one system in a region. For example, forest,

wildlife, water, and underground resources are forming ecosystem. Scenery, folk customs

and culture have relationship with the ecosystem. Then they form one system as a whole.

To achieve sustainable development, it is necessary to consider the balance of these

resources. It is not good idea to take one resource singly, separated from the system.

(4) Consideration of marketing

When Japan had poor economy, goods or products sold well. Those days you did

not have to think much about marketing strategies. Income of Japanese people appeared

to be the high class in the world. Materials are overflowing in the market but Japan also

has many problems. Trade conflicts are hot issue and excessive food and material

consumption decrease real richness of life. Waste management is serious matter in the

respect of environment. When people became rich, consumers have obtained discretion to

choice. Those days whatever you made can sell in the market but now you should make

things that sell well. How to sell is mach more important than how to produce when you

try to form new industry.

There are many methods of marketing. Recently, freshness and safety is

important in the agricultural business. If a producer's name or information is shown

(traceable), the product has more value. In the commerce, it is said that young women

have potential and that entertainment is needed to products and services. Other marketing

strategies are suggested everywhere.

I introduce some marketing strategies that are related to regional promotion. ®

You should obtain necessary information. ©You should utilize resource and spatiality of

the region, i.e. selective regional character, ®What name you give to your products and

service is important. ©Quality, appearance, creativity and some humor should be needed

for good products. ©Price should be reasonable though it does not have to be too cheap.

-11-


These strategies can be applied to Southeast Asian countries. A case of one village

one products campaign in Thailand adopted these strategies. They cooperated with

Japanese designer sent by JETRO (Japan External Trade Organization). This is one of

marketing strategies for advanced countries.

Major cities in Southeast Asian countries already have had economies where

marketing strategies are important. In the near future, whole country will have customer

oriented economy. It is very important to always keep advanced product development

ahead of other competitors.

2. Globalization, light and darkness for developing countries

Why entrepreneurial spirit and fund procurement are necessary -

Globalization, in itself, is neither good nor evil. It certainly has the potential to

generate wonderful results. For example, Japan and other East Asian nations (South

Korea, Taiwan, Hong Kong, Singapore, and now China) have accepted it of their own free

will and followed it at their own pace, and by doing so, they have benefited greatly from

globalization. Thus, despite the fact that these countries did not follow the Washington

Consensus, or rather, because they didn't follow it, their achievement is dubbed "The East

Asian Miracle" (*3).

The Washington Consensus (*4) sets the conditions and guidelines for assistance

and guidance from developed to developing countries, and it is administered, or rather,

enforced, by the IMF (the International Monetary Fund), with the support of the World

Bank and the WHO.

The problems of the Washington Consensus became obvious with the onset of the

Asian Currency Crisis in 1997.The cause of the crisis, and the tight-money policy applied

by the IMF in response, worsened the economic crisis for developing countries such as

Thailand, Indonesia and South Korea (*5). The economic crisis began with the collapse of

the Thai Baht on 2nd July 1997, and spread to Malaysia, South Korea, the Philippines and

Indonesia.

The top Western investment banks, which had gathered the money of the world's

investors and injected a stream of it as "hot money", saying "Asia is the coming thing",

changed their stance to "it's Asia's structural problem" as soon as things got a little

difficult.Then they pulled the hot money out.The "Asian structural problem" was not a

structural problem at all. Rather, the excessive injection of outside money raised the

currencies too far, so they lost international competitiveness and ultimately fell into crisis.

The IMF rescue measures in response to the currency crisis, which were applied

to Thailand and other developing countries, consisted of first fiscal austerity and then a

tight-money policy, through raised interest rates. These measures caused overall

contraction in those economies. This mistaken structural reform raised unemployment

- 12 -

mm

fourfold in South Korea and tenfold in Indonesia, while GDP (for 1998) fell 13.1% in

Indonesia, 6.7% in South Korea and 10.8% in Thailand. In Indonesia, 16 private banks

closed down.

The IMF ignore pre-existing conditions (*4) and believe that if inefficient

companies and jobs that had grown behind protectionist barriers were simply done away

with, new companies and jobs would be born, more efficient and more productive.

However, that was not the case, and the textbook conditions of the perfect market and

perfect competition are no more than hypothetical.

New companies and jobs will not spontaneously spring into being without capital

procurement and the entrepreneurial spirit. Both those things are lacking in most

developing countries. Therefore, this course will mainly discuss entrepreneurial and

income-generation activities, with particular reference to venture businesses. Now, I

included business people and entrepreneurs as development and implementation of this

next paper "Regional Promoter Upbringing, Educational Program".

3 . Methods for Regional Promotion as Seen in Okinawa and Regional Development in

Southeast

Asia —Utilizing Characters Common throughout the Neighboring Countries in Asia—

In the next paper, I will introduce attempts and lessons learned at regional

promotion in Okinawa, to link them to an examination of regional promotion methods for

Southeast Asia in Figure 5. The following points are the basic guidelines for the course.

• Focus on the geographical, natural and cultural characteristics that Okinawa and

Southeast Asian countries have in common.

• Use case studies to apply Okinawa's lessons to Southeast Asian countries.

• Investigate the potential for business partnerships, between Okinawa and

Southeast Asian Countries at the company level, with expectations for regional

companies in Southeast Asia to gain some business successes. It is thought that

these successful experiences would build those companies' self confidence for

subsequent projects, and the companies would stand as role models for other

companies and regions.

• Training will target multiple countries via remote technical assistance, so that

trainees can communicate bi-directionally in real time, (not only with the

Lecturer(s) but also) among participating countries.

<Target Participants>

Participants from the Philippines, Indonesia and Thailand will be invited.

-13-


JICA Net - Utilizing Characters Common

throughout the Neighboring Countries in Asia

Course Outline

Syllabus

Introduction

Schedule

Web Forum

What's New!

26.May, 2003

■ Update Syllabus (module3)

25, May, 2003

■ Update Schedule ( module 3-5)

Figure 5

DEDICATED HOMEPAGE:

A dedicated homepage for this course was set up to enable

exchanges of information and views between participants

and their lecturers and assistant lectures,and between

individual participants, both during the training period and

afterwards.

Each country's participants will consist of the following three groups;

®Group A: Moderator candidates (central government officials from relevant

departments divisions, leaders of NPOs and NGOs and graduate students).

©Group B: Main actors in regional economies (local government officials,

business persons and entrepreneurs in local areas).

©Group C: University students.

-14-

<References>

(*l)Yoshikawa's Home Page (www.h-yosikawa.com); Access a top page and see "Back from

the edge, turning a policy for under-populated regions into a border policy" on Profile

in English.

(*2) Yoshikawa's Home Page (www.h-yosikawa.com); Access a top page and see "Strong

Ties with China -Giving concrete form to an Okinawa-Fujian economic zone -" on Profile

in English.

(*3)"THE EAST ASIAN MIRACLE : Economic Growth and Public Policy", a research

report by the World Bank.

(*4)The three pillars of the Washington Consensus are fiscal stringency, privatization and

market liberalization (finance, capital and international trade markets).

The failure of the "Washington Consensus"

<The problem of trade liberalization>

Pitting the products of domestic industries with no strength to compete against imports

from stronger foreign countries only invited tragic social and economic consequences.

<The problem of the IMF tight-money policy>

This policy leads to raised interest rates, which prevent the generation of new jobs, and

trade liberalization is pushed forward before the social safety net is in place, thus the

unemployed are driven into poverty.

<The problem of liberalizing capital management

Pushing for the opening of high-risk capital markets in developing countries, where

banking systems are almost entirely non-functional, is not only unfair, it is mistaken as

an economic policy.(On the other hand, Japan and European countries restricted the

liberalization of capital until the 1970s).

The influx of hot money which usually followed capital market liberalization caused chaos.

That was the cause of the '97 Asian Currency Crisis, and the tight-money policy

imposed by the IMF aggravated the crisis in Thailand and Indonesia.

(*5)"Globalization and its Discontents", written by Joseph E. Stiglitz in 2002, was

translated to Japanese and given a very apt title, which can be translated into English

as "The true face of the globalization which brought misery to the world". The author

was a member of the economic advisory council to President Clinton in '93~'96, then

senior vice president and chief economist of the World Bank in '97~2000, so he was

central to the authorities which the book criticizes, a position which must enhance the

objectivity of the book.

-15-

regional (developing) promotion theory and practice (2...

Documents