Table Of ContentH. Hax . W. Kraus· T. Matsuda· T. Nakamura (Eds.)
Pacific
Cooperation
from the Japanese
and the German
Viewpoint
With Contributions by
E. Durr, H. Hax, G. Heiduk, W. Klenner, Y. Kosai
W. Kraus, Y. Onitsuka, H. Shimada, Y. Shinkai
T. Watanabe, C. Watrin
Springer-Verlag Berlin Heidelberg New York
London Paris Tokyo Hong Kong
Professor Dr. Herbert Hax, Universitat zu KOln, Lehrstuhl fUr Allgemeine
Betriebswirtschaftslehre und Betriebswirtschaftliche Finanzierungslehre
Albertus-Magnus-Platz, 0-5000 KOin 41, FRG
em. Professor Dr. Willi Kraus, Ruhr-Uriiversitat Bochum, Fakultat ffir
Ostasienwissenschaften, Sektion Wirtschaft Ostasiens, Postfach 102148
0-4630 Bochum I, FRG
Professor Dr. Tomoo Matsuda, Tokyo University, 1-9-31 Takaido-Nishi
Suginami-Ku, Tokyo 168, Japan
Professor Dr. Thkafusa Nakamura, Tokyo University, 2-9-34 Kamiosaki
Shinagawaku, Thkyo 108, Japan
9th German-Japanese Seminar on Economies and Social Sciences
Held at Thkyo, September 24-27, 1987
With 16 Figures
ISBN-13: 978-3-642-75071-7 e-ISBN-13: 978-3-642-75069-4
DOl: 10.1 007/978-3-642-75069-4
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To the Memory of Professor Hiromi Arisawa
Professor Hiromi Arisawa passed away on March 7th, 1988 at the age of
ninety-two years. He was born 1896 in Kochi city in Southern Japan. After
graduating in economics at the University of Tokyo in 1922, he started his
academic career as a research assistant in the Department of Economics.
In 1924 he was promoted to the rank of associate professor specializing in
economic theory and statistics. He had the opportunity to study under
Professor Emil Lederer in Tokyo. He then visited Germany to study there
between 1926 and 1928. He was deeply impressed by the perfect freedom
and the democratic society of the Weimar Republic, compared to severe
controls on ideologies and social movements practiced in Japan in those
years. In his old age he often mentioned to his German friends that in these
days Germany had become for him his "zweite Heimat" (second home
country).
Back to Tokyo he organized a research group on Japanese and world
economy. Their analyses were based on precise statistical evidence and on
broad theoretical foundations, including Marxian economics. These
analyses were clear and accurate, but the theoretical approach met with
disapproval on the side of government. Professor Arisawa and his group
were arrested under the suspicion that they sympathized with the political
opposition. Though they were released as innocent in 1944, Professor
Arisawa and his group had to be silent under the atmosphere of the Pacific
War.
After the war Professor Arisawa returned to the University of Tokyo
and resigned after reaching the age limit in 1956.
Professor Arisawa's representative academic contributions are the
following:
"Rationalization of Industries" (1929)
"Cartels, Trusts and Concerns" (1931)
"World Depression and Crisis of International Politics" (1931)
"War and Economy" (1936)
"Controls on Japanese Manufacturing Industries" (1937)
"Inflation and Socialization" (1953)
In the end of the 1950's, Professor Arisawa edited a series on "Con
temporary Japanese Industries" (eight volumes). When these joint
research works were started, Professor Arisawa pointed out the method of
VI To the Memory of Professor Hiromi Arisawa
analysis that was to take into consideration four elements in each industry:
:!nterprises, technology, labour and markets. This series became a stan
dard work of reference for the field of industrial economics.
When Professor Arisawa reached the age of seventy years, he took a
new interst in reconsidering the rise and fall of the Weimar Republic.
However, since his official obligations were very extensive, he could con
tinue his research work only during the nights for more than ten years, col
lecting new books and documents on Germany: His book "A Story of the
Weimar Republic" appeared as a private print in 1978. In the same way a
"Supplement" appeared in 1984 when he was eighty-eight years old. The
books were admired by their readers. Although his friends advised to
publish these books, Professor Arisawa rejected the publication, because
the books were products of an amateur researcher on German history. It
is deplorable that these excellent books are not accessible to Japanese
readers.
After the Pacific War, Professor Arisawa contributed substantially to
establish the political and economic order, from which modern Japan has
emerged. Immediately after the war, he designed a plan to increase coal
production from 22 millions tons in 1946 to 30 millions tons in 1947 by con
centrating all efforts and resources upon coal industries. This "priority
production plan" was successful, and the Japanese economy seized the op
portunity to reestablish industrial production. In the 1950's Professor
Arisawa was an influential consultant of government; he was the chairman
of two important committees linked to the Prime Minister's bureau, the
Employment Council and the Coal Council.
In the 1960's, Japanese coal industry met with a severe crisis and was
forced to close a considerable number of mines in response to the competi
tion of imported petroleum. Professor Arisawa established a plan to
guarantee jobs and livelihood of coal miners and a regional plan for the
coal mine area. On the other hand Professor Arisawa also played a decisive
role for Japanese,atomic energy policy as a member of the atomic power
committee in building up two basic principles: utilization for peaceful pur
pose and severe checks of security.
Professor Arisawa's reputation as a scholar and as a practical
economist found world-wide recognition. This is manifested by high
distinctions bestowed upon him in Japan and abroad. He was President
of Hosei-University from 1959 to 1962, President of the Japan Academy
of Science from 1980 to 1986. He became Officer of the French Legion
d 'Honneur, Honorary Doctor of the Chinese Academy of Social Sciences
and he was awarded the Bundesverdienstkreuz of the Federal Republic of
Germany.
When the first German-Japanese Cultural Exchange Seminar was
held in Tokyo in 1966 Professor Arisawa was among the participants and
bade welcome to his German colleagues together with Professor Dr. Kazuo
Okochi, Professor Kiyoshi Tsuchiya and other Japanese scholars. Pro
fessor Arisawa believed strongly that academic exchange was a sound basis
for a profound friendship between two countries. In later years up to the
To the Memory of Professor Hiromi Arisawa VII
ninth seminar in 1987 Professor Arisawa took part in these seminars and
gave them substantial support.
As an ·academic disciple of this great scholar, I found my way to
research under his guidance. For Professor Arisawa the royal road of
research was to compile the evidence and to find the truth through an
analysis of the facts. I am happy and grateful that I had the opportunity
to study under the direction of this great scholar.
T. Nakamura
Editors' Preface
It is hardly possible to overrate the Pacific Basin in its economic and
political importance. Currently, it is one of the economic regions with the
highest dynamic growth throughout the world. Economically this region
is sometimes considered to be the future centre of the world economy -
often with reference to well-known authors such as Arnold Toynbee and
Herman Kahn who predicted the inevitable approach of a Pacific century.
The economic development of the Pacific Basin has proceeded far already
following Japan's ascent into the position of an economic superpower.
Considering the concentration of East and South-East Asian dynamic
developing countries the Pacific Basin has meanwhile developed into a
regional centre of economic activities. Furthermore the ambitions and in
terests of three nuclear powers - the USA, the Soviet Union and China
- collide in this region. Obviously these countries increasingly perceive
and take into account the political and strategic importance of this region.
The abstract term "Pacific Economic Region" can be defined in dif
ferent ways, in a narrow or in a wide sense. In general the following coun
tries are regarded as belonging to this region when the "Pacific Economic
Cooperation" is discussed. These countries can be classified in four
groups:
1. The industrialized countries Japan, Australia, New Zealand, the
United States of America, and Canada;
2. The ASEAN-countries Indonesia, Malaysia, the Philippines,
Thailand, Singapore, and Brunei;
3. The East-Asian developing countries outside ASEAN: Taiwan, South
Korea, and Hong Kong;
4. The People's Republic of China which together with Taiwan was ac
cepted as a full member on the 5th "Pacific Economic Cooperation
Conference" in Vancouver 1986, probably the most important Pacific
organization.
The question is why the efforts towards cooperation at least up to now
have been limited to the above mentioned groups. After all the following
groups of countries as border states of the Pacific Ocean have been men
tioned as potential partners of cooperation:
x Editor's Preface
1. Papua-New Guinea and the small South-Pacific countries (the coun
tries of the South-Pacific Office of Economic Cooperation without
Australia and New Zealand);
2. The South-Asian countries Bangladesh, Burma, India, Pakistan, and
Sri Lanka;
3. The Latin American Pacific countries: Mexico, Colombia, Ecuador,
Peru, Chile, and finally with regard to the economic cooperation in
South America indirectly Brazil;
4. The communist countries Vietnam, Cambodia, Laos, North Korea,
and the Soviet Union.
A short glance at the world map makes clear how unrealistic it is to
include all or most of these countries in the Pacific cooperation: In this
case nearly all countries of the world might be considered as potential
partners of the Pacific cooperation - except the European countries, of
course. Under these circumstances one could hardly speak of a regional
concentration within the Pacific region, which is apparently intended.
The Pacific growth area with the four groups of countries mentioned
above has been created by countries with market economies, countries
which, moreover, either directly belong to the Confucian cultural complex
of the Chinese, Japanese, and Koreans or indirectly have received impor
tant dynamic impulses from this side. These countries form the core of all
efforts towards cooperation; all others, although they may rightly be
counted as Pacific countries, stay at the periphery of the evolving area of
cooperation. Moreover, certain disparities exist also within the core group,
extending far beyond the range of economic problems. Notwithstanding
all cultural and racial amalgamation processes considerable differences
persist, in fundamental religious and philosophical attitudes for instance.
But this heterogeneity is superimposed by a number of common at
tributes, such as: vigorous thirst for knowledge, belief and delight in pro
gress, willingness to communicate, and above all commitment to dynamic
action.
For a long time the People's Republic of China was not ranked among
the Pacific cooperation group because of its inefficient economic system.
China was anxious to join the Pacific cooperation group simultaneously
with its efforts to relax its central economic control by the introduction of
market elements and to follow a policy of opening itself for foreign ideas.
However the crucial aspect is that China is willing to join the economic
dynamics of the core group despite all difficulties in the phase of transi
tion.
In the mid-sixties the Japanese economist Kyoshi Kojima has already
suggested to establish a Pacific Free Trade Area (PAFTA) among the five
Pacific industrial countries, the USA, Japan, Canada, Australia, and New
Zealand. Apparently this conception was essentially influenced by the im
mense expansion of intra-European trade after the foundation of the
European Economic Community, although in his suggestion Kojima gave
up the idea of giving supra-national jurisdiction over trade policy to this
organization according to the European pattern.
Editor's Preface XI
This development was directly followed by a conceptional reorienta
tion guided by an approach which focused on the idea of coordination in
stead of integration. In 1968 already Drysdale and Kojima presented a sug
gestion of this kind to the Pacific Trade and Development Conference.
Thereby the OECD, serving as a model, got a Pacific pendant in the form
of OPTAD (Organisation for Pacific Trade and Development). The con
ception of OPTAD, dominating the current discussion, finally aims at the
coordination and harmonization of economic policy and at the coopera
tion among the industrial and developing countries in the Pacific area.
OPTAD is considered to be a short term effective safety valve for the
management of collisions as well as an instrument for long term planning
of economic structural change in the Pacific region. A further objective
is to establish a stable framework with mutually recognized principles
which is to contribute to the efficient organisation of the trade, investment
and development aid flows among the participating industrial and
developing countries.
Japan not only has considerably contributed to the concept of Pacific
cooperation - special reference is due to the intellectual promotion by
Professor Kyoshi Kojima. Furthermore Japan has decisively promoted its
realization. Upon the initiative of the late Japanese Prime Minister Ohira
a special Pacific Basin Cooperation Study Group was established. It has
submitted its final report in May 1980. In the same year Japanese Prime
Minister Ohira and Australian Premier Fraser agreed in Canberra to take
the creation of a "Community of the Pacific Basin" strongly into con
sideration and to advance its realization. The presently most important
Pacific cooperative organization, the Pacific Economic Cooperation Con
ference (PECC), has resulted from the initiative of Ohira and Fraser.
Directly or indirectly the existence of the European Community has
played an important part in all these activities. On the one hand the Euro
pean Community evidently was a model worth to be imitated. The expan
sion of trade within the European Community as a consequence of
European efforts towards integration had to give rise to reflections. Fur
thermore Japan was confronted with a mighty economic bloc in Europe,
not to mention the change in trade flows produced by the foundation and
extension of the European Community. Without any doubt these concerns
have not been decreased by the intended completion of the European
domestic market in 1992.
On the other hand the Europeans themselves feel increasingly
challenged by the Pacific cooperation. Meanwhile the Europeans have
made the experience that the Pacific countries are thinking more and more
in global terms. They also cannot ignore the global activities of the
Japanese general trading companies (Sogo Shosha) which have establish
ed efficient structures for a world-wide marketing. Apparently the events
in the Pacific region also have contributed to the strong impulse towards
the completion of the European domestic market thus overcoming Euro
pean particularism and national egoism.
XII Editor's Preface
Today the European Community and the cooperation in the Pacific
region are realities in the world economy and in world politics; but their
consequences are not clear in many respects. It is uncertain how the com
modity markets and the corresponding trade flows will react. In which way
will fincancial markets be influenced by these regional groups? Which
consequences will follow for private direct investments with regard to their
volume and localization? Do thereby arise new or unusual management
problems - for the Japanese outside Japan and the Europeans outside
Europe? Finally: Are such regional cooperations in agreement with the
GATT principles of free international trade?
The Pacific cooperation is finding great and increasing attention in
Japan as well as in the Federal Republic of Germany. This has been the
motive for the 9th German-Japanese Seminar on Economics and Social
Sciences, held at Tokyo from 24th to 26th of September 1987, to deal with
these problems in detail. The general subject of this seminar was: "Pacific
Cooperation frqm the Japanese and the German Viewpoint".
The publication of the papers of this seminar is for the editors a
welcome occasion to thank all those who have contributed to the realiza
tion of this German-Japanese exchange of experiences and ideas. We owe
special gratitude to the "Verein zur Forderung der kulturellen und
wissenschaftlichen Beziehungen zwischen Japan und der Bundesrepublik
Deutschland e.V. Koln" which gave financial support for the printing of
this volume.
