The Policy Making Process in FTA Negotiations: A Case Study of Japanese Bilateral EPAs

This paper analyzes Japanese bilateral EPA negotiations, focusing on the areas that each country decided were most important, as well as which actors played the most important roles in each set of negotiations. The negotiations with Mexico and Thailand, which tried to increase agricultural exports to Japan through FTAs, will be discussed. Japan, one should note, still seeks to protect its agricultural sector in spite of the spread of liberalization. The Philippines, Thailand and Malaysia’s efforts to improve and compete in developing their automotive industries, in the face of the completion of AFTA in 2010, are also examined. In addition, this paper discusses whether economic cooperation, the essential Japanese strategy in EPA negotiations, alters the negotiation process in any significant way.

Myanmar Sugar SMEs: History, Technology, Location and Government Policy

Small and medium enterprises (SMEs) engaged in sugar processing in Myanmar appeared in the last decade of the socialist era. An acute sugar deficit, restricted trade in white sugar, and high demand from the conventional dairy business led to the growth of sugar SMEs by appropriate blending of semi-finished products (syrup) in the fields, which were then processed in vacuum pans and centrifugals to obtain white sugar. This became a tradable commodity and sugar SMEs grew in clusters in big cities. They are family-owned businesses. However, they lack the bagasse-based power generation. In recent years, large modern sugar factories operated by private and military companies have emerged as key players. The current shortage of fuel feedstock and competition for raw materials have become driving forces that shift sugar SMEs from market-oriented to raw material-oriented locations. Internal competition among key players made sugar price highly volatile, too. Being placed on a level playing field, the whole industry should be upgraded in terms of price and quality to become export-oriented.

Intra-regional trade between China, Japan, and Korea : before and after the financial crisis

East Asian economies have been heavily dependent on the U.S. and EU markets, especially for the export of final goods. Therefore, once the financial crisis hit Western economies hard, the East Asian economies lost their major markets.Their production networks then worked to the region's disadvantage and stifled industrial development.This reflects the vulnerability of the East Asian economies which have adopted an export-led growth strategy. Such vulnerability needs to be addressed to prevent future economic crises, as well as to sustain economic growth. This paper examines the trade structure of the three countries-China, Japan, and Korea-before and after the Lehman Shock, and discusses how the three countries should cooperate in addressing imbalances in the trade structure.

The role of home and host country characteristics in FDI: firm-level evidence from Japan, Korea and Taiwan

There is a large and growing empirical literature that investigates the determinants of outward foreign direct investment (FDI). This literature examines primarily the effect of host country characteristics on FDI even though home country characteristics also influence the decision of firms to invest abroad. In this paper, we examine the role of both host and home country characteristics in FDI. To do so, we constructed a firm-level database of outward FDI from Japan, Korea, and Taiwan. Our empirical analysis yields two main findings. First, host countries with better environment for FDI, in terms of larger market size, smaller fixed entry costs, and lower wages, attract more foreign investors. Second, firms from home countries with higher wages are more likely to invest abroad. An interesting and significant policy implication of our empirical evidence is that policymakers seeking to promote FDI inflows should prioritize countries with higher wages.

Chapter 5 Industrial Policy, Structure, and Locations during the Transition toward a Market-oriented Economy in Myanmar

This paper examines Myanmar's industrial policy, structure, and locations during the transition from a centrally planned economy to a market-oriented one throughout the 1990s and up to the present. After the military government assumed power in 1988, it abandoned the socialist centrally planned economic system and began instituting a market-oriented one through a series of liberalization and deregulation measures, although most of which have stalled since 1997 and remain half-way implemented. Against this background, it is rather surprising that the impact of these new policies of international trade, finance, regulations, licensing and ownership requirements on industrial structure and location in Myanmar has been poorly documented and examined to date. Some key issues to understanding the impact and effectiveness of the market-oriented policies during the last two decades in Myanmar remain to be answered: Have the new trade and industrial policies changed the industrial structure and organizational behavior in Myanmar? Have they improved the performance of Myanmar's industrial sector? Have they had any impact on industry location in Myanmar? This paper reviews the series of liberalization programs implemented under the military government?the State Law and Order Restoration Council (SLORC) and the State Peace and Development Council (SPDC)?and assesses their impact on industrial structure and its spatial distribution.

Production networks in the Asia-Pacific region : facts and policy implications

Production networks have been extensively developed in the Asia-Pacific region. This paper employs two micro-level approaches, case studies and econometric analysis, using JETRO's firm surveys which investigate Japanese affiliates operating in Southeast Asia. These two approaches found that production networks have extended, involving suppliers, across various nations in the Asia-Pacific region, and that production bases in host and home countries have different roles. A home country serves as a headquarters with services such as R&D, international marketing, and financing. A high tariff policy in a host country may foster domestic industries through the expansion of procurement from domestic suppliers, either indigenous or foreign, but it may discourage a country from becoming an export platform.

The Japan-Peru FTA : antecedents, significance and main features

The Economic Partnership Agreement (EPA) between Japan and Peru came into effect on March 1, 2012. This paper provides background information about this agreement's significance, mostly from a Peruvian point of view. It focuses on the following subjects: the statistical trends showing Peru's declining shares in Japan's trade and investment flows with Latin American countries between the mid-1970s and mid-2000s, the main explanatory factors of such a deterioration in Peru's economic position over that period, the changes of trade policy strategy in both countries since the 2000s, and the EPA negotiation process and some of its key results as featured in the text of the agreement.

Gacaca and DDR : the disputable record of state-building in Rwanda

State-building is currently considered to be an indispensable process in overcoming state fragility: a condition characterized by frequent armed conflicts as well as chronic poverty. In this process, both the capacity and the legitimacy of the state are supposed to be enhanced; such balanced development of capacity and legitimacy has also been demanded in security sector reform (SSR), which is regarded as being a crucial part of post-conflict state-building. To enhance legitimacy, the importance of democratic governance is stressed in both state-building and SSR in post-conflict countries. In reality, however, the balanced enhancement of capacity and legitimacy has rarely been realized. In particular, legitimacy enhancement tends to stagnate in countries in which one of multiple warring parties takes a strong grip on state power. This paper tries to understand why such unbalanced development of state-building and SSR has been observed in post-conflict countries, through a case study of Rwanda. Analyses of two policy initiatives in the security sector - Gacaca transitional justice and disarmament, demobilization, and reintegration (DDR) - indicate that although these programs achieved goals set by the government, their contribution to the normative objectives promoted by the international community was quite debatable. It can be understood that this is because the country has subordinated SSR to its state-building process. After the military victory of the former rebels, the Rwandan Patriotic Front (RPF), the ruling elite prioritized the establishment of political stability over the introduction of international norms such as democratic governance and the rule of law. SSR was implemented only to the extent that it contributed to, and did not threaten, Rwanda's RPF-led state-building.

The misconception of political lessons : how UMNO perceives the fall of LDP in Japan

2012 marks the thirtieth anniversary of Malaysia’s Look East Policy (LEP). This article argues that the strong relationship between Malaysia and Japan is stimulated by symbiotic ties binding together both countries’ respective major political parties, viz. the United Malays National Organisation (UMNO) and the Liberal Democratic Party (LDP). UMNO, especially under the leadership of Prime Minister Mahathir Mohamad (1981-2003), derived political lessons from developments affecting LDP in Japan. Two forms of lessons may be discerned. First, emulation of Japan’s success in economic development, which become the basis of LEP launched in 1981. Second, on which our article focuses, lessons from the failure of LDP to retain power twice in 1993 and 2009. Since 1993, DP’s defeat has been a poignant reminder for UMNO to be in alert mode in facing any electoral possibility. When LDP was again ousted from power in 2009, UMNO was a most psychologically affected party owing to the unprecedented setback it suffered at Malaysia’s Twelfth General Elections (GE) of 2008. Yet, although LDP’s reversal of fortunes served as a landmark for UMNO in situating changes to its trajectory since 1999, the analogical reasoning and political lessons applied by UMNO leaders were, to a large extent, flawed. Arguably, politicians frequently do misjudge in analogising between different situations which at a glance seem to be comparable.

Exploring the sources of China's challenge to Japan : models of industrial organisation in the motorcycle industry

In view of the recent rise of China, this paper looks into one of the most important yet relatively overlooked ingredients of the Chinese success: industrial organisation. It will examine the case of the motorcycle industry, in which the rise of Chinese manufacturers even disrupted the established dominance of Japanese industry leaders. Adopting the modified version of the global value chain governance framework, this paper shows that the rise of China has been driven by a distinctive arm’s-length model of industrial organisation, which is in sharp contrast to the conventional captive model that has sustained the Japanese leadership.

Japan and the Middle East after the Arab Spring

本稿は、中東における問題や紛争に対する日本の政策を考察し、中長期的な視野に立った日本の国益追求のためにはどのような選択肢が考えられるかを論じる。そのために、イランの核開発問題とシリアの市民戦争をケースとしてとりあげる。戦後の日本は中東での問題や紛争に対して、地域内諸国およびアメリカとの関係を同時に維持するために、双方の均衡を図る政策を打ち出してきたが、冷戦後には米国寄りの傾向が多く見られた。現在中東では、アラブの春の展望は不透明な部分が多い。日本は中東との関係において、問題や紛争の性質によっては負の遺産を抱える欧米とは一線を画した独自の政策とアプローチを打ち出すことが、中東資源国との関係の強化と拡大や中東市場の発展と安定には望ましいと考える。また同時に、今後の米国の中東における国益の変化が考えられることも要因ととらえ、本稿は冷戦期にみられたような、より均衡のとれた立場を打ち出し、より広い概念をもとに基づいた効果的なソフトパワーの行使を提唱する。

Candidate Conservation Agreements to Minimize Military Conflicts with Wildlife Laws: The Gopher Tortoise (Gopherus polyphemus)

The proposed Endangered Species Act listing of the gopher tortoise has the potential to impact the military mission at installations in the southeastern United States. Candidate Conservation Agreements with the U.S. Fish and Wildlife Service could be a tool to promote conservation and potentially preclude listing. This project identified military activities that could be affected and determined that military natural resources managers are unsure if such an agreement would prevent impacts to the military mission or impose the same restrictions as federal listing. This project found that if a gopher tortoise Candidate Conservation Agreement can be developed such that it benefits the species as well as the military, it should be used as a model for other species.

Balancing Wetland Management with the Military: Using Special Area Management Plans (SAMPs) to protect wetlands on U.S. Air Force Installations

U.S. Air Force installations by virtue of their isolation and often remote locations provide protection to critical habitats that would otherwise be susceptible to development and other stressors. While Air Force activities may not always compliment environmental protection, a balance between environmental protection and Air Force requirements must be achieved to minimize conflict. Special Area Management Plans (SAMPs) are a possible solution in the quest to balance conservation with mission requirements. Beale Air Force Base, California is the first military installation to pursue implementation of a SAMP. This project found that SAMP implementation could be a tool to successfully balance conservation efforts with military requirements on other Air Force installations; however, further education on the SAMP process would be required.

Rehabilitating, repairing and restoring against demolishing, tearing down and destroying: the recovery of the military fort for the Santa Pola town museum

This communication develops the process of interventions of the Renaissance fortress of a new plant built in 1554–57 in Santa Pola. It is one of the earliest examples built with reference to military architecture theoretical treaties (XV–XVI) and best preserved. The study runs its own story from its initial military use, through the use of civil equipment until the final cultural and Museum Center. First, the project of Italian origin is examined and its use as barracks for troops for a duration of three centuries (1557–1850), pointing out the architectural constants of war machinery in a defense position and its origin as a rainwater collector and cistern: a perfect square with two bastions in which a plan of the uprising is preserved (1778). Secondly, we study the changes in the mentioned architecture throughout a century and a half (1850–1990) after its change of ownership (from the state to the municipality), and as a result of the new use as a city hall and public endowment: a market and health and leisure centre, which meant the demolition of defensive elements and the opening up to the outside of the inner parade ground. And thirdly, the new transfer of the municipal offices brings in the beginning of a project of transformations (1990–2015) that retrieves the demolished elements at the same time as it assigns the entire fort for a cultural centre: exhibition, research and history museum, promoting the identity between the citizens and the building which stands in the foundations of their city. The conclusions take us through an interesting route that goes from the approach of defensive tactics, its use as administrative headquarters to the current cultural policy of preservation. In addition, all the known plans of the fort are recovered (of military, civil and cultural use), some unpublished, as well as the project of the North wing that has guided the last operation and which has been set as a pattern of reference.

The world innovation landscape: Asia rising? Bruegel Policy Contribution 2013/02, February 2013

Highlights • Research and development spending has risen rapidly in Asia, particularly in China, which is now the world’s second R&D spender behind the United States.The increase in Korean and Chinese patent applications has been even more rapid, but Chinese patenting for exploitation on the main markets for innovation(the European Union, Japan and the US) is still marginal. • Asia's increased innovation spending is most prominently related to information and communication technologies. Overall, the Chinese and Korean economies are still not specialised in knowledge-intensive goods and services.Furthermore, China in particular is not (so far) capturing much value from its role as a manufacturer and exporter of high-tech goods; China remains mostly an assembler of goods, the value of which is created elsewhere. • It would be wrong to ignore China's innovation potential on the basis of its current performance. Its clear innovation ambitions are likely to drive its future growth. • Europe is struggling much more than the US to retain its place at the global innovation table. The EU should use Asia’s capacity building in innovation as an opportunity for value capture.