This chapter will examine the effects of the global financial crisis on the strategic challenges that Japan faces now and in the medium-term future. The first section details the general state of the Japanese economy—including the principles behind Tokyo’s foreign economic policies—on the eve of the recent global economic crisis. The second section examines both the impact of the global financial crisis on the Japanese economy and the policies, at the domestic and international levels, that Japan has pursued in order to contain the crisis. The third section explains how the pressures created by the economic crisis are interacting with the other medium- and longterm challenges facing Japan, including the rise of China, the problematic behavior of North Korea, domestic political shifts, and Japan’s capacity to provide regional and global public goods. The final section considers the impact of those factors on Japan’s leadership capacity and U.S. interests, and offers recommendations for policymakers.
This chapter will examine the effects of the global financial crisis on the strategic challenges that Japan faces now and in the medium-term future. The first section details the general state of the Japanese economy—including the principles behind Tokyo’s foreign economic policies—on the eve of the recent global economic crisis. The second section examines both the impact of the global financial crisis on the Japanese economy and the policies, at the domestic and international levels, that Japan has pursued in order to contain the crisis. The third section explains how the pressures created by the economic crisis are interacting with the other medium- and longterm challenges facing Japan, including the rise of China, the problematic behavior of North Korea, domestic political shifts, and Japan’s capacity to provide regional and global public goods. The final section considers the impact of those factors on Japan’s leadership capacity and U.S. interests, and offers recommendations for policymakers.
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