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ACKNOH?G&I(INT!
I would like to give this dissertation as a special gift to those who always support and take care of me over the recent time. Without them, the completion of this dissertation would have not been possible. First and foremost, I owe a great debt of gratitude to my supervisor, Mrs. Le Luu ieu uc for her valuable advice, generous

help, and immense knowledge. !nder her guidance, I have been able to receive many insight comments especially useful for my research work. "lso, many heartfelt thanks go to my family and my friends who continuously support and encourage me. #esides, I am deeply grateful to several officers of special$ied agencies of %hua %hien &ue 'rovince such as the epartment of Foreign "ffairs. %hanks to their

enthusiasm and cooperation, I am able to have chance to access more helpful materials and documents, as well as collect research data much more effectively. Last but not least, it is an honour for me to thank the teachers of International (tudies epartment, &ue )ollege of Foreign Languages who have advanced my view

and knowledge during my university years. &ue, May *+11. &uyen %on ,u &anh 'huoc.

A8J5KL15
In the world politics, -apan is the nation which makes an interesting e.ception. While for many countries, national security is the first and the most essential thing for their national survival, over many years -apan has let its national security in the hand of other nation, and given up militarism. It seems that this country has articulated national concern to economic benefits fully. With this reason, -apan is famous for the image /an economic giant but a political dwarf/. From the /mercantile realist/ standpoint, this research paper has formulated three speculative hypotheses in order to give the e.planation for such an uncommoness, and then test them against the -apanese foreign policies in the 'ost0)old War period. %he hypotheses seek to find the answer how -apan will take actions in front of choice between military and economic benefits, how it will define its coming threat, and how it will take advantage of economy as a diplomatic means in 1ast "sian region. In this research, 2ietnam will be taken into account for the hypothesis evaluation e.perimentally.

TL8MN CO 1C.5N.5

C/LP5NK I2 I.5KC<315@C.*
I* $L1Q,KC3.<* %aking up a central position on the ground of international political science, theory of international relations functions to offer e.planation and prediction about national behaviour. "s the saying goes theory elucidates the laws of behaviour. 'ut simply, it e.plores the pattern of interactions among nations in reality. In the course of history, world political events have occurred both une.pectedly and repeatedly. %he 5uality of repetition permits international relations theories to maintain their validity for a long time, on the contrary the 5uality of une.pectedness forces themselves to modify constantly. It means theories in international relations do not always stay the same, but find their own ways to become conditioned to new situations. "s a conse5uence, it leads to an enrichment in literature of international relations theory. For instance, we have realism, liberalism, constructivism, Mar.ism, feminism or the 1nglish school, and the list keeps going on. "mong those different kinds of international relations theory, realism has always delivered an oustanding performance in both theory and practice. %he discussions and findings about it have been written by so many academic authors and political scientists. #esides, realism also has a real impact on many politicians who are the ones deciding what a state should do, and how a state should take actions. )ardinal 6ichelieu, ,iccolo Machiavelli, &enry 7issinger, or 8eorge F. 7ennan in some ways have manipulated nations from their adoption of realist worldview. It is possible for realism to get such a high valuation because its theory attaches to national interests and security. %hrough space and time as long as there is an e.istence of individual nations with cultural, historic, political differences, each state will naturally keep in mind what is the most benefits for its own citi$ens and national development. %his very core of realism results in the common behaviour of assuming military power which is believed to be able to both e.tend and protect national interests and security. (uch a logical way
9

of reasoning has been recogni$ed widely and become a strong argument for many realist scholars. &owever, it has turned out to be unusual and idiosyncratic in the case of -apan when this nation has taken a special behaviour of re:ecting military power since the end of the (econd World War. %his fact really puts an e.citing 5uestion. In front of -apanese foreign diplomacy, whether realism loses its validity as an international relations theory or not. In fact, -apan does not devalue realism, but it is :ust going on an unfamiliar road by following a new realist style, /mercantile realism/. %his interesting facet of realism has created an attractive incentive for me to e.amine further. "dditionally, as a regional country of the 1ast "sia, -apan has direct connection with 2ietnam. ,owadays, the relationship between the two nations is closer and more intimate. %here has been a growing -apanese supportive presence in 2ietnam. %he re5uirement of understanding partner is certainly necessary. %herefore, all of these encourage me so much to choose the thesis; "Realism in Japanese foreign policies in the post-Cold War era, Vietnam experience." II* RNJNLK1/ R3NJ5@C.J* %he dissertation research has been conducted to find the answers for the following 5uestions; 1. &ow does -apan apply realism in its foreign policies< *. In this realist framework, what are -apan=s foreign policies towards 2iet ,am< 3. What are possible reccommendations regarding the cooperation with -apanese partners< III* RNJNLK1/ J1CPN* %he dissertation will mainly focus on the specific realism applied in -apan, with reference to its manifestations in foreign diplomacy towards 2ietnam> and 2ietnam is taken as a case selection to e.amine the research hypotheses. &opefully, e.pected outcomes can be achieved throughout the research performance.

I)*

T/NJ@J PLPNKSJ J5K3153KN* %he paper is divided into si. chapters. %he first one is the introduction. %he

second one is about methodology. %he third chapter aims to give a concise overview of realism, and go over scholarly literatures on mercantile realism. %his chapter will end with the proposal of three hypothesis. )ontinuously, in the fourth chapter, the hypothesis will be tested against -apanese foreign policies in the post0)old War period. %he ne.t chapter is going to illustrate the 2ietnamese e.periences within mercantile realism of -apan, and provide factual data for the hypothesis evaluation. Lastly, the concluding chapter displays the summary and practical recommendations concerning the promotion of the cooperation with -apanese partners.

C/LP5NK II2 (N5/C<CMC,T*

%he area of international relations study is an academic sub:ect closely related to the field of humanities and social sciences. In e.ploring international relations issue, one can regard many different methods or approaches as effective and suitable tools to gain successful results. )onventionally, 5ualitative research is most fre5uently taken up because it is able to offer an in0depth analysis of human behaviours, as well as present motivations which direct people to act in some particular ways. From a broader scope, it is useful to give e.planation for a specific social phenomenon. %herefore, it is a way to find an answer how nations behave with each others in the world politics. &ence, after taking a careful consideration, I would like to take 5ualitative approach as a practical instrument for my dissertation research. I* ?L5L 1CMMN15@C.* ata collection is the process in which available information will be prepared and stored for research topic. uring this process, to compile information, a researcher can adopt many different data collection techni5ues such as document review, interviews, observations or audio and video. In this research, I will apply documentary methods. ocumentary methods aim to collect sufficient and relevant data by reviewing e.isting documents such as books, articles and official web pages. Af course, the documents and materials must be supportive and related to research topic. %he written materials which I have gathered for my research are from a wide variety of reliable sources, including; 0 0 official documents and files from government publications, national ministries and agencies. official documents, and annual progress reports from international organi$ations.

scientific research works of academic programmes and papers prepared for presentation at annual meetings on the issues concerning -apanese foreign policies, its economic statecrafts and realism. %he documentary research gives several definite advantages which help to

facilitate the process of my research conduction. In comparsion with administering original survey, this type of research is much less costly and 5uicker. Moreover, with a great number of electronic documents, and the convenient usage of Internet, documentary research becomes an easy and efficient means of entry into available data and information of high 5uality. For the purpose of ensuring the research=s reliability, I have chosen reputable sources in a vast range of available sources. I have made reference to books in the &ue Learning )enter 6esource. %hose books are of good 5uality and from reliable source. #esides, articles used for the research are mostly taken from prestigious :ournals such as World 'olitics and "sian 'erspective. Ather documents like reports, academic working papers, and annual reviews have also been got from international organi$ations, for e.ample %he Arganisation for 1conomic )o0operation and evelopment CA1) D, 1uropean !nion 1conomic and )ommercial )ounsellors 'ublish, and the MI% -apan 'rogram Working 'aper (eries. More importantly, factual data and statistics prepared for the hypothesis e.amination have been retrieved from official publications such as the -apan #ank for International )ooperation C-#I)D, and "gency for ,atural 6esources and 1nergy of -apan. #ecause they are official publications, so they tend to have credibility, and also might be considered as impartial C enscombe, *++@D. %herefore, with such authoritative sources, the hypothesis testing is able to achieve accurate results. II* ?L5L L.LMTJ@J* "ccording to (arantakos C1EEBD, there are three general stages in the 5ualitative analysis. %hey are data reduction, data organisation, and interpretation. In the first stage, data are /coded, summerised, and caregorised in order to identify important aspects of the issue being researched/ C"lston F #owles, *++3D. %he key ob:ective of

data reduction is to clarify sub:ect matters arising from the research by catergorising whenever data have already collected. %he second phase0data organisation is to assemble the information around the main themes and sub:ect matters. In some particular cases, data reduction and data organisation can not be distinguished. In my thesis, data have been sorted by the following topics; realism and mercantile realism> the importance of political0military and economic dimensions in -apan=s foreign policy> (ino0-apan economic relations> -apanese economic regionalism> and 2ietnam0 -apan economic partnership. %hen, the data which have been organi$ed into four ma:or themes as mentioned above will be analy$ed and interpreted in order to draw final conclusions. GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGG

1+

C/LP5NK III2 &@5NKL53KN RNU@NV*

I* RNLM@JW @. @.5NK.L5@C.LM KNLM5@C.J 5/NCKT* 6ealism is one of the most dominant schools of thinking, providing a conceptual framework for further study of international relations. With its origin back to the ancient time, realism has been claimed to be the oldest theory. It had appeared in some classical works of prominent philosophers. For e.ample, it is %hucydides with his written description0History of the Peloponnesian war C43104++ #)D or he !rt of War by (un %$u. Aver the time since its early formation, realism has broadened its definition and accepted new notions of modern realists to generate many different branches such as classical realism, neo0realism, offensive realism, or defensive realism etc. From a particular point of view, one can understand the term realism in his own way of thinking. &owever, this fact does not mean that an overall picture of what realism is can not be imagined. (ome basic assumptions in realism still have been shared and widely recogni$ed among political scholars. First of all, realism holds a pessimistic view on /3WL. .L53KN. Man is born evil, aggressive and selfish. %he inner compulsion makes man try his best to reap personal benefits as much as possible although it ends in the loss of other. 1ventually, actions taken by human beings have become malevolent and dishonest. In his writings, ,iccolH Machiavelli says;/ it must needs be taken for granted that all men are wicked and that they will always give vent to the malignity that is in their minds whenever opportunity offers/ C onnelly, *+++D. %herefore, in comparison with personal interests, standards of morality sometimes will be ignored. (econdly, realists think that state is directed by its national leaders so state=s behaviours also carry bad characteristics of human beings. (tate will become selfish and unloyal to ma.imi$e its national interests which is often defined in terms of power. (o, distrust and skepticism have always been in e.istence in international relations. %his thought is e.perimentally confirmed when no one knows for sure the
11

intention of other. Intention is such an ambiguous concept that a defensive action of one state can be easily seen as offensive in the eyes of another. %herefore, states often rely on the significance of military strength and keep pace in arms buildup, in case such a defensive purpose suddenly turns into an attack. %his situation is called JN13K@5T <@MNWWL in realism C&er$, 1E9+D. A.LK1/T is another important aspect of realism. "narchy does not mean the world is in a state of chaos or complete disorder but it is talking about the absence of international government. %here is no authority ruling all individual nations. In this condition, states are apparently 5/N WCJ5 @WPCK5L.5 L.< L35C.CWC3J L15CKJ in the global politics, instead of international organi$ations. #esides, states must be KL5@C.LM about their behaviours. In other words, political leaders must include what is the best for national interests in the calculation of their decision0making. Moreover, because international politics is anarchic, each state should not lean on others for its own security and interests. 'ut simply, realism gives a strong emphasis on JNMO-/NMP* (tate will always strive hard by itself for survival, and conse5uently the competition among states for power is endless. %his idea is reflected in Morgenthau=s saying; /%he struggle for power is universal in time and space /. In conclusion, as an international relations theory, realism has its formation from human nature and sees human beings with a negative look. It focuses on the security dilemma among nations, and the condition of anarchy without the presence of an international government. In addition, states is the main players in the world political games, it is also advised to be rational and independent in its behaviours to obtain national benefits and protect security as well. 6ealism which I mention above is the original realism. "s we all know, there are many different variants within this original realism. %he ne.t part will go through one realist variant which I intend to e.amine against -apanese foreign policies in the post0 )old War period. It is /mercantile realism/.

1*

II*

(NK1L.5@MN RNLM@JW @. &@5NKL53KN (ince the )old War ended with the collapse of (oviet !nion, the political life

has entered a new chapter. In such a new environment, the outlook on the world politics has changed drammatically. For instance, the traditional way to define national power in terms of military of realist worldview has faced challenges when day by day technoeconomic interests have become important factor taken into account by many nations. In front of this changing international relations, mercantile realism is one realist e.planation. Mercantile realism was first named by &eginbotham and (amuels in their critical writing /Mercantile 6ealism and -apanese foreign policy/ C1EE?D. "ccording to these two authors, mercantile realism makes itself different from others because of its emphasis on the role of technology and economy. %he term economy here is strongly related to technological advancement. If a state can not manage to sustain its technological base through manufacture, the level of vulnerability of that state may be higher, and coming along with this is the possibility of being under threat. While having such a sharp distinction, in the end mercantile realism is still a realist variant, sharing common features with the original realism. For instance, if realists believe security dilemma remains among states, then it is also true to mercantile realism. (ecurity dilemma is built up because of the undefined intention of one state and the misinterpretation of that intention in the others= eyes. %his likelihood is easy to grow when motivations behind economic e.pansion and technological progess are really much more ambiguous than those of military activities and mobili$ation. 8radually, in mercantile realism=s access, the state of security dilemma does not only prevail within the interactions between nations but also futher intensify. 8enerally, while this new branch of realist theory gives a great concern over economy instead of military, regarding highly the significance of wealth and technology as tools to amass power, it still carries typical characteristics of realism. In order to clarify mercantile realism, &eginbotham and (amuels have offered four main statements as follows;

13

"irst of all, in contrast to the con#entional approach, mercantile realism assigns a higher pirority to techno-economic interests rather than political-military interests. For it holds a strong belief that whenever a national economy is almost wrecked, the chance of revitali$ing it again is e.tremely slim. 6ebuilding an economy is no an easy task and can not be fulfilled in one day. %his state will find itself stuck in a difficult situation. It is getting more and more fragile when military threats or economic coercion occurs, even if it maybe has a strong military. Let=s take (oviet !nion as an e.ample. " crucial cause of the dissolution of !((6 lies in the economic regulation. !nder the /command economy/, also called /centrally planned economy/, the market forces like supply and demand are not allowed to decide the prices of goods and services, or the role of private enterprise is diminished. %his fact slowed the !((6 economy to a stagnation and also prevented the !((6 from improving science and technology. "s a result, the !((6 was unlikely to go into the orbit of global economy which has been controlled under the opposite principles of /market economy/ CMinh, *++*, p.9*BD. Atherwise, if a nation is running a robust economy with sophisticated technology, according to mercantile realists, it is able to turn from a /military pygmy/ into a /military giant/ in a short period of time. %he !.(. is an obvious evidence. Anly in twenty years after 1E3E, the advantages of an affluent economy and a thriving industry had helped the !nited (tates change into a military superpower only with a minimal cost of 1.9I of its 8,' on defense C&eginbotham F (amuels, 1EE?, p. *ED. $econdly, there is a partic%lar concern a&o%t the nationality of firms in mercantile realism. It is understandable when in a globali$ing world economy, benefits brought about by multinational companies are en:oyed beyond the physical borders of their mother countries, and whether those multinational companies stand for their nations= interests or not is still in doubt. It is a case when Labor (ecretary 6obert 6eich raised a 5uestion to the !( capitalism; /Who is us</ and added; /%he flag that flies over a factory or coporate head5uarters is less and less relevant./ Forming an opposite opinion, Laura %yson has claimed that nationality plays a main role, and the !.(. firms still keep their national identity C%yson,
1

. L, *++9D. 1 In this ongoing

For more the debate between 6eich and %yson about the identification of /Who is us</ see the article /%hey are not !s; Why Awnership of "mericans still matters</ at the website; http;JJwww.prospect.orgJcsJarticles< 14

debate, a proponent of mercantile realism will share the same view with Laura %yson in appreciating /the nationality of firms/. Mercantile realists can avoid difficulty in dealing with the problems of /Who is us</ because they suggest that it is neccessary to make effort to enhance and cooperate with their national firms located out of the territorial line. /%hey are more comfortable trading with co0nationals sited abroad than they are with foreign0owned entities at home./ C&eginbotham F (amuels, 1EEB, p. *ED. #esides, the purpose of the outward direct investment is to make a binding commitment to allies, and increase a mutual dependence. In the end, it still works for the national goals. hirdly, sec%rity threats are percei#ed from economic angle. In classical realism, an impending danger to national security is a military conflict, but differently, to mercantile realism, the danger is deindustriali$ation or technological dependency. %his high evaluation of economy leads to the idea that states= authoritarians who are in charge of economic sector should have the similar training and position as military officers C&eginbotham F (amuels, 1EEB, p. 31D. #esides, technology is the vital ingredient for national wealth, so technological dependence is a sensitive problem which will be acutely aware of and taken serious. he last statement is a&o%t "economic &alancing &eha#io%r". "dvocates of mercantile realism will identify and counterbalance their rivals in three paradigms; strength, position and behaviour. 7ey components of strength in the understanding of mercantile realists are not geographic, demographic or military si$e, but wealth and technology> therefore, rich nations with highly technological capabilities are the aims to balance against in mercantile realism.
)ontinuously, the concept of position is also new because it lies much in

the economic construction. (tates struggle against each others in the same economic sectors and have a tendency to consider another as a threat. %hen, there will be an effort to reduce involvement with intra0 industry trade.* More importantly, nowadays, in a /global village/,
articleGtheyKareKnotKusKwhyKamericanKownershipKstillKmatters * Intra0industry trade is the e.change between similar products. For more information see the A1) 8lossary of (tatististical terms at website 19

geographic position and space become less enormous obstacles in international trade and technology transfer. (o, mercantile realists think that a nation thousands miles far way completely has ability to impose danger as big as its neighbour nations. 1conomy is always ranked high, so from mercantile realist=s perspective, states will try to be in e5uilibrium with those who &eha#e as /economic predators/ C&eginbotham F (amuels, 1EEB, p. 34D. %he strategies employed to respond against such /economic predators/ can be tariffs or sanctions. "fter making the above0mentioned statements, &eginbotham and (amuels have also showed that elites of states will espouse three basic ideas; C1D for many different causes, the preference for using arms is getting considerably slighter during the course of twentieth century, C*D economic power is emloyed to place a constraint upon the automony or self0government of states, C3D for the enhancement of economic power of state, industrial and trade policies are tailored to produce comparative advantages, particilarly in the field of high0technology. uring the participation in the e.tensive discussion on mercantile realism, &eginbotham and (amuels are very good at forming clear border for the mercantilist variable of realism with four basic predictions as well as the behavioural tendency of states elite given out. Mercantile realism deveploped by these two authors has received much of recognition when its relevance is confirmed in the case of -apan. Most of its assumptions and principles are consistent with -apanese foreign polices in the post0war years. &owever, from a different angle, it is not substantial enough to e.plain all e.ternal actions of state in the drastic changes with the demise of bipolar world of )old War. For e.ample, in the critical understanding of %suyoshi 7awasaki, mercantile realism heavily concentrates on the reali$ation of economic magnitude. It misleads others into thinking that -apanese diplomacy is only conducted under the motivation of economic benefits alone, and -apan does not hold any military doctrine worth enough to speak of, even though 7awasaki himself does not completely re:ect
http;JJstats.oecd.orgJglossaryJdetail.asp<I G@*?3 1?

the significance of economy. 1ven when mercantile realism claims itself a comprehensive theory which is /synthetic/ and concerns the ma.imi$ation of military power too, it does not show clearly how much military is important to national interests and what role military plays in national politics. Mercantile realism spends too much attention towards economy, and by accidentally, this makes us analy$e nature of issue from only one side of economy. #esides, it is inade5uate when economy refers to technology alone. 1conomy is a very broad system and it is difficult to tell all its components. &owever, when we are talking about foreign affairs, it is necessary to mention energy and monetary value. First of all, /energy security policy as a form of statecraft has always been a powerful foreign policy0making instrument/ C %sakiris, *++4, p. 31*D. %he world history has witnessed this idea many times. In 1E@3, the !nited (tates faced retaliation from A'1)=s oil embargo for giving help to Israel, or recently the presence of the !.(. military troop on Ira5i land partly results from the 5uest for oil. (econdly, nowadays, international trade is indispensably avoided, and transaction of foreign currency is absolutely essential. (o, it makes the regulation of monetary values more and more important in international relations. With :ust a monetary policy of one nation can affect the world price stability and cause trade deficits of other nations. 6easonably, if two factors energy and monetary management have been e.cluded from mercantile realism, it will be an imperfection. In a nutshell, despite its in0depth analysis, mercantile realism still carries weak points. In addition to &eginbotham and (amuels, many other political scentists also make contribution to the shaping of new perception of mercantile realism. In early works, Friedrich List3 touched the related issue when suggesting that the analysis of realism should not only limit within the military respective alone, but also e.pand to economic philosophy of mercantilism C#olsinger, *++4D. List shows a positive correlation between power and wealth, they are like two sides of the same coin.
Friedrich List is a 8erman political economist who adopted an approach of mercantilism to international relations under the lens of political realism. For more information read /%he political 1conomy of 6ealism by -. 7irshner C1EEED and /%he Foundation of Mercantile 6ealism 0 Friedrich List and %heory of International 'olitical 1conomy/ by 1ckard #olsinger C*++4D. 1ckard #olsinger used the term /Mercantile 6ealism/ after &eginbotham and (amuels. It is possible to use the name /1conomic realism/ instead of Mercantile 6ealism.
3

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%hanks to wealth, power can be achieved, and vice versa, power can protect wealth. While agreeing with economic values as an important way to gain power, he does not believe that state should go in pursuit of techno0economic interests at the e.pense of political0military ones as in the first prediction of &eginbotham and (amuels. #ecause from List=s conceptuali$ation, power is more important than wealth. &e compares these two variables with tree and fruit, power is a tree on which wealth like fruits are brought forth> therefore, the value of fruit itself can not be compared with the tree which produce it. In a nation, each individual can be very rich, but what happens if this nation owns little or no power to keep safe for itself as well as its citi$ens< Maybe, the wealth which they have augmented over so many years can be swept away :ust in one day, and their privilege, liberty, and independence too C#olsinger, *++4D. (o, it is clear to see that a consensus to predict how states will take actions if being forced to make a choice of ma.imi$ing strength of techno0economy or military has been still shattered. %he nature of issue will be a crucial factor taken into consideration carefully, and state will compare which side is likely to cause a greater loss to national interests. In this situation, economy is vital, but it is not in another one. It is unwise for a nation to aim for only one benefit in a world political life which is always changing. -apan is not an e.ception. &owever, one thing makes itself oustanding is how it does to achieve its goal despite of economy or military. With its political characterisitics, -apan will be in favour of the utility of economic statecrafts 4 such as sanctions, tariff, or free trade. I will go into details in the later section of -apanese foreign policies in practice. "nother version of mercantile realism is /geoeconomic realism model/ which is characteri$ed with the feature that competition among states has changed its direction into economic arena. Within this international order, it is presumed that states will perform as follows. "bove all, because international economic struggle is able to impact on national security> therefore, states themselves will make a proper
"ccording to avid #aldwin, economic tools are able to help to obtain foreign policy goals. For more information see #aldwin=s book; 'conomic $tatecraft, !nited 7ingdom; 'rinceton !niversity 'ress, 1EB9 or navigate the website; http;JJbooks.google.com.vnJbooks< idG1tg'1Li@kww)FprintsecGfrontcoverFd5GI**economicMstatecraft I**FsourceGblFotsGopweEL)7-pFsigGN1gv)sf3)di 26FswF48(bg5-BFhlGviFeiGE L5M%e5g,d OcLAB+'s-FsaGOFoiGbookKresultFctGresultFresnumG4FvedG+) cN?"1 w"wPvGonepageF5FfGfalse
4

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preparation. Ane strategy most likely adopted is giving help to their national firms. (upport of state comes from many different routes such as selective protectionism, e.port encouragement, stimulation of research and development, or reduction in costly military commitments C&all F 'aul, 1EEED. %his presumption of geoeconomic realists, to some e.tent, has reflected the same concern of the usage of economic statecrafts. More importantly, if states put a lot of effort for economy to ensure national security, eventually it will form a strong interactions between government and business enterprises, by this way, business enterprises can take a further step towards politics. It means in the internal structure of these nations, not only does economic bureaucracy have a voice in decision0making process but also commercial entities. (econdly, adherents to geoeconomic realism agree with &eginbotham and (amuels about two key points; the identification of economic threat and the sensitivity of economic security over military one. %hey worry about the varying levels of earnings between nations in each international trade. It means the overall commercial benefits are not always distributed e5ually among the partners, one may get more than other. %herefore, states are reasonable to prevent situations which cause such disproportions to themselves. Moreover, it holds a belief that such relative gains will draw most of state=s attention despite whether the potential of military warfare is near or far. %he last assumption is that powerful states within their capabilities will seek alliance with weaker neighbours to advance their positions in the international economic rivalry. %his intention has been e.pressed in the foundations of three regional economic blockages after the )old War; ,"F%" led by the !nited (tates, a 1uropean bloc centred in the role of 8ermany, and an "sian one coordinated by -apan C%hurow, 1EE*> &all F 'aul, 1EEED. It is e.pected that great powers will get more advantages from these economic circles than their competitors. %he process of regionalism like this, according to geoecomic realists, is possible to impair the mutual engagement of globali$ation because such economic areas in isolation remain somewhat of hinderance to the integration of the world economy as a whole . "s can be seen, two first forecasts related to national behaviours discussed above are the meeting point of the geoeconomic international model and /mercantile

1E

realism/ by &eginbotham and (amuels. %ogether, they hold concern over the sensitivity of state to economic relative gains or positions> and the importance of economic bureaucracy in the governmental structure as well as the parnership between government and business entities. #esides, its way to define competitors in economic scope is also constant with List=s view. "part from having common things, geoeconomic realism makes an outstanding forecast. It clearly shows that great powers will attempt to build up economic regionalism which generates benefits to themselves. In conclusion, in an attempt to develop a new theoretical treatment to the world politics, &eginbotham and (amuels have made good predictions and logics which help to give mercantile realism a clear profile in international relations theory. #esides, other authors have also widened the diversity of academic works on mercantile realism, for e.ample List with his argument concerning relationship between wealth and power, or Mastanduno in / geoeconomic model/ . "fter going through several ma:or scholarly literatures, I would like to derive some hypotheses, and then test them against the -apanese foreign policies after the )old War. &1; In situation of facing crossroads of political0military or economic choice, -apan will rely on nature of problem to determine. &owever, -apan without going beyond its constraints9 will opt for economic statecrafts as first reactions. &*; etermination of who is coming threat from economic standpoint works as a fundamental factor in the changing shift of -apanese foreign policy towards )hina. &3; %hrough economic instruments, -apan makes an effort to band with nations in "sian region in order to promote its position in the world economic competition.

C/LP5NK I)2 XLPL.NJN OCKN@,. PCM@1@NJ @. 5/N PCJ5-CCM< HLK NKL*

-apanese constraints lie in its peaceful constitution, the centre of alliance with the !.(., etc. I will discuss these constraints in the later part; Rationales for Japanese %tility of economy.
9

*+

I*

HTPC5/N5@1LM NULM3L5@C. L,L@.J5 XLPL.NJN 1LJN JNMN15@C.* "fter formulating three hypotheses from theory, I would like to e.amine

whether they are right in the practice of -apanese foreign policies since the end of )old War. (. Choice &etween economic and political-military dimension. Aver nearly half a century later since 1E49, the tenets in Qoshida octrine ? has

become logics to prove that -apan has only aimed to reinforce economic power with an indifference to military. %his has made many think -apan put security of economy higher than that of military as in the claims of &eginbotham and (amuels, as well as of geoeconomic realists. %he reason why -apan could ignore to e.pand military easily is because of the e.istence of (oviet !nion. From a particular slant, -apan was lucky to have (oviet !nion as a clue to its alliance with "merica. %he fact that an "sian high0 industrial nation like -apan would lie under the communist sphere of influence was a nightmare to the !.(.> therefore, during this time -apan was of a great importance to the !.(. It helped -apan by giving a security guarantee> by this way, -apan could en:oy benefits of low0cost military spending and focus its national forces for economic revival. &owever, since the )old War was gone with the demise of (oviet !nion, the motivation for the !.(. to protect for -apanese security has been mitigated. #eing aware of this truth, -apan has performed firm actions in foreign affairs to defend military interests by itself if really neccesary. It will not be irrational to hold fi.ed ideas about developing economy solely .

Qoshida octrine is shaped by the 'rime Minister Qoshida (higeru who took power during the time 1E4?01E4@ and 1E4B01E94. %his doctrine focuses on three tenets as follow; C1D %he recovery of economy must be the main ob:ective of nation and the alliance with the !.(. is necessary for this mission. C*D -apan should e5uip itself with light arms and stay away from political0strategic involment because it would save energies for its people to develop producive industry, and avoid the struggles of internal division. C3D -apan should be ready to cater for the !.(. troops so as to get an assurance for security. For more information see; /-apan=s 8rand (trategic (hift from Qoshida to 7oi$umi; 6eflections on -apan=s (trategic Focus in the *1st )entury/ by %ang (iew Man.
?

*1

)n a forced sit%ation, whether to increase economic or political-military interests first rests %pon the nat%re of iss%e. It guides -apan how to behave in a broad variety of cases arising in the world political arena. I would like to make a comparison of -apanese strategies towards )hina in two events; %iananmen (5uare and )hinese ,uclear %ests in order to illustrate nature of issue is a driving factor. -apan has imposed economic sanctions upon )hina twice one in 1EBE and again in 1EE9. %he reasons are different in two times, and the ways -apan behaved are also different. In 1EBE, the %iananmen (5uare incident @ made )hina=s foreign relationship suffer from the isolation of many nations including 1uropean ones and the !.(. "lso, -apan was not an e.ception, it agreed with Western countries about )hinese violation of human rights by putting embargo and stopping aid package. &owever, its attitudes were hesitant and ambivalent about these suspensions. uring this time, -apan was the only nation which intended to help )hina merge into the global system again. Moreover, there were many semi0official or individual visits which nurtured ambition to end economic embargo as well as carry on A " in early time CQe, *++4D. Anly a year later, -apan was the first country which officially removed sanctions, started aid programme for )hina, and then rekindled full diplomatic contact again in 1EE1 C&ook et al., *++1, cited in Laurence, *++@D. &owever, in latter case , when )hina e.ecuted nuclear testing plan in May and "ugust of 1EE9, oppposite to common belief, -apan immediately :umped into action by cutting off an aid fragment to )hina, and postponing the disbursement of yen loan. %his ob:ection by -apan lasted until 1EE@, longer than in the situation of %iananmen (5uare in 1EBE. %wo different strategies of -apan can be e.plained as follows. In the first case, -apan was eager to erase its economic prohibition because of the urge of domestic business sector. uring the 1EB+s, there was a growing trade e.change between -apan and )hina. In 1EBB, :ust one year before the %iananmen (5uare incident, -apanese F I poured a large amount of 914 million dollars into )hina=s market, soaring more than 13+I in comparison with 1EB@ COiaomin, 1EEED. %herefore, clearly economy=s interests with )hina became the driving factor for -apan to go separately from Western societies, and rebuild link
%iananmen (5uare Incident was a military suppression, taking place in -une 4th, 1EBE. %he )hinese government sent army and troops to crack down on student protest. It resulted in the criticism of international public towards )hina for human rights abuse.
@

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with )hina. An the other hand, )hinese nuclear tests in 1EE9 really provoked alarm for -apan=s territorial security, and its sanction against )hina still carried out for two years even though this affected economy negatively. From those facts, it implies that nature of issue determines the reaction of -apan, economic benefit is not always number one in -apanese foreign policy0making. )n additon, despite a fa#o%r of achie#ement for economy or military, Japan almost %tili*ies economic statecrafts in its performance. " clear e.ample is the 8ulf War in 1EE1. ,o sooner had the )old War years passed away, the !.(. went into military conflict against Ira5=s invasion to 7uwait. For many years, spending payment as well as human resource to offer safe shelter for -apan, "merica hoped that it was time for its friend to make something in return. &owever, -apan :ust adopted /checkbook policy/ by providing financial help, and refused to e.pand military force. %raditionally, -apan has had little political connection with Middle 1ast> moreover, it was also a big aid donor in region C"bo07a$leh, *++ED. In comparison with "merica, rich oil countries in Middle 1ast have looked at -apan with a more friendly eyes. %he fact that (addam &ussein con5uered 7uwait only caused the changing of the oil seller to -apan, and naturally the oil seller still wanted to have such a large customer like -apan. %he relationship between -apan and Middle 1ast during the 1EE+s has almost e.isted in a large business segment. If it had followed the !.(. with force strength, it might have posed adverse conse5uences. %his would have harmed -apanese economy which historically have counted on much of Middle 1ast oil suppliers. )learly, re:ecting "merican re5uest of sending troops outsides was a protection for -apanese economy. %his is different from the 1EE9 decision detrimental to its economy when -apan called for a trade ban against )hina for nuclear tests. "s can be seen, once again, economic advantage sometimes gets highest standing, sometimes it does not. #esides, it should understand deeply that -apan also has cared the stability of Middle 1ast because it is essential for smooth oil flow as well as its e.port earnings in this market area. Interestingly, it reluctantly gave up supplying arms in 8ulf War because it tried to minimi$e military costs as much as possible, but still hoped for en:oying convenience of stability due to "merican army regulation abroad as in the )old War period. -apan :ust was taking a /wait and see approach/. &owever, )old War truly

*3

ended and -apan=s importance to "merica has alleviated with the disappearance of (oviet !nion. (o, "merica has had convenient e.cuse to ask for more burden sharing from -apan. %he 8ulf War is apparently a first0hand e.perience for -apan. It ran into an embarassing situation in front of international community when being seen as a freerider. -apanese Foreign 'olicy Minister %aro ,akayama was not in the list of guests attending Washington=s victory ceremony after the war. %his event allows -apanese government to reali$e that it is impossible to stand still as a financial outsider in the global politics. It needs to give more if it wants to gain interests from a peaceful world. ,evertheless, it does not mean that -apan restyles its diplomatic policy 5uickly by stretching national army abroad suddenly. It still tends to economic statecrafts as favourite device in reaching diplomatic goals. (ince the end of 8ulf War, -apan has made use of economic sanctions many times to handle complicated problems. For instance, trade stoppage was called for in 1EE9 against )hina because of its nuclear conduction. %hree years later, both India and 'akistan endured harhship of commercial isolation from -apan for their /tit0for0tat nuclear tests/ C#errigan, &artung F &effel, *++9D. 6ecently, in *+1+, -apan along with the !.(. has voiced their opposition against Iran=s uranium enrichment program with the same tactic, too. -apanese economic statecrafts are not limited only to sanction, but vary from tariff barrier, free trade to aid donation. More detailed discussions are presented in the following section. In short, to find an e.act answer if -apan fi.s on welfare of economy or military is really difficult, for in reality, it rests on nature of particular issue to make decision, and natutre of issue does not always stay the same in such a changing world. In reponse to )hinese nuclear weapon testing, -apan enacted business ban even though it caused adverse impacts on its own economy. &owever, in the 8ulf War case, with the hope of sustaining economy, -apan did not strengthen military power by re:ecting to e.tend its force operation=s scope overseas. #esides, inspite of determination on economy or military, -apan has shown a preference for economic usage to solve world affairs. %here has been about five times -apan taking embargoes as foreign policies. +. hreat assessment from economic concept%ali*ation.

*4

%he -apanese interpretation of national threat in terms of economy e.erts a powerful impact on its e.ternal behaviour towards the rest of the world. 'erhaps, )hina is the nation which e.periences this fully. uring the )old War, inspite of being at the opposite battle front of each other, -apan and )hina still established a special link in economy. In the period between 1E?3 and 1E?@, an annual trade turnover worth 1++ million dollars was planned in Memorandum %rade "greement which led to trade e.pansion between two nations. )hina actively prepared to head its delegation on trade mission to %okyo, in return -apan=s 1.port0Import bank continued to grant its financial subsidy for trade with )hina. %here was a growth in the bilateral trade with the whole amount of ?*1 million dollars in 1E?9. Ar over the time from 1E@* to 1E@9, commercial e.change went up to threefold, possessing a value of 3.B million dollars. "s a result, -apan was the most important trading partner of )hina C#urns, 1EE*D. When the )old War nearly came to an end, the economic connection still saw its effect. -apan was not very happy to declare boycott along with the !.(. and other Western countries against )hina in the case of %iananmen (5uare event. For the two decades after that, the world has witnessed a vibrant economic boom in )hina. %his emergence really causes -apan a distress. (uch an an.ious feeling for )hina was mirrored through the policy suggestions for prime minister pro:ected by %ask Force on Foreign 6elations in ,ovember *++*. %he document R#asic (trategies for -apanSs Foreign 'olicy in the *1st )entury; ,ew 1ra, ,ew 2ision, ,ew iplomacyT described the resurgent )hina as the biggest challenge in both economic and political approach CFouse, *++3D. 1ven worse, currently -apan=s economy has e.perienced a long period of stagnation. %herefore, it is understandable that -apan has become acutely sensitive to )hinese gains in international trade, as well as usually decoded )hina=s behaviour from the economic access. For instance, in the 1EE901EE? crisis of %aiwan strait, the )hinese attempt to anne. this island was supposed to cause negative impacts on -apan=s economy. )hief )abinet (ecretary (eiroku 7a:iyama said that the )hina=s military activities near -apanese national territory could affect -apanese shipping, fishing and air traffic in the area, so it was reasonable for -apan to keep a careful watch over the event. %aiwan is one of the most

*9

influential maritime lane to -apan because a large proportion of its oil imports from Middle 1ast is shipped through it. If )hina were able to possess %aiwan legally, it would have something to make -apanese economy depend on it. )ertainly, this was not what -apan wanted. Moreover, %aiwanese geographic pro.imity with (outheast "sia can give an advantage for )hina to assume economic leadership and e.pand its influence, which might in turn pose adverse effects on -apan=s economic benefits in the region. -apan=s 5uick reponse to )hina0"sean free trade agreement is also another clear e.pression of its worry to the ascent of )hinese economyB. 6ecently, )hina has outranked -apan to become the second0largest economy. Ane fundamental component helping )hina=s success is the low value of yuan. #y maintaining the devaluation of currency, )hinese policy makers have paved the way for their e.ports to penetrate easily through every conern of the world. " cheap yuan is essential to reduce international price of )hinese products, so their competition in the global business is much promoted. %his monetary discipline is positive to )hina, but negative to other nations including -apan. %herefore, -apan has :oined with the Western pressure to urge )hina to revalue the artificially low value of yuan. uring the #ei:ing meeting in *++@, -apan=s finance minister, Fukushiro ,ukaga, asked )hinese leaders to give a rise for their currency=s appreciation. %hrough such reactions of -apan, it is possible to reali$e that economic paradigm is influential in guiding -apan to define its threat. It is also important to think critically that -apan does not aim to devastate the )hinese economy totally, because it needs such a large maket like )hina to make its economy dynamic and thriving. %he economic e.change between two nations has generated mutual benefits for so many years. &owever, the truth that -apan stands behind )hina is an e.treme annoyance. It intends to get profits as much as possible from the economic interdependence with )hina, but still hopes to constrain )hina. In other words, -apan wants )hinese economic development to serve for its own economic prosperity as in the flying geese model E. In short, during the )old War,
%his issue will be discussed deeply in the latter section; /1conomic 6egionalism/. %he flying geese model is a pattern of economic development first getting its name by the -apanese economist "kamatsu 7aname. In this 20shaped formation, -apan will play a role of the heading goose, and others nations are the following geese gi#ing s%pport and enco%ragement. ,y this way, all the whole is s%pposed to attain the common achie#ement.
B E

*?

-apan saw )hina as a less developled partner which it could take advantage of, now in front of a new robust )hina, -apan has to change its perception. )hina is a formidable competitor. -apan :ust wishes to regulate a )hina, not too weak and not too strong. If )hina is too weak, it will cause difficulties in bilateral economic relations. If )hina is too strong, it will take away -apan=s traditional economic domination. -. 'conomic regionalism ay by day, the world has witnessed the dramatically growing rivalry among nations flowing into economic stage. With various methods, each works hard to boost national economy. For great powers, economic cooperation with regional nations is a current fashion. Fre5uently, it is carried out through creation of free trade area or allocation of aid budget. -apan may be a good e.ample. For many years, it has undertaken a collaborative endeavour to build up a free trade $one with regional countries, e.actly "(1",1+. #esides, -apan is also known as the largest aid donor through generous provision of A " CAfficial evelopment "ssistanceD. %his section attempts to show how -apan uses these economic statecrafts as diplomatic policy, as well as why they are able to help -apan in the international economic competition. a. "(1", 0 -apan Free %rade "rea. Formation of free trade $one with "(1", Cor also called "sean0-apan )omprehensive 1conomic 'ernershipD indicates -apanese willingness to regionalism. It is interesting to know that from the very beginning, -apan was not a supporter of this
his is a hierarchical model which is often di#ided into three international layers. .f co%rse, the first one is Japan followed &y the second layer incl%ding new ind%striali*ed co%ntries /0)Cs1 s%ch as $o%th 2orea, Hong 2ong, and $ingapore. hen, !$'!0-3 C Indonesia, Malaysia, the 'hilippines, %hailand, and 2ietnamD and )hina are grouped in the last layer. %he flying geese framework has many different versions over the passing of time. 1ach has their own categorisation. 1+ "(1", is the abbreviation of the regional organi$ation /"ssociation of (outheast "sian ,ations/. It was formed on B "ugust 1E?@ in #angkok, %hailand with the signing of five members; Indonesia, Malaysia, 'hilippines, (ingapore and %hailand. #y the time, its member number increases, nowadays, "(1", has a total of ten state members. For more information, navigating the official web site of "(1",; http;JJwww.aseansec.orgJ *@

kind of economic integration. It had not reached any preferential trade agreement 11 until recenly in *++*. It would rather keep engagement in multilateralism than be bound by preferential trade agreement CWeatherbee, 1mmers, 'angestu, F (ebastian, *++9D. &owever, after that, it is -apan to propose a closer linkage with "(1",=s member economies first through the "(1",0-apan 1conomic 'artnership. In -anuary *++*, this partnership began by the signing between -apan and (ingapore, so (ingapore became the first country in "(1", to en:oy outcomes of free trade area with -apan. !p to E4 percent of tarriff has been removed for products made in (ingapore which are imported to -apan C!rata, n.dD. More importantly, this represents -apanSs first departure from multilateralism. %he reason behind this change in -apanese attitude is because of the fact that free trade area with "(1", yields benefits helping -apan improve the ability to compete in the international economic striving. First of all, the e.pansion of "(1", with ten member economies creates a larger market for business. It lets -apan=s e.ports access a greater number of consumers. In *++B, "(1", offers a total population and market of 9B3.@ million with 8 ' growth 4.4 percent.1* #esides, because -apan is not a nation which is endowed with natural resource like (audi "rabia, Ira5 or 2ene$uela> therefore, the availability of natural resource of "(1", is an attraction to its economy. Moreover, the fast aging workforce in -apanese society is now raising an alarm when it creates a severe decline in labour force si$e. %his socio0demographic and economic factor is among those which make burden for -apanese economy. 'erhaps, populous (outheast "sia countries is a solution for -apan=s lack of human resource. )learly, a cooperation with "(1", is a good way for -apan to strengthen its economy. %he fact that -apan
'referential trade agreement is a trading pact among nations in which preferential treatment, usually tariff reduction is applied. %hose who participate in preferential trade agreement are often regional countries of each others. It is considered the first step for foundation of preferential trade area. %he terms free trade area and preferential trade area are sometimes used with the same meaning, because their definitions are intertwined. ,owadays, while preferential trade agreement or free trade area encourages economic regional cooperation or regionalism, many are afraid that it can slow down the economic integration of global scope or multilateralism. %o understand more, reading !nited ,ations )onference on trade and development; multilateralism and regionalism. 1* ata is taken from the official web site of "(1",. For more facts and statistics of "(1", economy, navigate the following link; http;JJwww.aseansec.orgJ'ublication0"(1",0Qour0 8ateaway0to0an01conomic0)ommunity.pdf
11

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has become the single country making the largest investment into "(1", is an e.pression of its concern for this region. For instance, in *++B, it alone comprised up to 1*.? percent of F I inflow. Y@,3KN I2 Y?I JC3K1NJ CO A!IAN @. DEEZ*

(econdly, -apan has shifted its interests into "(1", and participated in regionalism because of the rise of )hina. "ccording to 7eliher C*++4D, /)hina has become the largest e.port market for much of 1ast and (outheast "sia, and it is in the process of replacing -apan as the region=s economic engine/. #esides, the )hinese entry into W%A permits a smooth path for its integration with (outheast "sia=s economy. In ,ovember *++1, )hinese 'rime Minister Lhu 6ong:i put forward recommendation of )hina0"sean free trade agreement during the )hina0"(1", summit. Its aim is to foster effective collaboration of regional economy by creating the biggest combined market and lifting tariff barrier CWalker, *+1+D. %his suggestion received much of approval among "(1", countries. Appositely, for -apan it was /a shock wave/ because it might challenge -apan=s dominant tradition as a economic

*E

leadership in region C(oeya, Wang F Welch, *++3D. %herefore, no longer had )hina=s proposal announced officially in *++1, -apan did the same thing in *++* with "sean0 -apan )omprehensive 1conomic 'artnership, showing its intention to coordinate with "(1",. &ence, it is not unreasonable to make a logic that free trade with "(1", is a rational response of -apan to the resurgence of )hinese economy. Furthermore, elsewhere in the world, regionalism has well established and functioned properly such as ,"F%" and 1urope. It has pushed 1ast "sia in which -apan is a key actor into a position highly vunerable to discriminatory restrictions and practices of ,"F%" or the e.tended 1!. If -apan had continued to keep itself from economic integration with neighbours, it would have worsened its economy which was at that time in a stagnation. &ence, a free trade $one with "(1", is an answer for -apan to counterbalance against Western economies. In brief, free trade with "(1", is an economic statecraft of -apan. It has been practised skillfully to advance -apanese regionalism to (outheast "sia. It generates benefits to reinforce -apanese economy, and from that helping -apan gather momentum for global economic competition. Moreover, it is a place where -apan fights for its economic interests as well as prevents the uprising of )hina as a economic hegemony in region. #esides, a trading blockage with "(1", gives -apan a liverage to formidable economic competitors such as the !.(. or 1!. b. Afficial evelopment "ssistance CA "D. -apan started to pledge the development assistance to (outheast "sian countries in the mid01E9+s CLhou, 1EE1D. "t that time, A " was seen as an effort of -apan to heal the wounds which these countries had to suffer from during the (econd World War, the name /postwar reparation/ used instead of /aid/ can speak of this idea. ,owadays, A " is an another sosphisticated device, apart from free trade area so as to accelerate economic development and the process of -apanese :oining into the region. In fact, -apanSs A " has reached over 1?+ nations and territories all over the world, and "(1", alone has accounted for more than a half of the total in 1EE+ and *+++ with 9?I and 9EI respectively C(tatistical &andbook of -apan, *++*D. %here are many

3+

-apanese A " programmes in "(1",. For instance, recently, with the ob:ective of shortening disparity between "(1", economies, -apanSs A " focuses on human resource advancement as well as development of the Mekong region composed of four new members of "(1",; )ambodia, Laos, Myanmar and 2ietnam, and %hailand. #eing the largest A " donor to "(1",, -apan has contributed in an e.tensive range of fields from infrastructure development, building of schools and hospitals, and to conservation of heritages. (uch A " packages are useful to maintain a connection with regional countries, and more importantly spread -apan=s influence. "mong "(1", members, Indonesia and the 'hilippines are the main recipients of -apan=s A ". "s we know, A " embraces itself political implications, so the distribution of A " is planned carefully, and consistent with govermental strategy. %he very first prere5uisite is that it must facilitate -apan=s national interests, as well as enhance its dominant role in the region. %hen, it continues to satisfy other political demands. %herefore, it is not a coincident that -apan has granted a large proportion of its A " for Indonesia and the 'hilippines. #y focusing on the comprehension of this give0and0take relationship between -apan and these two nations, it will help to understand new politico0economic aspects of A " as a diplomatic tool. First of all, in the case of the 'hilippines, during the 1EE+s and in the year *++*, this country has stood third in the list of those who have got much of -apan=s A " in (outheast "sia, and vice versa, -apan was the most principal source of development aid into the 'hilipines. "ccording to the ,1 " 'ublic Investment (taff13, -apan covered up to 49 percent in the whole of development assistance flow into the 'hilippines from 1EE* to 1EEE. Y@,3KN II2 O?A CCWW@5WN.5 5C 5/N P/@M@PP@.NJ 8T !C3K1N' G[[D-G[[[*

%he 'ublic Investment (taff C'I(D is a subdivision under the ,ational evelopment Affice of the ,ational 1conomic and evelopment "uthority of the 'hilippines. %o understand more about 'I(, see the web site; http;JJwww.neda.gov.phJ(ubwebJodaJaboutI*+pisJaboutpis.htm
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(ource; ,1 " 'ublic Investment (taff. %he 'hilipines is not the only beneficiary from A ", but also -apanese businesses themselves. For e.ample, in *+++, -apan decided to spend 34,@*3 million yen for the Filipino infrastructure improvement of local airports, seaports and roads. -apan #ank for International )ooperation C*+++D has affirmed that this loan commitment would help -apanese enterprises with advanced technology and know0 how to e.pand its business activities in this nation. Furthermore, A " loan for the 'hilippines is a contribution to its alliance with the !.(. #ecause of its geopolitical importance, the 'hilippnies played an active role during the )old War. Its two military bases (ubic ,aval and )lark "ir was a strategic part in the !.(. containment of )hina C(empa, *++ED. &owever, after the )old War, the 'hilippines= significance also has waned by the time, and the responsibility has moved to the !.(.=s ally0-apan as a burden sharing. Indonesia is another important destination. In 1EE+, it took the biggest share of of 1.1 billion dollars in the whole amount bilateral aid from -apan, surpassing even )hina. In comparison with the 'hillipines, Indonesia puts a greater weight on economic stimulus for -apan to offer its development aid. Much of F I capital of -apan has poured into this nation. For instance, during 1EE? the F I proposals by

3*

-apanese firms under Indonesian approval had value up to @.?? billion dollars, consisting of *?I in total 14. 'ro.imately, there have been 1.+++ companies of -apan fuctioning in Indonesia in *++B creating *B+.+++ employment positions C(tott, *++BD. #esides, -apan has necessarily involved itself in Indonesia because of huge commercial contracts on li5uified natural gas of its firms. 6ecently, si. -apanese companies namely )hubu 1'), 7ansai 1'), 7yushu 1'), ,ippon (teel )o, Ltd, Asaka 8as )o, Ltd, and %oho 8as )o, Ltd have e.tended validity of their e.pired contracts from *+11 to *+*+. !nder the agreement, Indonesia will deliver 1* million tons of li5uified natural gas to -apan every year 19. %he economic cooperation between two nations is also related to many other sectors such as electricity, automotive and transportation e5uipment, or chemical and pharmaceutical. "pparently, although special yen CA "D runs out of its national border to another land, it is still able to feed its citi$ens. ,ot less important, geography plays a part in the significance of Indonesia to -apan. %he straits of Malacca, (unda, and Lombok under the Indonesian control witness a ma:ority of oil tankers from Middle 1ast to -apan, so this (outheast "sian country is the centre for the continuity of oil supply for -apanese economy. "pparently, A " is like an additional ingredient which helps to bring -apan=s success in the region. ,ot only has it served the economic benefits of -apan itself, but also met some different tatical ob:ectives. A " is wisely managed to ma.imi$e national interests of -apan in the (outheast "sia. %hat is why the 'hilippines and Indonesia are the concentration of yen loans for many years. In conclusion, -apan changed its mind towards regionalism. %oday, it is proactive to e.pedite the process of economic integration with "(1", as this regional movement is indispensable for reinforcing and increasing its role in international economic competitiveness. In order to fulfil this goal, -apanese government prefers economic statecrafts, and most favourably are the setting up of free trade area and the application of A ".
ata is taken from the web site of the 1mbassy of the 6epublic of Indonesia in Islamabad0 'akistan; http;JJwww.kbri0islamabad.go.idJinde..php< optionGcomKcontentFviewGarticleFidG1EFItemidG4B 19 ata is taken from the web site under the authority of a division of %ime International Management 1nterprises )ompany Limited C%.I.M.1.D; http;JJwww.aseanaffairs.comJindonesiaK:apanKsignKgasKsalesKe.tension
14

33

%o continue, I would like to mention some decisive factors which drive -apan to take after the road of realism, but refuse to pursue the realist conventional method of militarism and mostly use economic tools instead . II* RL5@C.LMNJ OCK XLPL.NJN 35@M@5T CO N1C.CWT* First of all, historical e.perience is one main reason because /strategic preferences are rooted in the early or formative e.periences of the state/ C&eginbotham F (amuels, 1EE?, p.3D, and /individuals and age cohorts of individuals are apt to have their strategic worldview shaped by particular historical e.perience/ C8ray, 1EEE, p.?@D. 'erhaps, it can be applied for -apan and its elites. %he overwhelming defeat in the (econd World War is a valuable lesson. ,ot only was -apan kicked out of the rank of superpowers, but also totally ruined its economy. Moreover, the !.(. dropping of atomic bombings on &iroshima and ,agasaki in 1E49 really emotionally crippled the -apanese. It spoiled the taste of honouring militarism which it had ever obeyed before, with national motto /6ich nations, strong army/. %he whole country as well as its elites together who went through the same e.periences in the (econd World War has formed notion of giving up unsuccessful instrument of military, and turned to a softer one economy. (econdly, sometimes this effect is another cause. %he above e.perience leads to the special peace consitution of -apan. "rticle E in )hapter II; 6enunciation of war stipulates clearly; "!spiring sincerely to an international peace &ased on 4%stice and order, the Japanese people fore#er reno%nce war as a so#ereign right of the nation and the threat or %se of force as means of settling international disp%tes. +1 )n order to accomplish the aim of the preceding paragraph, land, sea, and air forces, as well as other war potential, will ne#er &e maintained. he right of &elligerency of the state will not &e recogni*ed."(5 For many people, this is a restriction which makes -apan an abnormal country
It is taken from the web site; http;JJwww.solon.orgJ)onstitutionsJ-apanJ1nglishJenglish0 )onstitution.html
1?

34

/an economic giant, political dwarf/. &owever, in some cases, it provides -apan with a legitimate e.cuse to avoid unnecessary military e.tension. "s I have already discussed above, -apan did not meet the !.(. demand of sending troops to Middle 1ast in the 8ulf War. %he iet legally took the "rticle E to kill the bill of ( F 1@ dispatch while economic protection was true motivation. %he role of economic entity is much worth analy$ing. %here is close partnership between goverment and privately owned business in -apan=s institution 1B. For instance, thanks to the govermental support and encouragement, Mitsui )orporation became one of /the largest private economic empires/ in the world during the first half of the twentieth century C7aran, *++9D. )onversely, many commercial enterprises also play an important role in political decision0making. In the trend of globali$ation, it is impossible to ignore the importance of transnational corporations such as %oyota, ,issan, (ony and Matsushita. uring the late 1EE+s, there was an increase in -apanese investment in capital e.tensive industries in )hina. (o, the 1EBE sanctions of -apan against )hina after the %iananmen (5uare was considered symbolic CWilborn, 1EE?D. %he period of imposing sanctions was shortened by the urge of -apanese businesses C7atada, *++1D. With a considerable position in politics, the idea that -apanese business is not absent in the diplomatic affairs is easy to understand. It is why -apan puts a weight on economic statecrafts. #esides, it is also impossible to disregard the !.(. e.ternal factor. In several cases mentioned above, the !.(. has asked -apan to dispatch its troops, which however, does not mean that "merica tries to restore the -apanese militarism completely. It is only the re5uirement of sharing burden in its alliance with -apan. In fact, a normal -apan powerful in both economy and military is a challenge to the !.(. &istorically, a normal -apan was a formidable competitor for the !.(. to gain benefits and spread its influence in "sia 'acific. %he "merican role as a key player in this region was weakened by a -apan with strong militarism in the past. For instance, on ecember @, 1E41 the !.(. base at 'earl &abour, which was of great importance to "merica as an access to 1ast "sia was suddenly attacked by -apan. 6eally, the !.(.
( F is the abbreviation of the (elf efense Force of -apan. " close cooperation between government and private firms is a typical feature in -apan. In order to see how this mechanism functions, read /-apanese legal system/ by Meryll ean.
1@ 1B

39

effort to confirm its presence in the "sia 'acific faced a difficult hurdle from -apan=s full militarism. %herefore, in order to keep -apan far away from military, "merica has made itself responsible for -apanese security since the end of World War II. (tackpole in 1EE+ compared the !.(. troops with /the cap in the bottle of -apanese military power/, preventing -apan from returning to military usage C-ohnson, 1EE*D. !nderstandably, whenever -apan has such a lack of freedom of military utility, it will concentrate on economy for its foreign policy. With all these reasons, it is easy to see why -apan demonstrates a preference for economic tactics in foreign diplomacy. -apan=s economic tactics often resort to A " and F%" CFree %rade "reaD. Within the mechanism of -apanese integration into the (outheast "sian region, 2ietnam is among nations going through this e.perience. %o continue, I would like to concentrate on how -apan employs economic tactics in its foreign policy towards 2ietnam. GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGG

C/LP5NK )2 )@N5.LW N\PNK@N.1N CO XLPL.NJN WNK1L.5@MN KNLM@JW*

I* A 8K@NO CUNKU@NV CO )@N5.LW-XLPL. KNML5@C.J*

3?

%he relationship between 2ietnam and -apan has seen many rises and falls in history. "s an international superpower in the World War II, -apan invaded and occupied 2ietnam, then with its failure in "ugust 6evolution by 2iet Minh, -apan withdrawed its troops out of 2ietnam. From then on, there was no considerable importance in the relations between these two nations, e.cept for -apan=s development aid as war reparations towards the 6epublic of 2ietnam 1E. !ntil 2ietnam achieved its national unification in the 'aris 'eace "ccords, an diplomatic relationship between -apan and 2ietnam was officially established in ecember 1E@3. &owever, these two nations also involved each other in issues related to )ambodia conflict from 1E@B to 1EBE. While -apan made international contribution under the !nited ,ations peace operations, it re5uired 2ietnam to pull out military troops from )ambodia, and also interrupted its development assitance to &anoi. 8enerally, it is easy to see that there was no much cooperation between 2ietnam and -apan, but since the )old War really came to an end, a new trend of globali$ation has emerged. 2ietnam has made many transformations so as to adapt itself in a new environment. (uch transformations are dynamics for -apan to promote relations with 2ietnam. First of all, political obstacle surrounding )ambodia=s problems was cleared up when 2ietnam brought most if not all of its military force home in 1EBE, and participated in the Final "ct of the International 'aris )onference on )ambodia on Actober *3, 1EE1. ,o longer had this political hindrance was swept away, -apan officially resumed A " to 2ietnam in ,ovember, 1EE*. (econdly, in the ?th ,ational )ongress of the )ommunist 'arty, 2ietnam adopted the oi Moi policy, opening a new door for its diplomatic relations, especially economic cooperation. oi Moi policy appreciates the gravity on renovation of economic thinking, marking transition from planned economy to market economy, due to this radical change, foreign investment and commercial e.change have been encouraged and more opportunities are also created for collaboration. #esides, 2ietnam=s natural resource, young population, and political stability make itself an attractive destination for -apanese enterprises. In the past, 2ietnam did
(ince the 8eneva )onference in 1E94, the whole 2ietnam was under control of two different govermental systems, one in the ,orth by the communist state0 emocratic 6epublic of 2ietnam and the other in the (outh with the !.(. backing0 6epublic of 2ietnam.
1E

3@

not arouse much of interest for -apanese firms to increase their invesment rates in comparison with other "(1", countries such as %hailand, (ingapore, or Indonesia. &owever, there have been considerable changes in the -apanese F I pattern since 2ietnam became a full member of W%A in ,ovember, *++?, and got the !.(. approval of ',%6 C'ermanent ,ormal %rade 6elationsD in the same year. %hese events have elevated the trading status of 2ietnam in the eyes of international friends, especially -apan. More than that, nowadays, 2ietnam has successfully promoted its position in international stage as well as in the region. (ince 2ietnam got its full membership in "(1", in 1EE9, it has actively participated in every activity within this organi$ation=s framework. In the middle of "(1", crises, 2ietnam was still able to hold a successful "(1", (ummit in &a ,oi in 1EEB> moreover, shortly three years since its :oining, 2ietnam was recogni$ed as a new responsible member. In *++B0*++E, by becoming the non0permanent members the !nited ,ations, 2ietnam has well increased its global role, obtaining e.tra credits among other nations, particularly -apan. "gainst such a background, -apan has reali$ed 2ietnam=s importance as an enthusiastic player in regional politics which helps contribute to its mingling with "(1", community. "pparently, all of these dynamics pave the way for -apan to be closer with 2ietnam. From then on, -apan and 2ietnam together has opened new channels not only to increase economic benefits but also to consolidate friendship and enrich mutual understanding between two nations as well as its people. ,early twenty years of diplomatic relations, many accomplishments and success have been achieved, making a great contribution to national interests for both -apan and 2ietnam. %o -apan, 2ietnam offers many investment advantages for its businesses, and is one the most crucial strategic partners in its collective attempt to establish a regional mechanism. In return, to 2ietnam, -apan is /the biggest A " bilateral donor, the second biggest foreign direct investor/ C'ham, *+11D. It can be said that Afficial partnership. evelopment "ssistance and Free %rade "rea CF%"D form the backbones of the 2ietnam0-apan

3B

If the previous part gives a general image of 2ietnam0-apan relations, the ne.t one will be an e.amination of -apan=s foreign policy towards 2ietnam. %his aims to test out the hypotheses. In this section, statistical analysis will be provided to make a measurement whether theoretical e.pectations are positive or negative. II* HTPC5/NJ@J 5NJ5@., V@5/ )@N5.LW N\PNK@N.1N* 2ietnam first actually e.perienced -apan=s foreign policy in the aftermath of )old War was )ambodian problem. 1ven though -apan has traditionally had low political involvement in )ambodia, it was among energetic actors in the process of peace settlement in this country. While -apan has showed reluctant attitude to send its military force overseas in front of the !.(. re5uest, -apanese troops in )ambodia were seen as peacekeeping volunteers. In order to accomplish this task, -apan broke up economic relationship with 2ietnam, and let its military abroad. (uch a behaviour can be e.plained by the nature of issue. It is important to see that -apan=s provision of military and civilian personnel for )ambodia was its first political mission since the (econd World War. %he participation in seeking peace for the area of Indochina displayed a genuine willingness of -apan to get rid of the image of an aggressive facist neighbour. It clarified that all what -apan wanted for the regional community was peace and stability. #esides, this mission of !nited ,ations peace operation also helped -apan to enhance its international role in the world politics. Moreover, in the early years of the 1EE+s, 2ietnam was not of great economic importance to -apan. %herefore, after making a comparison with other political interests, -apan interrupted its economic link with 2ietnam, and also stopped its A " supply. "ccording to &eginbotham and (amuels, -apan always places techno0economic interests higher than political0military ones. (o, if it it were true, -apan must have cooperated with 2ietnam economically, and kept itself far away from )ambodian controversial 5uestion. "pparently, the nature of issue makes a determination, and in this case it chooses the political0military interests, not economic ones. Furthermore, in reponse to the )ambodian problem, -apan resorted to economic tactics as foreign policy. In dealing with 2ietnam, -apan suspended its A " to &anoi, then reconnected in 1EE* when

3E

2ietnam agreed to let its troops leave out )ambodian land. From those facts, it can be concluded that -apan will consider the nature of issue for its e.ternal behaviour, and economic techni5ues are favourable choice. In other words, such direct e.periences of 2ietnam with -apanese foreign policies in the very first years of the 1EE+s are able to prove the hypothesis; ")n sit%ation of facing crossroads of political-military or economic
choice, Japan will rely on nat%re of pro&lem to determine. Howe#er, Japan witho%t going &eyond its constraints will opt for economic statecrafts as first reactions."

#esides, the theory of geoconomic realism model0another literature on mercantile realism has assumed that great powers will try to shorten its distance with neighbours through the formation of geographical areas in which their national interests can be both protected and accumulated. %he national interests in the twentieth first century, according to geoeconomic realists, have centered around economy and technology because conflict in terms of ideology or arms race as in the )old War time has waned gradually. With such a goal to promote economic benefits, reasonably great powers often set up geographical area in the type of free trade area. ,"F%" or 1! are visual evidences. %his movement is called economic regionalism. It does not only take place in ,orth "merica or 1urope but also in "sia, and -apan is a main actor. In the turning of the *1st century, under this light of economic regionalism -apan has hold the inspiration of setting up a community in which it can have a chance to closely merge into the (outheast "sia. In order to speed up this progress of integration, apart from multilateral system like 1ast "sian )ommunity *+, -apan has made an attempt to build up networks of bilateral relations with each "(1", country through the usage of economic statecrafts such as F I and A ". "s a member of "(1",, 2ietnam is of course a part of -apanese strategic plan. "bove all, geoeconomic realism predicts that economic regionalism is to let great powers band with regional countries. For -apan, A " and F%" are favourite
%he trend of 1ast "sian regionalism is an impetus for the formation of 1ast "sian )ommunity in which 1ast "sian countries, namely -apan, )hina, and (outh 7orea along with those of "(1", build up a common house. "(1",M3 is an e.pression. It habours the hope that such a multilateral founding can further common goals as well as harvest benefits together, especially economic cooperation. 1ast "sian )ommunity is not a new notion, being transformed from the original idea of -apan /8reater 1ast "sia )o0'rosperity (phere/ during the (econd World War. -apan is eager for 1ast "sian )ommunity creation because it is supposed to promote its integration with "(1",.
*+

4+

tools. %herefore, if this theoretical prediction is accurate, then A " and F%" in 2ietnam must be managed in a particular way which can help -apan to move closer with "(1", countries. Let=s take a look at 2ietnam. In consideration of what is e.tremely essential for 2ietnam=s economic development and prosperity, the distribution of -apanese A " for 2ietnam stresses on four principal sectors; infrastructure improvement, poverty elimination, environmental conservation, and human resource development. 1ven though A " has reached such different socio0 economic aspects, a large amount of it runs e.clusively into renovation of transportation infrastructure. From the -#I)=s*1 statistics, transportation comprises a si$eable percentage up to 41.49 I during the period between 1EE* and *++@. Many typical infrastructure pro:ects are %he ,ational &ighway ,o.1 6ehabilitated 'ro:ect, the #ridge 6ehabilitation 'ro:ect on ,orth0(outh 6ailways, &ai 2an %unnel 'ro:ect, %an (on ,hat International "irport %erminal )onstruction 'ro:ect and )oastal )ommunication (ystem 'ro:ect in (outhern 'art of 2ietnam.

Y@,3KN III2 O?A ?@J5K@835@C. 8T !N15CK OKCW G[[D 5C DEEF*

*1

-#I) is the abbreviated form of -apan #ank for International )ooperation. 41

%he fact that -apan gives such a high priority to transportation infrastucture carries a ma:or implication. "n efficient transport system is a strong physical force encouraging greater cooperation, mutual interactions, and economic linkages between the whole (outheast "sia and -apan. It allows a flow of goods e.change to run smoothly and effectively, by this way, -apan finds itself easier to push up economic regionalism. For instance, in 1EE*, -apan e.panded its A " to embark the 8reater Mekong (ubregion C8M(D programme under the finance of " # C"sian evelopment #ankD. %he 8M( programme launches a wide array of sector plans and operation from energy, communication, environment to tourism, trade, agriculture etc> however, among of which it gives an e.clusive concentration on transportation. %he building pro:ect of 1ast West 1conomic )orridor C1W1)D0a 149+ km interstate highway is a result for the purpose of connecting thirteen provinces of four "(1", countries, namely Laos, 2ietnam, %hailand, and Myanmar. It ensures the fluent transfer of regional trading. "ccording to A1) =s, the truck movement along the 1ast West corridor plays a role in boosting economic development because it contributes to save and lower transhipment time and e.pense. More clearly, in 1EE3, -apanese A " was

4*

provided to upgrade of ,ational &ighway ,o.9 and &ai 'hong port shortening the route between &anoi to &ai 'hong and faciliates the effectiveness of movement of goods. It lets more and more -apanese companies based in &anoi to make advantage of the port for transit CMAF" of -apan, n.d.D. )learly, A " fund for transportation in 2ietnam in some way brings benefits to -apan itself, and also promotes mutual interdependence between national economies within the (outheast "sia. %herefore, it reasonably infers that A " usage is an e.pression in -apan=s diplomacy to band with its regional neighbours specially in terms of economic sector. %his goes along with the e.pectation of geoeconomic realists when they guess that great powers within their capability will move closer with weaker countries in region in order to establish an economic bloc where they can e.tend interests. #esides, geoeconomic realism model has also identified the behaviour pattern of big nations in a specific way. In a new tendency of globali$ation, the economic competition has taken place internationally and intensely, so governments of great powers will find their own way to help national companies. %here are many different methods to give support such as selective protectionism, e.port promotion, technological advancement, or stimulation of research and development. For -apan, it is characteri$ed with A " grant. In 2ietnam, A " has not produced interests for the recipient country alone, but the donor country as well, specifically its national firms. "s mentioned above, the construction of &ai 'hong port makes benefits for -apanese firms located in &anoi. "pparently, the prediction of powers= behaviour in geoeconomic realism model is valid in the -apan=s diplomacy towards 2ietnam. "nother key dimension apart from transportation is energy. " large amount of yen loan in 2ietnam runs into the energy sector. In the figure III, it shows that there has been up to 31.@*I of the total of A " allocated in energy, standing only second after transportation. In *+++ alone, with 4+? million dollars, energy surpassed even transportation to be the most important sector of -apanese A " for 2ietnam. Y@,3KN I)2 TCP 5N. O?A JN15CKJ @. DEEE*

43

0ote6

isbursement in *+++ Cbased on donor reporting, ad:usted for calenda

year in !(U millions $o%rce6 !nited ,ations evelopment 'rogrammes C!, 'D, Averview of A " 2ietnam, *++1, p.B. Furthermore, it is necessary to reali$e that 2ietnam does not only hold a significant A " proportion of energy, but also becomes top countries which have bilateral agreements with -apan in energy cooperation. uring the period from 1EE3 to *++*, it has been ranked third only after )hina and India. "s can be seen in the figure 2, the amount of A " has great value of *?9.B billion yen. %hanks to such a large assistance from -apan, many big pro:ects with the aim to develop energy for 2ietnam have been completed. For instance, over the fiscal years from 1EE3 to 1EE@, -#I) allocated a total loan budget of V 93,+@4 million for the construction of two hydropower stations at &am %huan and 'lant and Mekong a ,him. 6ecently, A Mon %hermal 'ower elta %ransmission ,etwork 'ro:ect has been undertaken related to energy such as ai ,inh

successfully due to an A " grant worth of 43,819 million. There have been many other ODA funding programme &ydropower 'ro:ect, 'hu My %hermal 'ower 'lant 'ro:ect, %hac Mo &ydropower
44

(tation 1.tension 'ro:ect, or 'hu My W &o )hi Minh )ity 9++k2 %ransmission Line 'ro:ect. Y@,3KN )2 TCP 5N. KN1@P@N.5 1C3.5K@NJ CO XLPL.SJ I.NK,T-RNML5N< $@ML5NKLM O?A @. G[[]-DEED*

9++ 49+ 4++

44B.1 3EE.@

)hina India 2ietnam Indonesia Malaysia %hailand (ri Lanca 'hilippines 'akistan 'eru

$@MM@C.J CO TN.

39+ 3++ *9+ *++ 19+ 1++ 9+ + *?9.B

(ource; %he data is taken from "!ssessing the $%staina&ility of Japan7s "oreign !id Program6 !n !nalysis of 8e#elopment !ssistance to 'nergy $ectors of 8e#eloping Co%ntries" written by &ikeda Qamaguchi of !niversity of elaware. "s a result, /-#I) has been the leading A " loan donor to the energy sector in 2ietnam. (ince 1EE3, it has committed around U3 billion Ci.e., 33.@I of its A " budget in 2ietnamD to the energy sector. %hese funds were mainly for gas0 and coal0 fired thermal power plants, hydropower plants, and 9++ k2 transmission lines/ C 1uropean !nion 1conomic and )ommercial )ounsellors, *++@D.

49

TL8MN I2 ?C.CK 1CWW@5WN.5J L.< <@J83KJNWN.5J OCK C.-,C@., PKC^N15J @. 5/N N.NK,T JN15CK @. )@N5.LW*

Japan WB (World Bank Group) ADB Franc !" d n #$ (#n%& d $a&%on') $or"a( )* ()urop an *o++%''%on) $ &, rland' B l-%u+

Commitment (USD) 1,675,244,685 945,300,000 482,762,000 74,072,611 11,668,005 9,834,766 4,263,866 2,348,643 2,000,000 1,211,690 3,208,706,266

Disbursement (USD) 461,898,606 324,540,000 1,338,393 16,575,000 6,473,683 1,297,733 2,668,790 38,622 149,392 368,126 815,348,345

!ourc . DAD

From the statistics in energy cooperation above, it is possible to see that energy is a backbone in -apan=s foreign policy towards 2ietnam. -apan is a nation which is short of natural resources, so it is understandable that in foreign partnership, it must seek resolutions to satisfy its lack of energy. It is the reason why A " in 2ietnam distributes a considerable amount into energy. %his is an manifestation of realism0state will try to get national interests. %he cooperation between -apan and 2ietnam in coal is a clear evidence. ,owadays, 2ietnam is the ?th largest coal provider, and the most important supplier of anthracite to -apan. Within the A " system, the %raining 'ro:ect on )oal Mining %echnology was set up in *++* in order to increase the 5uality of 2ietnamese coal mining engineers. %his pro:ect was carried out for four years under the help of ,1 A0 the largest organi$ation of -apan in the field of energy and

4?

industrial technology development. %his programme resulted in enhancing coal mining safety, and more importantly /increasing mining production volume from underground and coal e.ports to -apan./ C"gency for ,atural 6esources and 1nergy of -apan, *++@D. #esides, in the recent time from *++4 to *++B, there was a technical cooperation between 2I,")AMI, C2ietnam ,ational )oal and Mineral Industries 8roupD and ,1 A in the pro:ect of e.ploring coal in the deeper areas at Nuang ,inh #asin. In this :oint programme, -apanese companies are given preferential rights regarding coal0related business. In this research collaboration, not only 2ietnam but also -apan have been able to derive positive benefits. (uch real e.periences of 2ietnam in -apanese foreign policies allow us to see that -apan has adopted realist behaviour. %he core of realism is that government will make an effort to obtain national interests. In addition, state must be rational in international relations, it should calculate what is good for its benefits. In this particular case, it has showed its rationality when helping itself to meet the demand of energy. &owever, one interesting thing to notice is the preferred method which -apan utili$es. In the (econd World War, in order to incease national interests, -apan resorted to the use of force, todays, it turns to economic statecrafts. %herefore, -apan=s foreign policy towards 2ietnam has depicted the behaviour pattern of mercantile realism. Furthermore, the significance of energy also shows that there is limitation in the statement of &eginbotham and (amuels. "ccording to these two authors, -apanese economy focuses on the techonological factor. %hey did not mention the crucial component of energy. ,owadays, energy plays an important role in promoting economic progress for great powers, and becomes a centre in many international issues. It is much more vital in the case of -apan0a poor nation in natural resources. 6easonably, technology should not be the only fundemental component in mercantile realism. %his realist subtheory should inlude energey in. "dditionally, within the machine of economic integration, A " demonstrates a different effect when its lends a hand to boost up -apan=s impact in the conte.t of economic competition. 6ecently, there has been an increase of -apanese influence in 2ietnam=s economy due to development aid. In *++10*++*, )A,)1%%I0)onsulting and 6esearch )ompany for %echnology %ransfer and Investment undertook a survey

4@

whose targeted participants were businessmen and govermental officers mostly in &anoi and &o )hi Minh city. %he survey results showed that up to @9I of 2ietnamese businessmen agreed with the idea /-apan=s A " pro:ects have impact on their business/. %he following table is a detailed analysis of the impact from A " source. TL8MN II2 AJNJJWN.5 CO XLPL.NJN O?A @.OM3N.1N C. )@N5.LW_J 83J@.NJJDD* T/N VLTJ V/@1/ O?A /LJ @.OM3N.1N< C. 83J@.NJJ Qour business is to en:oy better infrastructure ` 9+.+

Qour business has more opportunities to supply goods and services 3@.9 to -apanSs A " pro:ects Qour business is to en:oy more /open/ policies under the impact of *9.+ -apan funded pro:ects on mechanism, policy and institution reforms 1.port to Jimport from -apan become easier -apan Investment to 2ietnam increases Athers Qour business receives direct support from -apanSs A " 'ro:ects *9.+ **.E B.3 ?.3

%hat is why A " is regarded as an active component in 2ietnam=s economic improvement. " *++* report has revealed that the A " supplement during eight years C1EE*0*+++D attributed to 2ietnam=s 8 ' growth by 1.9 percent, /capital stocks by 4.?9I, imports by 9.E4I and e.ports by 3.B4I/ CI )-, *++*D. In addition to A ", another key element is F%". !nder the effect of -apan02iet ,am 1conomic 'artnership "greement, the commercial interactions between two countries have been made more thriving and dynamic, and more importantly, the F I commitment has also been reinforced. In *++E, 2ietnamSs Ministry of 'lanning and Investment estimated that -apan was the third largest source of F I with 1,113 pro:ects having a total value of 1@.? billion dollars. Ar according to the -#I) report, from the
**

%he data is taken from 'resentation of 1valuation 6esults and 6ecommendations 'repared by International evelopment )enter of -apan CI )-D. For more information, see the link below http;JJwww.mofa.go.:pJmofa:JgaikoJodaJkaikakuJhyokaJkhsKvietJkhsKvietKs3.html 4B

year *++?, 2ietnam has became the third potential market for -apan to invest, only standing after )hina and India C#ank of %okyo0Mitsubishi !F-, *+1+D. In a very short time, the F I from -apan to 2ietnam in *++?0*++@ soared to a large amount ten times bigger than the combined figure during the five0year period from *+++ to *++9 C inh, *+1+D. In general, it is often seen that F I gives benefits for 2ietnam=s economic advancement, but from another angle, -apanese investment genenerates more two0way cooperation. It functions as a clue to connect -apan and 2ietnam0an "(1", economy. %hereby, investing in 2ietnam is a good way helping -apan gather momentum for the process of economic regionalism. "nother factor which also produces the same conse5uence is bilateral trading. For many years of cooperation, -apan has always been one of the top trading partners to 2ietnam. uring the period from *+++ to *++3, it outperformed other competitors to become the largest economic partner of 2ienam with a total bilateral trade value of !(U 9.E billion. (ince then, the bilateral commercial e.change rate continues to be up. %he line graph in Figure I2 is able to reflect this fact. #y *++@, overall trade turnover between two countries reached !( U 1*.9 billion, rising up *?.1 percent compared to *++?. With this growing number, /2ietnamSs e.ports to -apan rose by 1?.@ percent to around !(U?.9 billion, while imports reached !(U? billion, up 3B.* percent/ C2A2,ews, *++BD. Y@,3KN )I2 TKL<@., PL55NK. 8N5VNN. XLPL. L.< )@N5.LW OKCW DEE] 5C DEEF*

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)learly, A " and F%" are two most pivotal pillars functioning to consolidate and develop the bilateral relationship of 2ietnam and -apan. In other words, with those economic statecrafts, -apan is able to create a good relation with another. From a wider outlook, such a bilateral connection with 2ietnam is a manifestation of -apan=s economic regionalism because it shows -apan=s attempt of integrating into (outheast "sia. -apan needs bilateral coordinations with every "(1", countries, for they are like many different channels together strengthening collective network between -apan and the (outhest "sia region. Finally, it speeds up the process of economic regionalism. #esides, A " with its important role is able to spread -apanese influence in 2ietnam=s economy, and to some e.tent, this is an advantage for -apan=s enhancement of dominant economic status. #y 2ietnam e.perience, these final conclusions are consistent with the assumption in the hypothesis; " hro%gh economic instr%ments, Japan ma9es an effort to &and with nations in !sian region in order to promote its position in the world economic competition." In brief, within the framework of -apanese foreign policies towards 2ietnam, it has pointed out several prominent features of mercantile realism. It is also useful to comfirm hypotheses e.perimentally.
GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGG

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C/LP5NK )I2 CC.1M3J@C.*

%he thesis paper will arrive at conclusion with three sections; summary, research limitations and implications, and recommendations. %he first section is going to give a concise summary of the dissertation content. %hen, limitations and implications are displayed. Finally, several suggestions depending on research findings are provided in order to promote cooperation with -apan. I* !3WWLKT %he demise of )old War marked a new trend in international relations. %he rivalry in terms of ideology and arms race have eased off. "gainst this background, /mercantile realism/ has emerged as a valid theory, and -apanese foreign diplomacy is a vivid illustration. #esides, nowadays, between -apan and 2ietnam0a member state of "(1", there has been an inceasing cooperation. %his thesis paper is an attempt to e.plore related issue and gives an in0depth discussion as well.

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In order to make a clear outline, the research thesis has been structured into si. chapters. While chapter I gave purposes of the research and reasons why the topic "Realism in Japanese foreign policies in the post-Cold War era, Vietnam experience" has been chosen, chapter II presented methodology which has been used throughout the research study. %hen, the chapter III began with an overview of what realism is in a genenral definition, then an discription of literature and e.isting knowledge about mercantile realism are also given out. It came to an end with the proposal of three hypotheses as follows;
(1 )n sit%ation of facing crossroads of choice &etween military and economy, Japan will rely on nat%re of pro&lem to determine. Howe#er, Japan witho%t going &eyond its constraints will opt for economic statecrafts as first reactions. +1 8etermination of who is coming threat from economic standpoint wor9s as a f%ndamental factor in the changing shift of Japanese foreign policy towards China. -1 hro%gh economic instr%ments, Japan ma9es an effort to &and with nations in !sian region in order to promote its position in the world economic competition.

"fter setting forth these specific statements of prediction, the research paper continued with the chapter I2. In this chapter, hypothesis testing wastheoretically dealt with, and also clarified how -apanese foreign policies has been carried out within the realist framework in the post0)old War era. epending on the vital figures and data from 2ietnam e.perience, the ne.t chapter evaluated the hypothesis, and gave more e.planatory arguments. Finally, the last chapter revised every steps performed in the research thesis, and offered several suggestions. II* &@W@5L5@C.J L.< @WPM@1L5@C.J CO KNJNLK1/ 5/NJ@J* (. Research limitations. %hroughout the research conduction, the thesis paper has run into difficulties in

9*

the stage of collecting e.perimental data for the hypothesis testing. %he research scale of 2ietnam can not provide subtantial information as well as statistics to test out the hypothesis; /8etermination of who is coming threat from economic standpoint wor9s as a
f%ndamental factor in the changing shift of Japanese foreign policy towards China." %he

-apanese foreign policy towards 2ietnam is not able to offer enough factual data supporting the hypothesis e.perimentally. "s a conse5uence, the research effort to reali$e how -apan=s economic statecrafts function in a real0life conte.t can not achieve its full goal. +. Research implications

%his section is going to address both theoretical and practical implications of the research. First of all, the thesis has made a contribution to the diversity of the international relations theory. In comparison with other kinds of realism, the concept of mercantile realism is fairly new. %he scholarly literature concerning mercantile realism is not too much voluminous and e.tensive> therefore, it brings the hope that this dessertation is able to make an addition. (econdly, in practice, the research thesis has carried some potential implications. #y e.plaining how -apanese foreign diplomacy has performed in reality in 2ietnam, it gives a standpoint to understand -apan0one of the most important partners over the recent years. #esides, the central discussion is about A ", F I and bilateral trading which are all principal ingredients for 2ietnam=s process of industriali$ation and moderni$ation nowadays. %herefore, with a provision of such a real understanding of -apan and its key diplomatic factors; A ", F I and bilateral trading, the thesis is helpful for those who work in the related field. &opefully, from that, several benefits will be made for 2ietnam=s national economic development in the relationship with -apan. III* RN1CWWN.<L5@C.J

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Within the economic diplomacy of 2ietnam, it hopes that three following suggestions are useful to strengthen and improve its economic relations with -apan. First of all, 2ietnam should make use of its geographical position bordering with other "(1", countries in order to call for more A " for national infrastructure improvement. (econdly, in the trading pattern with 2ietnam, seafood always stands high in the list of e.ports from 2ietnam to -apan. %herefore, 2ietnam should take advantage of its marine richment to promote bilateral trade with -apanese business. Lastly, human resource is always a ma:or factor which needs to take a consideration. It ensures the success of economic growth. &ence, improving human resource of the field related to foreign economics is important. 2ietnam can ask for -apanese A " to develop human resource. 1ducational e.change to -apan and organi$ation of training workshop are plausible ways to raise the 5uality of human resource.

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http;JJcatdir.loc.govJcatdirJsamplesJcam+3*JEB+41B43.pdf Minh, %. %. C*++*D. Chien tranh ?anh #a 8i san c%a no. &a ,oi; ,O# )hinh tri Nuoc 8ia &a ,oi. Ministry of Foreign "ffairs of -apan. Cn.dD. 'ast !sia@s economic de#eloment and Japan@s .8! - "rom recipients to partners. 6etrieved -anuary 1, *+11, from http;JJwww.mofa.go.:pJpolicyJodaJcooperationJanniv9+JpamphletJaccomplishm ent*.html 'ham, &. C*+11D. Japanese reconstr%ction co%ld &e Vietnamese opport%nity. 6etrieved -anuary 1, *+11, from web site; http;JJenglish.vietnamnet.vnJenJbusinessJ?1@3J:apanese0reconstruction0could0 be0vietnamese0opportunity.html

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/.8!1 ?oan of ->,B+- million yen to the Philippines to impro#e the local airport, seaport and roads. 6etrieved "pril 9, *+11, from web site; http;JJwww.:ica.go.:pJenglishJnewsJ:bicKarchiveJenglishJbaseJreleaseJoecJ*+++J "+9J#+91@Jnr1Bd.html %he Arganisation for 1conomic )o0operation and evelopment 0A1) . Cn.dD. !idfor-trade case story Japan. 6etrieved -anuary 1, *+11, from web site; http;JJwww.oecd.orgJdataoecdJ1+J?+J4@344@E@.pdf %sakiris, %. C*++4D. 1nergy (ecurity 'olicy as 1conomic (tatecraft; " )oncise &istorical Averview of the Last 1++ Qears. !gora Witho%t "rontiers, EC4D, 3+@0 3*E. !rata, (. Cn.d.D. Japan7s " ! $trategy and a "ree rade !rea of !sia Pacific. 6etrieved "pril 9, *+11, from the 'acific 1conomic )ooperation )ouncil web site http;JJwww.pecc.orgJftaapJpapersJF%""'0!rata.pdf 2A2,ews. C*++BD. rade t%rno#er &etween Vietnam and Japan reaches :$F(+.3 &illion. 6etrieved -anuary 1, *+11, from http;JJenglish.vovnews.vnJ&omeJ%rade0turnover0between02ietnam0and0-apan0 reaches0!(1*90billionJ*++B*J1E1BB.vov Walker, ". C*+1+D. China and !sean free trade deal &egins. 6etrieved "pril 9, *+11, from web site; http;JJnews.bbc.co.ukJ*JhiJbusinessJB43?@@*.stm Wilborn, L. %. C1EE?D. )nternational politics in 0ortheast !sia6 he China-Japan:nited $tates strategic triangle. 6etrieved -anuary 1, *+11, from %he (trategic (tudies Institute of the !.(. "rmy War )ollege web site;

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http;JJwww.strategicstudiesinstitute.army.milJpdffilesJpubE?.pdf Oiaomin, 6. C1EEED. 1.plaining the patterns of -apanese foreign direct investment in )hina. Jo%rnal of Contemporary China. G, 1*3014?. 6etrieved "pril 9, *+11, from web site; http6HHwww.informaworld.comHsmppHcontentId&JallIcontentJaBBBG3G5+> Qe, M. C*++4D. $ino-Japanese political-economic networ9s and their implications for policy. 'aper prepared for the "merican 'olitical (cience "ssociation annual meeting, )hicago. Lhou, O. C1EE1D. -apan=s Afficial evelopment "ssistance 'rogram; 'ressures to e.pand. !sian $%r#ey. -(, 341039+. 6etrieved "pril 9, *+11, from web site; http;JJwww.:stor.orgJpssJ*?493BB

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