On her first crack, Secretary of State Hillary Clinton has been making one of the most symbolic American diplomatic tours in recent memory. Indeed, it is a harbinger for the major shift of economic and political power from West to East currently in progress.
As the elastic thinker has previously insisted, any solution to future solution to the economic maelstrom of the day must include Japan, the world's second largest economy, one of the United States' primary trading partners and a key bulwark against nuclear North Korea and rising China. The Obama Administration is making a shrewd, no doubt intentional, move by hosting Japanese Prime Minister Taro Aso as his first visiting foreign head of state.
Clinton's visit also highlights the urgent imperative of engaging Japan in addressing the current global recession. Japan itself is due to experience the worst economic conditions it has ever experienced post-WWII -- mostly riding on the decline of the export-driven manufacturing sector. And unlike other countries that are currently suffering the brunt of recession -- namely the U.S. and United Kingdom -- Japan has the dual misfortune of having a strong/appreciating rather than weak/depreciating currency, exacerbating its poor economic prospects due to an already precarious reliance on exports.
By inviting Mr. Aso to the White House, President Obama is making it clear that not only is Asia the new center of political and economic gravity (even it's not centered in Japan). He will also likely seek advice from Japanese authorities on how to prevent an American version of Japan's "lost decade of growth." Sadly, Japan has its own issues to worry about - and this could indeed be Mr. Aso's first and only visit as prime minister; he is due to call for elections before September, and the Democratic Party of Japan is waiting to seize control.
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3 years ago
1 comment:
an interesting strategy from the White House, to approach Japan first and use their experience and leverage to gain a handle on the Asian economy. as you say there's much to learn from recent Japanese economic history, and much to avoid - let's hope this signals a more internationalist approach to government that is applied across the board by Obama, from economics to foreign relations to the environment!
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