- Research Institute: NIRA
- Research Term: January - December 2002
Japan, China, and Korea decided to implement a joint research project on economic cooperation among the three nations at a summit meeting held on the occasion of the ASEAN+3 meeting in Manila in November 1999. This research project is being conducted by the Development Research Center of the State Council (DRC), People's Republic of China, the Korea Institute for international Economic Policy (KIEP), Republic of Korea, and the National Institute for Research Advancement (NIRA).
The First Phase of the project focused on measures to strengthen trade relations and to expand trade. A research report, including policy proposals, was presented at the summit meeting among Japan, China, and Korea in November 2001. The Second Phase will focus on measures to strengthen direct investment relations among the three nations.
This phase of the project will consider the importance of investment relations among Japan, China, and Korea in a situation of economic globalization. It will go on to examine the changes in investment relations and forms of investment which have occurred to the present, the direction of change after China's WTO entry, and the influence of China's entry on the economic and industrial structures of the three nations, in order to propose specific measures to be taken. In particular, the Japanese side will attempt to deepen research on issues related to the hollowing out of industries.
This research project is the second phase of the project which was conducted in 2000, when the details of emerging risks were inquired.
Technological progress and globalization are causing the emergence and global spread of new type of risks at a greater speed than ever before. Given these circumstances, it is urgently necessary to take up a diverse range of issues from international and interdisciplinary perspectives.
Contemporary society is exposed to risks in various fields. Concerns include BSE(Bovine Spongiform Encephalopathy), the safety of genetically modified foods, global warming and abnormal weather, weaknesses in information systems in emergencies, and security threats including terrorist attacks. Although responses are being implemented in the economic, social and political spheres, the number of victims of these new risk factors continues to increase globally. In addition, there is a possibility that population trends and socioeconomic conditions will increase the vulnerability of national backbone systems.
This research project will analyze and evaluate the causes of the emerging risks, possibilities of occurrence, costs, and the impact of transnational diffusion of disease vectors, etc. The intention of the project is to propose a holistic approach to the reduction of risks, the prevention of risk diffusion, and risk management.
[ Symposium/Lecture ]
"Trends in the South China Economic Zone and East Asia based on China's Dual Coast WTO Entry"
NIRA held the Fifth Conference on the South China Economy in Sanya City, Hainan Province, China on December 15 and 16, 2001, with the collaboration of the China Development Institute (CDI), the Chung-Hua Institution for Economic Research (CIER), and the Korea Institute for International Economic Policy (KIEP).
Seen in terms of economic interconnection, the South China economic zone includes Hong Kong, Macao, Taiwan, and Guangdong, Fujian, and Hainan Provinces in the southeastern part of China. This economic zone is an important region that has a great influence on China, East Asia more generally, and the international economy as a whole.
With the WTO entry of China's dual coast in December 2001, a huge market entered the world economy. This is an important turning point for the international economy.
This conference was the first international conference at which researchers from China and Taiwan have come together since their simultaneous WTO entry. Topics of discussion at the conference included the advantages and disadvantages of the WTO entry of China and Taiwan, and its influence on the economies of South China, Japan, South Korea, East Asia as a whole and the international economy.
The following represent some of the major points emerging from these discussions:
Participants generally shared the view that the WTO entry of China and Taiwan would open markets in each nation in the long term and present other nations with increased opportunities for investment and development. On the other hand, the opinion was also raised that the WTO entry would involve considerable pain in the short term and that each nation in the region would need to make efforts towards implementing structural reforms.
The positioning of mainland China as a production base has become increasingly high due to its low costs, competitiveness, abundant workforce, advanced technology, and market size. It is quite natural for Asian and European companies to advance into mainland China seeking low costs and an abundant and highly skilled workforce. Researchers should not see this phenomenon as threatening, and avoid the creation of a mood of vigilance.
China will make strong efforts to reform state-run enterprises and to achieve technological innovation through active utilization of foreign capital. Japan, South Korea, Taiwan, and Hong Kong will have to seriously consider changes to their own industrial structures in response to China's progress.
One participant emphasized the fact that structural reforms promoted by the nations and regions concerned should bring the unity of East Asian markets into clearer focus and establish a new international division of labor. Another participant presented a scenario of the progression from the integration of markets in four areas of China's dual coast to the economic integration of East Asia, and touched upon the necessity of an East Asian free trade agreement.
The United Nations Seen from My Viewpoint - Based on the U.N. Financial Advisory Group Activities
Mr. Shijuro Ogata
Since the end of the Cold War, the United Nations has increasingly been forced to deal with various problems that could not have been predicted at the time of its establishment. These include the frequent occurrence of regional and ethnic conflicts, and environmental problems which must be dealt with on a global scale. As the duties of the U.N. have continued to expand, it has been faced with the urgent requirement of strengthening its financial base. The U.N. Financial Advisory Group was established under the support of the Ford Foundation, on the basis of a proposal made by Boutros Boutros-Ghali, who was inaugurated as Secretary-General of the United Nations in 1992, and was co-chaired by Mr. Paul Volcker, former Chairman of the Federal Reserve Board, and Mr. Ogata.
The recommendation "Efficient Measures to Strengthen the U.N. Financial Situation" was concluded by the Committee in February 1993, and made various recommendations, concerning the ordinary budget, funds for peacekeeping operations, and funds for U.N. activities coming from voluntary donations.
In Japan, however, concern with the financial problems of the United Nations remains at a low level. U.N. activities and the organization's financial problems are closely connected, and it is vital for Japan to increase its efforts to deal with U.N. financial problems in order to strengthen its position at the United Nations.
In addition, if a country provides funds to the U.N., it takes on certain responsibilities. Japan's "U.N.-centrism" is accepted as meaning that Japan respects and is subject to U.N. resolutions. However, there is also the possibility that Japan's U.N.-centrism may be used as a justification for the nation to take no action unless the U.N. passes a resolution and as an excuse for the avoidance of responsibility. If Japan provides good counsel and dispatches excellent personnel to the United Nations, it will lead to an increased sense of the nation's reliability.
"NIRA Challenge Books" is a series presenting a variety of policy options emerging from a long-term perspective on the ideal future direction for Japan. The series is published with the intention of generating discussions among the general public.
- Edited by Kimio Miyakawa and Kiyoshi Yamamoto
- February 20, 2002
- Nihon Keizai Hyoronsha
This volume was edited for non-specialist readers from the NIRA research report "Towards Transparency in Public Sector Management in Japan" in order to disseminate the details of the report to the general public.
This publication links the concept of "governance," which is not yet widely known in Japan, with management of the public sector. It presents proposals suggesting the optimal direction for Japan's new public sector.
The book contains discussions of the theories of governance reform and reports on governance reforms which have been implemented in the U.S. and Europe. The goal of these discussions is to provide Japan with guidelines for the diverse reforms which the nation is undertaking. The final chapter presents strategies for making the transition to sub-systems in budget formulation, accounting, the implementation of regulations, politics and bureaucracy.
[ NIRA challenge books are available at your local bookstore ]
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