Session 1: Whither Japan: Economic Reform, Rising Nationalism,
and Its Changing Role in the World


Ladies and gentlemen, it is a tremendous pleasure to speak before my friends at this meeting of the Trilateral Commission. During the past decade I have spoken to you on many occasions, but in most cases outside Japan. Today, I am speaking in Tokyo, which gives me a special pleasure. Also, in the past I spoke of the dismal developments of Japan's economy as well as possible remedies to the problems inherent in its politico-economic system. I am sure many of you remember what I have spoken about with respect to the banking problems, securities market reform, and economic adjustment program. Today I am happy to say that recent favorable economic developments in Japan prove that I have been right. Do I sound too ostentatious? Well, let me remind you that I am a politician, and perhaps as flashy as my American and Chinese counterparts.


The State of Japanese Society and Issues in the Context of the Current International Situation

Japan now finds itself standing at a new platform. After the difficult reforms during the last decade or so, Japan has finally emerged from the economic crisis and successfully revived its industries. This nation is beginning to regain confidence toward the future. Inspired by the rise of China and India, a sound competitive mind in this region is also beginning to arise. At this historical juncture, what is Japan trying to achieve, and where are we headed?

Ever since the Meiji Restoration of one hundred and fifty years ago, one of the most important sources of Japan's power has been the diligent nature of its people. In Japanese society, everybody, even the leaders of society, is careful about details and does his or her job by him or herself. This moral standard regarding diligence and self-discipline have enabled Japan to become a model for success. Many developing countries had taken Japan as an icon when they set out on their own paths toward prosperity. Japanese people recognize well the fact that not just a handful of entrepreneurs in the markets but rather the moral values shared by the common pals on the street serve as a driver for prosperity and democracy. I strongly hope Japan continues to serve as a global model in the 21st century based on our essential virtues.

As Senior Vice-Minister for Foreign Affairs in the Koizumi Administration, I am convinced that Japan must keep improving our domestic structure of national governance in order for Japan to play a more active role in the international community. Needless to say, these efforts must be made by the next administration as well. Human resources in both the public and private sectors will have to be utilized for diplomacy purposes. While younger generation tend to choose their careers with some flexibility recently, a lot of people with tremendous potential still confine themselves within the domestic system, which is evidenced quite typically in the Japanese government. Political commitment is required in order to enhance the effectiveness of Japan's capabilities in the international arena.


The Japan-US Alliance and International Cooperation

You may then ask what are Japan's specific capabilities? First, the Japan-United States Alliance ensures that Japan has the capability to support stability in Asia. From a geopolitical viewpoint, this is obvious. Japan is located as the US's gateway to Asia. We are determined to keep the Asian Sea to be a sea of prosperity, safety and freedom. In addition, the Japan-US Alliance cooperation has progressed to cover global issues like Iraq, Afghanistan, North Korea and part of Africa, step by step, I say careful step by step. I hope this progress will continue.

Second, Japan will start active international cooperation in close collaboration with the United Nations and other players. We must enhance our role in the international standard-setting body, as well as in the decision-making processes on global issues; the United Nations Security Council may be one example of the latter. We are hoping to be a frontrunner in the world community in the 21st century by committing ourselves to sharing these responsibilities.

A majority of people in Japan now feels that our constitution should be amended. An increasing number of Japanese look forward to Japan taking on positive roles on the international front. That said, the draft constitution formulated by the Liberal Democratic Party has maintained the current first clause of Article 9, which renounces war as a sovereign right of the nation and the threat or use of force as means of settling international disputes. I believe that Japan's commitment to peace, which has been made after the traumatic experiences of the mid-20th century will never change in the years to come.


Japan's Relationship with Neighboring Countries

In Asia, I earnestly hope to see Japan continue to strive to be a model in this century. Obviously a bright future lies in this region. But unfortunately more people are having concerns about Japan's relationship with our neighboring countries. One could raise the issue that sovereign nations do not appreciate being guided from others, however well-intentioned. And yet, by no means should we allow disputes about the past to negatively impact our future. Amazingly enough, four million people a year—more than ten thousand people per day—travel between Japan and China, and between Japan and Korea. We hope to build future-oriented engagements with these countries.

The rise of China and India might offer both dynamism and instability to the world. I believe a medium- to long-term pursuit of democracy and sound economic growth, in both China and India, ensures significant opportunities for the other Asian countries.

In this context, Japan could serve as an "honest broker," paving the way to regional stability and prosperity. Japan is working towards the establishment of an open and transparent East Asian community, with the participation of Australia, New Zealand, and India, among others. I very much hope that the concept of the East Asian community receives a positive interest of the United States and Europe, because the concept is one of an open and non-exclusionary Asia.


Japan's Relationship with Europe

As I am chairing the UK-Japan 21st Century Group meeting, I have come to the conclusion that the trilateral nations indeed share common values, and we must work together to address global challenges. In the Iranian nuclear case, all members of the Trilateral Commission, both public and private, must take steps for an effective solution.

On the economic front, Japan wishes to maintain its sound and competitive links with Europe by mutually keeping markets open for goods, services and investments. Since we have many things we can learn from each other, we must not take any actions to undermine our links by damaging the Asian regional security balance. Japan may have to show an accurate picture of Asian regional security situation to our European counterparts.


The New Japan

In conclusion, a new spirit of Japan is now emerging, although it is still embryonic. Japan will provide a stable power base, which helps to improve standards of living of people in the global society, though not in an intrusive or noisy way. In the field of human security, Japan has been active in providing support for refugees and community rebuilding. Japan can play an enhanced role in many areas of operations conducted by the United Nations or by NGOs. Japan can also expand its role in global energy saving. Its energy efficiency now stands at three times that of the US and ten times that of China. With the power of these sorts of advanced technology and software, we will be able to live comfortably without supply constraints.

Japan has shaped its own history for thousands of years, maintaining our independence and integrity, through our unique model and power. In our history, there are as many failures as successes. We have always been mindful of past errors, but it's time to build a successful future by overcoming the past. Once again, I am getting too flashy, and therefore, let me stop. Thank you.