Emerging countries’ dilemmas in multilateral frameworks: the case of the Japanese “miracle”

Abstract

PurposeRegardless of economic interdependence, there is possibility that two countries occasionally have severe international stress. This is especially true between rising and ruling countries, which is referred to as “Thucydides’s Trap.” In order to analyze how a rising country can manage its growing presence in the world, the purpose of this paper is to examine the case of Japan as a rising power in the past.Design/methodology/approachThere seem to be similarities between the “Japan problem” and the “China problem” such as the economic ascendance of a rising country and the failures of American leadership in spite of different time periods. Thus, analyzing Japan’s experience in the past can help understand how the growing international presence of a rising country can be managed.FindingsWhen Japan created international economic policies, it aimed for the following three effects: for its trade liberalization to reduce western countries’ restrictions on its export products, for its economic assistance to contribute to developing countries’ stabilization and for its trade liberalization and its economic assistance to contribute to promoting its international trade and upgrading its international status. To accommodate an emerging country into the international system smoothly, not only the country itself but also others require comprehensive measures while considering policy interactions.Originality/valueMost previous studies that analyze the relationship between a rising and a ruling country examine conflicts between the two parties from a bilateral perspective. However, since the conflicts do not only involve the two countries, but also other countries in the world, it is important to consider how the two countries and other affected countries manage the growing presence of a rising power. Therefore, this paper aims to analyze how an emerging country integrates itself into the existing international system from a multilateral perspective based on the case of Japan.