Japan and the Theory of International Leadership

Abstract

This essay makes four points: (1) despite the assertions of some of their proponents, static game-theoretic and optimal-tariff arguments suggest that states should not undertake hegemonic responsibilities to maintain an open trading system; (2) hegemonic states have, in fact, cooperated with others, despite risks to themselves; (3) Japan, the hegemonic successor or condominial associate of the United States in the years to come, is also likely to cooperate to prevent the collapse of the international trading system. This means (4) that hegemonic or near-hegemonic powers have either acted irrationally or that their calculations have rested upon a different and more dynamic rational foundation. Specifically, systemic as well as domestic considerations have influenced their thinking and determined their policies. A major creditor power like Japan must find means of allowing others to earn surpluses in its own market or of providing assistance on concessional terms.