Re-emergence of Asia and the Rise and Fall of the Japanese Economy in Super Long Waves of Capitalist World Systems

Abstract

ABSTRACTAfter the global financial crisis of 2007–2008, we are facing the beginning of the end of the post-war capitalist world system. The 1920s was in the middle of the social, political and economic interregnum, a period of discontinuity in the social order, accompanied by widespread unrest, wars and power vacuums. In this article, that framework of the long and super long waves in the capitalist world systems is used to examine the recent interregnum that marks the re-emergence of Asia. Within the framework of the long and super long waves a new “flying geese” theory is built by incorporating the theory of dynamic industries with Akamatsu’s theory. In the 1980s, Japanese integral production architecture improved quality and productivity in the automobile and electrical machinery industries. In the 1990s, the USA’s open modular production architecture enabled China’s compressed industrialisation, and the China-centric Asian production network replaced the Japan-led Pacific Rim triangular trade regime. In the 2000s, the knowledge-and technology-intensive (KTI) industries have established themselves as the new dynamic industries. The USA is the leading country to develop KTI industries. China is catching up quickly and has leapfrogged Japan in KTI industries. In conclusion, it is argued that these changes mark an approaching second interregnum.