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Begin New Search Political Geography Japan Content Type Policy Brief Publishing Institution Lowy Institute for International Policy

1. Capital flows, the carry trade and 'sand in the wheels'

Author:
Stephen Grenville
Publication Date:
02-2010
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
The 'carry trade', in which capital shifts from countries with low interest rates to countries with significantly higher rates, has become an important element of international capital flows over the past decade. With low interest rates in the United States, Japan, the UK and much of the rest of Europe expected to persist for some time, these flows seem likely to become larger in the aftermath of the Global Financial Crisis. Particularly for the emerging countries with shallow financial markets, interest-sensitive inflows have the potential to be disruptive. Exchange rates will tend to be overvalued for sustained periods, punctuated by sharp depreciations. These distorted and varying price signals will be unhelpful for good policy-making and steady economic growth.
Topic:
Emerging Markets, Globalization, International Trade and Finance, Foreign Direct Investment, and Financial Crisis
Political Geography:
United States, Japan, United Kingdom, and Europe

2. A G-20 caucus for East Asia

Author:
Stephen Grenville and Mark P Thirlwell
Publication Date:
10-2009
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
In September 2009 the Pittsburgh Summit designated the G-20 as the world's premier forum for international cooperation. The G-20's arrival at the apex of the international economic architecture gives East Asia a much greater presence at the top table of the world economy: six regional economies, including Australia, are members of the G-20, in contrast to the G7, which only had room for Japan. This increase in representation creates important new opportunities for the region. But making use of these opportunities requires significant increases in policy-making resources. Unfortunately, in many Asian economies, such resources are in short supply relative to the wide variety of pressing problems the region currently faces.
Topic:
Economics, International Cooperation, and International Organization
Political Geography:
Japan, Israel, East Asia, and Australia/Pacific

3. New rules for a new 'Great Game'

Author:
Anthony Bubalo and Mark P Thirlwell
Publication Date:
11-2006
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
Strongly growing demand for oil, the sharp run up in prices since mid-2003 and tight supply, have seen energy insecurity return to the international policy agenda. Fears have been raised that China's emergence as a voracious consumer of oil and gas and a keen competitor in global energy markets might imperil the largely cordial relationship that has developed between Beijing and Washington over the last decade. There is also a risk that the competition for energy resources could feed into the less than cordial relations between China and Japan. The purpose of this Policy Brief is to examine the risks that the competition for oil resources might pose for international security, focusing in particular on the relationships between the United States, Middle East oil producers and major Northeast Asian energy consumers, and to propose a mechanism for defusing some of the risks that this competition could entail.
Topic:
Energy Policy, International Organization, International Political Economy, and Oil
Political Geography:
United States, Japan, China, and Middle East

4. Angels and Dragons: Asia, the UN, reform and the next Secretary-General

Author:
Michael Fullilove
Publication Date:
07-2005
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
The relationship between the UN and Asia can seem unfamiliar and distant. Most of New York's energy is consumed by the Middle East and Africa rather than Northeast, South and Southeast Asia; the international organisation can seem Atlanticist in orientation. On the other side of the Pacific Ocean the strict view of state sovereignty adopted by many Asian capitals leads them to keep the UN at arm's length. As always, however, the story is more complex: we need to differentiate between the UN's work in Asia on the one hand, and Asian behaviour at the UN on the other. Since 1945, the UN has contributed to the Asian security order but only at the margins, its security role circumscribed by power politics and Asian approaches to security. By contrast, Asian states have always been keen to exercise their prerogatives in New York, viewing their UN activities as a marker of sovereignty and a source of prestige. The Brief reviews this history and sets out the current stances of the three major regional powers — China, India, and Japan — towards the UN.
Topic:
International Relations, International Organization, and United Nations
Political Geography:
United States, Japan, China, India, and Asia

5. Election Watch: Japan — Japan's party system: shifting the political axis, releasing economic reform

Author:
Malcolm Cook
Publication Date:
02-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
Changes in Japan's party system offer new hope for Japan's long-delayed economic reform as the axis of voting power accelerated its shift to the urban areas. The upcoming Upper House1 elections will provide another opportunity to see how far these changes have come and how permanent they are. The Liberal Democratic Party (LDP) has dominated post-war Japanese politics due to the party's overwhelming support in Japan's declining rural areas. The LDP's iron grip on the rural vote has created and been maintained by a nexus of interests between LDP politicians, favoured construction companies and rural voters. This rural public works "glue" has been one of the main reasons the Japanese government has been unable to address its drastically declining fiscal position. The political power of Japan's small farming sector also explains why Japan's bilateral and multilateral free trade diplomacy has not progressed. The November 9 Lower House election results and the rise of a real alternative to the LDP promise to help Prime Minister Koizumi's three-year fight to "modernise" the LDP and make it more appealing to urban and younger voters. November 9's results also suggest that if Koizumi loses this intra-LDP battle, then in the next Lower House elections the LDP will lose. So whether Koizumi is successful or not, economic reform chances in Japan have been boosted. Australia's largest trading partner is better placed for free trade talks bilaterally and globally and to address its worrying fiscal situation, the largest threat looming over Japan's future prosperity.
Topic:
Development, Economics, and Politics
Political Geography:
Japan, Israel, East Asia, and Australia

6. Revaluing the renminbi: a case of 'déjà vu all over again'?

Author:
Mark P Thirlwell
Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
There are strong parallels between today's US-China tensions over trade and US-Japan economic relations in the 1980s.
Topic:
Economics
Political Geography:
United States, Japan, China, Israel, East Asia, and Asia