Video #7 - The Bush Administration and Japan

Monday, January 09, 2006

sources | lesson plan

BACKGROUND INFORMATION

Early in February, U.S. Secretary Paul O’Neill’s asserted that the Bush administration will stop pressuring Tokyo about its weak economy, and Japanese officials responded with enthusiasm. "The Clinton administration was bashing Japan, but Bush is likely to be a lot more sensitive,” said Kiyoshi Ikemoto, an economics professor at Osaka Gakuin University. However, analysts said that the new conciliatory approach may be stifled by America’s own economics troubles.

Nevertheless, a March visit to the United States by Japan’s lame-duck prime minister, Yoshiro Mori, was written off as useless by Japanese newspapers. Mori, whose popularity has plunged below 10 percent amid a series of gaffes and scandals involving his associates, survived a motion of censure in parliament. In office for 11 months, Mori has vowed to move up his party’s leadership election to September, a move seen as an effective resignation. The ruling coalition reportedly wants him out before upper-house elections in July. "There has been no U.S.-Japan summit so meaningless and unwise,” the influential daily Asahi Shimbun commented on Mori’s meeting with President George W. Bush in Washington. "How serious will the market take any long and medium-term promises to be made by an outgoing prime minister?” asked the metropolitan daily Tokyo Shimbun.

Adding to the tension is the sinking of a Japanese trawler by an emerging U.S. submarine off Hawaii last month and a series of crimes by U.S. troops on Okinawa Island. It also noted that world stock markets were hit by Japan’s financial crisis. "Prime Minister Mori is in a position which does not allow him to talk about the situation in a long-term perspective,” the Tokyo Shimbun said.

However, Mori underscored his intention to concentrate on economic recovery, ruling out his early resignation. "I am determined to take firm action,” the premier said. "Resignation is not on my mind.” Government sources were citied by Kyodo news agency, saying that Prime Minister Yoshiro Mori and U.S. President George W. Bush are likely to agree to set up a bilateral consultative body on macroeconomic policy at their summit. Reportedly, they will also call for the two countries to make efforts to bring about an early launch of next round of global trade liberalization talks under the World Trade Organization. The two leaders will not mention the huge bad loan woes plaguing the Japanese banking system and falling share prices on Japanese and U.S. stock markets, they said.

The plan for increased economic policy coordination is designed to alleviate concerns that further economic slowdowns in Japan and the U.S., which together account for 40% of the world’s gross domestic product, could trigger further declines in share prices and depress many other economies. The body may be structured similar to one proposed earlier by Takeo Hiramuna, Minister of Economy, Trade and Industry, Kyodo reported. He suggested a roundtable forum at which representatives from both governments and the private-sector would trade views. The body could replace the current format for Japan-U.S. comprehensive trade talks, they added.

Some analysts claim that the most striking result of the summit may be a new tone in U.S.-Japan relations, in contrast to the Clinton administration’s heavy-handed approach to resolving economic issues between the two countries. "I imagine there will be subtle pressure to guide Japan towards reforming the economy, but the days of lecturing are over,’ said Coleman Kendall, vice president of Economic Strategies, a New York-based consulting firm.

Dow Jones Newswires reports that Japan’s economic outlook will be at the top of the agenda. Economic Minister Taro Aso will join the talks to help explain the Japanese government’s plans for economic restructuring. President Bush’s economic advisers have already held private meetings to address Japan’s financial woes. Secretary of State Colin Powell told Congress the U.S. was very concerned about Japan’s deflationary economy and said the Bush administration was not taking a laissez-faire attitude toward Japan.

Some currency-market watchers had speculated that the two leaders might consider an effort to weaken the yen, but a key international source said Friday the two won’t discuss any such deal on exchange rates, according to a Dow Jones report from Tokyo. Weakening the yen is one of Japan’s last remaining options for boosting liquidity and pulling its economy out of deflation, many analysts have said.

Others say the apparently divergent strategies of chief Bush economic adviser Lawrence Lindsey (who favors letting Japan handle its own problems) and Secretary of State Colin Powell could lead to “a mess” at the upcoming meeting… with Mori’s lame-duck status only making matters worse.

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SOURCES:

“Japan, U.S. To Set Up Bilateral Econ Policy Panel - Kyodo.” Dow Jones, March 17, 2001, http://asia.biz.yahoo.com

“Media rubbishes Japanese lame-duck premier’s visits to U.S. and Russia.” Agence France-Presse, March 17, 2001. www.yahoo.com (Asia News)

Downey Jennifer and John Hardy, “Confusing Tack On Japan Muddles Bush, Mori Meeting.” Dow Jones Newswires, March 17, 2001. http://asia.biz.yahoo.com

Sakurai, Joji, “Japan Glad U.S. Won’t Push on Economy.” Associated Press, February 8, 2001. http://dailynews.yahoo.com/htx/ap/20010208/bs/japan_pressure_off_l.html

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LESSON PLAN

GRADE LEVEL/SUBJECT: 10-12/Economics, International Relations, World History, International Bachelaurate Programs(IB), Current Events.

PURPOSE: To present activities to be used at a variety of classroom situations in order to enhance student understanding of the Japanese economy and its significance globally.

OBJECTIVES:

Students will be able to:

1. Describe the current status of Japanese-U.S. relations.
2. Compare and contrast the Clinton administration’s policies toward Japan to those of President George W. Bush.
3. Research the history of U.S.-Japan economic policies.
4. Predict the future of U.S.-Japan relations in the next four years.

MATERIALS:

1. Background information provided.
2. Resources on Japan available at your school’s Media Center and the Public Library System in your area.
3. Background information available through Internet “search engines”.

ACTIVITIES: May be assigned as group activities or as individual tasks. They may also be designed as preparation for related presentations either by individuals or groups.

1. Create a Venn diagram comparing the policies of the Clinton administration to that of the Bush administration toward Japan.
2. Use charts and graphs to show the history of the economic relationship between Japan and the United States.
3. Research the events of the recent U.S.-Japan summit. Compare the outcome with expectations expressed before the meeting
4. Role play the meeting between Prime Minister Mori and President Bush. Include the contributions of their top advisors.
5. Create an on going time line illustrating the status of U.S.-Japan relations since George W. Bush took office.
6. Using all the above information, predict the future of U.S.-Japan relations during Bush administration.

EVALUATION:

Individual assignments should be graded by the teacher using established criteria.

Group activities, presentations and projects may be evaluated by teachers and students using the following criteria and scale:

Content Creativity Clarity

1=Superior (A) 2=Excellent (B) 3=Good (C) 4=Fair (D) 5=Poor (F)

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