Japan to Seek to Take Lead in Creating New Financial Order: Aso

Reviewed by Takahiro MIYAO

Article:
Japan to Seek to Take Lead in Creating New Financial Order: Aso
AFP (11/16/2008)
http://www.google.com/hostednews/afp/article/ALeqM5jXkLTZV-ufMLwWxY85qmdJgH4EgA

Comments:

It has been said that Japan would have a window of opportunity to increase its presence in the financially troubled world, as Prime Minister Aso announced concrete plans to increase Japan's support for the IMF, the World Bank, as well as the US dollar as the world's key currency at the G20 summit over the weekend, as seen in the article linked above. It is also widely reported that Mr. Aso would like to hold the follow-up financial summit in Tokyo next Spring, in order to take the initiative in dealing with the financial crisis.

It appears, however, that Japan's proposals have not particularly been acknowledged by other participating countries at the summit, because the main focus was on heated arguments between the market-oriented US and the regulation-oriented EU nations and also between the defensive "North" and the offensive "South," where Japan could not yet bridge the gaps between them. For instance, it has turned out that Japan was alone in expressing its support for the US dollar, as the French President strongly argued against the dollar as the sole key currency, at least from the long-term viewpoint. Despite its initial intention for the financial summit, Japan has not been able to grow out of its "checkbook diplomacy" after all.

What Japan should do now is go back and do homework in understanding how each of the key nations is trying to deal with the current economic crisis and form alliances with as many nations as possible to take the initiative in making meaningful proposals for the benefit of Japan as well as the world economy at the next summit, rather than simply projecting Japan's own image of the current crisis and possible solutions with its traditional policy stance, mainly backed by the US in the past.

Acknowledgment:
This review is adopted from the following blog (with its Japanese translation):
http://glocom.blog59.fc2.com/blog-date-20081116.html