Japan's approach to economic cooperation in Northeast Asia: The role of subnational authorities

David Arase

Global Economic Review, 1999, vol. 28, issue 2, 68-78

Abstract: In contrast to the state to state level of relations, economic cooperation and regionalism is showing marked progress below the central government level in Northeast Asia. Subnational authorities are linking up to form networks of bilateral and multilateral relationship of increasing scope and density in a broad range of activities, especially in the areas of trade and investment. The subnational authorities most active in promoting regional cooperation tend to be those in the NET (natural economic territories) around the rim of Japan Sea. The motivating factors behind the Japanese subnational actors participating in the Japan Sea process are the desire to escape economic backwardness and lack of faith in solutions coming from the central government. The strategic objectives of these authorities is to strengthen its export orientations, developing production and services targeting overseas markets. Becoming an intermediary for expanded trade between the developed Pacific side of Japan and the Northeast Asia NET in the opposite side of the Japan Sea is another important reason for active involvement in the process. The subnational actors, despite lack of support from Tokyo, are making striking advances in the key dimensions used to measure regionalism, using their own limited resources and by relying on allies in the private sector both at the local and national level. Characterizing such Japanese approach to building international cooperation and promoting Northeast Asian regionalism among subnational actors is the aim of this analysis.

Date: 1999
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DOI: 10.1080/12265089908449760

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