1The Association of Southeast Asian Nations (here after abbreviated as ASEAN), consisting of five countries, Indonesia, Malaysia, the Philippines, Singapore and Thailand, was inaugurated in August 1967.
2In ASEAN's early years there was little observable movement; it was even refered to as the "tea party of foreign ministers from five countries"1.
- 2 Detailed discussion is available in Rajendran [6], Chapter 3.
3Since the fall of South Vietnam, however, leaders of the region have come to realize that the region is more volatile. The climate of uncertainty has been more conductive to closer relationships among them. Moreover, they have realized how ASEAN can serve as a means of collective bargaining for dealing with the rest of the world2.
4Ties with Japan have also come to be regarded with greater importance for stable development of the region, stability of which is so crucial for Japan that she has also responded to expand her relations with them in the fields of politics, economy, economic cooperation and culture. Later in 1984, Brunei joined as the sixth member of ASEAN.
5It is most appropriate to present the profile of these six ASEAN countries together with Japan as shown in Table-2. Compared with Japan's population of 121 million in 1986, ASEAN's combined population of 300 million persons provides a rich market for its members and its trading partners.
6Indonesia has the largest population of 160 million, while Brunei, the sparcely inhabited country, has the lowest population of 0.2 million.
- 3 For Brunei GNP is 1985 figure.
7Total GNP of the region in 19863 sums up to almost US$ 190 billion, one-tenth of Japan's GNP in the same year. Brunei has the highest per capita GNP in the region exceeding Japan's 1986 level of US$ 16,162, while Indonesia's figure of US$ 500, the lowest in the region and US$ 580 of the Philippines are lowering the per capita GNP of the ASEAN average to US$ 650 in 1985/ 1986. Only Singapore, with her per capita GNP of US$ 7.410 in 1986, is classified as one of the newly industrializing economies (NIEs) in the region.
8Exept oil-rich Brunei and the above mentioned newly industrializing Singapore, the economies of this multiracial region may be said to be still agriculture-based. The region is also characterized by its mixture of Islam, Buddhism, Christianity and other religions.
- 4 Cooperation for world peace, enhanced ODA, and international cultural exhange are three pillars of (...)
9Japan highly evaluates the role played by ASEAN for the peace and prosperity of Asia, and the further promotion of friendly and cooperative relations with ASEAN countries represents one of the principal pillars of Japan's foreign policy4.
10In order to keep closer relations, there are several bilateral forums established between Japan and ASEAN, some of which are the Japan-ASEAN Foreign Ministers Meeting set up in June 1978, the Japan-ASEAN Economic Ministers' Meeting inaugurated in November 1979, and Japan-ASEAN Forum established in March 1977.
11In this article, the following two subjects on the ASEAN-Japan relations are mainly discussed; one is the economic relations and the other is the cultural relations between them.
12Section II-l will describe the trade relations between Japan and member countries of ASEAN. In Section II-2 main focus is on Japan's overseas direct investment to ASEAN countries. Direct investment flows from other donor countries to the region are also included as a comparison. The Section II-3 the trend of Japanese economic cooperation to ASEAN is discussed comparing with other donor countries to ASEAN.
13In Section III cultural relations between Japan and ASEAN will be reviewed mainly focused on the students and personnel exchange, promotion of Japanese language and cultural cooperation.
14Final section covers the discussion on the future of ASEAN-Japan relations referring to the various literatures on ASEAN-Japan relations or on the study of the Pacific Rim Community in 21st century, in which Japan and ASEAN countries are important participants.
15Table-2 presents Japan's and ASEAN's geographical pattern of trades in 1986. As can be seen, the USA is the largest market for the Japanese export absorbing over 39 % of Japan's total export, while the importance of ASEAN as a Japanese export market is only 6 %. The USA occupies over 23 % of Japan's total import in 1986. Next comes ASEAN as a group accounting for 13 % of Japanese total import.
16For ASEAN as a whole, Japan is the largest both as a market of their export and as a supplier of ASEAN's external demand, consisting of 23 % of ASEAN's export and import in 1986. The USA ranks the second largest market absorbing 21 % of ASEAN's total export. In the case of ASEAN's import, the intra-regional trade is more important than the import from the USA. Its relative share in ASEAN's total import reaching to 17.5 % surpasses the percentage weight the USA takes in ASEAN's import.
- 5 Econometric study on ASEAN-Japan trade relations in 1970s is available in Imagawa [7].
17The trade pattern of each country in ASEAN shows slightly different picture from the pattern of ASEAN as a whole5. For Brunei, Indonesia and Malaysia, Japan is the largest market of their exports, while for the Philippines, Japan ranks the third biggest market, and the fourth for Singapore and Thailand. Japan, the largest supplier to Indonesias's and Thailand's external demands is the second largest for Malaysia, the Philippines and Singapore. Brunei is importing more from intra-region than from Japan.
18One can find an interesting picture in the trade balance among the countries and regions in table-2. Japan has a huge trade surplus with other than ASEAN as a whole, while ASEAN as a group has a negative trade balance only with the group of other countries excluding Japan, the USA and EC.
19Trade balance of individual countries in ASEAN are quite different from that of the region total. Brunei, Indonesia and Malaysia has positive trade balance with Japan, while the Philippines, Singapore and Thailand registered trade deficit in 1986.
20All six countries in ASEAN are positive in their trade balance with the USA, while with EC, Brunei, Indonesia and Singapore recorded negative trade balance, though Malaysia, the Philippines and Thailand enjoy trade surplus.
21It may well say that ASEAN's trade deficit with Japan is mainly compensated by its trade surplus with the USA.
22The importance of close trading ties between ASEAN and Japan will be more clearly seen in the detailed explanation of their relations following. Trade relations between Japan and ASEN are characterized by the pattern of vertical international division of labour, in which Japan's main exports to ASEAN are industrial products based on the raw materials chiefly imported from ASEAN. This trade pattern, which is always frustrating ASEAN countries seeking to the growth path by the export-oriented industrialisation because of the lack of access to the Japanese market of their manufacturing products, is clearly observed in table-3 and table-4.
23Japan's export of machinery and equipment to ASEAN consists of about 60 % in her total export to ASEAN. In case of Brunei, Malaysia and Singapore the percentage surpasses 60 % as in table-3.
- 6 For details of ASEAN's manufacturing exports to Japan, see Imagawa [8].
24On the contrary, table-4 presents quite a opposite picture of trade pattern. Japan's import of manufactured products from ASEAN, as defined by the sum of commodities in SITC №. 5 to 9, is around 10 % of Japan's total import from ASEAN though it was 12.6 % in 19866. The rest of the commodities imported from ASEAN consist of mainly raw materials classified by SITC №. 0 to 4.
25Manufacturing trade pattern by country shows a slight difference. Japan's manufacturing imports from Brunei, Indonesia and Malaysia was less than 10 % of her total import from the respective country in 1986, however, it was over 20 % in the import from the Philippines, Singapore and Thailand. It is quite exceptional in the region that Singapore has achieved in exporting industrial products to Japan, the highest in ASEAN countries both in percentage share and in value term in 1986.
- 7 MITI [18], vol. 2,1986, Part III, Chapter I Commodity trade by country.
26When Japan prepared her Action Program for Improved Market Access in July 1985, the importance of ASEAN as her trading partner was fully taken into consideration. To show some of the evidence, tarif cuts have been effected on the strategic commodities for ASEAN countries such as boneless chicken, plywood, bananas and palm oil. As the results, remarkable increase in Japan's import of these commodities from ASEAN was observed in 19867.
- 8 MITI [18], vol. 27 1987, p. 743.
27In addition, Japan's Generalized System of Preferences (GSP) for industrial and mining products has been amended. Details of the amendment are replacement of import ceilings with the "escape clause" method for many commodities and the upgrading of ceilings by average of 30 %8. As the results, GSP import was also increased by 7 % from 1985 to 1986 (see table-4 bottom line).
28Also worth mentioning is that ASEAN Promotion Centre on Trade, Investment and Tourism (ASEAN Centre) established in 1981 in Japan, is contributing greatly to expand import from ASEAN to Japan and to increase tourists from Japan to the region.
29As table -5 shows Japan is one of the major investors in the ASEAN countries, especially in Indonesia, Malaysia and Thailand. Japan's share of investment in these countries in 1986 was over 33 %, 27 % and 20 % respectively. In Indonesia, Hong Kong ranks next (11.9 %) and the USA (7.7 %) the third. In the case of Malaysia in 1985, UK was the largest investor (28.6 %) with small margin Japan (27.5 %) is following next. The Philippines was the largest recepient of the US investment flow (54 %), while Japan (15.7 %) and Hong Kong (6.2 %) in this order stands the second and the third. The USA with her relative share of 30 % dominated in the investment flow to Singapore. Japan took the position of the second investor with her share of 23.6 %, while the third was placed to UK (13.1 %). Finally, Japan was the largest investor in Thailand which was welcoming foreign investment. With a small margin, the USA is catching up with Japan claiming her investment share of 19.1 % in 1986. The third position was taken by UK keeping low profile of 5.3 % in investment to Thailand.
30While table-5 is based on ASEAN statistics, in table-6 based on Japanese statistics, strategic importance of the ASEAN market for Japanese investors will be shown. About 12 % of Japan's total outstanding direct investment in 1983 was directed to the region, though in recent years the level of investment has a tendency to remain flat, as 1986 figures in table-6 clearly show.
31Turning to the sectoral pattern of Japan's investment in ASEAN, table-7 presents the picture of its individual country breakdown expressed by the cumulative value in US$ million as of March 1987. At the first glance, Japan's main targets in Indonesia are in the development of mining sector, iron and non ferrous metal manufacturing and textile industry. Exploitation of oil (mining sector) is also dominant in Brunei. Malaysia is characterised by the preference taken by the Japanese investors to manufacturing sectors, such as textiles, chemicals and iron and non ferrous metal production.
32In the case of the Philippines, sectoral pattern of investment is somewhat similar to that of Indonesia or Brunei; the mining sector is most prefered by the Japanese investors, though the transport equipment sector is also significant in the manufacturing sector invested.
33Singapore, the most industrialized country in the region, naturally attracts many investors in the manufacturing sectors such as chemicals, machinery and electrical machinery. At the same time in the non manufacturing sector, commerce, banking and insurance, and services are enjoying higher priority given by the Japanese investors.
34Finally, in Thailand, textiles and commerce are main sectors invested, though the investment to machinery and other manufacturing sector looks significant.
35As the table shows, Japanese investment was much biased to the mining and related sectors such as iron and non ferrous metal or chemicals (includes petro chemicals). Exception is the investment in Thailand where the sectoral preference looks well balanced, compared with the pattern in other five ASEAN countries, though the total value of investment is the second lowest in the region.
- 9 JETRO [21], 1987, pp. 21-25.
- 10 Provision of technology and training of personnel will be discussed in Section III.
36No one can deny that the Japanese overseas direct investment is contributing to the industrialization in the ASEAN countries, though as discussed above, the recent trend of her investment is rather flat. However, the yen appreciation has now triggered renewed investment activities to the region. According to a survey conducted by Japan External Trade Organization (abbreviated as JETRO)9, Japanese businesses are willing to start new investment and to expand existing ventures in the ASEAN region, as a means to adapt to the tendency of strong yen appreciation. For example in Malaysia, there has been an increase in export-oriented investment. In Thailand existing ventures of Japanese electronics and auto makers are now planning to augment their investment. Japan has been working to help create a suitable investment environment in the ASEAN countries. It has been extending cooperation in such areas as funding for the development of industrial infrastructure, the provision of industrial technology and the training of personnels10. Here again, it should be mentioned the notable activities pursued by ASEAN Centre and the Investment Section of JETRO in promoting Japanese investment in ASEAN.
- 11 MITI [20], vol. 1, 1987, pp. 167-170. Also see MITI [16], pp. 50-52.
37Also important is the action program for economic cooperation in stimulating Japan's overseas direct investment to ASEAN and other LDCs. When Mr Tamura, Minister of International Trade and Industry visited Bangkok in January 1987, he advocated New Asian Industries Development Plan11, a cooperation package integrating development assistance, overseas investment and import scheme in order to meet the needs to develop export oriented industrialization in Asia. The plan has already started for Thailand, Malaysia and Mainland China. India, Indonesia and Pakistan are also getting in touch with the Japanese Government.
- 12 Japan Times , December 16,1987, p. 1.
38The latest proposal by Prime Minister Noboru Takeshita on the occasion of his visit to Manila in December 1987, is the ASEAN-Japan Development Fund amounting to US$ 2.0 billion for ASEAN's private sector projects12.
39These two programs intend to encourage indirectly to increase all forms of cooperation within ASEAN.
40ASEAN has long been the region to which Japan has given top priority in distributing her economic cooperation fund, and the ASEAN countries have been receiving about 30 % of Japan's total bilateral official development assistance (here after abbreviated as BODA), though it was US$ 914.5 million, approximately 24 % of Japan's total of US$ 3.846.2 million disbursed in 1986 (see table-8).
41From 1982 to 1985 Japan's BODA to ASEAN accounted for about 50 % of total BODA received by the region giving Japan the name of the largest donor of BODA to ASEAN, though it was 38 % in 1986. The runner-up is the USA providing 16.7 % of total BODA received by ASEAN. West Germany takes the third position offering 8.2 % of total BODA.
42BODA distributed to each country in ASEAN shows slightly different picture. First in Indonesia 23 % of US$ 711.1 million of BODA was provided by the Japanese Government, while West Germany and Netherlands as the second and the third suppliers of BODA provides 18 % and 13 % of total received by Indonesia respectively.
43Japan has long enjoyed the position of the largest donor of BODA to Malaysia, though UK overtook Japan in 1986 providing about 40 % of total BODA to Malaysia. Australia ranks next and the third is for Japan. Their relative share to total BODA in Malaysia was 21.2 % and 19.6 % respectively.
44The Philippines was the most favoured by Japan in 1986 receiving US$ 438 million of BODA, which accounted for 45.8 % of total received by the Philippines. The USA with her 38.4 % of relative share to total was the runner-up and West Germany comes the third, though her contribution to BODA in the Philippines was less than 4 % of total.
45Singapore which is classified as NIEs, naturally receives the least amount of BODA, of which Japan provided over 50 % of total in 1986. West Germany comes next with the value of US$ 5.4 million and with a small margin, Australia is almost catching up with West Germany.
46Finally in Thailand, here again Japan is the largest donor of BODA pouring over 50 % of total US$ 496.3 million received by Thailand. Other countries providing BODA to Thailand are the USA and West Germany, whose contribution to total BODA Thai received was 6.4 % and 5.6. % respectively.
47Japan has long been providing technical cooperation scheme, under which students and trainees are invited to study in Japan or experts and volunteers are dispatched from Japan to the countries in need. Table-9 provides the number of students and trainees enrolled by the technical cooperation scheme from 1982 to 1986 and their cumulative numbers from 1954 to 1986. By the year of 1986, Japan invited 42.992 students and trainees from ASEAN which accounted for 38.6 % of total number of 111.496. Comparing the number of persons by country breakdown, Indonesia is sending the largest number of 12.137 persons, while Thailand comes next with 10.874 persons.
48With decreasing number of 7.913, 7.076 and 4.826 persons, Malaysians, Filipinos and Singaporians are coming to Japan.
49In table-10, number of experts and volunteers dispatched by the technical cooperation scheme from 1982 to 1986 and the cumulative number from 1954 to 1986 are provided. Total number of personnels dispatched abroad was 79.547, out of which 28.224 persons or 35.5 % of total number were assigned to the tasks to ASEAN region.
50As for the details by country breakdown, Indonesia received the largest number of experts and volunteers from Japan. It was 9.822 persons, while Singapore received the least number of 1.051 persons. Thailand marked the second position (7.985 persons). To the Philippines 6.200 experts and volunteers were dispatched and for Malaysia it was 3.044 persons.
51There are several types of economic cooperation schemes provided mainly to the ASEAN countries, all of which are sincere expression of Japan's willingness to contribute to the development of ASEAN region.
- 13 MITI [20] vol. 1,1987, pp. 158-164.
52It goes without saying that the keys to the further development of the ASEAN economies are in the growth of the private sectors of each country and in the promotion of the regional cooperation among the ASEAN countries.
53Japan launched a new financial cooperation scheme to support the ASEAN's development by implementing untied financial ressources both governmental and private under Japan's US$ 20 billion recycling scheme and other sources. As for the scale of financial cooperation, Japan has already made available an amount no less than US$ 2 billion over a three-year period for the financial needs of Indonesia and the Philippines.
54Various cooperative programs for ASEAN that Japan is implementing other than conventional bilateral cooperation are the followings;
- 14 "Fukuda doctrine" is notable in that Japan would never again become a military power, it would est (...)
55During Prime Minister Takeo Fukuda's visit to the ASEAN region in August 1977, he announced Japan's policy toward these countries later come to be known as the "Fukuda doctrine"14. He also promised that Japan would provide funding cooperation for ASEAN industrial projects. Under this scheme, Japan has cooperated in the funding of area fertilizer plants in Indonesia (completed in 1983) and in Malaysia (completed in 1986).
- 15 He reiterated Fukuda's statement, adding that Japan would place priority on assisting food product (...)
56During Prime Minister Zenko Suzuki's visit to ASEAN in 1981, he proposed a technical grants and technical assistance totaling US$ 100 million to establish training centers in each of the ASEAN countries. Facilities were established by the end of 1983 with this assistance, and full scale technical cooperation is currently being provided.
- 16 MITI [20], 1986, p. 212. Also see MAF [19], 1984, p. 110 and pp. 398-403.
57This program was proposed by Prime Minister Yasuhiro Nakasone during his visit to the ASEAN region in May 1983. Its aim is to develop cooperative relationships through annual programs under which young people from the ASEAN countries visit Japan to meet young Japanese and engage in educational activities. The scheme started in fiscal 1984 and is to be implemented over a five-year period.
- 17 MFA [19], 1986, p. 114.
58During the ASEAN Post-Ministerial Conference in July 1985, agreement was reached on the implementation of 32 urgent action programs, in which Japan promised to participate and accomplished the program during fiscal 1986.
- 18 MFA [19], 1984, p. 29, p. 119 and p. 402. Also see MITI [20], vol. 1,1987, pp. 185-186 and p. 194.
59This was also advocated by Prime Minister Nakasone. This program is to assist for renovation of existing plants built with Japanese economic cooperation. Japan sends survey teams and provides funding and other types of cooperation for renovating plants to be regarded worthy of upgrading the facilities.
- 19 MFA [19], 1984, p. 29 and p. 110.
60Agreement which was reached on cooperation during the Japan-ASEAN Ministerial Meeting on Science and Technology in December 1983, was materialized in May 1985 when the cooperative efforts were designted to the field of biotechnology, microelectronics and materials science. The first projects have already started.
- 20 See Japan Times , January 24, 1989, p. 1 and January 25, p. 10.
61Recent effort by the Japanese Government to raise ODA by 7.8 % to US$ 11.4 billion including other ODA related funds for fiscal 1989 will certainly enable Japan to realize its goal of making greater world contribution20.
- 21 It was 18.8 % in 1985. See the Japan Foundation Annual Report , 1986, pp. 11-12.
62Japan and the ASEAN countries maintain deep cultural ties extending back to centuries past, and the cultural exchange between them are very active today. About one-sixth of the total projects of the Japan Foundation, a semi governmental organization in charge of cultural exchange projets, is for ASEAN countries21.
- 22 Bey [15], Chapter III, pp. 263-281. He stresses the importance to respect one another's culture an (...)
- 23 In the Diplomatic Blue Book each year, a separate chapter for cultural exchange, and information a (...)
63It is not easy to give clear definition of what cultural relations are22, however, the following four topics will be discussed as the main themes of the cultural relations23. (1) personnel and students exchange, (2) promotion of Japanese language studies, (3) cultural cooperation and (4) grass-roots exchange.
- 24 It was 17.2 % in 1985. 153 persons to and from ASEAN and total number was 887 persons. See the Jap (...)
64ASEAN countries account for as much as 16 % of the Japan Foundation's personnel exchange program24. These programs include the invitation of groups of secondary school teachers to Japan and to the dispatch from Japan of sports teams for goodwill matches in the ASEAN countries.
65As table-11 shows, 2.789 persons or 13 % of the foreign students in Japan are from ASEAN as of May 1987. 902 students of them receive Japanese Government Scholarships (approximately 26 % of total students on Japanese Government Scholarships), while remaining 1.887 persons study at their own expenses (about one tenth of all foreign students studying on other than Japanese Government Scholarships).
- 25 For detailed discussion on "Look East" policy, see Aljafvi [9], pp. 16-18.
66Country distribution of ASEAN students in Japan are the followings; Malaysia is sending 1.120 students, the largest number in ASEAN. This is certainly due to the "Look East" policy by Malaysian Prime Minister Dr. Mahathir Bin Mohamad25. Malaysia which was only next to Thailand in 1984, overtook Thailand in 1987. Indonesia and the Philippines follow Thailand with lesser number of students coming to Japan.
- 26 MFA [19], 1975, p. 379. The meeting first opened in November 1974, is held once in every year.
67The Japanese Government is trying to improve programs to enable foreign students to study in Japan, and is expanding cooperation to various activities, organizing the Reunion of Former Southeast Asian Students of Japanese Universities, assisting the activities in ASEAN countries of association of former students in Japan26, and providing support for the ASEAN Council of Japanese Almuni (ASCOJA).
68The Japan Foundation is also providing various kinds of assistance for Japanese language studies in the ASEAN countries, such as the invitation to Japan and the dispatch from Japan of instructors and other personnels engaged in Japanese language education. The Japan Foundation Japanese Language Institute is now under construction as part of Japan's earnest efforts to improve Japanese language education. The Institute is scheduled to be open in 198927.
- 28 This program started in 1981. See MFA [19], 1982, p. 335.
- 29 See list of activities by JICA in MFA [19], 1987, p. 121.
69In addition, the Ministry of Foreign Affairs invites young diplomats from ASEAN and other developing countries to Japan for training in the Japanese language and Japanese affairs28. The Japan International Cooperation Agency (JICA) also provides basic Japanese language instruction for trainees from ASEAN countries29.
70Cultural cooperation is represented by three forms of funds and grants.
- 30 MFA [19], 1979, p. 18, p. 44 and p. 262.
71Japan provides a total of US$ 23 million for the ASEAN Cultural Fund, which was set up following the joint Japan-ASEAN statement in 1977 with the objective of promoting cultural exchange among ASEAN countries.
- 31 This program started in 1980. See MFA [19], 1981, p. 87, p. 303 and p. 309. See also MFA [19], 198 (...)
72Following a proposal made by the late Prime Minister Masayoshi Ohira, when he visited Manila in 1979, Japan has disbursed US$ 1 million a year since 1980 for the Japan Scholarship for ASEAN Youth. Each country (except Brunei) receives US$ 0.2 million, and every year 150 young people receive scholarship.
- 32 MITI [20], vol. 2,1987, Chapter 2, Country study.
- 33 In fiscal 1986, it was 19 %. See MITI [20], vol. 2,1987, p. 3. Total value of cultural cooperation (...)
73About one-tenth of Japan's cultural grants designated for the promotion of culture and education in developing countries goes to the ASEAN countries. In fiscal 1986 for example, Malaysia, the Philippines and Singapore received audio-visual and other equipments33, and in fiscal 1985 Thailand received materials to assist in preserving historic relics and Indonesia received display equipments for her museum.
74Finally, as an example of grass-roots or people to people cultural exchange, it may be worth mentioning the number of Japanese travellers to ASEAN countries , among which Singapore was the most popular for them attracting over 404 thousand persons. Next comes Thailand to which over 259 thousand travellers visited. 154 thousand travellers from Japan were fascinated by the Philippines in 1985, though it was reduced to 129 thousand persons in the next year. Japanese travellers to Malaysia are gradually increasing to the number of over 125 thousand persons by 1986. Indonesia, the farthest country from Japan, is inviting the least number of Japanese tourists.
75Grass-roots exchanges should go in both way, though the recent trend of yen appreciation is certainly hindering the flow of tourists to Japan as shown in table-13. In 1985, number of visitors from ASEAN to Japan was over 311 thousand persons, the peak figure during 1982 to 1986, or 13.3 % of total number of visitors to Japan which was 2.327 thousand. Both total number of visitors and that from ASEAN to Japan are declining in 1986 to 2.062 thousand and 271 thousand persons respectively, apparently due to the yen appreciation.
76Malaysia and Indonesia are sending almost same number of travellers to Japan, 46 thousand and 45 thousand persons respectively, while from Thailand and Singapore almost same number of tourists come to Japan, counting 34 thousand persons each.
77In discussing the future of ASEAN-Japan relations, one can not neglect to include the exogenous factors surrounding ASEAN and Japan in the international scene. To name some of them, stepping up of East-West detente, symptom of the first Sino-Soviet summit talk in 30 years, countdown toward establishing strong EC in 1992 and the possible ending of the Kampuchean problem in Indochina, which kept annoying neighbouring ASEAN countries for long time, all these movements are certainly affecting the future course of ASEAN-Japan relations.
- 34 Boyd [10], pp. 121-122.
78Quotation from Boyd34 is the best describing the above situation. "The course of Japan's policy debate will probably be influenced by reactions to trends as the global level, particularly US relations with the European Community and the Soviet Union. If there are increasing strains in Atlantic relations because of the integration of EC's internal market, US bargaining power in relation to Japan will decrease..., Meanwhile, further improvement in the USA's relations with the Soviet Union encouraging the Europeans to be more assertive for the advancement of their interests in dealings with the USA will probably similar effects on Japan. This will be all the more likely if China's relations with the Soviet Union also improve. Because the USSR can offer Japan a very large role in the development of Siberia's vast resources, on terms that need not strain Sino-Japanese relations, Japan could have more bargaining power with the USA".
79He also recommends to strengthen ASEAN-Japan relations on the ground that "It is important to recognize that a more independent Japanese foreign economic policy could be combined with endeavors to build comprehensive partnerships for growth with the ASEAN members. These could strenghten Japan's capacity for management of its expanding economic ties with China, as well as the USSR, while improving its competitive position in relation to the USA".
80It is certainly desirable to establish comprehensive partnerships between ASEAN and Japan as suggested by Boyd. However, in reality, ASEAN-Japan relations have been much biased to economic ties as were discussed in Section II, though their cultural cooperations are also growing as described in Section III. ASEAN's attitude is to see Japan purely in economic terms – as a potential market for its products and a source of capital and technology urgently needed in the region. For Japan, strategic relationship with ASEAN is more important since ASEAN's stability has vital importance to secure the stable route supplying Arab oil to Japan and the resources from the region.
81ASEAN's goal is the promotion of economic, social and cultural development and of regional cooperation in these fields. Certainly the proposal initiated by ASEAN leaders of a political settlement of the ten-year old Kampuchean war is demonstrating their cooperation in strengthening regional stability and handling global issues, however, progress in the economic field, especially the intra-regional trade is not active, since the ASEAN nations, except Singapore, may be said to be in a similar stage of economic development, as discussed in Section I, protecting their domestic market for their own industries and competing for market in the industrial countries for the same kinds of products.
- 35 MFA [19], 1987, p. 61 and see also 12).
82Although several steps such as reducing preferential tariff rates and facilitating industrial joint ventures within the region and strengthening private sector as a key to expand intra-regional trade, to which Japan is cooperating by offering US$ 2 billion, ASEAN-Japan Development Fund35, since main emphasis in ASEAN's industrialization policy is more or lesss in the export-oriented growth to the extra-region, recent protectionist trends in ASEAN's major export market, notably the USA and EC will eventually force ASEAN countries to turn more to Japan.
- 36 Matsumoto [14], p. 16, also advocates the equal partnership.
- 37 EPA [5], p. 111, also proposes the promotion of Japan's open market.
- 38 See Park [1], p. 24 and Murakami [4], p. 40.
83While appreciating growing trade with Japan and increased Japanese investment, ASEAN countries believe Japan should be more equal partner36 and do more for ASEAN, such as importing more to reduce the trade imbalance and extending technology transfer37, aiming to establish the horizontal division of labour in manufacturing sectors within ASEAN and Japan38.
- 39 Park [1], p. 25, Toba [13], p. 242 and Okita [3], p. 14.
84Japan is responding vigorously to achieve the better future of ASEAN-Japan economic relations, however, it is more important and urgent for Japan to take more active measures in building mutual understanding and mutual trust throught the promotion of cultural and social exchanges in parallel with the economic relations39.
85Compared with UK or West Germany, Japan is far behind in promoting cultural exchanges with other countries in the world. For example, the activities of the Japan Foundation, a front-runner of cultural exchange, if it is compared with the British Council or the Goethe Institute in West Germany, are very poor due to the insufficient budget and the shortages in staffs and overseas branches40.
86Quality of cultural exchanges should also be more sophisticated. One suggestion is, together with ordinary Japanese Government Scholarships for foreign students in Japan, to start a new type of the Japanese Government Scholarship called untied scholarship with which foreign students could study anywhere they choose. If this scheme could be realized, though it is a small step forward, it will certainly serve to change Japan's notorious image of an economic animal in the long run.
- 41 Chulacheeb [11], p. 185.
87One debatable suggestion on Japan's role to ASEAN is that Japan has more than just an economic role and has to play political role to keep stability and peace in the region41, however, it takes some time that the ASEAN countries accept Japan's role in politics and detente in the region.
- 42 Matsumotof [14], p. 117, JPECC [17], pp. 24-25, Murakami [4], pp. 41-42 and Okita [3], pp. 11-16.
88Suggestions from the global perspective on the future course of ASEAN-Japan relations are affluent42. In sum, ASEAN-Japan relations should be strengthened and integrated into the Pacific Economic Cooperation, which Japan is eager to establish, including the USA, Canada, Australia, Newzealand and East Asian NIEs together with ASEAN and Japan, though it is not feasible to set up the Cooperation in the very near future.
89Finally, Boyd suggests a more realistic approach advocating that the EC involvement in the Pacific Economic Cooperation, "on the basis of a special relationship with ASEAN and trilateral links with Japan and the USA"43. EC's active participation in the Pacific affairs will certainly be desirable for ASEAN to establish equal partnerships with the USA and Japan effectively counterbalancing their influences. This is what ASEAN leaders are always intending to.
Table 1. Population GNP and Per Capita GNP of Japan and ASEAN Countries
Country
|
Item
|
1982
|
1983
|
1984
|
1985
|
1986
|
Brunei
|
Population GNP (Y) Per capita Y
|
201 4.130 21.850
|
209 3.760 20.430
|
216 3.840 19.060
|
224 3.730 17.570
|
232 - -
|
Indonesia
|
Population GNP (Y) Per capita Y
|
152.497 87.200 580
|
155.669 74.980 560
|
158.915 81.260
|
162.212 81.540 530
|
165.419 71.920 500
|
Malaysia
|
Population GNP (Y) Per capita Y
|
14.528 24.960 1.840
|
14.813 28.220 1.870
|
15.191 31.710 2.050
|
15.571 28.950 1.990
|
15.918 25.780 1.860
|
Philippines
|
Population GNP (Y) Per capita Y
|
50.740 39.270 820
|
52.014 34.140 750
|
53.375 31.780 640
|
54.725 31.800 580
|
56.017 30.110
570
|
Singapore
|
Population GNP (Y) Per capita Y
|
2.472 14.510 5.910
|
2.502 16.550 6.650
|
2.529 19.130 7.730
|
2.558 18.140 7.590
|
2.585 18.000 7.410
|
Thailand
|
Population GNP (Y) Per capita Y
|
48.490 35.640 800
|
49.169 39.080 820
|
50.660 40.490 830
|
51.700 36.840 800
|
52.631 40.160 810
|
Japan
|
Population GNP (Y) Per capita Y
|
118.440 1.063.100 8.976
|
119.260 1.158.800 9.717
|
120.020 1.257.100 10.474
|
120.750 1.330.000 11.014
|
121.440 1.962.700 16.162
|
Unit: Population: 1.000 Persons
GNP; US$ Million
Per capita GNP; US$
Source: White Paper on Economic Cooperation (MITI), 1986, 1987
OECD Devolopment Cooperation , 1984, 1986 and 1987.
Table 2. Population, GNP and Per Capita GNP of Japan and ASEAN Countries
Country
|
Country
|
with Japan
|
with USA
|
with ASEAN
|
with EC
|
with Others
|
Total
|
Japan
|
Export Import
|
- -
|
81.296 29.410
|
12.123 16.497
|
31.122 14.173
|
83.980 66.328
|
209.151 126.408
|
ASEAN
|
Export Import
|
14.977 13.871
|
13.847 9.986
|
11.806 10.874
|
8.681 8.600
|
17.196 18.886
|
66.507 62.217
|
Brunei
|
Export Import
|
1.202 116
|
110 80
|
305 233
|
2 156
|
179 68
|
17.984 653
|
Indonesia
|
Export Import
|
6.644 3.128
|
2.902 1.482
|
1.512 1.838
|
1.383 3.157
|
2.383 10.724
|
14.824
|
Malaysia
|
Export Import
|
6.644
3.128
|
2.297 2.034
|
3.928 2.328
|
2.027 1.585
|
3.367 2.651
|
13.832 10.819
|
Philippines
|
Export Import
|
852 887
|
1.709 1.293
|
345 509
|
877 571
|
1.004 1.953
|
4.787 5.213
|
Singapore
|
Export Import
|
1.931 5.078
|
5.254 3.819
|
5.365 5.560
|
2.507 2.971
|
7.433 8.078
|
22.490 25.506
|
Thailand
|
Export Import
|
1.235 2.441
|
1.575 1.278
|
1.251 1.125
|
1.885 1.479
|
2.830 2.979
|
8.776 9.302
|
ASEAN %
|
Export Import
|
22.5 22.3
|
20.8 16.1
|
17.8 17.5
|
13.1 13.8
|
25.8 30.3
|
100.0 100.0
|
Japan %
|
Export Import
|
- -
|
39.2 23.3
|
5.8 13.0
|
14.9 11.2
|
40.1 52.5
|
100.0 100.0
|
Unit: US$ Million
Source: ASEAN Japan Statistical Handbook , April 1988, p. 19.
Table 3: Japan's Export of Machinery and Equipment to ASEAN
Country
|
Export
|
1982
|
1983
|
1984
|
1985
|
1986
|
Brunei
|
Total SITC 7 %
|
145 96 66.2
|
86 59 68.6
|
72 51 70.8
|
90 66 73.3
|
58 41 70.7
|
Indonesia
|
Total SITC 7 %
|
4.621 2.324 54.4
|
3.552 2.028 57.1
|
3.073 1.698 55.3
|
2.172 1.108 51
|
2.662 1.473 55.4
|
Malaysia
|
Total SITC 7 %
|
2.502 1.555 62.1
|
2.771 1.836 66.3
|
2.875 2.047 71.1
|
2.168 1.444 66.6
|
1.708 1.104
64.6
|
Philippines
|
Total SITC 7 %
|
1.803 885 49.1
|
1.744 977 56.0
|
1.080 543 50.3
|
937 467 49.9
|
1.088 486 44.7
|
Singapore
|
Total SITC 7 %
|
4.373 2.565 58.6
|
4.448 2.606 58.6
|
4.610 2.820 61.2
|
3.860 2.448 63.4
|
4.577 3.021 66
|
Thaïland
|
Total SITC 7 %
|
1.907 1.035 54.3
|
2.506 1.415 56.5
|
2.425 1.373 56.6
|
2.030 1.102 54.3
|
2.030 1.070 52.7
|
ASEAN
|
Total SITC 7 %
|
14.991 8.364 55.8
|
15.107 8.862 58.7
|
14.134 8.532 60.4
|
11.258 6.635 58.9
|
12.123 7.195 59.3
|
World
|
Total SITC 7 %
|
138.831 85.157 61.3
|
146.927 93.691 63.8
|
170.114 113.252 66.6
|
175.638 126.179 71.8
|
209.151 155.027 74.1
|
Unit: US$ Million
Source: White Paper on International Trade (MITI), 1984-1987
ASEAN-JAPAN Statistical Handbook, April 1988
Un Yearbook of International Trade Statistics, 1985, 1986.
90
Table 4: Japan's Imports of Manufactured Products from ASEAN
Remarks: Manufactured Products as defined by the sum of SITC 5-9 Unit: US$ Million
Sources: ASEAN-Japan Statistical Handbook , April 1988
GSP Import data is from Ministry of Finance
91
Table 5: Overseas Direct Investment in ASEAN by Main Countries (cumulative total)
Remarks: 1) Ration in 1985 2) Ration in 1984
Source: JETRO White Paper on Overseas Direct Investment 1984-1988
92
Table 6: Japan's Overseas Direct Investment in ASEAN
Remarks: Outstanding since 1982
Unit: US$ Million and Numbers
Source: White Paper on Economic Cooperation (MITI), 1985, 1986 and 1987.
93
Table 7: Japan's Overseas Direct Investment in ASEAN by Industry
Unit: US$ Million Cumulative Total as of March 1987
Source: Zaisei-Kinyu Tokei Geppo (Monthly Bulletin of Finance & Money)
Ministry of Finance, December 1987.
94
Table 8: Total Bilateral ODA from Main Donor Countries to ASEAN
Unit: US$ Million
Sources: White Paper on Economic Cooperation (MITI), 1986,1987
Overseas Economic Cooperation Handbook (OECF), 1987,1988.
95
Table 9: Students and Trainees enrolled by Technical Cooperation Scheme
Unit: Number of Persons
Value in parenthesis is in US$ Million
Source: White Paper on Economic Cooperation (MITI), 1986 and 1987.
Table 10: Experts and Volunteers Dispatched by Technical Cooperation Scheme
Uni: Number of Persons
Value in parenthesis is in US$ Million
Source: White Paper on Economic Cooperation (MITI), 1986 and 1987.
96
Table 11: Number of Foreign Students Studying in Japan
Uni: Number of persons as of May 1, of each year.
Remarks: Number of students by the Japanese Government Scholarship is in ().
Sources: UNESCO Statistical Yearbook 1987 and from Ministry of Education.
97
Table 12: Number of Japanese Overseas Travellers (by ASEAN Statistics)
Uni: Number of Persons
Source: ASEAN-Japan Statistical Handbook April 1988.
98
Table 13: Number of Visitors from ASEAN to Japan
Uni: Number of Persons
Source: White Paper on Tourism (Ministry of Transportation), 1985, 1986 and 1987.