CEAC Commentary introduces outstanding news
analyses and noteworthy opinions in Japan, but it
does not represent the views of CEAC as an institution.

June 30, 2005

Japan’s Beneficent Potential (1)By TANIGUCHI Makoto
During my 7 1/2 years of service in the 1990s as deputy secretary general of the Organization
for Economic Cooperation and Development, I initiated a research project that produced, in1997, a report titled “The World in 2020: Toward a New Global Age.” In the course of thisresearch I assumed that the 21st-century world economy would evolve into a tripolar structure
comprising an enlarging European Union, an expanding North American free-trade area and a
dynamically developing Asian economic zone.
On that premise, I came to believe that an East Asian Community must be established if Japanand Asia are to develop a mutually beneficent relationship with the EU and NAFTA. Since
returning to Japan in 1997, I have talked and written on this subject extensively, but theresponses have not necessarily been keen until quite recently.
The initiative for regional integration in East Asia came from the 10-member Association ofSoutheast Asian Nations, which had been hard hit by the 1997 Asian currency crisis. To preventa similar bout of financial turmoil, ASEAN created a formula for regional integration known as
ASEAN-plus-Three (Japan, China and South Korea).
It is China, however, that took the initiative in expanding this circle of regional cooperation toinclude free-trade agreements and economic partnership agreements. China has already decided
to conclude a broader EPA (including an FTA) with ASEAN by 2010. Japan and South Korea
also plan to sign an FTA and EPA separately with ASEAN by 2012 and 2009, respectively.
These moves are welcomed as the first step toward creating an East Asian Community. But theproblem is that Japan, China and South Korea, the three top economic players in East Asia, arelagging considerably in their efforts toward concluding FTAs and EPAs among themselves.
Japan and South Korea are negotiating to sign agreements by yearend, but the prospects are notfavorable. As for China, there is no sign yet that talks will get started soon.
ASEAN has a vital role to play in the integration of East Asia. Still, the cooperation of Japan,
China and South Korea is essential for creating a truly effective East Asian Community. We
cannot ignore the fact that the three nations account for more than 90 percent of the combined
gross national income of ASEAN-plus-Three.

1What is causing the discord among the three nations? Strained political relations between Japanand the other two, particularly China, are making it difficult to foster mutual understanding anda "sense of community." It is regrettable that 60 years after the end of World War II, disputes
between Japan and both China and South Korea over issues of history remain unsettled.
What is particularly worrying is, that at least for the moment, Japanese and Chinese leaders are
not in the political environment to hold heart-to-heart talks through reciprocal visits. This is amatter of grave concern not only for Japan and China but for the rest of Asia as well.
The lack of a common historical perspective among the three neighbors is collectivelyresponsible for the political stalemate. Nevertheless Japan, which started wars of aggression in
the last century, should move first to break the deadlock. It should make positive efforts to build
mutual confidence by honestly reviewing its past doings.
Joint studies on historical issues by researchers from the three nations could help narrow thegaps in historical perception, and dialogue between the governments should be promoted basedon the results of these studies.
It is also essential to build mutual understanding and confidence among the young generations.
Through my teaching experiences at a number of universities both in Japan and China, I got theimpression that people who are too young to have experienced the last war were less willingthan older people to understand the other country.
To promote mutual understanding among the young generations it is vitally important that theyknow more about the other country. Attending schools in the other country helps a great deal.
For many Chinese youths studying in Japan at their own expense, though, the reality is harsh, inpart because of expensive tuition, high living costs and the poor availability of affordable
housing. It is not surprising that these students, upon finishing their studies, leave Japan with anunfavorable impression.
I propose that the Japanese government give scholarships to a greater number of promising
Chinese students as part of official development assistance.
Although the U.S. government does not provide such aid to China, exchange programs arepromoted at private levels, with well-established foundations sending scholars to top Chinese
universities or granting scholarships to Chinese students at U.S. universities. We should notethat the younger Chinese generations responsible for the future of China are more inclined tostudy in the United States than in Japan.
(This is the text of an article by Mr. TANIGUCHI Makoto, President of the Iwate

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Prefectural University and Member of the Council on East Asian Community, which wasoriginally posted in “The Japan Times” on June 14, 2005.)

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