Author: Masanaga Kumakura, Osaka City University

Japan’s public finances are in dire straits, with government debt already twice the size of the country’s GDP and still growing at an alarming rate.

Juxtaposing its debt, the Japanese government also holds substantial assets, most notably through its foreign exchange reserves. Thanks to its active exchange market interventions, Read more…

Author: Richard Katz, The Oriental Economist

Although Japan’s merchandise trade deficit in 2011 — the first since 1963 — is a product of the natural disasters of 2011, it is a harbinger of things to come. Sometime within this decade, Japan is likely to start running chronic trade deficits.

While some economists see this happening within three years, it will probably take somewhat longer. Read more…

Author: Aurelia George Mulgan, UNSW Canberra

In dealing with the difficult politics of increasing Japan’s consumption tax, the administration of Yoshihiko Noda is planning to sweeten tax reform with administrative reform.

The prime minister’s proposed tax reform includes the staged introduction of consumption tax increases over three years — from 5 to 8 per cent by April 2014, and then to 10 per cent by October 2015. Read more…

Authors: Sisira Jayasuriya and Nobuaki Yamashita, La Trobe University

Japan was hit by a massive earthquake and huge tsunami on 11 March 2011 that killed nearly 20,000 people and threatened the country — and it neighbours — with a Chernobyl-type nuclear catastrophe.

A year later Japan continues to grapple with the impact and after-effects of the triple disaster. Read more…

Author: Conrad Guimaraes, APYO

Just four months after assuming office, Yoshihiko Noda made a state visit to China on 25–26 December 2011.

The visit came in the wake of negotiations for a three-way FTA between the two countries and South Korea, which could represent the culmination of almost 40 years of normalised relations between China and Japan. Read more…

Author: Sourabh Gupta, Samuels International

In the last week of December 2011, Prime Minister Yoshihiko Noda gathered together reluctant members of his Democratic Party of Japan (DPJ) to endorse a doubling of the country’s consumption tax.

Politically, the increase is enormously risky. Read more…

Author: Kozo Kiyota, YNU

The Japanese Ministry of Finance announced on 25 January that the country logged a trade deficit of 2.5 trillion yen (US$31.4 billion) in 2011, its first in more than three decades.

Japan’s imports rose 12 per cent while its exports fell 2.7 per cent compared with the previous year. Read more…

Author: Yoshisuke Iinuma, The Oriental Economist

The household-electronics industry has long been equivalent in stature to Japan’s automotive industry, and is seen as a symbol of the country’s strong manufacturing sector.

But now its central product — television manufacturing — is on the verge of collapse and the major electronics firms are haemorrhaging red ink. Read more…

Author: Kevin Placek, Melbourne

Having ruled Japan for the better half of a century, it is no surprise that the Liberal Democratic Party (LDP) has found it difficult to adapt to its role as Japan’s major opposition party.

But with the prospect of further political gridlock, it may be time for the LDP to reconsider its strategy. Read more…

Author: Norifumi Namatame, ANU

After North Korea tested its Taepodong I missile in 1998 over Japanese airspace, Japan made the decision to develop its ballistic missile defence (BMD) system in cooperation with the US.

The system comprises a mid-course phase (upper-tier) Standard Missile 3 Bloc IA system loaded onto four Aegis ships, and a 16-unit terminal phase (lower-tier) Patriot PAC-3 defence system, which has been deployed to four sites on Japanese soil. Read more…

Author: Sanjana Joshi, ICRIER

High-level political contacts between India and Japan since the year 2000 have produced a multitude of political documents.

And as Japanese Prime Minister Yoshihiko Noda wrapped up his official visit to India on 27–29 December, following the annual meeting between the Indian and Japanese prime ministers, the countries’ respective policy establishments unveiled the Vision for the Enhancement of India-Japan Strategic and Global Partnership. Read more…

Author: Aurelia George Mulgan, UNSW Canberra

In selecting his first cabinet and party executive line-up in September 2011, the most important motivation for Japan’s Prime Minister Noda was intra-party harmony.

His ministers were largely selected to appease political strongman Ichiro Ozawa, who maintains a well-deserved reputation for either running parties or destroying them. Read more…

Author: Michael Cucek, MIT Centre for International Studies

Japanese Prime Minister Yoshihiko Noda reshuffled his cabinet on 13 January, prior to the 24 January opening of the Diet’s regular session.

The reshuffle was preordained; the opposition-dominated House of Councillors censured two of Noda’s cabinet ministers on the last day of the extraordinary session last year. Read more…

Author: Thomas S. Wilkins, University of Sydney

The Taiwanese presidential election is due to be held on 14 January. As the election draws near, analysts in Taiwan are avidly sifting the tea leaves to predict what the future holds — will the incumbent leader, Ma Ying-jeou, of the Kuomintang (KMT) gain a second term and continue his rapprochement with the PRC mainland?

Or will Tsai Ing-wen, his Democratic Progressive Party (DPP) opponent, unseat Ma and seek to reinforce Taiwan’s distinct identity? At present, polls show almost an even split in support for the two candidates. Read more…

Author: Purnendra Jain, Adelaide University and Tokyo University

A Japanese prefectural governor does not usually resign to run for office as city mayor — with significantly less authority, power and prestige.

But these are not usual times in Osaka and flamboyant, media-savvy, highly popular Osaka Governor, Toru Hashimoto, has taken this unusual move. Read more…