Introduction

In 1985, the historian Theodore White wrote a scathing critique of Japanese trade policies in New York Times. Of course, ‘Japan bashing’ did not originate with Theodore White, but he epitomized it perfectly. According to this perspective, cause of American economic problems could be traced to external sources and unfair trading practices of others. In so far as the American trade deficit in the 1980s was reflective of the problems confronted by American policy makers, it should be pointed out that it was not the result of general increase in tariffs or non-tariff barriers in Japan. The trade imbalance cannot be separated from reckless spending splurge in the United States during the 1980s, particularly in the public sector. The entire question of economic justice and equality not only relates to the system as a whole, but also the internal conditions of many of Third World countries where experience has shown a clearly discernible trend toward greater inequality in income distribution.