Introduction

Why should we study Japan? The world’s third-largest economy plays a key role in the rising Asia story as a crucial trading partner and investor, competing for resources, markets and geopolitical influence. Japan remains, however, poorly understood, with limited recognition of its fundamental strengths and enormous contributions to regional stability and global development. Despite two decades of sluggish growth, the “declining Japan” story has been overstated, a narrative that overlooks its still enormous economic heft. It is the world’s top creditor nation; many of its companies are world leaders in their sectors; it is at the cutting edge of technological innovation, especially in the renewable energy and environmental industries; its soft power and fashion trends appeal to youth the world over; and there is considerable capacity for reform despite institutional inertia and conservative inclinations. It is, however, a nation going through a 21st-century identity crisis. The halcyon days of the economic miracle in the 1950s-1960s and triumphalist dreams of a Pax Nipponica prevalent in the late 1980s have faded into history as clouds gather on the horizon. Knowing more about Japan is important because what happens here matters a great

deal, especially to Asia, the world’s most dynamic and populous region. Japan is the fulcrum of the burgeoning Asian economy and regional supply chain, a fact underscored in the aftermath of the 3/11 disaster as assembly factories in China and South Korea shut down because the flow of high-tech specialty widgets produced in Japan’s tsunami-devastated northeast was suddenly interrupted-and with typical efficiency restored far sooner than anyone expected. In the early 2013 cycle of media coverage, the “Japan in demise” narrative has given

way to more euphoric coverage; The Economist cover, for example, depicted Shinzo Abe as Superman (The Economist, May 18, 2013). “Abenomics” vaulted into the global lexicon in 2013, symbolizing a new policy dynamism aimed at reviving the economy. The Bank of Japan’s bold monetary easing took global markets and media by storm, transforming the national reputation for cautious consensus. However, as we discuss in the chapters to follow, the narrative is far more complex and interesting than the current fascination with a booming stock market suggests. In fact, recent jubilation has only partially dispelled the malaise that haunts con-

temporary Japan. There is no shortage of doom and gloom stories in a country where the young are said to have no dreams, women are marginalized, jobs and families are less stable, and traditions seem in retreat. The negative fiscal and economic consequences of a rapidly aging society also weigh heavily on perceptions about Japan’s future. Eclipsed by China in the early 21st century, worried that Japan-bashing (trade friction in the 1980s) has given way to Japan-passing (US prioritization of China),

some Japanese also feel anxious about the shifting geopolitics of Asia and underappreciated by Washington. Can Japan regain its mojo? Crises beget action, albeit not always apt. The lost decades of economic stagnation

and apparent policy drift in the 1990s and 2000s, the rise of China and the shocking disasters of March 11, 2011-tsunami and nuclear-have become catalysts for renovation. In a remarkable and rare political comeback, Prime Minister Shinzo Abe (200607, 2012-) strode back onto the national stage for the second time at the end of 2012, riding a wave of voter disillusionment over the Democratic Party of Japan’s (DPJ) mostly broken promises and inept governance. The DPJ had gained control of both houses of the Diet (national parliament) in 2009, interrupting the Liberal Democratic Party’s (LDP) near monopoly on political power since 1955. The DPJ promised to focus on improving people’s lives and rectify a gamut of social problems, but disappointed supporters because it never got traction on its reform agenda. In addition, tensions with China escalated sharply in 2012 due to the government’s decision to nationalize disputed islands in the East China Sea, making national security a major campaign issue that played to the LDP’s advantage. As a result, the business-friendly, conservative LDP regained power and imple-

mented Abenomics, including huge increases in the money supply and debt-financed public works spending. The LDP has long favored such spending, which helps explain why Japan’s public debt-to-gross domestic product (GDP) ratio reached an incredible 240% as of 2013. The twin monetary and fiscal stimuli are designed to provide an opening for “structural reforms”—an expansive concept that ranges from promoting trade liberalization, ending utility monopolies and sweeping deregulation, to improving women’s status, education and boosting immigration, among other proposals. Making headway on this agenda will be difficult and contentious, but this is the

litmus test of whether Abenomics is a chimera of reform or can really deliver sustainable growth. Is it a quick fix delivering fleeting and limited gains only benefitting financiers and construction firms, or can it deliver on its inflation and investment targets and promised restructuring while improving productivity and competitiveness, boosting wages, narrowing income disparities and expanding good jobs? With nearly one quarter of the population aged 65 or over mostly living on fixed incomes and more than one third of the workforce mired in low-paid, non-regular jobs, Abenomics appears to be an inadequate and risky remedy. Unlike in the United States where individual retirement accounts are closely tied to stock market performance, relatively few Japanese households own stocks and thus do not directly benefit from a rising Nikkei index. The impact on bond markets may be destabilizing and higher interest rates will raise public debt-servicing costs while burdening homeowners with higher mortgage payments. Due to the yen’s sharp depreciation, consumers are paying higher prices for fuel and food while producers are squeezed by higher costs for imported inputs. The stakes are very high and whether the gamble pays off will have a considerable impact on Japan’s economic prospects. Yet, there is much more to be understood about the return of the LDP than the current business news, because Japan’s future very much depends on its past and overcoming obstacles to regional reconciliation. Japan remains a nation where prominent political leaders, especially in the LDP, are

still struggling to come to terms with wartime history and as a result regional ties remain fraught because the past keeps haunting the present. Overall, nationalist sentiments among Japanese seem relatively muted compared to East Asian neighbors.

However, uncertainties about Japan’s future and the prospects of Chinese hegemony have aroused patriotic passions among some while expanding support for Abe’s agenda of remaking Japan by revising its pacifist Constitution. Abe’s supporters call this a sensible policy of nurturing civic nationalism, stressing that Japan lives in a dangerous neighborhood and should unshackle its armed forces. Critics oppose sacrificing this iconic symbol of post-World War II Japan’s redemption and worry that constitutional revision will roil the region and erode civil liberties. Battles over the Constitution are also battles over the past. The contenders are a

vocal and now ascendant minority who deny or minimize Japan’s wartime atrocities, justify its actions and feel it has been unfairly singled out for criticism, versus the majority who believe it is important for the nation to assume the burdens of history and express contrition about the unjustifiable devastation caused by Japan’s imperialist rampage across Asia (1931-45). Contemporary nationalists are eager to turn the page on this history, but most Japanese still think there are important lessons to be learned from Japan’s authoritarian era of militarism, aggression and political repression at home. Some Japanese resent how the neighbors use the past to badger and belittle Japan, and keep it squirming uncomfortably on the hook of history despite numerous apologies and efforts at restitution. However, others understand that Japan has handed the hammer of history to victims of Japanese aggression precisely because of incomplete acknowledgement of responsibility and inadequate expressions of contrition. To some extent Japan has tried to accept responsibility and atone for its misdeeds, but conservatives like PM Abe have actively repudiated such gestures of reconciliation and repeatedly voice views that reignite Japan’s history problem. Reinterpreting this tragic history while seeking dignity in denial or blurring war memory and responsibility tramples on the dignity of the nations that suffered most from Japan’s depredations and remains a dead end for regional relations in East Asia. Where are the extraordinary acts and sites of memory that have redeemed Germany in the eyes of former adversaries and facilitated its reintegration in Europe? Japan’s unequivocal acceptance by East Asian neighbors is unattainable, but this is no excuse for avoiding a forthright reckoning and grand gestures of atonement. There are possibilities and benefits of pursuing reconciliation that will remain unrealized in the absence of a more remarkable remembering and sincere remorse. Many Japanese people are often quite introspective and critical of national short-

comings. While many also take pride in their society, they tend to be reticent about tooting their own horn; the value of modesty and understatement is deeply ingrained and endearingly so. However, perhaps this is also one reason Japan remains an enigmatic society: there are few Japanese businessmen, politicians or public intellectuals who command attention on the international stage and can influence knowledge and opinions about Japan. Moreover, few non-specialists have the time to peel back the layers behind the

headlines or probe beneath prevailing stereotypes to understand what may seem puzzling or inscrutable. Hence the purpose of this book, geared towards a broad audience of readers with an interest in knowing more about a nation of consequence, a country both fundamentally similar to and yet profoundly different from other advanced industrialized nations, facing a litany of challenges familiar to us all. In this collection, we assume no prior knowledge about Japan. Our aim is to challenge assumptions and facile impressions while imparting the perceptions of experts about their subjects in a succinct and accessible style. We do not presume to present a ”Japanese” view of their

world, but rather offer a diverse range of critical analyses about key issues that take on prevailing monolithic representations that are at odds with Japan’s evident diversity. Everywhere one goes “the Japanese” is a frequent refrain, as if 127 million people all

march to the same beat and sing from the same hymnal. Japanese themselves frequently reinforce this homogenized image by relying on monolithic terms. We understand that stereotyping and generalizations can be a convenient shorthand, but one that can be misleading and reinforce dubious assumptions. Our aim is not to dismiss the cohesiveness of Japanese society, or to overstate how diverse it is or overlook pressures to conform, but rather to suggest that readers bear in mind that Japan as a unifying and unvarying idea is not consistently evident in reality. While China grabs the most attention, Japan is a leading economic and military

power in Asia and boasts the region’s highest standard of living despite recent travails. Japan can take pride in a robust democracy and relatively egalitarian society. Japan has not overcome its environmental challenges, but they are relatively mild compared to the rest of Asia’s problems of pollution and urban congestion. In Japan, violent crimes are rare and random attacks targeting religious, ethnic or sexual minorities are virtually unheard of. While the rapid aging of the population certainly poses various policy challenges, it is a useful reminder that Japanese enjoy the greatest longevity in Asia, owing much to good medical care and universal health insurance. Japan’s varied and innovative policy responses to these problems represent an important model and inspiration for other nations that are or will be facing similar problems. Moreover, with the exception of South Korea, no other Asian nation comes close to Japan in terms of soft power, from its huge anime industry to its Michelin-renowned restaurants. However, it is also an archipelago vulnerable to natural disaster, regularly experiencing powerful earthquakes, typhoons and, on occasion, massive tsunami. In March 2011, as the world looked on in horror at the tsunami devastation wrought

on communities along the nation’s northeast coast, it saw what social cohesion looks like. Japanese survivors demonstrated a dignity and gutsiness under duress that commanded our admiration. People who lost everything valuable in their lives somehow managed to persevere and set about restoring a semblance of normalcy to a world ripped asunder. However, the slow recovery in the region means that the natural disaster has become a symbol of government dysfunction and the failure of political leaders to put aside party squabbles and prioritize the public interest. The ongoing problems besetting the decontamination and decommissioning of Fukushima’s ruined reactors help explain lingering grassroots anxieties about the safety of nuclear power even as the government is pushing for rapid resumption of nuclear power generation and selling reactors abroad. Although there has been considerable speculation that 3/11 might be a watershed in modern Japanese history, these hopes mainly have been unrealized as attention faded, what initially seemed urgent was overtaken by other priorities and policies settled back into familiar ruts. In September 2013 Tokyo was awarded the 2020 Summer Olympics for the third

time, owing much to PM Abe’s reassurances that the problem of radiation leaks into the ocean and management of toxic water at Fukushima was under control. In 1940 the games were cancelled due to Japan’s escalating aggression in China. In 1964, hosting the Olympics signaled Japan’s reacceptance into the international community, showcasing Japan’s recovery from war devastation and sparking robust economic growth and innovation. On the eve of the games Japan’s high-speed rail service, the shinkansen (bullet train), commenced operations, associating Japan with cutting edge

technologies and reliability; the safety record is unblemished. The slogan of the 2020 games is Discover Tomorrow, expressing hope that the nation will be fully recovered from the 3/11 disasters and signaling that visitors will encounter not only Japan’s rich culture and warm hospitality, but also its continued economic and technological vibrancy. The message is unabashed boosterism-Japan is Back-countering gloomy assessments about the nation’s prospects. Whither Japan? This is a recurring question/theme that defies simple answers or firm

predictions, but it is a particularly pressing issue in 21st-century Japan and constitutes a common thread in our chapters. We examine how citizens, parties, civic organizations, social movements, business and bureaucratic institutions are contesting and promoting competing agendas that are shaping emerging realities and future outcomes. This is why our endeavor is a valuable resource for comprehending a Japan in flux, where ongoing significant and sometimes sweeping transformations face significant obstacles that may divert, dilute or otherwise stymie anticipated consequences. These trajectories of change are not onward and upward, and in Japan are often gradual, incremental and zigzagging. Naturally we think that Japan matters for many reasons and we believe that scho-

larly assessments of this complex society deserve more prominence in public discourse. Media coverage is very useful to get a quick understanding of the new issue of the moment, but often lacks the contextual perspective that helps promote deeper appreciation of what is going on and what it portends. Journalists based in Japan are often exceptionally knowledgeable, but editors back home need stories to which domestic audiences can relate and prefer attention-grabbing headlines. Hence the tendency to hype the weird or whacky and analyze Japan in terms of cultural stereotypes. Observed Japan often relies on tropes about how the traditional shapes the contemporary world. Culture and tradition do matter, but the nuances are not easily conveyed in the television sound bite or 600-word story produced on a tight deadline. There are also far fewer international journalists based in Japan compared to a decade ago, meaning that in-depth knowledge is often lacking and discussions of Japan are more prone to caricature. The idea motivating this project was to assemble a group of scholars, both eminent

and rising, and ask them to write about their subject as succinctly and engagingly as possible, with a minimum of the usual academic paraphernalia, targeting an audience of non-specialists and students. We are not trying to provide simple answers to the complexities of contemporary Japan, but to avoid the pitfalls of excessive problematizing and jargon in academic work that inhibits clear writing and often leaves many readers in the dark and in despair. The 22 chapters here deliver an encompassing and scrutinizing analysis of contemporary Japan that we believe is imperative to understanding what is going on here in the early 21st century and where it is going. The authors present fresh thinking about how to interpret Japan’s post-World War II trajectories and simultaneous transformations while reminding us about elements of continuity and persistence. We are a diverse group of scholars from eight countries, representing an array of social science disciplines: political science (seven), history (four), anthropology (three), sociology (three), law (two), public policy (one) and business (one). As such, our book delivers an interdisciplinary and critical interpretation based on extensive and ongoing research, working and living experiences in Japan. The book is organized into five sections by thematic content: political environment;

nuclear and renewable energy; international dynamics; social dilemmas; and

reforming Japan. These subject areas help clarify what is indispensable to understanding the urgent issues with which Japanese people and their government are grappling and what they bode for the future. The first section, on political environment, includes five chapters that examine poli-

tics from different angles: the party system, trade, the judiciary, civil society and the media. This is a story mostly of party dysfunction and fragmentation, policy immobilism, ossified institutions, cooptation and missed opportunities interrupted by spurts of concerted action and sweeping reform. The second section, on nuclear and renewable energy, revisits and updates the con-

troversies, policy considerations and divisive perspectives about which the same four authors wrote in Natural Disaster and Nuclear Crisis in Japan (Routledge, 2012); we still have our disagreements. The third section, on international dynamics, focuses on Japan’s international rela-

tions and how they remain hostage to history. The chapters feature Japan’s troubled relations with China, Korea and Russia, assessment of the historical context that underlies these contemporary disputes, and the problems involving the US military presence on Okinawa. The fourth section, on social dilemmas, includes six chapters that evaluate salient

issues confronting Japanese society. It is difficult to comprehensively examine such a sprawling and fascinating subject, but these probing essays cover a lot of ground and engage many of the ongoing debates in Japan. We elucidate topics ranging from an aging and shrinking population, immigration, minorities and the status of women, to mental health care, school violence and rural depopulation. Finally, the last section presents three chapters about reform discourse within Japan

and about Japan. Although popular perceptions focus on gridlock and missed opportunities, Japan’s legal system has embarked on an ambitious agenda of reforms aimed at transforming it from a nation featuring the rule by law to a nation of the rule of law; this is a work in progress. While Japan may not live up to the expectations and aspirations of many observers, we conclude this volume by questioning some of the assumptions that drive the heated discourse about what ails Japan.