ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book begins with G7 Summit's Successes and Shortcomings'. It considers the record of the G7 summits in dealing with the 'dark side' of globalisation, namely the fragility of integrated financial systems, the abuses of the financial system, and the widening income disparities between rich and poor countries. The book explores the internal dynamics of the G7 summits, in particular the process through which consensus is reached. It describes that the G7 countries should pursue policies and structural reforms that promote economic growth at home. The book investigates two interrelated issues: the nature and implications for the Japanese economy of Prime Minister Koizumi's reform package and the Japanese position on the design of a durable international financial architecture. It examines two key problems of the present international financial regime: excessive exchange rate volatility and misalignment and international financial crises in emerging markets.
