ABSTRACT
Japan has become America’s foremost economic and technological competitor. The US-Japanese combined gross national product totals about one-third of the world’s Gross national product. Based on its economic power and performance, Japan was able steadily to expand its role in the World Bank, the International Monetary Fund, and other international financial institutions. Investment and trade flows made Japan by far the dominant economic actor in Asia. The post-Cold War environment has acted to strengthen the importance of economic prowess rather than military power as the major source of world influence in the 1990s. The ability of US and Japanese leaders to deal effectively with strains in relations has been affected by often conflicting attitudes and political pressures in Japan and the United States over economic, defense, and other issues. Japan can better help the United States by using its great economic power—through aid grants and trade opportunities—to stabilize relations with important Asian and other states.
