TitleRegional (Developing) Promotion Theory and Practice (2)-Taking Experience of Regional Promotion in Okinawa toSoutheast Asia-
Author(s) Yoshikawa, Hiroya
Citation 沖縄大学法経学部紀要 = Okinawa University JOURNALOF LAW & ECONOMICS(7): 1-15
Issue Date 2006-10-31
URL http://hdl.handle.net/20.500.12001/6031
Rights 沖縄大学法経学部
Regional (Developing) Promotion Theory and Practice (II)
-Taking Experience of Regional Promotion in Okinawa to Southeast Asia-
Hiroya YOSHIKAWA
<Contents>
Chapter HI: Ways and Means for Developing Regional Activities into International
Cooperation
1. Development types of regional projects (Necessity of Chance and Initiative)
2. Importance of "Catalyst" that Promote a Regional Project to International
Cooperation
3. Conditions for continuation of regional activities as international cooperation
Chapter IV: Promotion of Local Industry, Conclusions and Problems
1. Why entrepreneurial spirit and procurement are necessary
2. Globalization, light and darkness for developing countries
3. Methods for Regional Promotion as Seen in Okinawa
and Regional Development in Southeast Asia
<Preceding chapters>
Foreword: Why are Regional Developing Promotion the Current Themes?
Chapter I: Drawing on Japanese and my Experience of Regional Promotion
Chapter II: Regional Activity and International Cooperation in Japan
<To be continued>
Proposal & Implementation: Regional Promoter upbringing, Educational Program
-Using the JICA-Net Development, Implementation and a Evaluation-
Chapter HI : Ways and Means for Developing Regional Activities into
International Cooperation
1. Development types of regional projects (Necessity of Chance and Initiative)
Let's mainly discuss latest cases (from 1999 to 2001) of regional projects and
Okinawa's projects that promoted to international cooperative projects. I will indicate the
locations of these projects on the Japanese map of Figure 4. I will analyze keys to
maintain projects and future issues and tasks to make them successful international
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o
I
DO I
Figure4
InternationalExcahngeProjects
-Cooperativeprojectscenteredon
localbodyandthecaseofOkinawa-
(R)Thenew
localbusiness
ofwine-making,
Fig:
4(8)
(R)The
city
hoststr
aine
ron
fixe
dnettr
aini
ngprogram,
Fig:
4(4)
(G)The
city
cooperatesto
solveenvironmental
pollutionproblem,
Fig:
4(5)
(A)Technologytransferoftraditional
iron
ware(Nanbutekki),
Fig:
4(1
)
(A)Learnthetechnologicoflacquerware,
Fig:
4(2)
(R)The
hosp
ital
hostsin
tern
medical
staf
f,Fi
g:4(3)
Classifiedprecedent
into
fourcategories>
(A):
Aidreceivingcountry
(R):
Concerntheregionalproject
(G):
General
internationalexchange
(H):
Historical
background
(H)Openingcontainerrouteandpromotebusiness,
Fig:
4(7)
TAIWAN V""
(H)Thanks
tothetradedepends
portopen
project,
Fig:
4(6)
projects. Based on the ward "Technology Transfer", I call the expansion from regional
projects to international projects "Regional Project Transfer".
Almost all regional projects started in order to solve fundamental problems of
region and to fulfill demands in a region. These are formed for own region at the
beginning. Analyzing the process that regional projects became international projects, you
find that there were a chance and initiative. Then what kind of opportunities and
initiatives is necessary to expand regional projects to international project?
Focusing on opportunities and initiatives, I classified precedent into four
categories.
(1) Projects formed with a request of an aid receiving country
The following cases are projects formed with request of an aid receiving country.
A person from these countries came Japan and saw regional projects. Sometimes people
from abroad directly see regional projects in Japan or some obtain information on
regional projects through media such as newspaper and television.
Case 1 : Technology transfer of Nanbutekki that is traditional ironware in Iwate
prefecture. In 1998, Hujimori, President of Peru came Japan and met governor
of Iwate prefecture and president of JICA. President Hujimori requested
cooperation at the time. Now Technology Center in Iwate prefecture hosts
trainee from Peru and JICA sends experts to Peru in Figure 4(1).
Case 2 : Myanmar ambassador in Japan saw production of lacquer ware in Narakawa
Village, Nagano prefecture and he requested cooperation on the technology.
Now trainees form Myanmar National Lacquer Craft University come to
Japan to learn the technology in Figure 4(2).
(2) Projects formed with initiative of people who concern the regional project.
The followings show that people concern regional projects took the initiative in
forming international cooperation.
Case 3 : Saku General Hospital in Usuda town has "contribution for international
medicine, especially for welfare and medicine in developing countries. " as its
principle. For the principle, the hospital hosts intern medical staff form
Southeast Asia in Figure 4(3).
Case 4 : "Fixed Fishing Net Training Program" in Himi city in Toyama prefecture
started by Mayer's initiative. The city hosts trainee form China and Costa
Rica. Fixed fishing net is green method of fishing. It is less harmful to the
environment. This project is to spread fixed fishing net method and to
manage aquatic resources properly in Figure 4(4).
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Regional (Developing) Promotion Theory and Practice (II)
(3) Concrete cooperation promoted form general international exchange
Many local public bodies have friendship town abroad and citizens visit each
other. The following cases are examples that general international exchange became
concrete cooperation.
Case 5 : Kitakyusyu city in Fukuoka prefecture is famous for the heavy and chemical
industries. The city experienced dreadful environmental pollutions. But it
cooperated with citizen, industry sector, and experts in academia and they
solved pollution problem. Now the city cooperates with Dalian city in China
to solve environmental pollution problem there. Originally, Dalian city was
friend city of Kitakyusyu city in Figure 4(5).
Case 6 : Port Open Project in Yonaguni Island, Okinawa.(*1)
I will explain this case and the following case in detail because I exactly
involved in them.
Yonaguni town is located in both Southernmost and Westernmost of Japan.
Even though sea separates Yonaguni town and Hualian city, Taiwan, but
they are only 100 km away from each other. They are friendship town and
friendship city to each other.
However Yonaguni town dose not have open port for trade probably because
of its small population that is 1,500. To visit Hualian city, people must take
a route via Naha city. The whole route is 1.200 km in Figure 4(6).
So we request open port permission to the central government and it
succeeded. Now Yonaguni town can trade with Hualian city. It is easies than
trade between Naha city and Hualian city. Thanks to the trade including
trade of daily goods, price for goods successfully declined 30% in Yonaguni
town. 90 people from Yonaguni town visited Hualian city in photo 1.
photo 1
SUCCESSFUL TRIAL:
Trial import of sundry goods
and furniture Arrived on the
deck of a freighter hauling
sand and gravel on Dec. 24,
1988.
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I cooperated this project as an adviser. I advised mainly on research, study,
and policy but also on the way to carry this project out. I call this kind of
research style as "action research". I included business people and
entrepreneurs as participants of next paper "Method for Regional Promotion"
via JICA-Net Remote Technical Assistance System. This is because I try to
share the "action research" aspects.
(4) Project formed with historical background
The following shows historical background concerning both areas led the chance
for international cooperation.
Case 7 : Opening Container Route between Naha (Okinawa) city and Xiamen(China)
city.(*2)
I will explain this project with history of Okinawa in Figure 4(7).
About 600 yeas ago, Okinawa was independent Kingdom named Ryukyu.
After 1425, Okinawa had feudal relations with China. Ming Dynasty was a
suzerain for Ryukyu Dynasty. In 1427, Annam Dynasty in Vietnam also had
feudal relations with Ming Dynasty. So Ryukyu carried intermediary trade
among Asian countries.
Because of this economic expansion with trade established independence,
economic base and own identity and culture in Okinawa. I call this period
"grand trade era" and I think it was an ideal and great period for Okinawa.
(I named one relevant project as "Grand Trade Renaissance".)
But in 1602, Japan invaded Okinawa and prohibit intermediary trade. Then
the economy of Okinawa declined. Moreover, after world war It (After 1945),
U.S. Army ruled Okinawa. At the time, Okinawa lost freedom of trade and
independence. In 1972, Okinawa was given back to Japanese government, and
now waves of globalization reach to Asian countries including Okinawa. With
these circumstances, project to open a container route between Naha city,
Japan and Amoi city, China was suggested in order to reopen trade with
Southern China. At the same time, business people from both regions
established Okinawa-China Economy Exchange Association.
I took part in the association as an adviser and gave academic point of view.
Now Okinawa-China Assembly Hall is built in Amoi with Okinawa's fund. An
office for the trade is inside the hall and it is playing important role for both
regions.
A container ship takes a route trip once a week between two regions in photo
2 . It can convey much cargo and promote business opportunities.
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Regional (Developing) Promotion Theory and Practice (II)
photo 2
OPENING CONTAINER
ROUTE:
A container ship takes
two regions, Naha city
and Xiamen city from
Apr. 13, 1994.
2 . Importance of "Catalyst" that Promote a Regional Project to International Cooperation
(f) Information and media
Aid receiving country firstly needs to know what kinds of regional project are
carried out in Japan. Information can be obtained through mass media, publications, and
people.
Especially specialty journals such as "Regional Development (Chiikikaihatsu)
[monthly]", "Study on Local Public Body (Jichitaigaku Kenkyu) [monthly]", "Regional
Information (Nikkei Chiiki Joho) [monthly]", "Community Planning", "FURUSATO",
"Study on Urban Problems (Toshimondai Kenkyu) [monthly]", and "Transport [monthly]"
are useful to obtain information. These journals introduce projects in a particular region
and projects of the same issue.
It takes much time and cost for aid receiving countries to obtain and translate
these journals. So it is good idea that JICA or other international organizations translate
the points of projects on these journals and make them available for aid receiving
countries.
Local public agencies and NGOs also provide information of their regional projects
on the homepages, publications, and newsletters. It is also good idea that JICA and other
international organizations make list of these regional projects and provide information.
(2) Coordinator to Form International Cooperation
On the contrary to (1) case, it is difficult to obtain information of regions in
abroad. When people carrying regional project want to have international partner, they
want know on regions in abroad. But they do not get used to search for information of
international cooperation and hard to figure out potential of economy in abroad.
So a coordinator to promote a regional project to an international project plays
an important role. For example, researchers m regional developing field, university
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professors, or NGOs (non-governmental organizations) and NPOs (non-profit
organizations) for international cooperation can be good coordinators. The followings are
latest NGOs and NPOs for international cooperation.
(3) Volunteers and public corporations, such as NGOs, NPOs, and JICA
Former Members of Japan Overseas Cooperation Volunteers and public
corporations such as JICA, as well as NGOs, NPOs and JICA International Centers in the
regions, are geographically close to the scene of regional activities, and have relatively
easy access to information on such activities. For example, this course should make use of
the Okinawa International Center, which disseminates information to three Southeast
Asian countries.
Also, former members of the Japan Overseas Cooperation Volunteers, who are
distributed throughout the country, could well use their experience of working in
developing countries, the languages and other communications skills they learned there,
and their positive attitude to international cooperation, to serve as a catalyst.
Recently, many other groups have been working for international exchange and
cooperation. Examples include local authorities nationwide, groups established to further
human interaction, which mainly spring from the business world, international civil
NGOs, which support developing countries in work such as refugee assistance and disaster
relief, and volunteer activist groups which provide foreigners living in outlying areas of
Japan with counseling and language education.
These groups are oriented from the start towards international exchange and
cooperation, thus in many cases they have absolutely no connection with regional
activities. Nevertheless, they have networks, knowledge and communications expertise in
developing countries which could be a precious resource for linking regional activities with
international cooperation.
3. Conditions for continuation of regional activities as international cooperation
We have seen examples in which regional activities, triggered by conditions such
as those described above, develop as international cooperation, but these are often
transient. But what are the conditions for sustained continuation as international
cooperation?
(1) Matching the needs of the counterpart country
Regional activities are born of specific local needs, and develop from there.
Therefore, however successful the regional activity is, it will be difficult to develop it
further, unless the example is taken and adapted to conform to the needs and conditions
of the counterpart country to which it is transferred.
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Regional (Developing) Promotion Theory and Practice (II)
The examples presented above in Figure 4, which match the needs and conditions
of the counterpart country, can serve to illustrate this point.
The advanced traditional craft of Kiso lacquer ware, in Figure 4(2), is one example
which matches the need to improve the quality of Myanmarese lacquer ware crafts.
The new local business of wine-making in Ikeda, Hokkaido, in Figure 4 (8), is an
example of a startup making independent progress without central government subsidies.
This example attracted the attention of South American countries facing financial
difficulties, with similar needs and environmental factors, and trainees have been sent to
Ikeda.
As mentioned above, Okinawa is a sub-tropical archipelago, with natural
environmental conditions similar to those in Indonesia, the Philippines and Thailand. The
population characteristics include the highest birth rate in Japan and the highest
proportion of young people, which means the population also resembles the populations of
those countries.
Next, there is the social environment. As mentioned earlier, the relationship
between mainland Japan and Okinawa is similar to that between developed and developing
countries (a "North-South" relationship). Looking at Okinawa's social conditions from this
point of view, many of the social needs are the same as those in developing countries, and
regional activities are based on those needs. Thus, the regional activities in Okinawa can
be transferred to developing countries in ways that meet their needs.
(2) Benefits for regions
If the region which transfers projects as international cooperation does not gain
any concrete benefits, the cooperation will not continue, and it will not be widely
supported in the provider region.
Figure 4 (4) shows fixed-net fishing, which is a traditional cultural resource of
Himi, Toyama Prefecture. By using their fixed-net fishing techniques in international
cooperation, the people of the region were, able to rediscover the value of their community.
The city pursued international cooperation with the aim of promoting the identity of the
region and marketing it in Japan and abroad.
Regarding regional merit, Okinawa, which is located in the longest distance from
the mainland but the closest distance from foreign countries, has more concrete regional
benefits in the field of international cooperation projects.
Case 6, yielded a 30% reduction in living costs in the town of Yonaguni. Case 7,
enabled the direct import of various commodities from China, with a large saving in
transport costs. In addition, the use of shipping channels is now creating "international
trade industries of Okinawa".
When Okinawa tries to extend its operations to mainland Japan and expand them
in this way, there are shortages of local raw materials and labor for processing, and such
shortages are expected to worsen in future.
When that happens, the participating countries of this program, namely
Indonesia, the Philippines and Thailand, with similar natural conditions, will be able to
supply those needs. Also, development exports produced through cooperative projects with
Okinawa could compensate for Okinawa's problems of labor shortage and high wages,
making them more competitive when transferred to the Japanese mainland.
Members from the business people, the representatives of companies, who are
among the participants in this next paper (training course). They are here to search for
cooperative projects, identify success stories, even if they are small, and explain their
potential.
Chapter IV : Promotion of Local Industry, Conclusions and Problems
The preceding paper, chapter I , I would like to mainly discuss the first type "the
classification of regional development" in Figure 1(3), 2 (Preceding paper I , page 5,11),
namely the Regional Industry Promotion Type. I will explain the background, how this
type began and developed.
1 . Why entrepreneurial spirit and fund procurement are necessary
(1) Increase of service industry
Analyzing composition of industry with working population, you can see what
kind of work people in a region have.
Let's see the composition of industry in Japan. Before the world war II (before
1940), proportion of working population for agriculture, forestry and fishery had been
always over 50%. It is common with both in Okinawa and the mainland Japan. When you
refer to Japan, Okinawa is excluded in the period from after the world war II to 1972
because the U.S. Army ruled Okinawa after the war till 1972.
<The mainland Japan>
After the war, mainly from the mid-1950s to 1960s, proportion of the primary
industry declined rapidly and the secondary industry grew. In 1970, 19.3% of working
population was for the primary industry, 34.1% was for the secondary. Combination of
these two consists 53.4% of working population. In this period, Japanese economy changed
from agricultural society to industrial society.
<Okinawa>
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Regional (Developing) Promotion Theory and Practice (II)
The situation in Okinawa has been different from the one in the mainland Japan.
Construction work for the U.S. bases and service for the construction have large
proportion. The secondary industry has 21.1% share and 12.5% of all workers is for
construction. The rest 8.6% of the secondary industry was manufacturing and it was
obviously small proportion. The tertiary industry has 62.2% and it is large proportion
compared with 46.6% in the mainland Japan.
<Changes in industrial composition and advantage of Okinawa>
In 1980s, service industry, which generates no goods, grew rapidly. In 1990s, the
proportion of the tertiary industry reached to 59.3% and the proportion is the largest
among three categorized industries. Japan became service industrial society and
informational society.
However heavy industry led rapid economic growth in Japan, it decreased share
in the Japanese market. On the contrary, high-tech industry dealing light and thin goods
is prevailing. This shows a shift from heavy industry to software industry and service
industry. For example, companies of heavy industry such as the steel industry and the
shipbuilding industry expand their business to customer service business. They even carry
business out in the Disneyland. This change shows the shift in economic from supply side
to demand side and from sale-market to buy-market. The change also expresses a shift
form poor society to affluent society. Thanks to these shifts, now Okinawa has an
advantage to target at niche market. In the near future, these shifts will be happen in
Southeast Asian countries.
(2) Globalization of economy
Another big impact on regional industries is globalization of economy.
The Japanese economy has integrated into the world economy through important
events of economic history. In 1960, the exchange market and trade are liberalized. In
1971, a floating exchange rate system was introduced. In 1985, Plaza Accord was
established. Today Japan has 20% of world GNP and has great influence on world
economy. The income level of Japanese people became highest in the world and they
influence on world market. Japan imports raw material, parts and products. People and
companies in Japan directly invest to abroad. Many production sites are constructed in
abroad, too. The globalization of economy influences on regional promotions both directly
and indirectly. Goods making in a closed economic system now faces limits. It is
important to create industries which have worldwide competence. Now Okinawa has
advantage with its location. Okinawa is close to the border.
(3) Discovery of new merits in regional resources
Under the effect of globalization, economy will be open to both nationally and
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internationally. Competition between regions will be much severe. I would like to explain
regional promotion with regional resources.
Concepts of resources are relative. Human activities make material resource.
Without human resources, resources are just natural materials. For example, without
human activities, coal is just a material or stone, and oil is just liquid. When natural
material provides some good for human, it is resource. In this respect, concept of resource
is not absolute. Here I call resource as "regional resource" when the resource plays
important role in regional promotion. When you take another look at regional resource
with this idea, you see that there are various resources in each region. Some people think
their region lacks resources but they need to have some more knowledge or ability to
make use of existing resources.
It is also important that regional resources exist not singly. Resources are
interacting with each other and forming one system in a region. For example, forest,
wildlife, water, and underground resources are forming ecosystem. Scenery, folk customs
and culture have relationship with the ecosystem. Then they form one system as a whole.
To achieve sustainable development, it is necessary to consider the balance of these
resources. It is not good idea to take one resource singly, separated from the system.
(4) Consideration of marketing
When Japan had poor economy, goods or products sold well. Those days you did
not have to think much about marketing strategies. Income of Japanese people appeared
to be the high class in the world. Materials are overflowing in the market but Japan also
has many problems. Trade conflicts are hot issue and excessive food and material
consumption decrease real richness of life. Waste management is serious matter in the
respect of environment. When people became rich, consumers have obtained discretion to
choice. Those days whatever you made can sell in the market but now you should make
things that sell well. How to sell is mach more important than how to produce when you
try to form new industry.
There are many methods of marketing. Recently, freshness and safety is
important in the agricultural business. If a producer's name or information is shown
(traceable), the product has more value. In the commerce, it is said that young women
have potential and that entertainment is needed to products and services. Other marketing
strategies are suggested everywhere.
I introduce some marketing strategies that are related to regional promotion. ®
You should obtain necessary information. ©You should utilize resource and spatiality of
the region, i.e. selective regional character, ®What name you give to your products and
service is important. ©Quality, appearance, creativity and some humor should be needed
for good products. ©Price should be reasonable though it does not have to be too cheap.
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Regional (Developing) Promotion Theory and Practice (II)
These strategies can be applied to Southeast Asian countries. A case of one village
one products campaign in Thailand adopted these strategies. They cooperated with
Japanese designer sent by JETRO (Japan External Trade Organization). This is one of
marketing strategies for advanced countries.
Major cities in Southeast Asian countries already have had economies where
marketing strategies are important. In the near future, whole country will have customer
oriented economy. It is very important to always keep advanced product development
ahead of other competitors.
2. Globalization, light and darkness for developing countries
Why entrepreneurial spirit and fund procurement are necessary -
Globalization, in itself, is neither good nor evil. It certainly has the potential to
generate wonderful results. For example, Japan and other East Asian nations (South
Korea, Taiwan, Hong Kong, Singapore, and now China) have accepted it of their own free
will and followed it at their own pace, and by doing so, they have benefited greatly from
globalization. Thus, despite the fact that these countries did not follow the Washington
Consensus, or rather, because they didn't follow it, their achievement is dubbed "The East
Asian Miracle" (*3).
The Washington Consensus (*4) sets the conditions and guidelines for assistance
and guidance from developed to developing countries, and it is administered, or rather,
enforced, by the IMF (the International Monetary Fund), with the support of the World
Bank and the WHO.
The problems of the Washington Consensus became obvious with the onset of the
Asian Currency Crisis in 1997.The cause of the crisis, and the tight-money policy applied
by the IMF in response, worsened the economic crisis for developing countries such as
Thailand, Indonesia and South Korea (*5). The economic crisis began with the collapse of
the Thai Baht on 2nd July 1997, and spread to Malaysia, South Korea, the Philippines and
Indonesia.
The top Western investment banks, which had gathered the money of the world's
investors and injected a stream of it as "hot money", saying "Asia is the coming thing",
changed their stance to "it's Asia's structural problem" as soon as things got a little
difficult.Then they pulled the hot money out.The "Asian structural problem" was not a
structural problem at all. Rather, the excessive injection of outside money raised the
currencies too far, so they lost international competitiveness and ultimately fell into crisis.
The IMF rescue measures in response to the currency crisis, which were applied
to Thailand and other developing countries, consisted of first fiscal austerity and then a
tight-money policy, through raised interest rates. These measures caused overall
contraction in those economies. This mistaken structural reform raised unemployment
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mm
fourfold in South Korea and tenfold in Indonesia, while GDP (for 1998) fell 13.1% in
Indonesia, 6.7% in South Korea and 10.8% in Thailand. In Indonesia, 16 private banks
closed down.
The IMF ignore pre-existing conditions (*4) and believe that if inefficient
companies and jobs that had grown behind protectionist barriers were simply done away
with, new companies and jobs would be born, more efficient and more productive.
However, that was not the case, and the textbook conditions of the perfect market and
perfect competition are no more than hypothetical.
New companies and jobs will not spontaneously spring into being without capital
procurement and the entrepreneurial spirit. Both those things are lacking in most
developing countries. Therefore, this course will mainly discuss entrepreneurial and
income-generation activities, with particular reference to venture businesses. Now, I
included business people and entrepreneurs as development and implementation of this
next paper "Regional Promoter Upbringing, Educational Program".
3 . Methods for Regional Promotion as Seen in Okinawa and Regional Development in
Southeast
Asia —Utilizing Characters Common throughout the Neighboring Countries in Asia—
In the next paper, I will introduce attempts and lessons learned at regional
promotion in Okinawa, to link them to an examination of regional promotion methods for
Southeast Asia in Figure 5. The following points are the basic guidelines for the course.
• Focus on the geographical, natural and cultural characteristics that Okinawa and
Southeast Asian countries have in common.
• Use case studies to apply Okinawa's lessons to Southeast Asian countries.
• Investigate the potential for business partnerships, between Okinawa and
Southeast Asian Countries at the company level, with expectations for regional
companies in Southeast Asia to gain some business successes. It is thought that
these successful experiences would build those companies' self confidence for
subsequent projects, and the companies would stand as role models for other
companies and regions.
• Training will target multiple countries via remote technical assistance, so that
trainees can communicate bi-directionally in real time, (not only with the
Lecturer(s) but also) among participating countries.
<Target Participants>
Participants from the Philippines, Indonesia and Thailand will be invited.
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Regional (Developing) Promotion Theory and Practice (II)
JICA Net - Utilizing Characters Common
throughout the Neighboring Countries in Asia
Course Outline
Syllabus
Introduction
Schedule
Web Forum
What's New!
26.May, 2003
■ Update Syllabus (module3)
25, May, 2003
■ Update Schedule ( module 3-5)
Figure 5
DEDICATED HOMEPAGE:
A dedicated homepage for this course was set up to enable
exchanges of information and views between participants
and their lecturers and assistant lectures,and between
individual participants, both during the training period and
afterwards.
Each country's participants will consist of the following three groups;
®Group A: Moderator candidates (central government officials from relevant
departments divisions, leaders of NPOs and NGOs and graduate students).
©Group B: Main actors in regional economies (local government officials,
business persons and entrepreneurs in local areas).
©Group C: University students.
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<References>
(*l)Yoshikawa's Home Page (www.h-yosikawa.com); Access a top page and see "Back from
the edge, turning a policy for under-populated regions into a border policy" on Profile
in English.
(*2) Yoshikawa's Home Page (www.h-yosikawa.com); Access a top page and see "Strong
Ties with China -Giving concrete form to an Okinawa-Fujian economic zone -" on Profile
in English.
(*3)"THE EAST ASIAN MIRACLE : Economic Growth and Public Policy", a research
report by the World Bank.
(*4)The three pillars of the Washington Consensus are fiscal stringency, privatization and
market liberalization (finance, capital and international trade markets).
The failure of the "Washington Consensus"
<The problem of trade liberalization>
Pitting the products of domestic industries with no strength to compete against imports
from stronger foreign countries only invited tragic social and economic consequences.
<The problem of the IMF tight-money policy>
This policy leads to raised interest rates, which prevent the generation of new jobs, and
trade liberalization is pushed forward before the social safety net is in place, thus the
unemployed are driven into poverty.
<The problem of liberalizing capital management
Pushing for the opening of high-risk capital markets in developing countries, where
banking systems are almost entirely non-functional, is not only unfair, it is mistaken as
an economic policy.(On the other hand, Japan and European countries restricted the
liberalization of capital until the 1970s).
The influx of hot money which usually followed capital market liberalization caused chaos.
That was the cause of the '97 Asian Currency Crisis, and the tight-money policy
imposed by the IMF aggravated the crisis in Thailand and Indonesia.
(*5)"Globalization and its Discontents", written by Joseph E. Stiglitz in 2002, was
translated to Japanese and given a very apt title, which can be translated into English
as "The true face of the globalization which brought misery to the world". The author
was a member of the economic advisory council to President Clinton in '93~'96, then
senior vice president and chief economist of the World Bank in '97~2000, so he was
central to the authorities which the book criticizes, a position which must enhance the
objectivity of the book.
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