S H I N Z O A B E A N D T H E F U T U R E O F J A PA N Shinzo Abe and the New Look of Japanese Leadership MICHAEL GREEN AND NICHOLAS SZECHENYI When Japan had seemingly unstoppable economic growth and a relatively benign security environment in Asia, the quality of Japanese leadership did not matter so much. Today Japan has very little margin for error when it comes to leadership. The economy is back on a 2% per year growth trajectory, if the right decisions are made. North Korea has tested a nuclear weapon and China is expanding its soft-power and strategic influence at Japan’s expense. The United States is a reliable ally, but focused almost entirely on Iraq. Japan needs a strong leader more than ever. So when Junichiro Koizumi ended his five year term as Prime Minister in September 2006, a certain uneasiness set in about how well his young protégé, Shinzo Abe, would do in his place. Since taking over as Prime Minister, however, Abe has proven the skeptics wrong. Indeed, he may be demonstrating precisely the leadership credentials most suitable for this tumultuous period in international relations. Nevertheless, Abe faces some serious challenges, beginning with tough elections scheduled for the upper house of parliament in July 2007, and unavoidable decisions on consumption tax increases, agricultural liberalization and the history problem. Abe is off to a strong start on foreign policy to be sure, but he will now need to prove his mettle on domestic politics and the economy to truly make a lasting mark on Japan’s post-war history. And as Japan’s youngest Prime Minister at the age of 52, he has big plans for his nation, ranging from Constitutional revision to expanded strategic relations with India and a tighter defense alliance with the United States. But first he must survive. PRAGMATIC DIPLOMACY Abe began his term with an attempt to overcome one negative legacy inherited from his predecessor: strained relations with China and South Korea. The leaders of both countries refused to meet with Koizumi unless he promised not to visit the Yasukuni shrine, where Japan’s war dead and several Class A war criminals are memorialized. Koizumi continued to visit the shrine anyway and consequently put summitry with China and South Korea on hold. Eager to break the deadlock, Abe pursued a strategy of ambiguity on Yasukuni throughout his campaign for prime minister. Hu Jintao and Roh Moo-hyun took notice and signaled tacit approval of Abe’s position by no longer making public demands for a promise not to visit the shrine. This paved the way for Abe’s visits to Beijing and Seoul in October 2006, his first diplomatic initiatives as prime minister. Japan and China produced the first joint statement in eight years; joint study groups on history were proposed; and Abe’s counterparts expressed solidarity on the need to roll back North Korea’s nuclear ambitions. Pyongyang’s October 9 nuclear test, announced as Abe made his way to Seoul, undoubtedly prompted a shift in emphasis from the past to the challenges of the present. Nonetheless, Abe’s sojourn to China and South Korea began a process of rapprochement and denoted an instinct for pragmatic diplomacy; North Korea’s nuclear test revealed additional attributes: leadership and resolve. On both counts, Abe impressed his domestic public and a Bush administration that is inclined to cooperate closely with Japan, but needs Japan to take proactive care of its own neighborhood as much as possible. COUNTERING NORTH KOREAN PROVOCATIONS Most intriguing was the strong message Abe sent the international community when his government imposed unilateral sanctions against North Korea and then led other members of the United Nations Security Council to support Resolution 1718, which invoked Chapter 7 of the UN charter calling for mandatory sanctions against countries that threaten international security. Abe made a strong plea for sanctions back in July 2006 after North Korea’s missile tests and began a process where Japan, together with the United States, put pressure on China and other nations to support punitive measures against Kim Jong Il’s regime. In so doing, Abe illustrated an ability to orchestrate a multilateral response to a crisis. He then moved quickly to correct the misperception that Japan might act on its resolve by pursuing a nuclear arsenal. Several days after the nuclear test, the policy chief of the LDP and the foreign minister argued publicly that Japan should discuss the nuclear option in the context of a broader debate on security policy. Japan’s nuclear debate goes back decades and often resurfaces in the wake of crises, though the ultimate conclusion—that a nuclear Harvard Asia Pacific Review 29 arsenal could isolate Japan, damage the alliance with the derscores the centrality of the bilateral relationship to his United States, and destabilize the region—has not overall strategic vision for Japan. changed. Nonetheless, the comments by key figures in The notion of shared values and global norms also the Abe administration caused widespread concern about motivates Abe’s strategy to pursue alliances with other an arms race in Asia. Abe stated repeatedly that the govlike-minded nations. For example, he wishes to cultivate ernment of Japan would adhere to its three non-nuclear ties with Australia and India, two countries that view Japrinciples (not to produce, possess, or allow entry of nupan as a strategic partner, and has proposed quadrilateral clear weapons) and had no intention of pursuing an indetalks including the United States. Abe also wishes to pendent nuclear capability. This was complemented by a strengthen Japan’s relationship with the North Atlantic statement from President Bush Treaty Organization and plans to reiterating America’s treaty obliNATO headquarters in Success in foreign policy is often concomitant with visit gations to defend Japan and January 2007 to identify addiimplying the continued viability leadership at home, and Abe’s domestic political tional opportunities for Japan to skills will be tested in the months ahead. of the U.S. nuclear umbrella, a be more forward leaning in repoint reinforced days later dursponse to international chaling a hastily arranged visit to the region by Secretary of lenges. The strategy is impressively ambitious but will not State Condoleezza Rice. Abe’s experience with U.S.-Japan bear fruit unless Abe secures his political footing at home. alliance coordination, honed during his stint as Koizumi’s chief cabinet secretary, also proved vital in formulating a POLITICAL HURDLES response to the North Korean crisis. Abe faces a hostile opposition party eager to embarrass him in the lead-up to elections for the upper house AMBITIOUS AGENDA of parliament scheduled for July 2007. He cleared one The Abe agenda is not limited to improved relations small political hurdle by rallying the LDP to victories in with Japan’s neighbors and steadfast opposition to North two local by-elections in October 2006. Abe then engiKorea’s nuclear ambitions; his policy objectives move far neered a major feat in the Okinawa gubernatorial election beyond the geographic parameters of Northeast Asia. He that followed, securing victory for the LDP-backed canwould like to revise Japan’s pacididate who has expressed a willfist constitution so as to particiingness to cooperate with the pate in a broader range of decentral government on the reafense operations and cement lignment of U.S. forces there, a Japan’s leadership role in global critical component of a bilateral security, a long-term goal that agreement announced in May provides context for the rest of 2006. Abe’s diplomatic forays in his agenda. He is developing a the wake of the North Korea Japanese version of the U.S. crisis boosted his approval ratings National Security Council to but surveys released in December improve coordination with U.S. 2006 indicate a decline to fifty counterparts and continue to percent on average, due in large strengthen the U.S.-Japan allipart to concerns about his comance. During his first meeting mitment to economic reform. A with President Bush as prime failure to instill public confidence minister, held on the margins of in his economic agenda could the November 2006 Asia Pacific leave Abe extremely vulnerable. Economic Cooperation Forum Various dynamics in Japan such (APEC) in Vietnam, Abe echoed as demographic change, a declina theme developed during the ing birth rate, high government Koizumi administration: that the debt, and a perceived increase in U.S.-Japan alliance is based on income disparity present unpleasfundamental values such as freeant choices for policymakers. dom, democracy, basic human Abe has several prominent advisflickr.com/photos/toyochin/ rights and the rule of law, and ers and preserved a special council that strengthening bilateral cooperation would maintain on economic policy created by Koizumi to advance necpeace and security in Japan, Asia, and throughout the essary reforms outside the confines of the government world. Abe sees the U.S.-Japan alliance as a global alliance bureaucracy. Nonetheless, he has offered little by way of and a key departure point for Japan’s desire to assume details other than the need to promote growth and reduce greater leadership roles abroad. Abe’s emphasis on syngovernment spending. He has studiously refrained from ergy between alliance managers in the two countries uncommenting on calls to increase the consumption tax, an 30 Harvard Asia Pacific Review! understandable position in the context of an upcoming parliamentary election. Rhetorical statements on growth and increased economic opportunity may suffice to secure victory in the upper house elections, but neglecting to address fiscal imbalances could fuel suspicion that Abe favors a return to the pump-priming style of economic management Koizumi railed against. Couple this with concerns about persistent agricultural protectionism and little public discussion of regulatory reform and the Abe administration ends up painting a troubling picture. A recent political move by the LDP aimed at securing additional votes in the upper house elections generated even greater uncertainty about Abe’s commitment to reform and is widely attributed to the recent decline in his public approval ratings. The symbol of reform during the Koizumi administration was the former prime minister’s determination to privatize Japan’s postal savings system, a primary source of pork barrel spending. Koizumi was so wedded to the cause that in August 2005 he expelled several members of the LDP who refused to support his reform initiatives, which resonated well with the public and propelled Koizumi and the LDP to a sweeping victory in the September 2005 general election. Much to the public’s bewilderment, the “postal rebels” were reinstated in November 2006, perhaps signaling Abe’s willingness to temper reform in favor of traditional consensus-based policymaking in the LDP. The upper house elections are several months away, but a sustained backlash against Abe’s presumed retreat from reform amid concerns about a vague economic policy agenda could significantly raise the bar he must clear to secure his leadership position atop the hierarchy of Japanese politics. LEADERSHIP TEST Shinzo Abe has performed well thus far as Japan’s prime minister and befuddled his critics by displaying a diverse range of diplomatic skills. Clearly a pragmatist he chose China and South Korea as his first foreign destinations to repair fractured bilateral relationships critical for regional stability. Yet he is also a strategic thinker and balanced his overture to China with a new emphasis on partnership with India and Australia. He has managed to mix this realpolitik with a very un-Japanese commitment to advancing global norms and values such as democracy and the rule of law. His critics cannot decide whether he is a neocon or a neorealist. Perhaps he is his own unique combination of the two. He can also thank Kim Jong Il for allowing him to demonstrate his deftness as a national security policy manager in the wake of the missile and nuclear tests. Questions remain as to the sustainability of Abe’s ambiguous position on the Yasukuni shrine; varying approaches to the North Korean issue, and a strategic rivalry with China, will continue to complicate Japan’s relationships with its neighbors; and Abe is just beginning to expand Japan’s alliance relationships to fit his broad foreign policy goals. Though still early, he appears to possess traits of a seasoned leader who can address urgent issues on the world stage. In July 2007 the Japanese people will decide if Abe’s economic policies are as progressive as his diplomatic agenda. Success in foreign policy is often concomitant with leadership at home, and Abe’s domestic political skills will be tested in the months ahead. A solid LDP victory in the upper house elections will take Abe one step closer toward realizing his bold vision for Japan’s future. A setback could render his agenda ambitious but short-lived. He has surprised skeptics in the past and will work tirelessly to prove himself yet again as the right person to maintain Japan’s economic vitality and cement its status as a leader in the Asia-Pacific region and beyond. Michael Green is senior adviser and Japan chair at the Center for Strategic and International Studies (CSIS) and an associate professor of international relations at Georgetown University. Nicholas Szechenyi is a fellow and assistant director to the Japan chair at CSIS. Harvard Asia Pacific Review 31