unrest in Indonesia, and the region’s economies, though
recovering, still bear the scars of the crisis. There are
disquieting signs that al-Qaeda has established a presence
in the region. Myanmar remains isolated and appears
mired in a state of chronic underdevelopment and brutal
military rule. The three states of Indochina remain po-
tentially unstable and have not yet been fully integrated
into the region as a whole. All things considered, however,
the situation is more promising today than would have
seemed possible a generation ago. Unlike the case in
Africa and the Middle East, the nations of Southeast Asia
have put aside the bitter legacy of the colonial era to
embrace the wave of globalization that has been sweeping
the world in the post--World War II era.
Japan: Asian Giant
Q
Focus Question: How did the Allied occupation after
World War II change Japan’s political and economic
institutions, and what remained unchange d?
In August 1945, Japan was in ruins, its cities destroyed, its
vast Asian empire in ashes, its land occupied by a foreign
army. Half a century later, Japan had emerged as the
second-greatest industrial power in the world, democratic
in form and content and a source of stability throughout
the region. Japan’s achievement spawned a number of
Asian imitators.
The Transformation of Modern Japan
For five years after the end of the war in the Pacific, Japan
was governed by an Allied administration under the
command of U.S. general Douglas MacArthur. As com-
mander of the occupation administration, MacArthur
was responsible for demilitarizing Japanese society, de-
stroying the Japanese war machine, trying Japanese
civilian and military officials charged with war crimes,
and laying the foundations of postwar Japanese society.
One of the sturdy pillars of Japanese militarism had
been the giant business cartels, known as zaibatsu. Allied
policy was designed to break up the zaibatsu into smaller
units in the belief that corporate concentration not only
hindered competition but was inherently undemocratic
and conducive to political authoritarianism. Occupation
planners also intended to promote the formation of in-
dependent labor unions in order to lessen the power of
the state over the economy and provide a mouthpiece for
downtrodden Japanese workers. Economic inequality in
rural areas was to be reduced by a comprehensive land
reform program that would turn the land over to those
who farmed it. Finally, the educational system was to be
remodeled along American lines so that it would turn out
independent individuals rather than automatons subject
to manipulation by the state.
The Allied program was an ambitious and even au-
dacious plan to remake Japanese society and has been
justly praised for its clear-sighted vision and altruistic
motives. Parts of the program, such as the constitution,
the land reforms, and the educational system, succeeded
brilliantly. But as other concerns began to intervene,
changes or compromises were made that were not always
successful. In particular, with the rise of Cold War sen-
timent in the United States in the late 1940s, the goal of
decentralizing the Japanese economy gave way to the
desire to make Japan a key partner in the effort to defend
East Asia against international communism. Convinced
of the need to promote economic recovery in Japan, U.S.
policy makers began to show more tolerance for the
zaibatsu. Concerned about growing radicalism within the
new labor movement, U.S. occupation authorities placed
less emphasis on the independence of the labor unions.
The Cold War also affected U.S. foreign relations with
Japan. On September 8, 1951, the United States and other
former belligerent nations signed a peace treaty restoring
Japanese independence. In turn, Japan renounced any
claim to such former colonies or territories as Taiwan,
Korea, and southern Sakhalin and the Kurile Islands (see
Map 30.3). On the same day, Japan and the United States
signed a defensive alliance and agreed that the latter could
maintain military bases on the Japanese islands. Japan was
now formally independent but in a new dependency re-
lationship with the United States. A provision in the new
constitution renounced war as an instrument of national
policy and prohibited the raising of an army.
Politics and Government The Allied occupation ad-
ministrators started with the conviction that Japanese ex-
pansionism was directly linked to the institutional and
ideological foundations of the M eiji Constitution. Acc ord-
ingly , they set out to change Japanese politics into some-
thing closer to the pluralistic model used in most Western
nations. Yet a number of characteristics of the postwar
Japanese political system reflected the tenacity of the tra-
ditional political culture. Although Japan had a multiparty
system with two major parties, the Liberal Democrats and
the Socialists, in practice there was a ‘‘go vernment party’’
and a permanent opposition---the Liberal Democrats were
not v oted out of office for thirty years.
That tradition changed suddenly in 1993, when
the ruling Liberal Democrats, shaken by persistent reports
of corruption and cronyism between politicians and
business interests, failed to win a majority of seats
in parliamentary elections. The new coalition govern-
ment, however, quickly split into feuding factions, and
in 1995, the Liberal Democrats returned to power.
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