White paper on international trade tacitly approves negative effects of globalization

The 2001 white paper on international trade and industry, published by the Economy, Trade and Industry Ministry on May 18, stressed the need for Japan to proceed with "structural reforms" at home to keep up with globalization.

Akahata of May 19 criticized the white paper for tacitly approving the negative effects of the globalization of the market economy, such as industrial hollowing out at home and corporate restructuring on an international scale.

Japanese capital is taking advantage of Asia's cheap labor, having turned most East Asian countries into their production bases abroad. Such outsourcing to subcontractors abroad is particularly conspicuous in home electric appliances and electronics. In these fields, domestic production decreased, and off-shore production surged.

The white paper for the first time took up the "dark" side of globalization which is being propelled by the rapid progress of information technology (IT).

Akahata, however, criticized the white paper's analysis for failing to refer to the on-going hollowing-out of Japan's industrial base, and Japan's small- and medium-sized producers being crowded out of the market and employment by low-priced Asian production. Akahata described this as multinational corporations disrupting Japan's economy.

The white paper calls for an increase in investments as a step to deal with this situation.

Akahata said the task is for the government to legally regulate the outrageous actions of multinational corporations. (end)