Journal of Political Economy & Economic History

『歴史と経済』


ABSTRACTS

- No.200-209- No.190-199 No.180-189 No.172-179
No. 179 (Vol. 45, No.3)
April 2003
Masayoshi TSURUMI, "Financial Globalization and Economic Growth in Developing Countries: Lessons from the Asian Financial Crises of 1997"

This paper focuses on a developing country's policy strategy for balanced economic growth under financial globalization.

Sudden outflows of foreign capital in the middle of 1997 occurred as foreign investors responded to macro-economic unbalance in Asian economies in the mid-1990s. Many Asian economies heated up beyond their potential growth rates during the boom of the mid-'90s, through over-investment, over-consumption or a financial bubble. Why did the financial authorities dismiss these signs of macro-unbalance? One of the causes may have been a failure to estimate potential growth ratios based on the NAIRU (Non-Accelerating Inflation Rate of Unemployment) or Phillips curve. In the early 1990s NAIRU or Phillips curve appeared to be shifting leftward in many Asian economies: unemployment across the East and Southeast Asian region decreased from over 4.5% to around 2% although price levels remained stable. Lower unemployment, however, does not necessarily imply a leftward shift of the NAIRU. We need to analyze movements in productivity of both labor and capital. The estimation of NAIRU using modern smoothing filters tends to fail in a developing economy, due to lack of data and rapid changes in unemployment rates.

The lesson from the Asian financial crisis is that a developing country should keep its economic growth rate on a balanced, moderate uptrend. Maintaining balance in economic growth could protect a small national economy from the trauma caused by volatile foreign capital movements. The government may have to adopt various means for capital control in order to reap the benefits of increased inward investment while avoiding the risks. In order to avoid frequently recurring financial crises, a developing economy should make a development plan based on the idea of balanced economic growth. A key tool to achieving that it is through improving the estimation of NAIRU.

Takao KAMIKAWA, "Financial Globalization and the International Monetary System"

The purpose of this paper is to consider the recent financial globalization and its relationship with the international monetary system.

Firstly, I analyze the structure of the recent financial globalization and compare it with the classical globalization prior to 1914. In those days the pound sterling was the preeminent international currency under the gold standard system. Nowadays, the U.S. dollar is the leading currency, and it has dramatically increased its influence under the floating rate system since the 1970s. Particularly since the 1980s, the volume of international capital flows has increased sharply and the structure of the international financial market has become more complicated, as seen in the euro-market and the derivatives market.

Secondly, I note that many developing countries, including emerging countries and countries in transition, adopted capital account liberalization in the 1990s, partly under the influence of IMF policy. However, the 1990s also witnessed currency crises in Europe, Mexico, East Asia, Russia, Brazil and some other emerging countries. One of the most important features of the recent globalization has been the extremely rapid expansion of international liquidity, denominated mainly in the U.S. dollar. I analyze this international liquidity problem and review the causes of and the policy responses to currency crises in the 1990s.

Thirdly, I look at the role of the Japanese yen and the German mark, both of which have been used in international transactions since the mid-1980s, primarily in East Asia and Europe respectively, but without ever approaching the level of international use displayed by the dollar. Meanwhile, the launch of the euro in 1999 may have a great impact on the U.S. dollar's status in future. I examine recent trends in the international monetary system ? not only currency union, but also currency board systems, basket-peg systems, fixed-rate systems and floating-rate systems ? and discuss various plans for reform of the international monetary system.

Eiichi AKIMOTO, "The New Economy and the American Middle Class"

The debate over the status of the middle class in the modern economy has reached boiling point these days in Japan as well as in America. This paper deals with middle-class economic wellbeing in the U.S. during the 1990s. The 1990s were marked by the progress of information technology (IT) and globalization, which led to an increase in employment of over 15 million jobs in ten years. Contrary to the superficial stereotypical arguments, IT producing industries contributed heavily to wage increases and to productivity growth. Income growth in the middle range was especially noticeable during 1995-2000. The recession of 2001, however, seemed putting the break to the equalization trend. Among the demerits of the new economy-type growth, mounting job insecurity stands out most evidently. A decrease in secure full-time jobs added to family insecurity. As a result, husbands are taking second jobs and more housewives are taking employment. Personal bankruptcy has been increasing rapidly. The 'rules' of the new economy, i.e., easy founding and restructuring of small and medium-sized enterprises ? entails corresponding costs on the side of middle-class workers.

Hiroshi SETOOKA, "New Trends Among 'Middle Citizens' in Western Developed Countries"

This paper examines the public values associated with the neo-liberalism that seems to have prevailed all over the world in recent decades. This issue relates to that of why some people have tended toward neo-Nazism or nationalism in European countries, as well as becoming conservative and bellicose in the United States, after the September 11 attack. Taking average people living in the U.S. or EU countries as 'middle citizens' in the Western developed world, this paper makes the following three suggestions.

First, these middle citizens dominate the contemporary world economic system. They constitute less than one-fifth of the world's population, but have enjoyed high and increasing levels of material well-being, while also increasingly wasting natural resources, disrupting the natural environment and exacerbating poverty among people in underdeveloped countries.

Second, the benefits of high post-war economic growth in the developed countries have spread to working-class people, bringing them higher incomes and better welfare systems. This has eroded working-class consciousness to the point where many now view themselves as independent citizens, and not a few have become familiar with the workings of the market economy. In these developed countries it is no longer true that the workers 'have nothing to lose but their chains.'

Finally, neo-liberal economic and political policies have actually won considerable support from citizens living in developed countries where there is a well-developed market economy and welfare society. Unexpected threats to individual and/or national identities, such as attacks by terrorists, may turn that posture of policy support into outright nationalism. When the living conditions of 'middle citizens' are seriously infringed and their powers challenged, their willingness to cooperate with other nations may be eroded.

Yasuo FUKUDA, "Class and the Distribution of Wealth in Japan"

Capital accumulation takes precedence over people's living conditions in Japan. This is a matter of distribution of wealth, in which the company has an advantage over labor. The theme of this paper is to clarify the social system by which the distribution of wealth is determined in Japan.

A comparative analysis of wealth distribution between developed countries shows that Japan is a country where the distribution has a remarkably strong bias toward the company at the expense of labor. This bias can surely be expected to intensify as a result of government 'restructuring' policies. One typical policy of this kind is the tax reform for fiscal year 2003. This tax reform is designed so that the government can raise the income tax on wages, while reducing tax on the profits of big business by providing tax breaks for investment in research and development.

Distribution of wealth is determined through a power relation between capital and labor. That same power relation also determines government policies that impact on the distribution pattern. The point here is to explain the social system that enables big business to hold its advantage over labor in Japan. The controlling power of big business in Japan is analyzed at three levels of society in this paper: First I look at the workings of so-called Japanese management at the company level, second at the subcontracting system at the inter-firm level, and third at the 'iron triangle' coalition that links big business to bureaucrats and politicians at the government level.

Toshihisa NAGASAKA, "New Types of Working and Employment Systems for the 21st Century: The Essence of Dutch-style Work-Sharing"

The Netherlands had a miraculous recovery from a severe unemployment crisis in the early 1980s. Before then, the 'Dutch disease' had been a term used by economists as a synonym for poor economic policy; but as the Netherlands moved to record job growth in the 1990s that term was replaced by an altogether more positive one: the 'Dutch miracle.' Dutch policies for employment growth, welfare reform and corporatism were nicknamed the 'Polder Model.' The model consisted of a total package of policies, including wage restraints and austerity budgets from the early 1980s and the reform of the social security system and employment policy in the 1990s.

This article discusses the Dutch model of work-sharing, which was introduced in 1993 through a tripartite consensus of government, trades unions and employers' organizations. Earlier work-sharing policies had featured reduction of working hours (from 40 to 38 per week in 1982 and then from 38 to 36 in 1993), or early retirement (1982), but this paper focuses specifically on the 'equal-treatment of working hours' policy introduced in 1993.

I explore Dutch-style work-sharing as a new type of working/employment system for the 21st century that has great potential ? to meet the demands of the women's liberation movement for women to be given the chance for self-realization and achievement, while also rehabilitating the family from the damage inflicted on that institution in the 20th century. At the same time the Dutch system is especially applicable to a society with an aging population and a low birth-rate. Accordingly I also discuss the possibility of its introduction in Japan.

Masahiro FUKUSHI, "Local Currencies: The Role of Community Work, from the Viewpoint of the Social Economy"

This paper aims to clarify the role of community work in England from the viewpoint of the social economy, focusing on local currencies, which have been developed all over the world since the 1990s. In this paper 'local currency' is defined as any system of informal community exchange based on general mutual relationships. Local currencies in England started with local exchange and trading system (LETS) in the early 1990s and have been recently developed to Time Bank. This paper clarifies the role of community work in comparison with both types, based on the idea of the full-engagement society proposed by Colin C. Williams.

The social economy embraces a broad range of activities with the potential to provide opportunities for local people and communities to engage in all stages of the process of local economic regeneration and job creation. However, research on the social economy has so far focused on the formal economy expressed in official statistics. The informal economy has been neglected as a result. By looking at the theme of local currencies, I hope to evaluate the under-researched role of the informal economy in the community.

According to Williams' investigations, it is difficult for low-income households to engage in self-help community activities. They are faced with many barriers, such as lack of financial expertise, confidence, physical ability, equipment and social networks. If these barriers to participation in self-help activities could be addressed, there would be possibilities for growth of such activities. Local currencies are a source of such possibilities.

No. 178 (Vol. 45, No.2)
January 2003

Jaedong CHOI, "Private and Joint Land-ownership & Family Division in Russia during the Stolypin Reform"

In socio-economic terms, what distinguished imperial Russia from other European countries was the survival of family ownership of land and other property among the peasantry into the early 20th century.

The Tsarist Russian government was startled by the peasant revolution of 1905 and responded by trying to abolish family ownership and replace it with private ownership on the Western European model ? a model that had never been part of Russian tradition. However, there proved to be an insurmountable gap between the old and new models of ownership.

The Russian government would recognize private ownership only in cases where the householder was the father of the family. In all other cases, it prohibited the establishment of exclusive private ownership and insisted on joint ownership instead. Moreover, if the father of the household died leaving multiple heirs, joint ownership or division of the inherited property were the only two options available.

The initial intention of the Russian government, to turn the household(dvor)into a kind of enterprise aimed at promoting the maintenance and increase of family assets foundered due to the strength of local customs running contrary to the concepts of joint ownership and the division of family property among individual inheritors.

The years following the Stolypin Reform saw an unprecedented increase in the number of registered householders, for various reasons. The new legal necessity to consolidate family property under private ownership prompted moves to legally register previously unauthorized family divisions and prompted new family divisions too. At the same time the abolition of the law restricting family division and joint-ownership household as well also encouraged family division.

At ground level, the reforms had serious consequences: they undermined family relationships, destabilized the system of shared household labour, and ultimately broke up huge numbers of households.

Yu YAMAMOTO, "Reorganizing Mineral Resource Distribution in the 'Nation' of Manchuria: Notes on the Establishment of Nichiman Shoji 1932-1936"

The purpose of this paper is to examine the reorganizing of mineral resources distribution in the 'nation' (puppet state) of Manchuria, via a case study on the establishment of the Nichiman Sh?ji trading company in 1936. Previous studies of the wartime Manchurian economy have tended to focus on various strategies to increase the mining of mineral resources, while neglecting the issue of distribution.

I start by looking at the reorganization problems of the South Manchuria Railway Company (SMR) in the period from 1932 to 1936, showing how reorganization of mineral resource organization prefigured the shift to a wartime command economy in Manchuria. I discuss three separate plans for the establishment of a trading company, drawn up respectively by the Economic Research Society of SMR (Mantetsu Keizai Ch?sakai), Kwantung Army (Kant?-gun), and that of the Commerce Department (Shoji-bu) of SMR. It was the third of these plans that finally came to fruition, resulting in the establishment of Nichiman Shoji. I identify three phases in the process of establishing the company: gapin 1933 - Feb 1934 to autumn 1934, and autumn 1934 to 1936. From the second phase onward, leadership of the trading company plan started shifting to the SMR Commercial Department, mainly because its members were more adept than rival planners at coordinating the complex rivalry between the two major coal-mining companies en route to establishing a wartime command economy.

No. 177 (Vol. 45, No.1)
October 2002
Eri HIROTA, "French Acceptance of the Treaty of Rome: the impact of German competition"

Postwar French economic policy toward West Germany shifted from hostility to cooperation. However, fear of German competition was not easy for France to overcome, and remained an obstacle to the development of the Franco-German economic relationship.

To wipe away the fear, France needed to become more industrially competitive. To this end, France carried out a modernization policy that exposed domestic industry to competition, while maintaining a degree of protection. At first, France was reluctant to join the Common Market for fear that it would become a framework for free competition without any protection. Therefore, France insisted at negotiations on the Treaty of Rome that the Common Market should be accompanied by the harmonization of charges socials. This demand was only partly accepted, but France also won the right to maintain protective measures which had been condemned by members of the OEEC.

Faced with proposal to form a free trade area which emerged in the OEEC during the negotiations, France was forced to make a compromise for fear that Germany might quit the Common Market. The presence of Britain as a buffer against German competition was attractive, but Franco-British cooperation could not help France improve her competitiveness. Hence France's concern to gain acceptance for some protective policies in the Common Market.

Ultimately the Treaty of Rome satisfied French demands, eased French fear of competition, and helped develop Franco-German economic cooperation.

Rie SOFUE, "The impasse of the South Korean Shipbuilding Industry in the 1960s: Tracing the Failed Series of Facility Expansion Plans at Daehan Joseon Gongsa (the Korean Shipbuilding Public Corporation)"

This paper aims to identify the factors hampering development of the South Korean shipbuilding industry in the 1960s by analyzing the drafting and suspension of a series of facility expansion plans by Daehan joseon gongsa (the Korean shipbuilding public corporation).This process eventually led to the privatization of this nationally-owned corporation. The process was strikingly different to that which characterized the development of the South Korean shipbuilding industry from the 1970s onward.

The paper discusses government evaluations of the corporation on the basis of government documents still accessible today, concluding that the privatization resulted from a government view that it no longer played a leading role in the South Korean shipbuilding industry. The official reason for the downgrading of the company was because it failed to introduce the facilities and technology required to compete in the expanded international shipbuilding market. Ultimately the government lacked confidence in the corporation's ability to secure orders after expansion.

The paper then moves on to the 1970s, and the entrance to the shipbuilding industry of the Hyundai group, which has led the South Korean shipbuilding industry ever since. It shows how Hyundai tackled the same issues that defeated the Korean shipbuilding public corporation in a totally different way. It can safely be said that this new approach gave an essential boost to the development of the South Korean shipbuilding industry of the 1970s.

No. 176 (Vol. XLIV, No.4) Summer 2002 Takashi IIDA, "Family, Kin, and Class in the Rural Societies of Mark Brandenburg in the Eighteenth Century: The Case of Ruppin District"

In the light of recent progress in historical research on European families, we study the process through which successive generations in German rural societies of the eighteenth century maintained impartible inheritance, while making new households, divided into various classes, which eventually obtained land and housing. The role of kinship in this process is clarified by considering the case of the Ruppin district in Mark Brandenburg.

In earlier investigations of Central European rural societies practicing impartible inheritance, it has been generally assumed that in the process of obtaining land and residence, the coming generation preferred to obey the principle of neo-localism rather than to live with kin, and became divided into various classes reflecting unequal succession of land. Some writers have contrasted this system of property division with those of rural societies in Eastern Europe, and especially Russia, that were based on the solidarity of patrilineal kin.

We show here that in Ruppin district, the new generation settled down with the help of a cooperative network that spread among kin. In the land-owning classes, those who inherited farms (Bauern-oder Kossatenhof) secured land and residence for their non-inheriting relatives by welcoming them to their farms as marriage partners. This practice of intermarriage acted to prevent non-successors from descending to the class of non-landholders. The farm holders accommodated their non-farm-holding relatives in cottages (Budner-oder Einliegerhauschen) that were built on their own farms or in the villages where they lived. They would also supply financial support in case of poverty. Those who had no kin relationship to the villagers, however, did not enjoy these benefits and sometimes were not even allowed to settle in the villages, since the village community sought to avoid possible relief obligations. Accordingly, the establishment of new households near to kin dwellings was promoted.

Hisatsuna MORI, "The Business Deployment of Formula Feed Manufactures: A Case Analysis of Kyodo Shiryo Co., Ltd."

This article attempts to analyze the developing business of manufacturing formula feed, a product essential to the contemporary livestock industry, in Japan.

I identify three phases in the Japanese industry's development. From the 1960s to 1970s, rapid market growth prompted manufacturers to engage in capital expenditure to enlarge plant and marketing channels in response to new demand. However, severe market competition hobbled market growth and cut into manufacturers' profits from the mid-1970s to the 1980s. Manufacturers integrated their operations to sell directly to customers and thereby avoid price competition and secure market share, but they could not increase profits because of the high cost of promoting sales. From the late 1980s to 2000, manufacturers sought further integration with their customers through the one-to-one correspondence production system engaging to sell specific kinds of feed to specific customers on a made-to-order basis. This was an attempt to cut promotional costs and expand market share. It was partially effective but still there was only limited improvement in profit ratios.

I conclude that the order-made formula feed business relied on a modern transaction system between manufacturers and the large-scale farms that were their clients. The manufacturers' concentration on the order-made formula feed business resulted in reducing the overall scale of the market because manufacturers dealt only with a limited range of farms.

No. 175 (Vol. XLIV, No.3) Spring 2002
Yangchoon KEAK, "Globalization and the Korean Economy"

The first aim of this paper is to analyze the essence of globalization ? a phenomenon characteristic of the present world economy. Globalization, in the form of neo-liberalism centered on America, has been conquering the world since the late 1980s. It has been a particularly powerful influence in the formerly socialist countries and in Asian countries. The second aim is to clarify the nature of the influence of globalization on the Korean economy. As is well known, the Korean economy was faced with a monetary crisis in 1997 and accepted various IMF conditions in exchange for supplies of urgent financing. The main conditions entailed structural adjustment and opening of markets in Korea. Market opening was carried out especially rapidly under the policy of the Kim Dae-jung government after the monetary crisis. I examine the effect this had on the Korean economy, and consider the broader implications for the impact of globalization on national economies and on the world economy. Finally, I discuss some alternatives to globalization.

MIZUNO,
Takashi OGURI, "The Globalization of Accounting, As Seen Through the Accounting Big Bang in Japan"

We have experienced great changes in socio-economic systems under the influence of globalization. There are controversies about how to evaluate globalization, because globalization threatens to destroy the framework of national economy. I view globalization as an aspect of the evolution of capitalism toward integrated worldwide capitalism that transcends national economies. We should not become hostile to globalization, since capitalism inevitably evolves towards a universal world economy in line with economic law.

This paper focuses on changes in accounting, which appear to be forerunners of economic globalization. The so called 'big bang' transforming the institutional framework of accounting has led Japan's centralized economy toward closer integration with the global market economy. I discuss how accounting reforms influence the Japanese economy, especially the management styles of big companies. Many new Anglo-American accounting standards have been introduced to the legal framework covering national companies. For example, the introduction of new consolidated accounting and current value accounting demolishes the practice of maintaining interlocking shareholdings between group companies and constrains them to switch to an American management style.

This globalization of accounting practice has been conducted under the pressure of several international organizations. The International Accounting Standards Committee and the International Organization of Security Commissions are actively concerned with promoting globalization of accounting standards, because cross-border financing has increased, as has the listing of securities of foreign enterprises for trading on the major stock exchanges in the world. While we must accept the globalization of accounting practices, we should strive to reform international accounting standards to ensure strict regulation of multinational enterprises and global capital markets.

Takuyoshi TAKADA, "The Mulitilateral Agreement on Investment (MAI): The Status Quo and Fundamental Problems"

From 1995, OECD member governments pursued ambitious negotiations over the Multilateral Agreement on Investment (MAI). The MAI was to provide a binding and comprehensive framework for international investment, with a high standard of investor protection and capital liberalization. The MAI was strongly promoted by major international business lobbies including the ICC, TABD, etc., and negotiations started with good prospects of success. After two years of seemingly smooth progress, however, the negotiations gradually began to lose momentum and were eventually abandoned.

Three factors were responsible for the failure. First, the conflict of interests among negotiating governments in relation to labor standards and cultural policies turned out to be much more difficult to coordinate than anticipated. Second, hundreds of non-governmental organizations (NGOs) worldwide took advantage of the leakage of the negotiating text through the Internet to turn the MAI into a highly sensitive and controversial political issue. Their sharp criticism of the MAI, along with strong opposition from many developing countries, disrupted the negotiations. Third, an increasing number of sub-federal governments and municipalities in the prospective signatory nations became seriously concerned over the possible erosion of their policy making and regulatory power, and joined MAI-Free zone declarations.

The failure of MAI negotiations provided a number of valuable lessons. To be acceptable and successful, the negotiation forum should be more inclusive of a broad range of governments and civil societies and the procedural administration should be more democratic, balanced and transparent. The rationale for far-reaching and binding capital liberalization requirements for developing countries remains to be demonstrated with sufficient credibility. Finally, developing countries should greatly enhance their negotiating and policy coordinating power in the international arena and should be more proactive in defending their economic and cultural sovereignty.

Masami UMEKAWA, "New right Economic Policies in Britain"

This paper examines the structure and impact of the economic policies of the Thatcher governments. My principle focus is on the effects of privatization of publicly-owned industries and deregulation in the financial sectors.

It is often argued that when a national industry is privatized, its productivity improves. But I cannot find evidence to support this argument. Two points, however, are very clear. First, the public sector, which had been one of the socialist symbols for the left-wingers in the Labour party, sustained serious damage. Secondly, more workers were dismissed in the privatized industries than in others. Trade unions were forced to rethink their campaigning strategies, since many of their members were in the privatized industries.

Deregulation of the financial sector has not necessarily been good for the British economy. It may be possible to say that deregulation has accelerated the 'Wimbledon process' in the financial industries.

Haruko YANAI, "Changes in French Economic Policy and European Integration since the Mid-1980s: France and the EU Facing Globalization"

Traditionally, French economic policy used to be characterized by its emphasis on state intervention. But since 1983, when the Socialist government of the day decided to promote economic policy coordination in the European Monetary System and to abandon Keynesian economic policy, liberal economic reform has progressed in France. The purpose of this paper is to analyse changes in French economic policy in relation to European integration, and to clarify its specific features.

The first section of this paper examines the formation of the Economic and Monetary Union as an instrument to deal with globalization. The second section outlines major changes in the EU economy relating to the progress of European integration. The third section analyses the background of the about-turn in French economic policy, and the development of "Competitive disinflation" policy in France since 1983.

In conclusion, this paper points out that in sharp contrast to the United States, the EU, including France, has developed a form of economic liberalization that is not based on "market fundamentalism".

Yoshiaki KASE, "Internationalization of Food Systems and Japanese Agribusiness"

Recently Japan has witnessed the rapid overseas advance of agribusiness and internationalization of the food system ? a trend accelerated by Japan's obedience to the WTO, application of global standards and acceptance of a higher yen. This change in response to outside pressure is in contrast with America's more proactive style. The purpose of this report is to consider the meaning of this trend in the context of the mechanism of the world economic system of which the food system and agribusiness form a part.

In the world economy, America has been abusing the privilege of holding the world's key currency (seigniorage) without any institutional brake since the Dollar Shock of 1971. The so-called financial globalization is developing in response to America's abuse of seigniorage. International efforts and co-operation accompanying financial globalization have led to the formation of the international division of labour, and trade in industrial products has induced further trade in agricultural products. Trade in agricultural products has increasingly been forced to liberalize in order to grow and stabilize the circulation of the world economy.

I conclude that a remarkable parasitism and decay dominate the overall situation and that there is grave instability in the world economic system.

Shuji HISANO, "Progress of Agricultural Science/Technology Policy and Multinational Agribusiness: A Preliminary Review on the Role of the Nation-State and the Perspective of Civil Society under Globalization"

In the context of neo-liberalism and the trend of globalization, it is often argued that the nation-state is going to decline as it has become unable to perform its full functions. However, the more capitalism becomes global, the more state coordination becomes necessary. Globalization is a never-ending process. Neither monopoly capitalism nor economic globalization can eliminate competitive capitalistic relations. There are no multinational corporations that can acquire advantageous positions in the global market without any political support from the nation-state. Additionally, even if the market were to become united globally, it would cause numerous socio-economic contradictions at local, national, and regional levels. The nation-state is the only entity that can coordinate and conduct legislation and political action so as to avoid an explosion of contradictions, as well as to sustain the global nature of capitalistic relations.

The purpose of this paper is to clarify the dynamism of this relationship between globalization and the nation-state as it appears in the agri-food sector, especially in the progress of the policy on agricultural science & technology (i.e. GMO). The formation of biotechnology policies, such as biosafety regulations or patent policy, shows the significant role of the nation-state. We can observe sharply divided political positions: the United States on one side and on the other, the EU and some developing countries. Of course, each side has some internal contradictions. Nor should we overlook the role of civil society organizations or NGOs, which have successfully appealed to public opinion, as well as influencing international politics and pushing the EU and some countries outside the EU towards opposing international harmonization of biotechnology policy based on the US standard.

In the last section, I critically review some discussions related to the direction of alternative society under globalization; global governance theory and civil society theory. Both theories are useful aids to understanding the emergence of international civil society. However, from the viewpoint of Marxian political economy, they are weak in their treatment of political struggle to change the national politics and capitalist relations, which are both causes of the problems now afflicting civil society, both at national and international level.

No. 174 (Vol. XLIV, No.2) Winter 2002 Mutsuo YAMAMURA, "The Study on Relations between Toyo Menka Co. and Japanese Cotton Manufacturing Companies in 1930's Shanghai"

Japanese cotton manufacturing companies in China were the largest private investments by Japanese private companies before W.W. II. In the developing process of this cotton industry in China, Japanese cotton trading companies played an important role. This paper intends to make clear the relations between cotton trading companies and cotton manufacturing companies in Shanghai mainly through the case study on the business of Shanghai branch of Toyo Menka Co. (Tomen).

In 1930's Shanghai, Tomen Shanghai branch maintained the primary position at cotton and cotton goods markets, in spite of the difficulties felt by its competitors (Nippon menka Co. and Gosho Co.).

Tomen's business and its stable position was based on the close relation with several allied cotton manufacturing companies, including Shanghai Cotton Spinning Co., Kodai Cotton Spinning Co. and Toyota Cotton Spinning Co. Especially the relation with Shanghai Cotton Spinning Co. (Shanghai-bo) was very important for Tomen, who held 58% of Shanghai-bo's stocks and was its general agent. Tomen could maintain the dominant position in the business even under the fluctuant market condition because of its relation with Shanghai-ho. In another words, Shanghai-bo was not only the steady source for profit (dividends and commissions), but also the buffer to avoid the risk from the cotton market fluctuation, whereas other trading companies failed to keep their prominent position.

Byeonghak SEO, "The Structure and Function of the Informal Credit Market in South Korea"

It was in the early 1960s that South Korean economic development got fully underway. Since that time, the Korean economy has been developed under strict government control. Under a succession of export?driven economic development plans, the Korean government selected specific industries that seemed to have strong growth potential, and allocated scarce capital to those industries.

As a result of this economic policy, many small-to-medium sized companies had serious difficulties raising necessary capital and they had no choice but to depend on the informal credit market to solve the problem of capital shortage.

The Korean informal credit market enjoyed rapid growth due to the strong and steady demand. The role of suppliers of capital to this market was played by a few men of property, the so-called KUNSON, a Korean term of signifying rich people.

The Korean informal credit market has continued to meet capital demand not only from small-to-medium sized enterprises but also from individuals, providing various financial services such as asset-backed loans and credit loans.

In conclusion, the Korean informal credit market has adjusted itself to the fast changing Korean economic environment and has played several important roles such as supplying information and capital to small and medium-sized companies. The informal credit market thus functions as a complementary market to the established Korean financial institutions.

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