Troubled Times: U.S.-Japan Trade Relations in the 1990s

Rating:
Summary: a highly informative look at Japan's economy
Review: "Troubled Times" is a highly informative account of Japan's economy by a former employee of the US embassy in Tokyo. Some of the statistical material in chapter 2 would probably not pass muster with professional economists, but the description of bilateral trade negotiations between the US and Japan is the best around. Recommended reading for whomever takes office in January 2001.

Rating:
Summary: Heavy-Handed account of Japan's Economy
Review: Lincoln's previous book, Japan's Unbalanced Trade was written in 1990, but the way he constantly blurbs it in Troubled Times you would think it's the sequel. Never the less, Troubled Times (Brookings, 1999) builds on Lincoln's theme of a Japan that shortchanges its trading partners through protectionist measures, both lawful and structural.

The first half of Troubled Times is a mind-numbing malaise of number crunching. It's Lincoln at his best (or worst), presenting a litany of charts and graphs,accompanied by similarly disinterested text, that intimidates the reader. It compels him/her to meekly nod in agreement with his findings.

Lincoln summons the economic gods of Intra-Industry Trade, comparison pricing, Direct Investment (foreign and domestic)in order to make his points, at one time proclaiming:As the yen appreciated rapidly from 1993 to 1994, retailors did not adjust prices continuously(69). Interesting!

Yet, while Lincoln uses these numbers to blatantly intimidate and convince his reader of Japan's unfair trade practices (really, not trading enough), as well as its impact upon Japan's consumers, he also charges Japan with having a poor rural infrastructure ("What company would want to invest in a developed country where there are no flush toilets at home?"), and a "multi-layered " economy that acts as a non-tariff barrier. He dedicates more than a few pages to Japan's modern business culture, especially Japan's Amukadari (literally "descending from heavan") and keiretsu business relationships that make it difficult for foreign companies to establish in Japan, and promotes, in general, an inefficient system.

However, Lincoln's premise throughout is that Japan is developed, modern country. Which leads one to the question, how can an inefficient country, with poor rural infratructure, and an awkward (unique) business climate be considered mature, especially when you're comparing it to the ultimate hegemonic power?

Granted, Mr. Lincoln makes some exellent points that are well-taken. But, there is point at whihc one must stop and consider the situation. Japan, while light years ahead of Asian economies, has much of its development grounded in the post-war era. Despite the fact it was rebuilt by America, one cannot assume it IS America and compare it as so.