ASSESSMENTS

Japan: An Opportunity for Regional Financial Leadership

May 3, 2013 | 15:52 GMT

Japan: An Opportunity for Regional Financial Leadership
Japanese Finance Minister Taro Aso in Washington on April 19

NICHOLAS KAMM/AFP/Getty Images

Summary

Japan may have an opportunity to take on a greater regional financial leadership role through a new Association of Southeast Asian Nations grouping. The current grouping, known as ASEAN+3, which includes Japan, China and South Korea, was formed to increase financial oversight and to create a regional fund for relieving distressed economies. But members of this grouping, particularly China and Japan, have constantly competed for leadership.

ASEAN+3 was supposed to meet on the sidelines of the Asian Development Bank's annual meeting in New Delhi on May 3. However, China and South Korea canceled the talks because of the Japanese Cabinet's recent visit to a controversial shrine and because of ongoing territorial disputes. Seizing on the opportunity, Japanese Finance Minister Taro Aso and Bank of Japan Gov. Haruhiko Kuroda met with their ASEAN counterparts — the first such meeting since 1999 — to launch a new financial framework to supplement ASEAN+3, which, according to the Japanese government, will be known as ASEAN+1. 

Through an ASEAN grouping, Tokyo means to reassert itself. ...

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