The Anglo-Japanese Relationship. Looking to the Future

Address by The Rt.Hon.Lord Howell of Guildford to the Daiwa-Anglo-Japanese Foundation. Japan House, Cornwall Terrace NW1 1st December 1999.

 

The story of UK-Japan relations over the last three decades is one of growing intimacy and mutually reinforcing friendship. We have heard it brilliantly set out by Minister Umezu and I am proud to have played a small part in the amazing transformation that has taken place.

But today I want to look at our relationship from quite a different angle. My story begins not with practical agendas but with uglier manifestations - riots at Euston, in Seattle at the WTO meeting, in Jakarta – in Athens yesterday – where tomorrow ?

All growing evidence - if that were needed - that our societies are everywhere are in tension, verging on turmoil

In other words I cannot disassociate UK-Japan issues from the huge technological transformation now sweeping all societies and changing not only ways of business, but ways of governance and indeed ways of life.

I want to begin with three items ( 2 quotes and a bit of history).

1, From Manuel’s Castell’s monumental work The Rise of the Network Society – his opening words -

‘ Towards the end of the second millennium of the Christian era several events of historical significance have transformed the social landscape of human life. A technological revolution, centred around information technologies, is reshaping, at an accelerated pace, the material basis of society.’

2. From Boutros Boutros Ghali ‘The globalisation now taking place requires a profoundly renewed concept of the state. Between the isolated individual and the world there must be an intermediate element. This element is the state and national sovereignty. They respond to the needs of all human beings for identification. In a world both impersonal and fragmented such a need is greater than it has ever been in history’.

3. I want to remind you about Ned Ludd – a character who went around with a mob, circa 1815, smashing up textile machinery. He calculated, correctly, that eventually many traditional jobs would be lost and familiar ways of life destroyed.

The argument that new technology would lead to more jobs cut no ice with him. He believed, probably rightly, that the new jobs would be elsewhere. His followers would be the losers, others would be the gainers.

 

What do these views and events have in common?

Answer – they are all about the interaction between technology and society, and the political kingdom, which is now creating an upheaval in both our societies, and world wide, going far beyond management and communications. Information connects humanity. When that is transformed all relationships and structures are transformed.

What we observe is an increasing distance between globalisation and cultural identity – or as Castell puts it, between the Net and the Self.

These changes deeply disturbing. Luddism spread across the world. – riots, revolution, governments overthrown, ruthless suppression.

DAWNING ON POLICYMAKERS THAT WE ARE NOW HEADING INTO SAME SITUATION WITH SAME POLITICAL ISSUES .

Whether we are dealing with ideas of Japanese uniqueness, or with Western individualism, huge new tensions and potential conflicts arise.

New competition global and ruthless is closing round us, accompanied by its companion outrider – shareholder value – the demanding discipline which tells every corporation in every country that if it wants access to world capital markets then it will have to please world shareholders. That is the death knell of subsidies, cosy monopolies, and much else. – always there but now ten times more pervasive.

Viz farmersbieng destroyed by globalised fod markets, , retailers destroyed by e-trade, high street bankers by the internet, ditto for car-dealers, travel agents, bookstores, ,commodity markets and stock exchanges,newspapers seeing theor classified ads.vanish – and so the list goes on. And thatis just at the retail end. It is the same story all the way trough the supply chain.

Whethre it is Consumers, or Investors – OR voters it is the same story. They want to use their new empowerment to get to the source, the producer, the capital market, the policy-maker. It is DOWN with MIDDLEMEN.

WHAT ROLE IS MODERN STATE SUPPOSED TO PLAY in handling the new technology??

Some answer ‘none’ – state too small for global issues. Too large for regional, local and community issues.

Economics pulls one way – enticingly but alarmingly – empowering the individual and weakening the traditional government structure

Politics pulls the other way – localising and narrowing the issues, encouraging fundamentalism and tribalism, splintering old alliances and compromises and intensifying local and specific interests

My answer ,ON THE CONTRARY, is that the state far from being by-passed, may be even more the appropriate unit on the appropriate human scale, around which cohesion and civic loyalty can be held together. .

Why? Because the moral and social order, which embraces both Authority and the free citizen, both government and governed, must have a definable and identifiable shape. Duty, loyalty, obligation (favourite Japanese concept), must be towards something that has roots and that has grown from the past and continues.

Can abstract entities like ‘the community’ ,or supranational institutions meet this requirement? And if not, how does the cohesive nation state re-design itself so as to do so and to resist the disintegrating political trends?

How in particular, does a Japan, or a Britain, combine an active global role with the legitimacy and democracy that holds societies together in face of great tensions.?

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We have some models to study – 14 c. China – by far the world’s most technologically advanced society until government closed it all down abruptly – with a terrible price being paid in subsequent centuries

Or Isolationist Japan. Until of course the Meiji period turned it all round and opened Japan ,selectively and skilfully to new Western and indigenous technology.

In Europe, by contrast, there were either weak or quarrelling (or light) governments, or numerous bickering mini-states, so that technology was allowed its head unimpeded by powerful central states – except perhaps in France – and loom what happened there.

The Position today with informational revolution is not dissimilar. – Governments subjected to every kind of pressure and lobby to PROTECT.

Viz Japan, EU Viz ECB and electronic cash, or E-Commerce rules.( The Commission is proposing new draft regulations giving the consumer of e-trade products the right to sue in the consumer’s own home court under home laws – which would strangle e-commerce in Europe at birth.)

Japan and UK both face enormous adjustments – can they be models in showing how to handle all these tensions? How do we ‘renew’ the state?

Governments bombarded with contradictory advice interactive and continuous.

Quiet life for bureaucrats and cosy existence for politicians now blown away.

How can Japan and the UK help each other best in these totally new and challenging conditions?

A. Broadly: Balance and recognise social concerns with the march of the information age.

B. Narrowly, enlarge democracy and transparency and accountability. A vigorous and independent Parliament (House of Lords reform?)

Abandon economic pretensions – stop pretending that economies can be managed by jiggling interest rates., or that states need to be owners and providers of services.

Concentrate on real needs of wealth creation – e.g. low and efficient market regulation and light taxation, upheld law and property rights, competition and education and training, plus well focussed social care

Play an international role which is nonetheless fully accountable and connected with grass roots support.

It is an Awesome task. Yet Japan and Britain both face them from a favourable starting point – as ancient and ,until now, cohesive societies. Could they turn out to be the best suited societies to manage the transition – the models for the next era as they were, in their different ways , for the past one ?

Perhaps. But there should be no illusions. The new global Luddites are now out in force. It will take all the mental agility, patience and statesmanship that public men and women can muster to ensure that their concerns, which are real, can be balanced with march of the network world – and to ensure that the civic order is held in harmony with ultra-revolutionary technological trends.

Ends

 

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