Japan's economic presence in Latin America

Latin American Politics and Society, Summer 2001 by Berrios, Ruben

Sanchis Munoz, Jose. Japon y la Argentina: historic de sus relaciones. Buenos Aires: Editorial Latinoamericana, 1997. Notes, bibliography, appendix, 344 pp.

Ninomiya, Masato. 0 desenvolvimento das relapses Brasil-japa"o a luz da expansao economics de regido Asia-Pacifico. Sao Paulo: Kaleidos Primus, 1996. Tables, notes, 219 pp.

Hosono, Akio, and Neantro Saavedra. La economic japonesa sin misterios: reflecciones hacia America Latina. Lima: Universidad del Pacifico, 1996. Tables, figures, bibliography, 273 pp.

Di Tells, Torcuato S., and Akio Hosono, eds. Japon/America Latina: la construccion de un vinculo. Buenos Aires: Grupo Editor Latinoamericano, 1998. Tables, figures, notes, bibliography, 227 pp.

Moneta, Carlos Juan, and Gerardo Orlando Noto, eds. Dragones, tigres y jaguares: relaciones America Latina/Asia-Pacifico, mas ally de la crisis. Buenos Aires: Corregidor, 1998. Notes, tables, figures, bibliography, 269 pp.

Sistema Economico Latinoamericano (SELA). Relaciones America Latina y el Caribe con Asia-Pacifico (1997-1998). Buenos Aires: Corregidor, 1999. Tables, figures, notes, bibliography, 510 pp.

The Japanese presence in Latin America dates back more than a century, to the era when thousands of immigrants settled mainly in Brazil and Peru. Later other Jars nese came, chiefly to Argentina, Bolivia, Mexico, and Paraguay. Japan's economic presence, however, is a more recent phenomenon that acquired significance after the 1960s and 1970s, when trade and Japanese investment in its various forms grew rapidly in the region. The Japanese automobiles, electronics, and machinery began dominating the consumer market with new and improved technologies. Meanwhile, as a result of its high growth rate and its accelerated development, Japan itself became economically strong. In 1975 Japan was elected a member of the Group of Seven.

Over the past 12 years or so, a body of literature has grown on Japanese-Latin American relations. The books under review here are the latest examples of this trend. They cover the historical evolution of such relations, the political-diplomatic issues, and the economic aspects; but with the exception of the book by Jose Sanchis Munoz, the emphasis is on economic issues. The book by Akio Hosono and Neantro Saavedra examines the impressive performance of Japan's postwar economy and the important lessons that Latin America can draw from that experience. The book compiled by SELA examines commercial and financial issues of Latin America's relations with the Asia-Pacific region, including the effects of the Asian crisis and the current and future trend of economic integration.

Two of the books are country-specific. Sanchis Munoz's Japon y la Argentina provides a diplomat's account of the history of such relations dating from the first contact between the two countries. The author also recounts the history of Japanese immigration and the imprint it left on Latin America and on Argentina in particular, a topic that has been amply treated in other country studies published earlier (for Peru see Morimoto 1997; for Mexico, Kunimoto 1975; for Brazil, Handa 1987).

The historical record indicates that immigration to Latin America came in two waves. The first began at the turn of the twentieth century as a result of the relocation of Japan's growing population and poverty in the countryside. Decades later came another wave, known as yobiyose imim, or "by request." Most immigrants came to work in agriculture, but later those who had amassed some capital started their own small businesses. The Japanese diaspora ended with World War II. During the war, many of these immigrants were harassed, deported, and stripped of their property. After the war, the Japanese community became more unified, creating its own social and cultural organizations and getting involved in business activities. Over time, some of the immigrants and their descendants achieved success in various sectors of society. This was true not only in Argentina but also in Brazil and Peru, perhaps the best-known case being former Peruvian president Alberto Fujimori.

The book compiled by Masato Ninomiya examines Japan's relations with Brazil. It is the result of a 1995 seminar commemorating the centennial of the Treaty of Friendship, Commerce, and Navigation between the two countries. In terms of size and resource endowment, Brazil is the most important country in Latin America; Japan has paid particular attention to it because of Brazil's large market and economic potential. Brazilian exports were determined to a significant degree by Japanese investments in Brazil. Japan has also provided export credits for financing Brazilian purchases of equipment and capital goods. Both countries have also signed long-term agreements to secure the supply of Brazilian raw materials and food to Japan. In return, Japan has provided Brazil with higher levels of development aid.

Hosono and Saavedra, in La economia japonesa sin misterios, examine Japan's successful economic experience and its lessons for Latin America. They remind us that Japan was late in the industrialization race, even compared to Argentina. It was mainly in the postwar period, particularly after 1950, that Japan achieved a phenomenal rate of growth, which continued until the oil crisis of 1973. This was known as the period of the Japanese "economic miracle." Japan grew at levels consistently higher than all other developed countries. By 1986, per capita income in Japan had surpassed even that of the United States.