Why Nobody Invests in Japan
Tokyo’s Failure to Welcome Foreign Capital Is Hobbling Its Economy
THE trustful acceptance of false solutions for our perplexing problems adds a touch of pathos to the tragedy of our age.
The tragic character of our age is revealed in the world-wide insecurity which is the fate of modern man. Technical achievements, which a previous generation had believed capable of solving every ill to which the human flesh is heir, have created, or at least accentuated, our insecurity. For the growth of technics has given the perennial problems of our common life a more complex form and a scope that has grown to be world-wide.
Our problem is that technics have established a rudimentary world community but have not integrated it organically, morally or politically. They have created a community of mutual dependence, but not one of mutual trust and respect. Without this higher integration, advancing technics tend to sharpen economic rivalries within a general framework of economic interdependence; they change the ocean barriers of yesterday into the battlegrounds of today; and they increase the deadly efficacy of the instruments of war so that vicious circles of mutual fear may end in atomic conflicts and mutual destruction. To these perplexities an ideological conflict has been added, which divides the world into hostile camps.
It is both necessary and laudable that men of good will should, in this situation, seek to strengthen every moral and political force which might give a rudimentary world community a higher degree of integration. It was probably inevitable that the desperate plight of our age should persuade some well meaning men that the gap between a technically integrated and politically divided community could be closed by the simple expedient of establishing a world government through the fiat of the human will and creating world community by the fiat of world government. It is this hope which adds a touch of pathos to already tragic experiences. The hope not only beguiles some men from urgent moral and political responsibilities. It tempts others into irresponsible criticisms of the necessarily minimal constitutional structure which we have embodied in the United Nations and which is as bad as its critics aver only if a better one is within the realm of possibilities.
Virtually all arguments for world government rest upon the simple presupposition that the desirability of world order proves the attainability of world government. Our precarious situation is unfortunately no proof, either of the moral ability of mankind to create a world government by an act of the will, nor of the political ability of such a government to integrate a world community in advance of a more gradual growth of the "social tissue" which every community requires more than government.
Most advocates of world government also assume that nations need merely follow the alleged example of the individuals of another age who are supposed to have achieved community by codifying their agreements into law and by providing an agency of some kind for law enforcement. This assumption ignores the historic fact that the mutual respect for each other's rights in particular communities is older than any code of law; and that machinery for the enforcement of law can be efficacious only when a community as a whole obeys its laws implicitly, so that coercive enforcement may be limited to a recalcitrant minority.
The fallacy of world government can be stated in two simple propositions. The first is that governments are not created by fiat (though sometimes they can be imposed by tyranny). The second is that governments have only limited efficacy in integrating a community.
The advocates of world government talk of calling a world constitutional convention which would set up the machinery of a global constitutional order and would then call upon the nations to abrogate or abridge their sovereignty in order that this newly created universal sovereignty could have unchallenged sway. No such explicit abnegation has ever taken place in the history of the world. Explicit governmental authority has developed historically from the implicit authority of patriarchal or matriarchal tribal forms. Governments, so established, have extended their dominion over weaker neighbors. But the abridgment of sovereignty has always been indirect rather than direct; or it has been attained by the superimposition of power.
The notion that world government is a fairly simple possibility is the final and most absurd form of the "social contract" conception of government which has confused modern political thought since Hobbes. It must certainly be obvious by this time that the conception of a state of nature in which all men were at war with all, and of a subsequent social contract through which men established a power over themselves to avoid mutual annihilation, is a pure fiction. A small human community is as primordial as the individual. No group of individuals has ever created either government or community out of whole cloth. One reason why the social contract conception of government has a particular plausibility with us is because the United States came closer to a birth by "contract" than any other nation. But the preamble of our constitution declares that its purpose is to establish a "more perfect union." That is a very telling phrase which presupposes a previous union. This previous union was in fact established on the battlefield in a common struggle against a common foe; it needed only to be made "more perfect." It may be observed in passing that, though the 13 colonies had never enjoyed sovereignty, they did not find it too easy to submit what had only been potential, and not actual, sovereignty to the authority of the federal union. We fought a civil war before it was proved that they had in fact done this without reservations.
When the question is raised whether the nations of the world would voluntarily first create, and then submit to, a super-national authority, the possible reluctance of nations, other than Russia, to take this step is fortunately or unfortunately obscured by the Russian intransigeance. The Russians have declared again and again that they would leave the United Nations if the veto power were abolished. This means that Russia, as a prospective minority in a world community, is not ready to submit her fate to the will of a majority, even in such a loose organization as the United Nations. It is therefore obvious that she would be even more unwilling to submit her sovereignty to a more highly integrated constitutional order.
The proponents of world government have two answers to the problem posed by Russian intransigeance. One is to assert that the Russians never have had the chance to accept or reject a genuinely constitutional world order; and that there are real possibilities of her acceptance of a constitution which is not weighted against her. This answer contains in a nutshell the rationalist illusion implicit in world government theories. It assumes that constitutions can insure the mutual trust upon which community rests. Actually, even the best constitution must, if it is democratic, set up some kind of majority rule. It is not workable if there is not enough common ground between majority and minority to assure that a majority will not take advantage of a minority, or that the minority will not suspect the majority of injustice, even though without cause. There are republics in South America with quite nice constitutions in which a defeated minority starts conspiracies against the government, usually through military channels, on the day after election.
The other answer to the problem of Russian intransigeance is a proposed creation of a "world" government without Russia. Thus in the name of "one world" the world would be divided in two. Proponents of world government are always ready with criticisms of the ambiguities in the Charter of the United Nations, without recognizing that those ambiguities correspond to the actual historical situation. The Security Council is, for instance, a bridge of a sort between the segments of a divided world. They would destroy that bridge for the sake of creating a more logical constitutional system. This done, they look forward to one of two possibilities.
One is that Russia, faced with a united opposition, and concluding that she would not have to sacrifice her Communist Government but only her ambition to spread Communism, would ultimately capitulate and join the world federation. This abstract approach to political problems is completely oblivious of the dynamism of Communism.
The other course chosen by some advocates of world government is to create such a government without Russia and to divide the world more consistently in the name of the principle of "one" world. If this should lead to a world conflict they believe that the agonies of war will be assuaged for us by our knowledge that we are at least fighting for a principle of ultimate validity.
There is, of course, a possibility that a closer political integration of the non-Communist nations may save the world from war by the creation of an adequate preponderance of power in the west. But such an objective is not to be reached by loftily disavowing "power politics" in favor of "law." The world federalists who accept the inevitability of war walk bravely up the hill of pure idealism and down again into the realm of pure power politics. In this journey they rid themselves of the logical and moral ambiguities of the much despised quasi-constitutional system of the United Nations. Their brethren who are in a less exalted frame of mind will continue to put up with the Charter for the sake of preserving a bridge, however slight, between Russia and the west, making the best arrangements they can to restrain Russia, while trying at the same time to strengthen the existing world security agencies.
The ambiguities in the Charter of the United Nations which so outrage the advocates of world government are in fact the consequence of seeking to guarantee two, rather than one, objectives. The one objective is to preserve the unity of one world, even though it be seriously divided, and to provide a meeting ground between east and west where some of the tensions and frictions may be resolved. The other is to preserve the integrity of our "way of life" against a tyrannical system which we abhor. The Russians, in so far as they are honest devotees of a Marxist dream of world order, are presumably in the same position. Each of us hopes ultimately to create a world order upon the basis of our conception of justice. Neither of us is ready, at the moment, to submit our fate to a world authority without reservation, so long as the possibility remains that such an authority could annul a system of law and justice to which we are deeply committed.
So far we have considered only the difficulties of creating a world government by constitutional fiat. But a much more serious defect in world government theories is to be found in their conception of the relation of government to community. Governments cannot create communities for the simple reason that the authority of government is not primarily the authority of law nor the authority of force, but the authority of the community itself. Laws are obeyed because the community accepts them as corresponding, on the whole, to its conception of justice. This is particularly true of democratically-organized communities. But it is well to observe that even in traditional, non-democratic communities of the past there was a discernible difference between tyranny and legitimate government. It consisted precisely in the fact that a legitimate government relied primarily upon the implicit consent of the community.
Even in a national constitutional system, such as our own, we have seen how limited is the power of law whenever a portion of the community adheres to moral standards which differ from those of the total community. We have had this experience both with the prohibition movement and with the question of civil rights for Negroes in southern states. And where is the police force, loyal to a world state, to come from? The police power of a government cannot be a pure political artifact. It is an arm of the community's body. If the body is in pieces, the arm cannot integrate it.
The priority of the community to its laws and its use of force does not mean that both law and force may not have limited efficacy in perfecting the organization and preserving the integrity of the community. Good constitutions provide for the rational arbitrament of many conflicting and competing forces which might otherwise tear the community apart. Preponderant force in one part of the community may also so shape the social forces of the total community that its use need not be perpetual. Thus the preponderant force of the northern states decided the issue whether our nation was a nation or merely a federation of states. But force is no longer necessary to guarantee the loyalty of the southern states to our union. The ancient empires of Egypt, Babylon and Persia were created through the preponderant force of a particular city-state; but they finally achieved a unity which did not require the constant application of force. It must be noted that this pattern of coalescence of communities gives us no analogy for the creation of a world community in democratic terms, that is, without the imposition of preponderant power. The best analogy for our present world situation is to be found in Greece rather than in Egypt or Babylon. The Greek city-states never achieved the imperial unity of the oriental empires. The threat of Persia did finally prompt the organization of the Delian League; but the rivalry of Sparta and Athens for the hegemony in the League resulted in its disintegration. The unity of Greece was finally achieved under Philip and Alexander of Macedon. But this imperial unity was also a tyrannical nemesis for Greek culture. The analogy in present global terms would be the final unification of the world through the preponderant power of either America or Russia, whichever proved herself victorious in a final global struggle. The analogy teaches us nothing about the possibilities of a constitutional world state. It may teach us that though the perils of international anarchy are very great, they may still be preferable to international tyranny.
The coalescence of communities from city-states to empires in the ancient world, and from feudal entities to nations in the modern period, was frequently accomplished only by the imposition of preponderant power. The fact is particularly significant, since all of these communities could rely upon all sorts of "organic" factors for their force of cohesion which the rudimentary world community lacks. By organic factors, I mean such forces as the power of ethnic kinship, the force of a common history—particularly the memory of joint struggles against a common foe—a common language, a common culture and a common religion. We do have examples of ethnically and religiously pluralistic nations and empires, but they possess a basic homogeneity of some kind, underlying the differences. In modern India, where religious differences are thoroughgoing and highly localized, it proved impossible to construct a constitutional system which could allay the mutual fears of Hindus and Moslems. The birth in blood of these two nations, once the unifying force of an imperial power was removed, ought to teach our world planners more about the limited efficacy of constitutions than they have evidently learned. There were certainly more common elements in the situation in India than the world community will possess for a long time to come. Despite these common elements, the unity of India proved to be unattainable.
Sometimes the world planners recognize the absence of organic forces of cohesion in the world community. Thus Erich Kahler [i] sees that a world constitution lacks the "substratum" of organic and historical forces, which characterize the constitutions of national governments. But he draws the conclusion that a world constitution "must create the substratum to which it is to be applied." The proposed method of creating the substratum, according to Mr. Kahler, is to use "regions" rather than "extant states" as electoral units in the world constitution, for "if we base the world government on the states, we will fail in the essential task of creating the substratum." The illusions of omnipotence which infect the thought of this kind of political idealism could not be more vividly portrayed. There is no explanation of how states, who have a sovereign voice, would be persuaded to grant this electoral power to "regions" which would have no such voice in a world constitutional convention. The idea probably is that there would be a nonrepresentative constitutional convention of "experts" and the hope is that sovereign states will meekly accept the dictum of the experts that regions offer a better "substratum" for the world community than extant states. Nor is any attempt made to deal with the difficulty that many of the regions which would hopefully be created are so little integrated that an electoral canvass would be completely meaningless in them.
The fact is that even the wisest statecraft cannot create social tissue. It can cut, sew and redesign social fabric to a limited degree. But the social fabric upon which it works must be "given."
The international community is not totally lacking in social tissue; but it is very scant, compared with that of particular states. Let us briefly assess the various factors in it. Most important as a force of social cohesion in the world community is the increasing economic interdependence of peoples of the world. But it is important to contrast this economic interdependence immediately with the wide disparity in the economic strength of various nations. At the climactic dinner of the World Republic convention, held in Chicago in October 1948, Professor Urey, the atomic scientist, expressed the conviction that the "inclusion of the illiterate, poverty-stricken, overnumerous masses of the Far East" constituted the major problem of the world state. He believed that the white race would not tolerate being outvoted by Asiatics. He therefore proposed a system of weighted votes in favor of nations with high literacy and abundance of raw materials and industrial production. He felt certain that the more "enlightened" Orientals would not object to this procedure. But an objection, from Thomas Tchou, sitting two places to the left of Professor Urey, was immediately forthcoming. Weighted representation, he declared, was immoral. [ii] Thus the real problems have an inconvenient habit of peeking through, even at a dinner of a World Republic convention.
A second factor in the social tissue of the world community is the fear of mutual annihilation, heightened in recent years by the new dimension which atomic discoveries have given to mankind's instruments of death. We must not underestimate this fear as a social force, even as we must recognize that some culturally pluralistic communities of past history have achieved some cohesion through the minimal conviction that order is to be preferred to anarchy. But the fear of destruction in itself is less potent than the fear of specific peril from a particular foe. There is no record in history of peoples establishing a common community because they feared each other, though there are many instances when the fear of a common foe acted as the cement of cohesion.
The final and most important factor in the social tissue of the world community is a moral one. Enlightened men in all nations have some sense of obligation to their fellow-men, beyond the limits of their nation-state. There is at least an inchoate sense of obligation to the inchoate community of mankind. The desperate necessity for a more integrated world community has undoubtedly increased this sense of obligation, inculcated in the conscience of mankind since the rise of universal, rather than parochial, philosophies and religions. This common moral sense is of tremendous importance for the moral and religious life of mankind; but it does not have as much immediate political relevance as is sometimes supposed. Political cohesion requires common convictions on particular issues of justice; and these are lacking. If there is a "natural law" which is "self-evident" to all men, it certainly does not contain very much specific content beyond such minimal rules as the prohibition of murder and theft and such general principles of justice as the dictum that each man is to have his due. There is little agreement on the criteria by which the due of each man is to be measured.
There is a special irony in the fact that the primary differences in the conceptions of justice in the world do not, however, spring from religious and cultural differences between east and west. They can, therefore, not be resolved by elaborate efforts at cultural syncretism between east and west. The primary differences arise from a civil war in the heart of western civilization, in which a fanatical equalitarian creed has been pitted against a libertarian one. This civil war has become nationally localized. Russia has become the national center of the equalitarian creed, while America is the outstanding proponent of the libertarian one. The common use of the word "democracy," together with the contradictory interpretations of the meaning of that word, is the semantic symbol of the conflict. The idea that this conflict could be resolved by greater semantic accuracy is, however, one of the illusions of a too rationalistic culture which fails to understand the power of the social forces expressed in contradictory symbols.
In short, the forces which are operating to integrate the world community are limited. To call attention to this fact does not mean that all striving for a higher and wider integration of the world community is vain. That task must and will engage the conscience of mankind for ages to come. But the edifice of government which we build will be sound and useful if its height is proportionate to the strength of the materials from which it is constructed. The immediate political situation requires that we seek not only peace, but also the preservation of a civilization which we hold to be preferable to the universal tyranny with which Soviet aggression threatens us. Success in this double task is the goal; let us not be diverted from it by the pretense that there is a simple alternative.
We would, I think, have a better chance of success in our struggle against a fanatical foe if we were less sure of our purity and virtue. The pride and self-righteousness of powerful nations are a greater hazard to their success in statecraft than the machinations of their foes. If we could combine a greater degree of humility with our stubborn resolution, we might not only be more successful in holding the dyke against tyranny, but we might also gradually establish a genuine sense of community with our foe, however small. No matter how stubbornly we resist Russian pressure, we should still have a marginal sense of community with the Soviet Union, derived from our sense of being involved in a common fate of tragic proportions and from a recognition of a common guilt of mutual fear. If community in basic terms is established by various organic forces of history, it must finally be preserved by mutual forbearance and forgiveness.
There is obviously no political program which can offer us, in our situation, perfect security against either war or tyranny. Nevertheless we are not prisoners of historical destiny. We shall have constant opportunity to perfect instruments of peace and justice if we succeed in creating some communal foundation upon which constitutional structures can rest. We shall exploit our opportunities the more successfully, however, if we have knowledge of the limits of the will in creating government, and of the limits of government in creating community. We may have pity upon, but can have no sympathy with, those who flee to the illusory security of the impossible from the insecurities and ambiguities of the possible.
[i] Erich Kahler, "The Question of a 'Minimum Constitution.'" Common Cause, June 1948.
[ii] Common Cause, December 1948, p. 199.