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Tax Policy in Germany and Japan: A Comparative Study of VAT Reform Policies

This study analyzes the peculiarity of Japanese tax policy by comparing it with Germany. Germany is characterized by high government spending in relation to GDP and at the same time a comparatively low national debt, which indicates effective tax collection. The VAT rate in Germany, which is 19%, clearly exceeds the Japanese rate of 10%, which also leads to differences in VAT revenues. How do the political dynamics regarding VAT in Japan differ from those in Germany? This question is answered by analyzing its introduction and the (failed) increase in tax rates.

The full-length publication is only available in German.

Japan in an Era of Geopolitics: A New Foreign and Security Policy Direction

This publication examines Japan’s foreign and security policies within the context of the evolving global landscape in an Era of Geopolitics. Edited by Associate Professor Michito Tsuruoka of Keio University, it presents insights and analyses from leading experts in the field. The work aims to inform policymakers about Japan’s current geopolitical position and role. By offering a comprehensive overview, it seeks to foster mutual understanding, enhance cooperation, and provide valuable guidance for navigating today’s complex international environment.


Contents


Foreword
Rabea BRAUER   vi

Editor’s Introduction
Understanding Japan’s Foreign Policy and Security in a Changing World   vii
Michito TSURUOKA

Section I  Security and Defense

1. International Politics and Security After Russia’s Invasion of Ukraine and Japan   3
Yoshihide SOEYA

2. Japan’s Security Policy   15
Ken JIMBO
 
3. How Has Japan’s Domestic Political Mood Swayed Its Foreign and National Security Policy?   29
Hiroyuki AKITA
 
4. The Constitution and National Defense   47
Yasuaki CHIJIWA
 
5. Russia’s Invasion of Ukraine Obliges Revision of the Japanese Constitution   59
Akihisa NAGASHIMA
 
6. Japan’s Constitution and Role as a Middle Power   65
Masaharu NAKAGAWA


Section II Japan in the Indo-Pacific

7. Japan and the United States  75
​​​​​ Tsuneo WATANABE

8. Japan and China  89
Shinji YAMAGUCHI

9. Japan and Taiwan  101
Yasuhiro MATSUDA

10. Japan and South Korea 111
Yasuyo SAKATA

11. Japan and North Korea 123
Atsuhito ISOZAKI

12. Japan and ASEAN 135
Mie OBA

13. Japan and Australia 145
Tomohiko SATAKE

14. Japan and India 155
Toru ITO


Section III Japan in a Wider World

15. Japan and Europe 167
Michito TSURUOKA

16. Japan and NATO 183
Tsuyoshi GOROKU
 
17. The Significance of Cooperation Between Japan and Germany 193
Minoru KIUCHI
 
18. Japan and Russia 199
Hiroshi YAMAZOE
 
19. Japan and Ukraine/Eastern Europe 211
Atsuko HIGASHINO
 
20. Japan and Middle East   221
Amane KOBAYASHI


    Section IV Global Challenges

    21. Japan’s United Nations Policy Through the Lens of Human Rights Diplomacy 235
    Maiko ICHIHARA
     
    22. Japan’s Cybersecurity Policies 245
    Mihoko MATSUBARA
    ​​​​
    23. Japan’s Climate Change Policy 251
    Yasuko KAMEYAMA
     
    24. Japan’s Trade Policy 257
    Yorizumi WATANABE
     
    25. Japan’s Maritime Security Policies 269
    Tetsuo KOTANI
     
    26. Japan’s Arms Control and Non-Proliferation Policy 279
    Nobumasa AKIYAMA
     
    27. Japan’s Foreign Aid Policy 291
    Ippeita NISHIDA

      “The Civic Canvas: Highlighting Youth Perspectives” — Selected Essays from the 2023 SEASAT Youth Camp

      Taiwan-Asia Exchange Foundation (TAEF) and the Konrad Adenauer Stiftung’s Regional Economic Programme Asia (SOPAS) are delighted to present “The Civic Canvas: Highlighting Youth Perspectives”, a series composed of half a dozen essays written by emerging young leaders who participated in this year’s Southeast Asia-South Asia-Taiwan (SEASAT) Youth Camp. In our journey to explore the New Southbound Policy and perspectives on democracy, these essays highlight the significance of collaboration, inclusion, and innovation in shaping the future of leadership and cross-border relationships in the globalized world.

      Consolidated Publication: The Making of the Indo-Pacific Economic Framework for Prosperity (IPEF)

      “The Making of the Indo-Pacific Economic Framework for Prosperity (IPEF)” is a series of discussion papers jointly produced by the Konrad Adenauer Stiftung’s Regional Economic Programme Asia (SOPAS) and the Institute of South Asian Studies (ISAS) at the National University of Singapore (NUS). Demographic trends, technological advancements, progress towards regional integration and the region’s rise as an economic powerhouse is discussed against a backdrop of rising geopolitical tensions. Emphasis is placed on the value of multilateralism and the role of international cooperation and diplomacy in maintaining stability and sustaining economic gains.

      The IPEF Discussion Papers represent the diverse perspectives and viewpoints offered by scholars in each of the IPEF member countries. The collection includes contributions from various disciplines such as economics, political science, international relations, and others. This interdisciplinary approach enriches our understanding of the depth and breadth of the emerging Indo-Pacific Economic Framework.

      Access to Financing Through Digitalization: New Opportunities for Women-Owned SMEs A close look at Cambodia, Indonesia, Malaysia, Myanmar, Singapore, South Korea, and Vietnam

      This report is an offshoot of the The Path to Success: How Women-Owned Businesses Transform in the Era of Digitalization Volume 1 and 2 and takes a closer look at how, through alternative financing models, digitalization can expand WSMEs’ financing options. In this report, we explore how new technology-based financing models can not only lower barriers to entry and optimize application and lending processes, but also support WSMEs’ access to traditional financing. By allowing the entrance of fin-tech firms, tech companies, and mobile network providers, alternative financing solutions also create a more inclusive environment for WSMEs seeking funding.

      Age of Ferment: Developments in Asian-European Trade Relations

      The papers in this volume—Age of Ferment: Developments in Asian–European Trade Relations— examine the role of trade in facilitating recovery from the COVID-19 pandemic. The publication contains two sections. The first section deals with Asia’s global value chains’ transformations in selected sectors and also provides a sketch of the region’s economic trajectory following these systemic disruptions. The second section analyses Europe’s evolving trade relations with Asia using the recent free trade and investment agreements as lenses. As trade relations become increasingly more complex, it is essential to find common ground to ensure an inclusive recovery from the ravages of the current crisis. We hope that the perspectives offered in these papers will be able to contribute to these efforts.

      Table of Contents

      Editor’s Introduction by Sanjay Kathuria

      Section I.
      Asia in Transition

      1. COVID-19 and Resilient Supply Chains: A Regional Economic Perspective by Amitendu Palit
      2. The Semiconductor Industry in the Age of Trade Wars, COVID-19, and Strategic Rivalries by Willem Thorbecke

      3. Digital Investment and Post-Pandemic Recovery in ASEAN by Sineenat Sermcheep

      4. Rebooting South Asian Trade for the Post-COVID-19 World by Srinivasan Thirumalai

      5. Sri Lanka’s Apparel Industry: COVID-19 Impacts, Resilience, and Recovery by Anushka Wijesinha

      Section II.
      Asia-Europe Trade Connectivity

      1. European Trade Relations with Asia by Axel Berger

      2. On the Relevance of Free Trade Agreements in the Asia-Pacific: A European Perspective by Jürgen Matthes

      3. Asian-European Supply Chain Risks by Hubertus Bardt

      4. The Future of Europe-Asia Trade Relations after RCEP by Alessia Amighini

      5. A Marriage of Convenience: A Critique of the EU-China Comprehensive Agreement on Investment by Chien-Huei Wu

      6. EU-Asia Relations Post-COVID-19: Green Recovery, Value Chains, and Sustainable Trade by Gauri Khandekar

      *KAS Japan strives to continue providing publications that are suited to the needs of our readers. We would sincerely appreciate if you can take 5 minutes of your time to share your feedback with us on this publication here.

      The Displaced:
      Disrupted Trade, Labour, and Politics in the Mekong River Basin

      The ‘Mother of Waters’ is heavily troubled. There is an immediate need to reset the institutional rules that are either too outdated, lack regulatory teeth, or fail to substantially address both old and emerging concerns. If governments fail to do this, a unique ecosystem will die, in effect destroying the lives of millions of people. The volume, published by the Konrad-Adenauer-Stiftung’s (KAS) Regional Economic Programme Asia (SOPAS), contains country-specific papers or case studies on trade, labour, and China’s growing political influence in the Greater Mekong Region. Topics include (1) labour migration and displacement in the Mekong River basin, (2) the impact of pandemics on economic and social patterns, (3) interregional trade and growing competitiveness, and (4) geopolitical issues resulting from coercive water and energy politics, among others. The chapters also provide discussions on how each state’s respective national framework attempts to address these issues.

      Table of Contents

      Water, Energy, Climate Change, and Geopolitics in the Mekong River Basin: An Introduction by Brahma Chellaney

      Section 1: Water and Energy Politics

      – China’s Water Diplomacy in the Mekong: Drivers and Goals by Hongzhou Zhang

      – Forced Displacement and Economic Development: Assessing the Impacts of China-Funded Projects in Myanmar by Julius Cesar I. Trajano

      – Will the Benefits of Laos’s Future Hydropower Infrastructure Projects Outweigh the Costs? by Jose Ma. Luis Montesclaros

      – China and the Politics of Energy Demand in the Mekong Region: Responses from Laos and Cambodia by Andrea Haefner and Sovinda Po

      – Reassessing the Impact of Hydropower Development Project along the Mekong River Basin in Cambodia by Rasmeykanyka Bin and Ponleu Soun

      – Vietnam’s Response to China’s Growing Dominance in the Mekong: A Quest for Harmonious Coexistence by Phan Xuan Dung

      – Water Politics in the Mekong Region: Vietnam’s Position in the Stakeholder Power-Interest Grid by Nhi Le Phuong Cat and Nghia Huynh Ho Dai


      Section 2: Trade, Economic Development, and Labour Migration

      – Trade, FDI, and Growth in CLMV: Pre- and Post-Pandemic Evolution by Jayant Menon

      – COVID-19 and Rural Development in the Mekong River Region: Case Studies from Thailand and Laos by Hermann Waibel, Chompunuch Nantajit, Phouvong Phami, and Somkid Naprom

      – Water Politics in the Greater Mekong Subregion: Implications and Challenges on Thailand’s Border Trade and Inbound Labour Immigration by Upalat Korwatanasakul and Wannaphong Durongkaveroj

      – Labour Migration in the Mekong Region: Cambodian Workers’ Mobility and Survival Strategies by Naomi Hatsukano

      – Conclusion: The Responsibility to Protect by Frederick Kliem

      *KAS Japan strives to continue providing publications that are suited to the needs of our readers. We would sincerely appreciate if you can take 5 minutes of your time to share your feedback with us on this publication here.

      Japan – ASEAN Study: Japan’s Role for Southeast Asia Amidst the Great Power Competition and its Implications for the EU-Japan Partnership

      Southeast Asia in focus: In no other region is the economic, the political and military rise of China so striking and so powerful; in no other region does Beijing question the rules-based international order (especially in the South China Sea) so aggressively. Adaptation strategies to the rise of Beijing and the growing conflict with the former Pacific superpower differ from country to country. Amid a (fear and/or perceived) declining US engagement in the region, Southeast Asia invariably needs to seek alternatives.

      What alternatives can the rules-based international order offer Southeast Asia and who can serve as a counter hedge vis-à-vis China in the region? And in an era of great power competition, what actions should Southeast Asian countries take to avoid crisis? By examining Japan’s role in Southeast Asia in this research, we have ascertained implications on the queries. Our report also has implication for the EU, which aims to strengthen its relationship with ASEAN according to its Indo-Pacific Strategy.

      Our research group – comprising leading experts from Japan and five ASEAN countries – Cambodia, Indonesia, the Philippines, Vietnam and Thailand – conducted case studies focusing on Japan’s role for Southeast Asia and the region’s changing strategic and economic dynamics due to US-China contestation. Our report includes the analysis of Japan-ASEAN relations from Japan’s perspective, which summarizes the Japan-ASEAN relationship and analyses the options Japan can offer to ASEAN under the US-China bipolar world. The report concludes with policy implications for European and German policy makers and experts.

      This study is a joint project between the KAS office in Hanoi/Vietnam and Koki Shigenoi, Research Associate at the Asia-Pacific Department at KAS headquarters in Berlin/Germany.

      Transitions and Transformations: Perspectives on the Future of Work in Asia

      The publication examines how technology, digitalization, and other relevant forces shape the future of work in Asia. The first section provides an anticipatory look at how life and work is restructured by wide-ranging technological changes. The second section focuses on how our educational systems can be reconfigured to keep up and take advantage of these changes. Lastly, the third section evaluates how similar technologies have different impacts on different sectors of the economy. The papers analyse and look at these issues from different perspectives. Some focus on the regional level, others present country analyses, while a few present micro case studies. We hope that this publication contributes to concrete policy action from both governments and businesses in supporting and preparing human capacities today for our work in the future.

      Table of Contents

      Introduction by Duncan Campbell

      Section I. Anticipating Life and Work in a Digital Society and Economy

      1. Artificial Intelligence and the Future of Work in Asia: Prospects and Challenges by Mohammad Hassan SHAKIL

      2. Is COVID-19 Accelerating the Automation and Digitalization in Emerging Economies in Asia? by Shamima NASRIN and Aisah

      3. ASEAN Digital Masterplan 2025: Future of Work Perspective in Indonesia by Catherine SETIAWAN

      4. Towards Indonesia 2045: Unleashing Indonesia’s Workforce Potentials by Lestary Jakara BARANY and Dandy RAFITRANDI

      Section II. Renovating Education Systems for a New Labor Market

      5. China’s Socioeconomic Development Strategy and Its Education Policy by Joseph Yu-shek CHENG

      6. Digital Transformation: Exploring the Tertiary-Education Offering in Cambodia by Riccardo CORRADO, Sowinta KAY, and Patchanee TUNGJAN

      7. The Future of Jobs and Education: The Role of STEM Uptake and Employability in Penang by Ong Wooi LENG, Lee Siu MING, and Ng Kar YONG

      8. Advancing Knowledge Capital in Transforming the Future of Work in Southeast Asia by John Paolo RIVERA and Eylla Laire GUTIERREZ

      9. Employability Gaps of the Future Vietnamese Workforce in the Digital Era by Giang Hien TRAN, Oanh Thu Thi NGUYEN, and Trang Huyen DANG

      Section III. Same Technology, Different Impacts for Sectors and Labor-Market Subgroups

      10. Working in Policy: The Shift of Labour Structure, Towards Service-Sector Employment in the Age of Digital Expansion in Vietnam by Nguyen Thanh TRUNG and Quan Thu HUYEN

      11. The Impact of Automation on Jobs in the Agriculture Sector in Malaysia by Negin VAGHEFI

      12. Formalizing Informal Work: Case Study of Street Vendors in Hanoi During and Beyond the Pandemic by Trang Vu HONG

      13. Required Skills for the Future Work of Persons with Disabilities: Perspectives of PWDs in Cambodia by Ponleu SOUN

      14. A Work Style Revolution in Japan: The Case of Fujitsu, How the Shift Away From Office-Based Work as a Result of the COVID-19 Pandemic Impacted the Corporate Culture in Japan by Martin FRITZ

      *KAS Japan strives to continue providing publications that are suited to the needs of our readers. We would sincerely appreciate if you can take 5 minutes of your time to share your feedback with us on this publication here.

      Path to Success: How Women-Owned Businesses Transform in the Era of Digitalisation. South Korea Case Study

      One of three case studies that were published in 2022, the South Korea case study explores the present and future new opportunities of digitalisation for South Korean women-owned small and medium-sized enterprises (WSMEs) and provides insights to address the challenges for all ecosystem stakeholders. It is part of a continuation of the same study conducted in 2020 by the Konrad Adenauer Stiftung’s (KAS) Regional Economic Programme Asia (SOPAS) and Woomentum, focusing on the role of digitalisation in helping WSMEs navigate throughout the COVID-19 crisis. The South Korea Case Study is structured around four pillars: 1) access to financing; 2) access to mentoring, networking, and skills; 3) business process management; 4) crisis management (COVID-19).