re
state] "that are weakening the competitiveness of their
economies6 and that "countries that use trade policies to
preserve the existing structures of their economies can look
forward only to a faster pace of decline."7
In 1992, Japan's output was already 40 percent of that of
the United States. It has enjoyed more rapid growth in
productivity, exports and per capita income during the past 30
years than the Western nations. Although growth rates have
slowed recently, the Economist predicts Japan will have the
third largest economy in the world by 2020 (behind the United
States and China).8Japan could become a major military power,
but if it does, its economy is likely to suffer. Because of its
limited resource base and geographical location as a Pacific
island located between one military superpower, America, and a
rising military power, China, Japan "despite its stunning
wealth . . . will have trouble converting its high GDP per head
into the . . . brutal currencies of international power.
...