This is the first volume to appear in what will be a definitive multi-volume series covering the whole of modern Japanese economic history. Written by the leading Japanese scholars, the volumes have been abridged and rewritten for a non-Japanese readership. Dual Structure covers the first half of the twentieth century when Japan's economic modernization brought the country into the circle of world powers between the two world wars; the economic system established in the Second World War transformed the economy; and postwar reconstruction provided the foundations for an extraordinary economic dynamism.

It is hardly possible to overrate the Pacific Basin in its economic and political importance. Currently, it is one of the economic regions with the highest dynamic growth throughout the world. Economically this region is sometimes considered to be the future centre of the world econom- often with reference to well-known authors such as Arnold Toynbee and Herman Kahn who predicted the inevitable approach of a Pacific century. The economic development of the Pacific Basin has proceeded far already following Japan's ascent into the position of an economic superpower. Considering the concentration of East and South-East Asian dynamic developing countries the Pacific Basin has meanwhile developed into a regional centre of economic activities. Furthermore the ambitions and in terests of three nuclear powers - the USA, the Soviet Union and China - collide in this region. Obviously these countries increasingly perceive and take into account the political and strategic importance of this region."

The changes taking place in Eastern Europe and Asia are a particular challenge for Japan and Germany. As the immediate neighbours, they are both affected by the economic and social transformations in these regions. Yet, since they are strong economic powers, they have the potential necessary to influence developments, such that Eastern Europe and Asia advance to reciprocal advantage. This volume looks into a wide range of possible supportive measures as far as capital, labour and regulatory systems are concerned, with reference to the specific economic and historic features of Japan and Germany, taking into account the current weakness of the American dollar and the costs of reunification.