Expecting to G7 Power

Politics in Japan is getting focused on a coming meeting of top Western leaders, or Group 7 Summit, later this month. Political agenda of Shinzo Abe administration has been pending, waiting for some achievements of the meeting which Abe will chair. Abe looks like expecting that G7 Summit will address every international issue and lead to political boost with his leadership at the summit. But, the world may not be controlled by political strategy in a country.

Abe wants to make G7 Summit a step for resilience of his economic policy called Abenomics. “Fundamentals of Japanese economy are good. What in the world is going on?” Abe has been questioning about the situation of Japanese economy from the beginning of this year, according to Mainichi Shimbun. He was frustrated with an environment in which slowdown of world economy disturbed Japanese economy, ignoring a nature of Abenomics having been supported by outer elements.

As the chairman of G7 Summit, Abe is focusing on world economy for its agenda. As concluded in G20 Financial Minister and Governor of Central Bank Meeting in Shanghai in February, policy cooperation for flexible fiscal policy, not relying only on monetary policy, was recognized as one of the goals of G7 Summit. If G7 Summit agrees on promoting flexible fiscal policy, Abe will take advantage of the conclusion for his fiscal mobilization in domestic economy, which may support his other political agenda.

However, there are some member countries that are reluctant to fiscal approach. Germany focuses on fiscal discipline, being negative on accumulated financial debt. Seeking economic growth through deregulation, United Kingdom is also careful for fiscal mobilization. Not focusing on fiscal policy so much, United States wants to adjust currency exchange rate to be preferable for U.S. exporters, the policy which competes against Japanese interest.

International politics is also uncontrollable for Abe. While Abe visited Russia to meet with before G7 Summit and asked President Vladimir Putin taking constructive role for stability of Ukraine, other G7 leaders are still skeptical about good will of Russia. On North Korea, it is predictable that G7 will send clear message against nuclear development. However, the most influential party, China, will not be included in the message to the North. While G7 Foreign Ministers Meeting in Hiroshima last month delivered strong opposition against unilateral intimidation in South and East China Sea, it is unclear how G7 Summit can deter Chinese advance to Pacific Ocean. Japanese government may be too relying on the power of world leaders’ framework established in the last century.