Toespraak Balkenende Keio Universiteit Tokyo

De toespraak is in het Engels gehouden.

Japan and the Netherlands: working together to address global challenges

President Seike, Vice-President Haseyama, Dean Ohkami, distinguished guests from Delft University of Technology, Your Excellencies, ladies and gentlemen,

Ohayo gozaimasu.

I stand before you, filled with gratitude for the great honour that I have received today: an honorary doctorate from this distinguished university. Keio University was established in 1858. In that same year, Japan and the Netherlands started diplomatic relations. Keio's founder, Fukuzawa Yukichi, spoke fluent Dutch and spent over a month in my country in 1862. For me, these connections make this honour even more special.

Keio is a university with a rich history. A university that has been looking ahead for more than 150 years and training leaders who can shape the future. A university with ambitions for the next 150 years too!

I have every confidence that students in the Graduate School of Systems Design and Management will be actively involved in that future. Because here, they learn to consider complex social issues from an interdisciplinary perspective. Beyond scientific boundaries. Beyond national borders. Beyond cultural frontiers. In my opinion, this is where innovation starts. Only by being innovative and groundbreaking can we create concrete solutions. Solutions that can guarantee a prosperous, sustainable and social future for us all.

It's difficult to avoid the conclusion that all over today's world, society is out of balance. We have reached the limits of our present system - economically and morally. It is proving to be a very painful experience. The financial and economic crisis has upset the balance between countries, businesses and people all over the world. What we need now is to take decisive steps towards a new and stable global system in which there is more room for solidarity, stability and sustainability.

Today I want to talk to you about restoring the balance in our global socioeconomic framework. And I want to focus on the way in which Japan and the Netherlands can work together to make it happen. After all, we have a robust partnership that has stood the test of time. A partnership based on mutual trust and shared values.

First of all, I will sketch the historical ties between Japan and the Netherlands, and draw a number of parallels between the economic and social trends in our two countries. I will then discuss several areas in which we are working as partners in 2009. And finally, I will consider ways in which Japan and the Netherlands can work together on the future design of a new global framework.

400 years of relations

Let's begin by taking a look at our history. This year, Japan and the Netherlands are celebrating 400 years of trade relations. On 24 August 1609, Tokugawa Ieyasu granted the Netherlands a trade permit. And for the past four centuries, we have kept on trading with Japan. Because even during the sakoku, the period in which Japan isolated itself from the rest of the world, contact with the Netherlands was maintained for over 200 years. The small, fan-shaped island of Deshima in the Bay of Nagasaki was Japan's window on the West. The Netherlands is extremely proud of this.

The historical relationship between Japan and the Netherlands is unique, but by no means accidental. In the early modern period, our economic and cultural interaction rested on distinct but parallel developments in our societies. Both Japan and the Netherlands took decisive steps towards becoming economic societies first and foremost. And that is why trade and the exchange of scientific knowledge between our two countries flourished.

We can see this if we look briefly at each country's economic development. In 1600, the Netherlands was a very young state. It was still breaking free from the country that had dominated it for many years: Spain. The struggle against Spain had started in 1568. But waging war is a very expensive business. Fortunately, the Netherlands was already emerging as a modern economic superpower. And because of this, resistance against Spanish rule continued well into the next century.

In the course of the seventeenth century, the Netherlands became the world's first economy that might be described as 'modern'. Fiscal policy, urbanisation, a high level of production, a relatively well-educated population and a worldwide trading network were some of the main ingredients of the first cycle of modern economic growth.

These economic developments in the Netherlands had parallels in Japan. Here, too, history took a decisive turn in the year 1568. With his march on Kyoto, the warlord Oda Nobunaga triggered a unique train of events that led to the Japanese archipelago being pacified and unified under a single military ruler in 1600. And slowly but surely, under this Pax Tokugawa, Japan became an economic society - the first of its kind in Asia.

In the seventeenth century, Japan was the world's leading exporter of silver. Like the Netherlands, early modern Japan enjoyed a high degree of urbanisation and literacy. There was a steady rise in levels of output, driven by economic specialisation and trade networks.

We can also see an interesting parallel between Japan and the Netherlands at the end of the nineteenth century. In both countries, the work and thought of a single genius brought about crucial social changes that can still be felt today.

In Japan, the driver of change was of course Fukuzawa Yukichi, whose philosophy represented a break with traditional thinking. He reformed Japanese society by introducing Western ideas, institutions and customs. He was a firm advocate of personal independence, which in his view would ultimately lead to national independence. To him, the acquisition of knowledge was key. To quote his own words: 'any existing distinction between the wise and the stupid, between the rich and the poor, comes down to a matter of education.'

The work of Abraham Kuyper was of similar significance to Dutch society. Kuyper was a contemporary of Fukuzawa, and he too was an advocate of personal development. He particularly wanted to strengthen individual responsibility for social ties, whether in the family and the church, or in academic and business life. He was also a great thinker and a prolific author, whose writings are still a source of inspiration today. Like Fukuzawa, Abraham Kuyper founded a daily newspaper and a university - in fact, the same one where I studied and later taught as a professor.

Education is crucial for a country's development. This is true in both Japan and the Netherlands. So I am delighted that our audience here today includes several professors from Delft University of Technology, one of Keio's partner universities in the Netherlands. After all, sharing knowledge benefits both partners in any relationship.

Ladies and gentlemen,

'Let us allow our countries to come closer together and let us from now on deepen our friendship even more.' Those words are from a letter written by Tokugawa Ieyasu to the Dutch stadholder Prince Maurits in 1609. And as a result of that deepening friendship, the Japanese language has adopted a number of terms from Dutch. One of them is the Dutch word 'kompas', konpasu in Japanese, which I find striking. A compass after all, is something that indicates direction and helps you reach your destination. You could say that Japan and the Netherlands have been finding their way together for several centuries. Travelling the same path and helping each other along the way. That is as true today as it was in the past.

Shared challenges and shared values in 2009

This, in fact, is my second point: in the twenty-first century, our paths are converging more than ever. Socially, culturally, scientifically, and of course economically. For instance, there are about 400 Japanese companies currently operating in the Netherlands. Recently, the Dutch director of Teijin Holdings, which produces synthetic and industrial fibres for bullet-proof vests and aircraft, was interviewed in a Dutch magazine about the advantages of doing business in the Netherlands. He said, 'Without our Dutch branch we would have missed out on key innovation opportunities. Teijin came to the Netherlands not only for the technology but also because it is the gateway to the rest of Europe. Within a single day you can travel to almost any European city and back. In addition, most Dutch people speak good English, there is an attractive investment climate, the tax system is business-friendly and there are daily direct flights between Amsterdam and Tokyo or Osaka.'

You can imagine that as Prime Minister of the Netherlands, I felt proud when I read these words. The Dutch government is very serious about developing high-quality innovation and technology. That is also why I'm joined on this trip by members of the Dutch Innovation Platform. We want to strengthen our cooperation with Japan in the area of innovation. And to give a clear signal that we are working extra hard to remain an attractive location for foreign companies who want to do business in the Netherlands.

At the moment, the Dutch government is also devoting attention to another, very different issue - our ageing population. We are relying on a shrinking workforce to maintain our high level of facilities. Your country is facing the same problem. Of all the OECD member countries, the phenomenon of demographic ageing is most acute in Japan. By 2020, 28% of the Japanese population will be over 65. In the Netherlands, the percentage for that year will be almost 20%. The negative consequences for the economy and government finances will be enormous. In order to guarantee a high quality of life, technological progress is essential. Japan is a clear leader in this field, so we in the Netherlands hope to draw lessons from your experience.

And the same is true the other way round. Japan may be able to learn from the way we in the Netherlands are trying to increase labour participation. To maintain our welfare state, we need to have more people in work. It's as simple as that. For several years, we have been encouraging elderly people and women to work more and to work longer. And we have been successful! In 2003, 37.5% of the total number of people aged over 55 were working. In 2008, that figure rose to nearly 45%. In the past five years, the proportion of working women has gone up by almost 6% and now stands at 59%.

Ladies and gentlemen,

We all know that our long shared history also contains a dark and tragic page. Yesterday, I laid a wreath at Hodogaya Cemetery, to commemorate the victims of the Second World War. And during my meeting with your Prime Minister, Mr Hatoyama, we talked about the war and about those who lost their lives. It was a valuable conversation.

We also focused on the fact that nowadays, both our countries cherish universal values such as human rights, democracy and solidarity. Respect for the international rule of law is extremely important to us both.

Japan is living its values by contributing no less than 20% of the budget of the International Criminal Court in The Hague. And since the Netherlands is home to many international law institutions, we greatly appreciate Japan's generosity.

The International Criminal Court is not the only institution which can count on Japan. Your country also gives generously to the United Nations budget for peace operations, provides funding and manpower for civil reconstruction operations in post-conflict areas, and is one of the biggest donors in Afghanistan and Pakistan. In 2004, Japanese and Dutch troops also worked side by side on a successful mission in Iraq.

Japan is turning its international ambitions for peace, security and justice into action. Your country deserves respect for its efforts. I hope that in the future, Japan will continue its endeavours and increasingly take on the international responsibilities that correspond to its stature as a nation.

Working together to address global challenges

And now I come to my third and final point: turning global ambition into global action is also a vital part of restoring the balance to our system.

We need to recalibrate that system. The financial and economic crisis has caused devastation all over the world. The limits have been reached - and then breached. To prevent it happening again, we must learn our lesson. I am convinced that we can come out of this crisis stronger than we were before. But we must dare to change.

In this connection, I would like to quote Keio University's president, Professor Atsushi Seike. Professor, you said, 'In such periods of major transition, pre-conceived ideas and old-fashioned thinking have little relevance.'

It is indeed time to find a new balance: one that does justice to the new reality. We must design a new global framework in which shared values and interests are placed above narrow self-interest. A framework which takes into account the interests of all - especially the world's weakest and poorest people.

We can only achieve this by working together. The problems are simply too big to be solved by one single country or by some chance coalition of like-minded nations. I was pleased to see that everyone present at the recent G20 summit in Pittsburgh seemed well aware of this fact. For the Netherlands, it is absolutely crucial. After all, we have the world's sixteenth largest economy and the ninth largest financial sector. We are also the fifth largest trading nation on Earth.

Japan has made it clear that it will not walk away from this responsibility. I was particularly pleased to know that. Because Japan is the second largest economic power in the world. A major global player, not least because of its active role in other international fora. A global player that can make a difference in these uncertain times.

So I look forward to deepening the cooperation between Japan and the Netherlands, bilaterally and at G20 level. Because this is the playing field where the rules of the game will be agreed for the future. Our countries may be natural partners in designing a future framework: partly because of our shared history, we have a number of important values and interests in common.

As countries that have been trading together for 400 years, Japan and the Netherlands have a unique understanding of the importance of free world trade. It is the strongest driver of economic growth and employment. Unfortunately, a number of countries are currently trying to introduce protectionist measures to safeguard or benefit their own domestic markets. That is not the way forward. Ultimately, it boils down to pouring sand into the world's economic gas tank. We all benefit from an economic engine that runs smoothly.

So we must strongly oppose protectionism and vigorously defend free world trade. The Doha Round must be successfully completed in 2010. In all these issues, I sincerely hope that Japan - together with the Netherlands - is prepared to demonstrate its support.

The same applies to our efforts to make a success of the climate summit in Copenhagen in December. Both our countries aim to achieve a substantial reduction in CO2 emissions and set great store by a post-Kyoto treaty. What is the best way to deal with climate change? Unfortunately, there are no simple solutions. But the technology is there, and so is the money. The only question is: do industrialised nations, emerging economies and developing countries have the courage and the political will to act? I hope that the answer we hear in December is 'yes'.

I was impressed by the plans presented by Prime Minister Hatoyama so soon after taking office. Plans for Japanese emissions reductions and for the new government's involvement in the climate summit. Mr Hatoyama and I agreed yesterday that in Copenhagen we will do everything we can to win over those countries that are still undecided.

This is the time to make choices. And in my opinion, the time to champion core values for sustainable business. In Pittsburgh, we agreed to work out a set of values that will guide the development of the framework for strong, sustainable and balanced growth. The Netherlands is glad that more and more countries are realising that markets and morality need to go hand in hand. That economic prosperity must be matched by a concern for the weaker nations. That technological progress need not exhaust all our national resources. That solidarity with the poorest countries and achieving the Millennium Development Goals are a moral imperative.

Ladies and gentlemen,

It has been a great pleasure to be here today at Keio University. Once again, let me express my profound gratitude for this honorary doctorate. It has been an honour to talk to you about the special relationship between Japan and the Netherlands: two countries that are very different, certainly. But fortunately, two countries that also have a great deal in common. This has enabled us to enjoy 400 years of close partnership.

I believe that in the future, our continued cooperation will bring great benefit to both countries. But our special partnership can also be valuable in a global sense. I have just been talking about the imbalances in our present system. I am convinced that the balance can be restored, and that Japan and the Netherlands can help to make a difference. Following the same 'konpasu' seems to me an excellent basis for the future. Working on the challenges in both our countries, but also tackling global challenges together. And as we continue on our journey, may these words of Fukuzawa Yukichi be a source of inspiration:

'In its broad sense, civilisation means not only comfort in daily necessities but also the refining of knowledge and the cultivation of virtue so as to elevate human life to a higher plane.'

Thank you.