3 - Tracing the money trail

Summary

This chapter traces the money trail to expose the commercial interests at play in the conflict over Okinawa and its outer off-islands. In so doing, it also addresses the broader issues of complex economics that surround the prefecture's governance and affect its role in regional international relations. This reveals the historical reasons behind the current state and status of US forces on the Ryukyus, as well as the financial incentives provided for both American and JSDF personnel to be stationed on the islands. It also assesses the economically driven aspects of local Okinawan authorities’ policy in terms of their relationship with Chinese and Taiwanese counterparts. This includes discussion of Beijing's claims to the Senkaku Islands, which were only asserted in earnest after oil was discovered beneath the surrounding seabed and Okinawa's reversion to Japan had been provisionally agreed during the 1960s. Therein, these elements are contextualized in contrast with China's recent overtures towards the Okinawan Prefectural Government, which hint at their encouragement of Governor Tamaki Denny's efforts to promote a closer relationship with mainland Asia through regionally based socio-economic exchange. Contrastingly, the often conflicting influence of Japan's national government in providing the omoiyari yosan, or sympathy budget, to pay for American troops stationed on Okinawa, as well as its massive domestic aid package in the form of special lump sum payments to local government, is further examined. Particular attention is afforded here to the impact that these funding practices and economic pressures have upon regional dynamics.

Ultimately, the chapter argues that money on Okinawa matters. As such, within the overarching thrust of the volume's focus on this specific locality as a probable flashpoint for broader regional conflict, it is contended that a large range of commercial industries and interests must be accounted for. This includes unpacking how financial incentives and penalties are often in competition with one another, as well as grappling with potential areas of greater synergy. More concretely, by arguing from a decentred Okinawan perspective, the discussion illuminates how further efforts are needed to reduce Okinawa's vulnerability and increase resilience through specialization and diversification. These aspects, particularly in terms of the roles of local businesses and new initiatives, are emphasized as a means by which to ensure more sustainable economic and environmental practices.