The rise of Japan as an economic power in the international political economy is one of the most spectacular developments since the Second World War. It is not only the sheer size of the Japanese economy that illustrates its success, but also the country’s technological innovations, quality of products and the prevalence of made-inJapan goods in every quarter of the globe that manifests the ever growing Japanese influence in the world. More interesting still is that, despite its colossal economic power, second only to the United States, Japan has so far demonstrated little desire to take responsibility for the conduct of world affairs. To put it another way: an economic giant has behaved like a dwarf in international political affairs. Can or should Japan continue to abstain from playing a major role in the new conditions of the post-Cold War world? We shall attempt to answer this question.