In the decades ahead, Northeast Asia will be the critical region on the global stage. Interaction among and between Northeast Asian societies is rapidly advancing, both at official and non-official levels. Among the latter, one of the most promising developments is the emergence of Natural Economic Territories (NETs), economic entities that cross political boundaries, taking advantage of the complementarity of neighboring regions, combining resources, manpower, capital, technology and managerial skills. With political barriers being progressively lowered, this trend is certain to be expanded in the years ahead.

It is clear that no analysis of the inter-state relations within Northeast Asia can be sound without a careful examination of the domestic conditions—current and future—governing each nation. The paper weaves domestic and foreign policies together, indicating their reciprocal effect.