The first half of 2003 was volatile both internationally and domestically. Severe acute respiratory syndrome hit China, other Asian countries and Canada at the beginning of the year and spread around the world. Then, in the Middle East, war broke out when the United States and Britain invaded Iraq, overthrew the regime of Saddam Hussein and occupied the country. The situation in Iran and relations between Israel and Palestine are fluid as well.
In Asia, the atmosphere is tense. The U.S. is aiming to check the nuclear development of North Korea, while Japan and South Korea, worried about the possibility of war breaking out, are looking to China and Russia to play an intermediary role.
The world economy although dealt blows by SARS and the Iraq war, at last is showing signs of recovery. As for Japan, the two years since the inauguration of the administration of Prime Minister Junichiro Koizumi have, by and large, been smooth sailing. The reason is twofold: