The full implications for Japan of Friday's devastating earthquake and tsunami, as well as the ongoing problems at the Fukushima nuclear plant, remain unclear. But an ambitious and likely pricey military programme could be one of the first political casualties as Tokyo weighs the cost of recovery.
In the early 2000s the forerunner to the Japanese Defense Ministry began developing a new, stealthy fighter jet under the auspices of the Advanced Technologies Demonstrator programme. The resulting fighter is known by its nickname ‘Shinshin,’ or ‘Spirit.’
The angular Shinshin, intended to counter China's rising air force, was a backup to Japan's planned purchase of American-made F-22 fighters. When US lawmakers blocked export of the F-22, the Shinshin programme took on more urgency. Since 2009, Tokyo has reportedly invested roughly $500 million in the plane's development, with the apparent goal of replacing all of Japan's current fleet of 200 F-15 fighters sometime after 2016.
But Shinshin development and production could ultimately cost as much as $100 billion, the Defense Ministry told AP. By comparison, the F-22 cost Washington around $60 billion for 187 airplanes. The Shinshin topline might seem exorbitant, but in fact the $100 billion estimate is perfectly reasonable. Owing to high material costs, small production figures and legal prohibitions against arms exports, Japan historically pays at least twice as much for a given weapon system than the United States. The San Francisco-based New Pacific Institute recently published an excellent survey of this cost differential.
All over the world in recent years, fighter programmes have been among the first to be curtailed following expensive natural disasters or domestic unrest. Brazil delayed its planned fighter purchase following January's lethal mudslides. When pro-democracy riots spread to Iraq this spring, Baghdad canceled an initiative to buy F-16s from the United States in order to devote more resources to social programmes. When the cost of tsunami recovery becomes clear, Tokyo might discover it can’t justify a $100 billion investment in airplanes.
This is especially the case considering the availability of alternatives. While the Shinshin could give the Japanese air force an edge over regional competitors such as Russia and China, upgraded models of today's F-15s would probably suffice for continued parity. US manufacturer Boeing has offered a moderately stealthy F-15 model, called the ‘Silent Eagle,’ for an estimated $100 million per copy. Even if Japan demanded local production of the new F-15, therefore raising its price, the Silent Eagle could be had for half the cost of the Shinshin.

Johnny
Too many conclusions from too little data in a too small timeframe. Ofcourse, the Tsunami was a horrible event for Japan but assuming that it will flat out cancel its Fifth Gen Fighters because of this is rather presumptuous. We must remember that Japan is spending very little on its defense, a measly 0.9% of GDP which means it can pretty easily manage to continue its plan without much trouble.
Tango
First,let us pray for the victims of the worst ever disaster in Japan recently! May God bless them all. Any way, despite any hardships ahead, Japan should try its best to keep test-flying its own stealth jet prototype on schedule (ATD-X program -2014)to ensure its own defense against its neighboring predators!! With the test-flights of stealth prototypes of J20 (China) and Sukhoi T-50 (Russian)recently, Japan might feel the pressure of the intensifying battle for air superiority in the Pacific-Asia.Besides, economically, this project could create for Japan around 240,000 jobs, not bad at all, especially in this situation!
Leonard R.
I’m thinking this is one of those events that will change everything.
It’s impossible for me to imagine all of the implications of this event,
in the long and near term.
Will Japan rebuild? Will that lead to militarization? Or will it become more pacifistic?
Is this an opportunity for rapprochement between Japan & China? Can China drop its grudge? (I think not.) Can Japan drop its fear of China? (I think it could. After all, it makes a lot of money in China. What industrialize nation wouldn’t drool at a potential market of over a billion materialistic consumers?)
Will China & Russia will seize the opportunity use to settle territorial
disputes with a weakened Japan? Will Japan be more willing to concede territory in negotiations? Or will its position harden?