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This paper argues that the evolution of APEC and the rejection of Japan's 1997 AMF proposal reflect a failure of Japanese and US leadership. Not only have the two countries failed to exercise either individual or shared regional leadership. Instead, both have used their considerable structural power negatively to block the other's proposals for regional collective action, rather than positively to exercise leadership. After developing the concepts of leadership and blocking power, the paper provides case studies of the APEC and AMF. It concludes that if a post-hegemonic US no longer has the willingness and/or the ability to undertake collective action single-handedly, and if in a post-Cold War world neither the US nor Japan has sufficient incentives to bridge their differences and sacrifice some interests to achieve a unified stance, then continued stalemate and under-supply of regional collective goods can be expected. [ABSTRACT FROM AUTHOR]