Category: Econ & Business

Paying and avoiding NHK

Like in the UK, you are required to pay the government if you have a television. However, there are no real fines if you refuse to pay. Sooner or later you will find an old guy from the Japanese government channel NHK knocking at your door and asking if you have a TV. Say no and he’ll go away for a while. Say yes and he will order you to pay. Over and over again. Even if you say you never watch NHK because it’s made for insomniacs who don’t respond to strong drugs, or never even turn on the tube at all, he’ll demand your money. And having a satellite dish hanging out on your balcony is a dead giveaway. One way around this is to live in a building where the building has the dish, and you just plug in your “broadcast satellite (BS) tuner” from inside your room.

That’s from The Japan FAQ, long one of my favorite English-language resources regarding living in Japan.

NHK reports that nearly 40 million households pay NHK fees. That’s out of about 50 million households in Japan — so non-payers are definitely in the minority.

NHK is getting better at collecting its fees, too. Analog TV has almost become obsolete, and digital TVs have identifying chips which make it possible to link an individual TV with an individual NHK contract. If you use a new TV for more than a month, it will start showing nag messages superimposed over the NHK BS channels, telling you to call NHK and get the TV registered to your NHK account. NHK has also sued some non-payers, which is somewhat intimidating but not an economically effective way to compel payment: 33 households were sued in summary court in 2006, and of those, two viewers’ appeals lodged with the Tokyo High Court were only dismissed this June.

I have always had an uneasy relationship with television license fees. On one hand, broadcasters supported by license fees, like NHK and the BBC, offer some of the very best programming in the world, almost completely free of commercial content. Terrestrial TV in Japan is largely a cesspool of talentless celebrities, product placement and blatant commercial fluff, but NHK’s channels carry a wide array of useful and sensible programming. Even for fresh-off-the-boat foreigners who don’t speak a word of Japanese, NHK dubs its evening news into English and rebroadcasts news and documentary programs from around the world (and they tell you how to pay for it all in English).

On the other hand, the license fee itself is essentially a regressive tax. Basically every household has to pay the same amount, and it isn’t pocket change–it’s currently around 15,000 yen per year for terrestrial broadcasts and around 25,000 yen if BS channels are included. There are exceptions for disabled people and people on welfare, but able-bodied working people with low incomes are shaken down to a proportionally higher degree than wealthier people. The fee is determined somewhat arbitrarily by NHK and approved by the Internal Affairs Minister. Even though NHK is nominally a viewer-supported private association, it is chartered by the government, its board is chosen by the Diet, and its budget is subject to review in the Diet.

I grew up with PBS in the United States, which is a sort of constellation of private non-profit broadcasters funded by a combination of voluntary viewer donations, corporate sponsorship, foundation grants on behalf of dead rich people, and state and federal subsidies (including a large amount of federal money pushed in through the Corporation for Public Broadcasting). The advantage to this system is that anyone can legally own a TV and watch PBS without paying a dime; the disadvantage is that the programming is dictated by the interests who actually *do* pay, and the way this works is not always transparent even to viewers paying into the system. There is also a lot of PBS air time devoted to begging for donations, usually through periodic “pledge weeks” which disrupt ordinary programming.

Personally, although I am a free-marketer in other spheres, I believe that if public broadcasting is going to be heavily government-influenced anyway, it might as well be funded by the government, and the costs spread among the public just as they would be for any other government expense. But if given the choice of either NHK or PBS, I would probably take PBS and throw money at it every now and then so long as it’s relevant to me, rather than live with NHK’s mandated entitlement to a fixed chunk of my income even if I don’t care for its programming at all.

If you don’t want to pay NHK, there are a few ways to legally avoid the fee:

* Don’t own a TV. Note that, legally speaking, any sort of TV tuner which can receive NHK will subject you to the NHK tax. This includes mobile phones and computers that have TV tuners built in.
* Don’t use your TV for the purpose of receiving broadcast signals. (Or get a TV which is incapable of receiving signals. Many expats get TVs from US military bases, which can be used for watching movies on disc, or as a large-screen computer display, but cannot get Japanese TV signals; therefore no NHK tax is incurred by owning one.)
* Set up a school or welfare facility of some sort (these are exempt from fees).
* Become gravely disabled and/or go on government assistance.
* Leave Japan.

The Japan FAQ is still correct in that illegally avoiding the fee is easy. Unlike the UK, where TV freeloaders can be fined by the government, Japan decided not to impose any penalties for failing to pay the NHK tax. The only practical penalties are BS nag screens, periodic doorbell rings by NHK collectors, and the risk of a lawsuit (which generally has no teeth in Japan, since there is no contempt of court here and appeals are both easy and time-consuming).

Lies, damned lies and the Nikkei

Fewer Than Half Of Young People Support Themselves: Report

TOKYO (Nikkei)–Just 44% of those aged 15-34 subsist on their own income, the Labor Ministry wrote Thursday in a report that reflects young people’s struggle with low wages.

A full 46.8% of the group rely on additional income from some other source, such as their parents.

Of those 15-34 with full-time jobs, 51.6% live on their own income, but only 30.3% engaged in other types of jobs are self-reliant.

I got this article from a co-worker earlier today. He remarked “What’s interesting is that only 51% of people with full-time jobs can (or rather do) support themselves.” But that conclusion falls apart when you see the original statistics in the original Japanese (here):

Note the column headings. The options for the survey were:

Living Expense Situation (Multiple Answer) Combination (生計状況（複数回答）の組み合わせ)
(1) Own income only (自身の収入のみ)
(2) Own income plus other income (自身の収入＋他の収入)
(3) Other income only (他の収入のみ)

Now the situation becomes clearer. That 44% figure only includes people who are actually paying for all of their living expenses with their own income. It excludes many people living with their parents or grandparents, all working couples (even where one person is a part-timer), and probably even certain parents with working children. It excludes me and Adamu, both productive employees in the financial industry who just happen to have working spouses.

Of course, that fact doesn’t help push the narrative that young Japanese people are getting poorer and/or lazier — and here we can see that respected Japanese media like the Nikkei can skew facts toward their chosen narrative just as badly as respected foreign media like the New York Times.

The JET Program is an abject failure; therefore, Japan needs the JET Program more than ever

I realize I am somewhat late to this, but there’s been a flare-up of interest in “saving the JET Program” ever since the new government’s budget review panel apparently requested the internal affairs ministry to reform the program.

It’s been hard for me to figure out exactly what is going on, but judging from reading through the review results (PDF) and conclusions of the panel (helpfully posted by a commenter on the jetprogramme.org forum), my understanding is this:

As part of the review of the nationally subsidized “internationalization” operations of local governments, some argued for the JET Program to be eliminated. In the end, the panel concluded that the program deserves closer scrutiny in terms of how much of the costs local governments are responsible for, the status of overseas offices with questionable usefulness, and whether the 23-year-old program is meeting the needs of Japanese people today. The “conclusions” take the form of a formal request to the Ministry of Internal Affairs and Communication. Interestingly, I didn’t know that some revenue from the Japanese national lottery goes to fund the JET Program, which was also something at least one panel member objected to.

Ultimately, I would agree with Washington-based Sankei senior writer Yoshihisa Komori who sees the JET Program as necessary to spread understanding and good will toward Japan, even while admitting the need for some reforms and re-focusing of its mission. He cites the example of his acquaintance Irwin, an African-American who as a JET learned the way of bushido through judo lessons on the side.

Why Japan really needs the JET Program

As Komori emphasized, JET alumni are some of the best friends overseas Japan could hope for. They often go to work in government and industry, and their familiarity with Japan produces both good will and a smooth working relationship in many cases. That’s a point I noted when JET turned 20 back in 2006.

But I would add a perhaps more important reason for continuing JET – a reliable supply of Japanese-speaking native English speakers. While JET has proven successful in some ways, it has failed miserably in one crucial other – by and large, Japanese people still can’t speak English! Obviously, this isn’t JET’s fault. Intentionally or not, Japan’s education system produces people with a large English vocabulary that they cannot put to practical use, creating a “Berlin Wall” separating the majority of Japanese from meaningful contact with the English-speaking world.

The JET Program has brought tens of thousands of native English speakers to Japan. Some of them get very good at Japanese. These people can then make careers for themselves as translators, interpreters, or “gaijin gophers” wherever they work, filling the gaps created by a paucity of English ability among the general workforce. I am not sure what Japan was like 20 years ago, but this need remains vital today.

There is a large population of private-sector ESL teachers as well. However, the advantages of the JET Program include a rigorous admissions process and a generous compensation package, which help guarantee a positive experience and make the program look better on resumes. Private-sector English jobs have turned out to be potentially very unstable, so keeping this “public option” might be a good idea.

Hopefully, the budget reviewers and the internal affairs ministry will understand this message. Komori-san, head back to Tokyo and make your case!

Tour guide interpreters to lose guild status

The Japan tourism agency is saying (sub req’d) they plan to ease a strict ban on tour guide interpreters getting paid for their services. As it stands, only nationally licensed guide-interpreters can get paid; as a result, you can see many “volunteer” interpreters at tourist destinations. Other translations do not need any certification, as far as I know.

Now, they aren’t completely eliminating the qualification program or abandoning quality standards for tour guides, as this key passage makes clear:

The Japan Tourism Agency thus decided to allow people without formal qualifications to charge for their services, while maintaining the current certification program for highly skilled interpreter-guides. The agency hopes to submit a bill to revise the rules to next year’s regular session of the Diet at the earliest.

Still, the agency determined that a certain level of quality, if not national certification, is needed for those who work as guide-interpreters. It is therefore considering drawing up guidelines and having municipalities and private-sector companies certify those who undergo training.

An official with the agency said revising the rules would allow the roughly 54,000 Japanese who now act as volunteer guide-interpreters to better use their skills, and help create jobs for foreigners living in Japan.

So that’s one more group that’s losing protected guild status, much as Japan’s barbers did years ago. Having a strict national qualification requirement for such a minor occupation seems like overkill to me. I can see why the tourism regulators want to maintain quality, though – a situation like the child tour guides at the Taj Mahal in Slumdog Millionaire would probably be a worst-case scenario.

English necessary for today’s Japanese workers?


There has been some debate recently over the state of English in Japan.

Most notably, Rakuten President Hiroshi Mikitani has announced that all his employees must be able to conduct daily business in English by 2012… or else. Rakuten has made several international deals lately, including the purchase of major Ebay seller Buy.com and the deal to set up a Chinese online retailing site with Chinese search engine Baidu. Also, Fast Retailing, operator of Uniqlo discount clothing stores, has mandated that all meetings with at least one native English speaker be conducted in English.

In reaction, the Nikkei has printed an editorial about the role it thinks English plays in the development of corporate Japan. Relevant excerpts follow:

Japanese have no choice but to adopt English to take advantage their overseas employees’ knowledge and personal connections. If there are employees who feel discriminated against because of their language or any other aspects, business leaders should prioritize tackling bias in the workplace.

While companies must enhance their employees English-language training, lawmakers and educators should understand that English has become more important than ever for Japan Inc.

English education in Japan has been criticized for being skewed toward reading comprehension. Although teaching methods have gradually improved, due in part to the increased use of native English speakers as teachers, but other countries show how far Japan still has to go.

It is also important to provide support for people who study English while working.

People’s basic skills English should be improved, but of course that doesn’t mean all Japanese must be fluent in the language.

Japan needs a national strategy that defines who needs English and how fluent they should be.

Personally, I feel bad for the Rakuten employees who are going to be forced to uncomfortably and unnecessarily speak English to each other in daily activities, even though I see the point Mikitani is trying to make. If doing business overseas requires English, then why not demand that all your employees speak that language? All the same, I am sure he will realize eventually that Japanese education has dismally failed most of his workers. As a practical matter, most Japanese people cannot speak English at an acceptable business level. Unless the Japanese education system can deliver, it won’t be practical to simply command Japanese employees to speak the language.

White people for rent – not as innocent-sounding as it seems

A little while ago a story swept the Internet that “white people are available for rent in China.” Apparently, sometimes companies hire Western actors to pretend they’re either visiting foreign businessmen or high-level employees to make a positive impression.

For the purposes of this post, I am assuming the posts and CNN report are basically accurate, though I couldn’t find any corresponding job listings on a cursory Google search.

What surprised me about this story was the cool reaction of much of the reporting and reaction (I’m looking at you, CNN). The dominant explanation seemed to be that white people lend “face” to a company, a characteristic aspect of Chinese culture. But when does getting “face” cross the line into fraud? Sending a fake company representative might sound like a funny sitcom premise, but misrepresenting your company’s operations can have some serious negative consequences. Not that any of this crossed the minds of the winners in the video. By the way, who wears a wifebeater to their CNN interview?

For a case in point, let me point to this Asahi story about securities fraud among startup companies in Japan:

FOI Corp., a maker of chip production devices in Sagamihara, Kanagawa Prefecture, pretended to have sold products to overseas companies when the goods were actually gathering dust in a warehouse in Machida, Tokyo.

To sell the story of its overseas business, FOI took CPAs abroad where they met the company’s supposed business partners. The translator hired by FOI lied to the accountants about the sales, sources said.

FOI was listed on the Mothers market in November last year after apparently window-dressing accounts starting in fiscal 2003.

The company reported fiscal 2008 sales of about 11.8 billion yen, but investigators suspect that 98 percent of the amount was fictitious. The company is now undergoing bankruptcy procedures.

FOI’s tactics fooled not only the CPAs, but also Mizuho Investors Securities Co., which advised the company on the listing, and the TSE.

I wonder if these “out of work actors” ever checked to see whether they were fronting for a real company. The overseas trips could easily have been to China, maybe even to a phony shop floor with real live white people.

Japanese insolvency terms for dummies

When I started translating Japanese contracts, one of the most confusing aspects was the array of similar legal terms that commonly pop up in the “termination” section. Here are some common ones, along with what they actually mean.

差押 (sashi-osae)
Attachment. This is where a creditor “locks down” certain assets to keep the debtor from selling them or giving them away. Once attachment is completed, the debtor cannot legally transfer their ownership of the assets in question. Attachment usually precedes compulsory execution (below). The term is also used to refer to government seizure of evidence during a criminal investigation.

仮差押 (kari-sashi-osae)
Provisional attachment. This is a form of attachment which takes effect during litigation, where there is a chance that the defendant/debtor will have to eventually pay the plaintiff/creditor. If the defendant wins, the attachment is lifted. Assets can legally be transferred when a provisional attachment is in effect, but the transfer can be rescinded later if the provisional attachment becomes a regular attachment.

強制執行 (kyosei-shikkou)
Compulsory execution. This is a court-ordered process to seize the debtor’s assets and sell them at a public auction (競売 keibai), with proceeds going to pay off the creditor(s) and any surplus going back to the debtor. There are separate procedures for real estate, ships, movable assets and intangible assets.

仮処分 (kari-shobun)
Provisional injunction (or, when translated too literally, provisional disposition). This is a court order of some kind, usually to refrain from doing something like selling an asset or negotiating a transaction; it is given during litigation and requires a showing of necessity by the plaintiff as well as (usually) some sort of collateral to compensate the defendant in case the litigation is dismissed.

破産 (hasan)
Bankruptcy. In Japan, this legal term is only used for liquidation bankruptices, not for reorganization bankruptcies. Bankruptcy can be initiated by either the debtor or their creditor and is supervised by a court, which usually appoints an independent trustee to manage the bankruptcy if there are enough assets to pay the trustee. This is by far the most common legal procedure for adjusting debts, with over 100,000 annual petitions every year for the last ten years.

会社更生 (kaisha kousei)
Corporate reorganization (new type). This is a procedure intended to keep large distressed companies afloat by adjusting the due date (and sometimes the amount) of their financial liabilities. It is supervised by a court but requires the consent of creditors and shareholders in varying proportions depending on how the plan would affect their interests. If nobody can agree, the company goes into bankruptcy (above). Shareholders are generally wiped out, management get fired and replaced by a court-appointed administrator, and new equity investors (often prior creditors) get to choose new management. This is the procedure used by JAL, NOVA, Willcom, Dai-Ichi Hotels, Huis ten Bosch and most other high-profile corporate bankruptcies in the last decade: usage of the procedure peaked at 88 filings in 2002, although statistics are only available through 2008 so there may have been a second peak more recently.

民事再生 (minji saisei)
Civil rehabilitation. This is a smaller-scale version of corporate reorganization. It can be used by individuals, but the most frequent users are small companies, mainly because the procedure allows management to remain in control. The procedure is also conducive to selling a business in order to repay its creditors (Lehman Brothers Japan being a recent prominent example), and can sometimes be more beneficial from a tax perspective.

会社整理 (kaisha seiri)
Corporate reorganization (old type). This is an outdated term for an outdated form of small business corporate reorganization which legally ceased to exist in 2000 (although a few cases lingered in courts for several years after that). It was effectively superseded by the civil rehabilitation procedure.

解散 (kaisan)
Dissolution. This is a voluntary procedure which companies can execute at any time by a resolution of a super-majority of shareholders, whether or not the company is broke. Once shareholders vote to dissolve, the company is liquidated (清算 seisan) by a court-appointed supervisor. Creditors get paid off first (in order of priority), followed by shareholders. If there is not enough money to go around, or if there is some other insurmountable problem with the liquidation procedure, the company sometimes goes into special liquidation (特別清算 tokubetsu seisan), which gives the court more leeway to preserve assets and halt asset seizures.

If you want to read a lot more, there is an online outline of Japanese corporate insolvency law here, courtesy of the massive law firm of Anderson Mori & Tomotsune.

8819 LDP

That’s not a license plate number: it’s the LDP’s cryptic way of tying themselves to the paternity leave system. Read out loud, it sounds similar to papa ikukyu (パパ育休) or “Daddy Childcare Leave.”

The code makes a very subtle appearance in the recent TV commercial featuring Sadakazu Tanigaki’s ridiculously impassioned speech about making Japan number one again. This spot has been coming up once in the rotation during every World Cup game I have seen so far (except, of course, the ones on NHK).

The slogan appears on the green silicon bracelet he’s wearing.

You can buy your own here, although you have to register as an LDP merchandise customer first, and I’m not sure whether non-citizens are definitively eligible for this. They do specify that you have to be a resident of Japan and that they will only ship within Japan.

(Thanks to Mrs. Peter for the tip)

Cheap haircuts in Japan are real, still not enough

Today I will point out a minor error in a pundit’s description of Japan. This is sort of nitpicky, but hey that’s what we do here.

NPR’s Planet Money recently had an interesting interview with an author whose theory is that countries like Japan and Germany that grew rich after WW2 did so by selling exports to countries like the US who were willing to overspend (thanks to cheap credit provided to compensate for failing to provide good educations and hence good jobs to the people). This way, those emerging countries were able to achieve wealth and growth without subjecting their domestic industries to intense competition.

Japan, he says, has top-rate manufactured goods but a hopelessly inefficient domestic service sector. However, the example he gives is somewhat outdated. Basically, he says that haircuts in Japan are very expensive because the existing players banded together to keep out new competition by requiring that all haircuts require a shampoo afterward; to do otherwise would be unhygienic.

That might have been the case maybe a decade ago, but in today’s Japan Y1000 haircut places are everywhere. Just yesterday I got my haircut in Tokyo with no shampoo. I am not too clear on the history, but if memory serves the operator of QB House fought for more than a decade to liberalize the byzantine barber shop regulations.

Here’s the comment I left on their blog:

The interviewee’s example of Japanese barber shops is very outdated. Just today I got a haircut for about $12 with no shampoo. Until recently he would have been right, but there has been considerable deregulation since then. That isn’t to say there aren’t other occupations with ridiculous guild-based restrictions – Japan’s many dubious “qualifications” have recently come up as a subject of debate under the new government. It’s just that the particular case of haircuts doesn’t apply anymore.
Adam in Tokyo

That said, I think he’s got the right idea, even today. Even without special regulatory protection, many Japanese institutions have become massively inefficient thanks to successful attempts to keep out competition – think JAL, all those shuttered shotengai shopping districts, TV broadcasting, the music industry, you name it.

Ghost to be remade as Japanese film starring Nanako Matsushima

The title says it all. From Nikkei (sub reqd), we learn that Paramount is doing a co-production with Shochiku to remake Ghost, the 1990 the Patrick Swayze/Demi Moore romance. It will star Japan’s tallest movie star Matsushima Nanako opposite Korean actor Song Seung-heon. NTV is apparently also involved. The US studios are apparently broadening their cultural horizons because their native, English-language content isn’t as popular with Japanese audiences as it used to be. Japan is no doubt a lucrative market for Hollywood since movie tickets cost significantly more here than they do in the US.

Ghost was a pretty sweet movie, so a remake might make for some good viewing. More to the point, I love the idea of remaking classic American films for Japan.

Personally, I want to see a Japanese version of Be Kind Rewind. “Sweded” versions of Seven Samurai, Godzilla, and Audition would be intense.

Or maybe Mr. Baseball, only in reverse? Given how times have changed, the story of an aging Japanese ballplayer getting sent to a small team in the US is probably more common now than the scenario in the original.