Years of Mutantfrog Lobbying Finally Successful!

U.S.-Japan dance on F-22 continues

U.S. defense officials are preparing a version of the stealth F-22 Raptor that Japan has expressed strong interest in buying. While the Department of Defense is working to design an export version of the Raptor, U.S. Sen. Daniel Inouye, D-Hawaii, this week sent a letter to Japanese Ambassador the United States Ichiro Fujisaki saying that the F-22 would likely carry a price tag of $290 million. Japan has made it known it would like to buy 40 F-22s, made by Lockheed Martin and Boeing, so the potential value of the deal is more than $11 billion…

It has taken some time for U.S. and Japanese negotiators to get a deal together for the F-22. And it will take several years of development to get an export version off the ground since there is a large amount of sensitive technology that U.S. officials believe needs protection. Aviation Week estimated it would be 2017 before delivery of the first aircraft to the Japanese air self-defense force.

Japanese defense officials are reportedly looking at other aircraft, including Lockheed’s F-35 and the Eurofighter Typhoon, which is manufactured by a consortium of Alenia Aeronautica, BAE Systems and EADS. Neither have all the stealth capabilities of the Raptor, making them substantially less expensive. The Typhoon is estimated to be about $105 million per plane.

Defending the financial system against yakuza infiltration

Citibank is feeling some FSA heat right now because it wasn’t strict enough in monitoring and reporting “suspicious transactions including money laundering.”

Organized crime relations are becoming a bigger and bigger deal in the world of Japanese financial regulation. Late last year, the FSA and the Japanese Bankers’ Association adopted some administrative guidelines concerning how banks should protect against yakuza, sokaiya and other rabblerousers, and many of those guidelines are being phased in this year by institutions across the country.

One measure being implemented is amending account agreements in order to allow banks to pull service from customers with criminal ties. Here is a translation of the JBA’s suggested language (original version here). It is pretty laughable even by legal Japanese standards; I wonder who had a hand in drafting it. Exploring options such as liquidation uk can offer additional strategies for businesses to manage financial liabilities and regulatory compliance effectively.

Article [__] (Exclusion of Anti-Social Forces)

(1) I hereby represent that I am currently not, and hereby agree that in the future I shall not become, any of the following.

1. A criminal organization (暴力団)
2. A member of a criminal organization
3. A quasi-constituent of a criminal organization
4. An enterprise related to a criminal organization
5. A sokaiya (総会屋), politically-branded racketeering organization (社会運動等標ぼうゴロ) or organized crime-related “specialist” (特殊知能暴力集団 – a police term for individuals or groups who are not yakuza themselves, but help fund yakuza activities)
6. Any other person pursuant to any of the above

(2) I hereby agree that I shall not engage in any of the following acts, whether personally or through a third party.

1. Violent demands
2. Improper demands in excess of legal responsibilities
3. Acts of violence or menacing statements in relation to a transaction
4. Spreading of rumors, use of falsified statistics or use of obstruction to harm the reputation of your bank, or to obstruct the business of your bank
5. Any other act pursuant to any of the above

(3) In the event it is determined that I correspond to any of the listed items in paragraph 1 above, commit any listed act in the preceding paragraph, or have made a falsified report with regard to the representations and covenants in paragraph 1 above, and it is improper to continue transactions with me, upon the demand of your bank, I will lose the benefit of term with regard to all liabilities I have to your bank, and will promptly perform those liabilities.

(4) In the event that I have received the discounting of notes, that it is determined that I correspond to any of the listed items in paragraph 1 above, commit any listed act in the preceding paragraph, or have made a falsified report with regard to the representations and covenants in paragraph 1 above, and that it is improper to continue transactions with me, upon the demand of your bank, I will owe a liability to repay the face amount of all notes, and will promptly perform it. Until such time as this liability is performed, your bank may exercise all of its rights as the holder of such notes.

(5) Once performance of the liabilities under the preceding two paragraphs has been completed, this agreement will lose validity. (Bizarre phrasing!)

Does Japan need more bankruptcies, or less?

The Economist has come out with a bold argument in favor of a tough “creative destruction” policy for Japan to promote efficiency, productivity growth, and economic recovery by letting more companies fail (emphasis added):

[Japan’s long-standing “convoy” system of keeping underperforming firms alive] does enormous harm. Weak firms need to exit the market, either by going bust or being sold to another firm, or the whole business environment gets stifled. Japan has far too much capacity in many businesses—eight mobile-phone makers, for instance, few of which make much money. This squeezes prices and margins, thus denying better-run firms the surplus capital they need to hire talented people, buy competitors or invest in research and development. It also locks up resources, both human and financial, that could be used more productively by stronger firms. Before the downturn, Japanese companies’ return on equity averaged around 10%, about half the level of American firms.

Tellingly, the shut-down rate of companies in Japan is around half that in America and Britain. And the number of corporate insolvencies is expected to increase in Japan this year by only 15%, despite the depth of its recession, compared with more than 30% in western Europe and 40% in America. Normally a scarcity of corporate bankruptcies is a sign of economic vitality; in Japan, it is a sign of its economic weakness. Of course, keeping struggling firms alive protects jobs. But it also fossilises industry structures and hinders the development of a more flexible labour market and a business environment more supportive of new-company creation—two areas where Japan is also sadly deficient.

As if in direct response, an anonymous Nikkei op-ed says that letting companies fail in Japan can be dangerous by erasing critical knowledge and ruining the macroeconomy. As there is no online version right now, I paraphrase here:

Everyone agrees that raising efficiency in the economy is a good thing. But if some Japanese companies currently in a management crisis are allowed to go bankrupt, there would be no net efficiency gain because there’s a chance they could right themselves. For a company to go bankrupt and out of business not only harms the managers and employees, it can have an even bigger impact on the macro economy. Letting companies fail destroys more than the of the firms’ collective employees, plant and equipment, it also destroys the built-up knowledge of an organized entity that is more than the sum of its parts; specifically, their organizational strengths and customer bases. These elements have been overlooked by traditional microeconomics, but they are critical elements of business. Once destroyed they are not easily restored.

It should be possible to encourage firms to transition their businesses without bankruptcy by pushing them to expand into related fields. This would maintain manager and employee morale while simultaneously boosting the overall economy.Though obvious sectors for these transitions would be green technology, biotech, or nursing/welfare, companies should be left to decide their new businesses on their own. It might take a long time for companies to turn around and succeed like Toray or Asahi Kasei.

Therefore, the government should make it a priority to provide tax incentives and subsidies to these sorts of companies.

As much as I usually trust op-ed writers who are refuse to go on the record, does anyone else smell a conflict of interest here? Something tells me the author (pen-name: 真和) has a specific company on the tip of his tongue but just can’t bring himself to say it.

Endorsement: TripIt for planning long-distance travel online

I am flying to the US next Friday for a two-week trip around the East Coast, stopping in New York, Philadelphia, Washington and Myrtle Beach. One of my biggest helpers in planning this trip has been a website called TripIt.

I generally use Google Calendar for planning my schedule, and as long as I stay in Japan, it works just fine. My Windows Mobile phone automatically syncs to Google and displays upcoming Google Calendar events on its Today screen. But there is a serious drawback to Google Calendar: its assumption that the user will always stay in the same time zone.

Let’s take my flight from Narita to JFK, ANA flight 10. It leaves Narita at 11:00 AM JST, and arrives at JFK at 10:45 AM EST on the same day (thanks to the International Date Line). If I stick to local time on my calendar, it’s impossible to input this flight unless I create two separate events for arrival and departure. Even if I do that, my calendar will still assume that I am on Japan time no matter where I go, so it will assume that I have already arrived even when I am hours away from arriving.

Enter TripIt. It was designed as a socially-networked travel tool; you put your upcoming trips online and it tells you who else will be in your destination with you. I find this particular function to be pretty worthless, but the real beauty of TripIt is in calendaring trips that go across multiple time zones. Here’s why:

  1. The TripIt web page always shows the itinerary in local time. You can specify departure and arrival time zones for each mode of transportation you take. This is perfect for planning each step of the itinerary.
  2. Each account has an iCal feed which you can use to automatically reflect your travel plans in Google Calendar, iCal or any other modern calendar app.
  3. The feed shows up in whichever time zone your calendar reader is set to. While I am planning my trip in Tokyo, all the times show up in Google Calendar in Tokyo time, which comes in handy for figuring out when to sleep so I can minimize jet lag. Once I am on the plane to the US, I can switch my phone to Eastern Time and all the events will convert to Eastern Time.
  4. Automated input keeps this from being a pain in the butt to set up. All you have to do is forward your airline, Amtrak and hotel confirmations to a special e-mail address, and TripIt parses your travel plans into your calendar automatically.

Thanks to the authors of this web site for solving my problems–now I’m ready to enjoy sweltering weather, greasy food and panhandlers again!

Tokyo Prefectural Elections July 12

On July 12 the Tokyo Legislative Assembly elections will be held. While the TLA does not appear to do much in the grand scheme of things, this election is personally important to me as it will mark my first experience with an election where Mrs. Adamu can actually cast a ballot (in previous elections she could not vote for one reason or another). With that in mind and in the interest of being an informed voter’s spouse, I decided to take a look at what this is all about with a focus on Adachi-ku, the ku I call home.

How is the assembly chosen?

With 127 members (one representing roughly 100,000 people), Tokyo’s legislature is the nation’s biggest local assembly of any kind. Members come from 43 mostly multi-member districts and are elected all at once to four-year terms using the single non-transferable vote system similar to the Lower House elections prior to 1994. For example, in Adachi-ku’s case, voters choose an individual and the top six vote-getters win seats. The 42 districts consist of the 23 cities or “ku,” 18 cities within the prefectural boundaries, and one to cover all the outlying islands. Adachi-ku, where I live, is allotted six seats.

Most local elections in Japan are held all at once every four years in what are called the “unified local elections” (統一地方選) (the last round was in 2007), but Tokyo’s are held two years after that. They used to sync with the rest of the country, but the schedule got screwed up in 1965 when an LDP bribery scandal spurred leftist parties to push for a recall, leading to a voluntary dissolution and early election.

Currently, the LDP-New Komeito coalition maintains an overwhelming majority of seats (with a respective 48 and 22 members each), followed by the DPJ with 22 members, 13 Communists,  and single-digit membership from the left-leaning Tokyo Seikatsusha Network and unaffiliated politicians.

What do they do?

In typical assembly fashion, they are responsible for passing local ordinances (条例)  and approving the prefecture’s budget, which at 6 trillion yen just for the general account is on par with Finland’s GDP.

The prefectural assembly’s other enumerated powers according to the Tokyo Prefectural Assembly website include investigating and auditing the executive branch, passing a no-confidence motion against the governor, and responding to requests from Tokyo residents to investigate various grievances.

What are some of their more recent achievements?  How powerful are they?

Since Tokyo’s government is set up somewhat similarly to a US state (unicameral legislature and a fairly powerful directly elected governor), the assembly can wield significant power if the party/coalition holding a majority of seats is opposed to the governor’s agenda. However, this is not currently the case, so right now they don’t do much.

News outlets openly report that the assembly is all but a rubber stamp for the executive, owing to a comfortable relationship with recent cozy LDP-Komeito majorities (and occasional DPJ cooperation) and three consecutive terms for Governor Shintaro Ishihara, who is not officially backed by any party but has an ideological affiliation with the LDP-Komeito as one of Japan’s leading conservatives. Prefectural assembly meetings are perfunctory affairs in which the elected members simply read from a script which has been prepared in advance by bureaucrats from the governor’s office, a process euphemistically called nemawashi i.e. backroom dealing. The Communists and other leftist parties do their best to stir up scandal (Ishihara’s lavish trips abroad and the catastrophic small-business bank among them), but voters keep voting in this conservative bloc.

Most of the assembly’s routine agenda appears to be fairly mundane, except when they are called on to give their blessing to the pet projects of either Governor Ishihara or the national government. A look at the agenda of assembly meetings in 2009 shows such typical local administration as minor revisions to health service fees, approval of staff rosters for the fire departments, and the establishment of a new police precinct. However, it is unclear how much room for originality the prefecture has when they must contend with the agendas of the Tokyo prefectural bureaucracy (firmly controlled by Governor Ishihara) and the prerogatives of the internal affairs ministry.

In May, the prefecture passed an emergency supplementary budget to provide economic stimulus in coordination with the central government’s efforts. They approved spending of 134.9 billion yen (with about half the funding from the central government, with the rest paid for by revenues from prefectural revenues and a bond issue). The money went to beef up a consumer protection agency, subsidize day-care centers, pay additional outlays to pregnant women, fund high-tech education, and more.

A 2007 report from citizen journalism site JANJAN decried the governor’s strong influence over the prefectural government, owing not only to the majority LDP-New Komeito who form a loyal right-wing support base thanks to their alliance in national politics, but also to a compliant DPJ. For example, the legislature is in charge of regulations/zoning of prefecture-run wholesale markets, and this includes the world-famous Tsukiji fish market. A decision made in 2001 to move the market to Toyosu, where more modern facilities can be constructed, met with opposition at the last minute due to claims of pollution at the new site in Toyosu. However, the assembly members were not hearing it and the move remains on schedule for 2012.

In another example of Ishihara’s absolute control over his pet projects, the Tokyo legislature gained national attention recently for approving multiple bailouts of New Bank Tokyo (新銀行東京). This bank was created as the fulfillment of Ishihara’s campaign promise to start a bank for small Tokyo-based companies during a bid for reelection in 2002. After opening for business in 2004, just three years later the bank became insolvent due to notoriously lax lending standards that led to enormous losses from the very beginning. But despite this embarrassing failure, the Tokyo assembly was unwilling to refuse Ishihara’s insistence on providing the bank with 4 billion yen in new capital and a new lease on life. In this instance the DPJ members opposed the bailout but it passed with LDP and Komeito support.

The media outlets reporting these scandals seemed genuinely frustrated with the assembly for these recent scandals, but it seems like they should save their breath for the governor’s office, because once Ishihara has made up his mind the TLA won’t do much to stop him.

Other so-called “third sector” businesses directly run by Tokyo Prefecture include the “Toei” subway lines and buses and prefectural government housing.

What are the issues in this election?

There are none. If you have heard anything about this upcoming election, it is probably  that a poor showing by the LDP could spell trouble for Prime Minister Aso’s government and could trigger an early election (latest reports are that Aso might just dissolve the Lower House before the prefectural elections.  Not even the Tokyo Shimbun could identify an angle outside of whether the LDP-Komeito coalition can hold onto power. I’ll go into more detail on the candidates themselves later, but their pledges tend to focus on populist rhetoric like helping small businesses, cutting income taxes, and lowering medical fees.

Otherwise, interest in the election is fairly low (but higher than a typical US election). The last election in July 2005 boasted a mere 43.99% turnout, which falls somewhere among the typical turnout of 40-50%.

***

OK, that’s enough for now. Next time I will try and profile the candidates in the election and see if it makes a difference.

Pepsi Shiso: Great Soft Drink, or GREATEST Soft Drink?

pepsi shisoI bought and enjoyed Pepsi Shiso for the first time today (it went on sale on Tuesday). I’m a big fan of the shiso leaf flavor and have enjoyed shiso juice that I’ve bought in the inaka wilderness of both Hokkaido and Kyushu. I LOVE the new soft drink, and would recommend it to anyone who enjoys the general adventures that can be enjoyed in Japanese nutty snack cuisine.

Unfortunately, it’s a kisetsu gentei drink and will only be sold through the summer. And for those of you who think that Pepsi is some amazing cross-cultural mastermind of Japanese tastebuds, this is actually the brainchild of Suntory Foods, which has wholly owned Pepsi Japan since 1998.

All this being said, you’re going to have to like the taste of shiso to enjoy the drink. But if you love shiso, you’ll love Pepsi Shiso. Want to see a comparison of the color of Pepsi regular and Pepsi Shiso? Check out this photo.

Nara schoolgirls shun bare legs in favor of a vaguely Islamic aesthetic

Asahi Shimbun, 21 June:

At Kintetsu Yamato-Saidaiji Station in the evening, full of uniformed high school students, I watched with a distant eye, recalling myself in my younger days. And I noticed that the girls’ skirts were long–covering the knee as a matter of course, but overlapping the socks so that the legs couldn’t be seen at all. I thought it must be some school with harsh rules, but it wasn’t just one school. Watching each school as a high school baseball reporter, the miniskirts seemed to have fallen behind, as long skirts were in the majority. “Since about two years ago, there have been many students with skirts covering their knees,” says a male teacher at Koriyama Senior High. Under ordinary school rules the skirt must be long enough to cover the knees, but when I was in high school, it was usual to see 15 centimeters above the knees.

Why long skirts? “Chon-chon (short skirts) are tacky now,” says second-year Yuki Takahashi. “The shape of the skirt looks cute,” says third-year Ayumi Fujimoto (17). Another opines that “I don’t want a Pocky tan (where the socks leave a tan line), so I pull my socks up to the bottom of my skirt.”

This is a pendulum that should have swung the other way a long time ago. Although teachers complain about short skirts, the implicit acceptance of that aesthetic in popular culture has made Japan look like a nation of “hot, shallow and superficial sluts with knee socks and short skirts that live to exist like real world barbie dolls.” What’s interesting is that in Nara, it appears to be the natural forces of fashion that are taking short skirts out of favor and making more modest dress the “new hotness.”

I’m sure that Marxy has a lot to say about this…

News on the unfolding revolution in Iran

[Accidentally hit publish before I was done.]

I’ve been following events closely all week, and although I have no deep insight or analysis on the situation, I thought I would share my list of recommended sources for breaking news, in order of importance.

Tehran Bureau: An Iranian-American cultural magazine that has been providing some of the best analysis of and historical context for ongoing events. Also see their Twitter feed, updated almost minutely with quotes being forwarded from inside Iran. As I write this, they have just updated

from trusted FB source: Mousavi is reported to be speaking to protesters on Jeyhoon street. He said a few minutes ago:

I am prepared for martyrdom, Shame on you and your tricks the coup government. end quote

Here is their latest full dispatch.

Andrew Sullivan’s blog: Andrew has been following this story closely since it began in earnest a week ago, and is working all day long to make his site a constantly updated stream of links to and quotes of every single breaking development and rumor. Although Iran is not remotely his field of expertise and he has little deep commentary to add, his blog is currently the best centralized location for links related to the ongoing story.

NYT “The Lede” blog: The NYT breaking news blog has been doing much the same thing as Andrew Sullivan, but with a slightly more conservative journalistic approach to posting entirely unverifiable details, and with slightly more analysis.

Iran Tracker.org: The name says it all. I believe this site has historically been focused more on watching Iran with a suspicious eye, as a possible military threat, but they seem to be doing a good job right now providing much-needed statistical analysis.

Juan Cole’s Informed Consent: A well known Middle East scholar’s ongoing commentary.

Fivethirtyeight.com: This one, a blog devoted to statistical analysis of US politics, might be a surprising addition to the list, but in fact Nate Silver has been using his analytic tools to examine the potential validity of fraud claims re: the Iranian election and is well worth a read.

And finally, I urge everyone to read the graphic novel Persepolis, or watch the animated adaptation thereof.

From what I have seen, the legal constitutional basis of The Islamic Republic of Iran is now, as of last week , neither Islamic nor Republican. I truly hope the protesters succeed in what is increasingly looking like a true popular revolution, or perhaps the second stage of the 1979 revolution.

These popular uprisings, even if they succeed in the short term, often still end poorly. It’s worth remembering “EDSA 2”, the popular uprising in The Philippines which overthrew corrupt president Joseph Estrada, putting Gloria Macapagal-Arroyo in charge. Well, President Arroyo is now widely regarded as worse than Ferdinand Marcos, responsible for unspeakable amounts of graft, and the extrajudicial killings of an unknown number of journalists and activists. In a sense, this is similar to the aftermath of the original 1979 Iranian Revolution, which began as a wide-ranging popular movement including Islamists, Socialists alike, to overthrow the Shah, but which was soon diverted in a heavily theocratic direction.

Based on the little I know of Mousavi’s pas, though, I hope he will be better. Many have said that Mousavi is “not a true reformer” or “not really that different from Ahmadinejad in policy terms” but I can’t help but believe that if he somehow manages to coast into power on this level of popular support he will find himself far more of a reformer than he imagined. Of course, if the uprising fails, they will kill him.

Organ Harvesting in Japan–Now Legal?

The Lower House voted yesterday to remove the major restrictions on organ transplants in Japan–an age limit and the need for family consent of the donor. Since the organ transplant law was passed, transplants have been difficult to get in Japan and are fairly rare–only 81 in the 11 years since the current law was enacted. Yesterday’s changes were spurred by pressure from the WHO, looking to stem the tide of “medical tourists” who go overseas to get transplants.

Of course, this isn’t to say that everyone agrees with the changes that were made. Many Japanese remain wary of organ transplants and the concept of “brain death,” necessary for organ transplants, is not as accepted in Japan as it is in the United States. Twice Dead, by Margaret Lock, details many objections Japanese people have; the most interesting one she cites relates to 贈答文化, exchange culture, in that a donee can not properly return the favor.

Now, this was nowhere near as interesting as the reason detailed in the newspaper handed to me this morning as I passed a group of protesters demonstrating outside the Diet. According to 関東「障害者」解放委員会, the Kanto “Disabled Persons” Liberation Committee, the law will allow the nefarious Japanese government to do what it has long wanted: harvest organs from workers and sell them on the global market. Social stratification in Japan has spread to the medical arena and politicans led astray by America’s neo-liberal influence are plotting to increase the number of its brain death diagnoses in order to save costs on emergency care and further oppress the working poor! Will the capitalists never cease their brutal exploitation of workers?

After getting over my shock in realizing I was actually reading the headline of the newspaper correctly, I found myself somewhat disappointed that the protestors couldn’t have put together a better case. It is possible to argue against organ transplants without sounding like a complete nut. Although the criteria for brain death are quite rigorous and misdiagnoses are nearly unheard of, there are rare cases of people being declared brain-dead and then coming back to life. The idea of brain death also conflicts with many religious and cultural notions of death.  These aren’t limited to non-Western cultures; according to Wikipedia, the orthodox Jewish community is divided over the issue.

Of course, these nuanced arguments are complicated. It’s much easier to simply say that Japanese politicians are selling poor people’s hearts and livers to line their pockets. Ah, politics! I can’t wait to see what I’m handed the next time I head to Nagatacho.

(Interestingly enough, Japan has had problems with people who allegedly broker “used” organs. Also, see Roy’s post about Japanese organ harvesting in Thailand.)

Japan’s Badge Phenomenon

I must confess to a certain nerdish habit when walking around central Tokyo — badge-spotting. Whether it be Japan’s many corporations and the uniform-like consistency in which employees pin the logos to their suits, or the guild-specific badges of many professionals, badges are everywhere. In particular, it’s fun to spot the legal/accounting/tax professionals, often based on a flower blossom motif. This post quickly summarizes the badges of such professionals that you are likely to see in any commercial district of Japan — if you pay close attention.

badge1

The Administrative Scrivener badge has a cosmos flower with the archaic “行” character in the center; the Attorney badge has the scales of justice in the middle of a sunflower, the flower designed to represent justice; the Judicial Scrivener badge is a paulownia, and is silver, apparently specifically to be in second place to the golden badge of the attorney.

badge2

The Tax Lawyer badge is a circle with a sakura cherry blossom in the top; the Patent Attorney badge is a chrysanthemum with an unknown symbol in the center; the Social Insurance and Labor Specialist badge is a chrysanthemum with sharp, not round, petals, with the roman letters “S.R.” for the romanization of the profession’s title, shakaihoken rodoushi,

badge3

The Land Surveyor badge is a paulownia with the archaic “側” character in the center; the CPA (certified public accountant), despite being perhaps the toughest of all state exams together with the bar exam, nonetheless has an utterly cheesy badge that simply bears the roman letters of the English translation of the title; and the Marine Procedure Agent has a badge that is a chrysanthemum with a ship’s steering wheel in the center.

badge4

The badge of a judge is not a flower but the Yata, a mythical mirror that is said to be part of the Imperial Regalia, with the character “裁” in the center; elected members of the Diet have a metal chrysanthemum badge pinned to a thick purple felt patch; and Diet Secretary badges are a wafer thin, red chrysanthemum.

Those of you wannabe lawyers and diet members out there who don’t want to go through the formalities of “passing the bar” or “being elected” are in luck — website PinJP sells replica badges that look just like the real thing. Just don’t actually engage in the act of immitating a lawyer or you’ll face jail time.