Akiyama Saneyuki to the Czar: “I want to play a game…”

I have recently enjoyed downloading episodes of Sono toki Rekishi ga Ugoita, the iconic NHK series on key moments of Japanese history. (Much to my surprise, these episodes are available due to a passionate following that the series has in Taiwan, and many episodes are available via bit torrent download, with Traditional Chinese subtitles.)

In watching these episodes, I was pretty horrified to see that, for an episode regarding the strategy behind the victory of the Battle of Tsushima, the theme music from the horror film SAW was used — just see these two key scenes that I clipped for the purposes of this blog post (the break between the two separate scenes is seamless, but there is a 20 minute gap between scenes at 1:22).

Why on earth does NHK pick this kind of music, and what’s the decision-making process behind the selection? For someone who knows where the music comes from, it really ruins the otherwise well-produced TV documentary.

JAL’s Middle East Adventures

Japan Airlines (JAL) is in the hotel business, and not surprisingly, it wants to get out. As the company seeks to restructure itself into a viable business, one of its plans is to sell its hotel arm, possibly to Hotel Okura. JAL currently owns 41 hotels in Japan and 17 overseas, and those overseas hotels are overwhelmingly in large cities — Beijing, London, Mexico City, Hanoi, Hong Kong, and on and on. Others are in tropical resorts popular with Japanese tourists, such as Bali, Palao, and Guam. There is also one JAL hotel in the Middle East, in a somewhat unusual location.


One of these things is not like the other…

The only JAL Hotel in the Middle East is not in a major city such as Dubai, Abu Dhabi, Doha or Beirut. It’s in the tiny emirate of Fujairah, one of the seven emirates that make up the United Arab Emirates, situated not on the Persian Gulf but on the Gulf of Oman. (Don’t rely on the JAL map above for the accurate location — click here for a map that explains where Fujairah is in the context of the other UAE emirates).

The hotel was announced in October 2005 to much fanfare and at that time was scheduled to open in December 2006, with another hotel in Dubai to open in 2007. The JAL Fujairah actually opened in May 2007 — not a bad time lag, actually. The hotel itself is owned by a Kuwaiti company called ACICO — which stands for Aerated Concrete Industries Co., a more old-school construction company that is not a typical player in the luxury hotel business. JAL is the manager of the hotel, and its truly distinguishing characteristic is the cuisine, which is genuinely Japanese and said by some to have some of the best sushi in the entire Middle East. I have heard of more than a few people driving the 2 hours from Dubai to Fujairah just to have a sushi lunch, and then drive home.

Objectively, to international standards, the JAL Fujairah is a beautiful beachside hotel located near a number of other luxury hotels along the Fujairah coast. But locally, I have heard it referred to as a “motel”, and substandard when compared to the other modern luxury coastal resorts in Fujairah such as the Rotana and Le Meridien.

JAL had bigger plans for the Middle East, and was one of countless companies that got caught up in the Dubai property boom and the hotel boom. But they ran into problems. The Dubai hotel originally announced for 2007 was pushed ahead, and when construction was underway on the JAL Tower, built on prominent real estate along Sheikh Zayed Road, across from the iconic Emirates Towers in early 2007, it was at that time scheduled to be opened in 2008. It was also to be followed by the JAL Hotel and Spa Resort Bahrain in 2009. The later project has since been cancelled, and the former has yet to open as of this writing in early 2010.

At this point, the cause of the delay is not clear. The tower had just about been completed when I arrived in Dubai last autumn — check out these photos of the building that were taken shortly thereafter — and as of December 2009 it was scheduled to open in April 2010. But it remains closed, and it has yet to open or announce an opening date, only stating on its web page that it will open sometime in 2010. Something must be planned — last month they hired a new director of finance, and last week they hired a new manager, and their web page says they are hiring. But I would be surprised if they opened anytime during the summer months or during Ramadan in August, which means an opening in September at the earliest.

By that time, JAL Hotels may not be JAL Hotels anymore. With a possible sale of JAL Hotel’s assets to Hotel Okura, the first Japanese-managed hotel in the Middle East could be run by a relatively domestic Japanese hotel business. Dubai’s Japanese are hopeful that they can maintain the best sushi in the region.

What is Japan’s National Language?

It may surprise some readers (but perhaps not others) that Japan has no official language. This may seem trivial, but remember that Japan’s constitution, the basis of its entire legal system, was largely drafted by US lawyers and then translated into Japanese (which is why the Japanese language, such as randomly granting rights to “citizens” or “anyone” without a meaningful discrepancy, is so scattershot). What, then, is the law regarding the use of Japanese, and where is Japanese language use mandated by law?

The instances are surprisingly few. Perhaps the most important is Article 74 of the Courts Law:

Article 74: In the courts, the Japanese language shall be used.

The pre-war Foreign Courts Cooperation Law also provides that any document submitted to the Japanese courts must contain a Japanese translation.

The other instances are pretty minor and frankly merely procedural:

* Japan’s Patent Law and other related intellectual property laws requires that all international patent registration documents be submitted in Japanese. These laws were primarily amended to bring Japanese domestic law into line with the international treaties on IP registration that Japan has signed.
* Under the Notary Public Law, notaries can draft proof documents — that are in Japanese.
* Foreign doctors doing clinical work in Japan must speak Japanese, or another language approved by the Ministry of Health Labour and Welfare.
* The conversion of a foreign driver license requires that it be translated into Japanese by an officially approved translation body, under Article 107-2 of the Road and Transport Law.
* Foreign company reports designated by the cabinet to contain public interest information or information for the protection of investors must be in Japanese, under Article 24 of the J-SOX Law.

In my search of the Japanese law database houko.com, those are the only significant instances where the law mentions Japanese.

Thanks Kamei! Japan’s taxpayers now guaranteeing about 500,000 deadbeats

In the autumn of last year, Shizuka Kamei pushed through a debt moratorium law, primarily with the provincial goal of backing the small real estate companies in his home town of Hiroshima that were hit hard by the recession. At the time, I called this woefully short-sighted:

Small companies across Japan’s countryside that are having trouble making repayments should either restructure themselves, or fail and be restructured by creditors or new management. Many have antiquated management with regards to accounting, employment rosters, operational efficiency, supply chains, etc. Companies that can’t adapt to changed economic environments are supposed to fail. Yes, some good companies caught in unlucky times are destined to be caught in the current credit crunch as they are unable to repay loans and go bankrupt. But bankruptcy is a good thing! It is the engine of economic development that allows bad companies to fail, stifled talent to move elsewhere, assets to be sold at whatever price the market will bear, and bad management to be replaced. Yes, it sucks that people lose jobs and shareholders forfeit their investments, but that’s life! Letting this happen is a necessity for economic growth.

And on top of this, the poor local banks, only barely functioning after 15 years of treading water with the bad loan crisis, will now inevitably reduce their limited lending activities to nothing. There will be no money to lend, thus no local business growth or economic development, and thus no entrepreneurial activity. A short-term benefit for stabilized employment rates means the countryside gets screwed in the long term.

While my concern about small businesses refusing to restructure remained true, my concern for local banks was addressed when the final bill was passed (which you can read in Japanese here). The Japanese government — in other words, tax dollars — provide a statutory guarantee for these deadbeats. The mechanics of this are, under Article 11 of the Moratorium Law, that the government provides sufficient financial backing to the Credit Guarantee Union, which backs the financial institution undertaking the new obligation to support the small business. The Credit Guarantee Union is a government-backed public interest corporation that provides credit and loans to small businesses.

How many people and “small businesses” (defined as a company with less than US$3 million in capital and less than 300 employees) have applied for the moratorium in the last half year? About half a million:

Japanese banks have received a total of 521,030 applications for the easing of loan repayment terms from small and midsize companies and homeowners under the so-called debt moratorium law, the Financial Services Agency said Friday.

The applications, as of the end of March, since the law took effect in December last year involved 13.64 trillion yen and more than 90 percent of them were approved, the FSA said.

Congratulations, Japanese taxpayer — your tax yen are now financing these deadbeats. When the world is buzzing that Japan could be the next Greece, and could be sparked by one of any number of events (a failed Japanese bond auction, a sharp drop in tax revenue, a failure to implement tough fiscal and budgetary standards, a sharp contraction in Japanese GDP, a downgrade in sovereign debt by the ratings agencies), this is one of the worst policies that could be put in place.

Hafu

HAFU: THE FILM is a new documentary coming out about Haafu — people of half-Japanese descent and their cultural experience.

I’m not sure what I think about this blurb and I’m still learning about the film. This is rare for me, but I’m reserving comment at present. What do readers think of the above street interviews on hafu, and has anyone heard more about this film?

I weep for the future

Most readers will remember Taizo Sugimura, the Koizumi “Orphan” accidentally elected to the lower house as a LDP diet member in the 2005 snap election. After a string of disgraceful incidents in which the party quietly told Sugimura to stay out of the public sphere, he was silently booted from the 2009 LDP ticket after his bull-in-China-shop attempt to run for a seat in Hokkaido’s 1st district against a local favorite.

Sugimura is about to relaunch his political career, this time running for an Upper House proportional representative seat for Hokkaido on the ticket of the “Tachiagare Nippon” (the so-called “Sunrise Party”), the stoggy conservative splinter group that broke away from the LDP. The party’s goal in the selection of Sugimura is apparently to appeal to non-partisan voters through Sugimura’s appearances in media and his name recognition. You can read the Japanese article here.

Meanwhile, I was equally surprised to see that DPJ party leader Ichiro Ozawa has pulled in Ryoko “Yawara” Tani, the female Olympic judo wrestler. In a press conference earlier today she announced that “I want a gold medal in the election too” — in addition to seeking to join the 2012 Summer Olympics in London. Then there’s also Mari Okabe, a former model and TV talent, who has been nominated to stand for election on the DPJ ticket as well. Here again, the media clearly outlines the party’s motive in picking these candidates — seeking to bring in votes by picking popular people with a wide name recognition.

How do Japan’s political parties get away with this type of popcorn populism? I find it disheartening that people with no merit whatsoever seeking to run for public office are picked for the blatant purpose of nothing more than appealing to the lowest common denominator of voter. Sadly, my informal surveys leads me to believe that lots of Japanese people feel the same way about this state of affairs, but accept it with bland fatalism and disinterest in the state of Japan’s political affairs.

Japan’s Upper House Election is scheduled for July 11th.

The Osaka 2011 Problem — a historic opportunity?

Osaka has a problem. (Well, OK — it has lots of problems.) But there is one problem out there that is so big it has been called the “Osaka 2011 Problem” — the massive construction of skyscrapers and other major real estate projects across the city. These projects will come online on a rolling basis for years, but 2011 is considered to be the peak year when the market is flooded with too much new real estate. Hence the new buzzword.

Why are new skyscrapers a problem? Osaka’s city economy is a basketcase, effectively two decades behind the times with a tired industrial sector and trading economy that has not evolved into the modern era. It has failed miserably in competing with Tokyo, Yokohama, Nagoya and Fukuoka, all of which have found an important niche in the 21st century global and Asian market. So all this premier real estate in Osaka will be finished, but there will not be enough tenants to provide the demand for this new supply.

Yet I discussed this with a learned friend who knows Japan’s real estate market inside and out. He says that, as they main developers are all the big boys, so they be able to entice key keiretsu companies to take space in their new projects to get a head start on income. There will be a flight to quality, as major companies relocating into new projects will give everyone an opportunity to upgrade, while rent levels will come down (think Dubai!), and owners of old real estate will come under pressure to sell assets.

This is the story of urban development elsewhere. Larger companies have cheaper capital costs and as one area’s development cycle completes they look at another area to buy up and re-develop. Some projects in the pipeline have as their business plan the buy out of seedy businesses (and second-rate businesses) to aggregate land and build something nice. In other words, gentrification! This does create value.

Some of these projects can be highlighted and looked at under the microscope, such as the Kita Umeda Yard — check-out insight on the project from the blog Osaka Insider. This could well become the new hot spot, as Shin Osaka loses tenants to Kita-Umeda. And as Shin-Osaka declines, developers may well buy out land around Shin Osaka and re-develop Shin Osaka area, at the same time that one of the trains is extended from Umeda to Shin Osaka. Once again, the gentrification strategy.

My learned friend also some some further insight — this procession is fair. Japan is similar to Western Europe in that there is a traditional landed class that lives off of rent, but they never reinvest and sad buildings last for years without repairs. The Osaka redevelopment should make the property market more competitive, and those landowners that can’t survive will be forced to sell out.

Will this be good or bad? Only time will tell. But from a macro view, this so-called problem may well be the kick that Osaka needs to re-build a sad economy.

Are the Japanese crazy like us? (And by “us”, I mean “Americans”)

Ethan Watters is the author of “Crazy Like Us: The Globalization of the American Psyche,” and recently appeared for a six minute interview on the US comedy show The Daily Show. Curiously, much of what he talked about focused on Japan:

The Daily Show With Jon Stewart Mon – Thurs 11p / 10c
Ethan Watters
www.thedailyshow.com
Daily Show
Full Episodes
Political Humor Health Care Crisis

The author raises this question: Is the American focus and treatment on understanding mental health (depression, schizophrenia) a “cultural” export? His answer is yes, and describes how, in treating symptoms that are believed in American culture to be “mental sickness,” we replace some symptoms that are in fact cultural characteristics in other societies. He ends up spending much of his six minutes on the Daily Show interview talking about Japan and criticizing the American “export” of mental health treatment to Japan. He says:

“Japan is actually a very sad culture. They think of sadness… almost as a religious state, as a way to get moral guidance…”

I read more about Watters book, and found some of the numbers that he uses to back his book. One is that GlaxoSmithKline and other drug makers funded favorable medical studies to sell treatments for depression in the Japanese market, with huge success — GlaxoSmithKline’s sales in Paxil went from nothing in 2000 to topping $1 billion in 2008. 27 books were published on depression from 1990 to 1995, but 177 were published from 2000 to 2005. Meanwhile, the Crown Princess is reported to be suffering from depression. So “depression” as a disease and syndrome, as opposed to a result of Japanese cultural characteristics, is now widely recognized in Japan, although I would argue that there is still much more stigma attached to it than in America.

Yet he goes on to say that Japan is perhaps the biggest copier of the American model. This seems to be absolute lunacy to me. Yes, Japan is a sad culture. The Japanese people are much more pessimistic and cynical about their future and their country’s future than any other Western developed nation. (I’ve seen stats to this effect but nothing that I can link to — feel free to weigh in on this point.) But first of all, they are still no where close to institutionalizing mental health on the educational, social, corporate, and government level. And second of all, is this the “Americanization” or “modernization” of mental health? While I think there is an excessive and too broad a focus on mental health in the United States, where everything is deemed to be an issue of mental health, I think that Japanese culture and society still has far too little emphasis on psychology, counseling and mental health.

Naturalization in Japan: KEY FACTS

I am amazed at how the myth of Japan’s difficult naturalization process persists to be widely believed by well-educated Japanese and non-nationals alike. In a lengthy discussion of this last night, I researched some key facts on this and thought the results of my review worth sharing with MF readers.

* 15,440 people applied for naturalization in 2008, according to the MOJ. Of these, 13,218 people were naturalized, but that figure is deceivingly low as the application process takes 6-12 months (or longer), and some approvals will show up next year. Only 269 were rejected, which means that the rejection rate was less than 2%. The overall approval rate for first-time applicants for the past decade has been 99%.
* For the past decade, about 60% of applicants were Korean (including North and South Korea, and the generic “Chosen” applied to many Koreans born in Japan) and about 30% were Chinese (including Taiwan and Hong Kong).
* The basic requirement is five years of continuous legal residency in Japan, but this can be shortened to one year if the applicant has been married to a Japanese citizen for three years or more. Read the law in Japanese here.
* Otherwise, the requirements for naturalization are relatively straightforward, and I think most MF readers could naturalize easily. You must: be a competent adult; read kanji to a third-grade level; be an upstanding citizen with no criminal record; have sufficient income or assets to support your family; be prepared to give up other citizenship; and have never been involved in advocating or perpetrating the violent overthrow of the government or constitution.
* Unofficially, the primary cause of a rejection is a “criminal record” — not crimes bad enough for deportation, but crimes such as multiple speeding tickets. Nothing in the law prevents a failed applicant from immediately reapplying.
* The application is done at the local houmukyoku Legal Affairs Bureau. The cost of the application is free. Gyouseishoshi and shihoushoshi professional legal advisors can also handle the paperwork and application, for fees generally ranging from 200,000-400,000 yen.
* A key procedural step to naturalization is assembling the birth certificates and marriage certificates of the applicant and the applicants parents so that the applicant can create a koseki family registry.
* A family registry has two addresses, the ordinary residential address and the “honseki” which people generally keep as their family home, but which can be transferred freely. If a naturalized person changes their honseki to a new municipality, they get a new, clean koseki that only states present, not prior, facts, so the evidence of naturalization disappears from their koseki. (So do other key facts, which is a way that some people hide marriage annulment and divorce history.) This is only surface concealment — the original honseki is held by the municipality as a separate record, by law, for 80 years.
* There are a few examples of Europeans naturalizing as Japanese nationals during the Meiji Era and beyond, when some Europeans kept their names unchanged, in roman letters. After World War II and until 1985, applicants were required by ministry procedures to adopt a Japanese name. This was dropped as an explicit requirement that year, but remained as an inexplicit requirement through the 1990s. Presently, the only requirement is that a person write their name in kanji, hiragana or katakana, with no encouragement to otherwise adopt a “Japanese” name.
* It is rumored that one reason this requirement was dropped was because of the naturalizatio of Masayoshi Son, the president of Softbank born in Japan to Korean parents, and one of Japan’s richest people. When he applied for naturalization, the authorities said that he had to take a Japanese name or prove that Son (or 孫) was a Japanese name. As he was advised by lawyers with more than half a brain cell, his wife petitioned the family court to take his family name, this was accepted by the court, and he had the necessary proof. The flummoxed bureaucrats thus took the view that this now unwritten requirement was outdated and dropped it.