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    More about Japan Post reform

    Posted by Sean at 23:32, September 28th, 2004

    Asahi has a new poll (here’s the original Japanese version) indicating that voters don’t care about Japan Post reform (which is what I should have called it earlier, rather than “Postal Service reform,” which makes it sound as if only the handling of the mails were involved). That’s interesting, if not all that surprising. It may be that people don’t perceive what’s at stake in the management of Postal Savings accounts–or it may be that they do but just think the “reforms” aren’t going to help and therefore aren’t worth fixating on:

    Those polled were also asked whether they thought Koizumi would be able to exercise his leadership in realizing privatization of postal services, given that many influential members in the Liberal Democratic Party remain opposed to Koizumi’s privatization plan.

    About 39 percent said no, while about 37 percent said yes.

    So people may understand the import of the issue but feel that nothing substantive can be accomplished. The English version leaves out the part specifically about Heizo Takenaka’s new position as head of Japan Post privatization (39% think his appointment was a good idea; 25% do not). Predictably, most people chose pensions/welfare as the most important issues, with more general economic and employment issues next.


    Japanese Postal Service reform

    Posted by Sean at 19:41, September 26th, 2004

    One of the big news items here in Japan over the last several months has been the reform and privatization of the Postal Service. I haven’t avoided it for fear of boring you–though it’s not the sort of topic likely to make you a hit at dinner parties. It’s just that there’s been so much back-and-forth. It is, though, a very, very important issue here in Japan, because Postal Savings accounts hold a lot of the wealth of Japanese households and put it at the disposal of Ministry of Finance project managers. This editorial (subscription only–sorry) from last week’s Nikkei English on-line edition delineates pretty well how things have developed:

    The privatization plan will divide Japan Post into four companies respectively operating the mail, savings and insurance services as well as the nationwide network of post offices, but the four operators will remain under the integrated management of a holding company.

    The holding company will sell its shares in the savings and insurance units to turn them into private businesses, but it is not clear what percentage of the stock will actually be sold. Moreover, the government will continue to own at least one-third of the holding company, allowing it to maintain its involvement in the savings and insurance companies, at least to some extent, unless the holding company sells its entire interest in them.

    The mail and network management entities, which will remain under the full ownership of the holding company, will be required to provide uniform services nationwide in exchange for receiving special treatment, including a continued monopoly in the mail delivery business.

    The branch network management company will inherit post offices and workers from Japan Post. The government appears to be intent on ensuring that the other three new postal companies will use the offices and workers of the network firm to protect these politically important jobs. Such forced dependence on the existing post office network will frustrate the new companies’ efforts to refashion themselves into more efficient and profitable players.

    This scheme — creating an entity to take over Japan Post’s infrastructure and virtually forcing the other postal companies to use it — seems to be simply a ploy to avoid radical changes in postal operations while making the reorganization look like a reform, just as the plan adopted to privatize public road corporations based on a two-tier structure was merely a scheme to keep building new roads.

    The envisioned savings and insurance companies are unlikely to achieve management independence as long as they are tethered to the infrastructure operator, which will not be freed completely from government control. This is not a formula that lends itself to independent and transparent accounting at the postal companies.

    The basic design of the privatization will certainly cause this crucial reform initiative to go awry and it will do nothing to further privatization’s primary goal: ending the government’s stranglehold on a big chunk of private savings that is causing serious distortions in the financial markets and undermining fiscal discipline. Achieving this goal requires a swift and complete end to the government’s involvement in the privatized postal companies.

    If you’ve got a sense of déjà vu here, you may be thinking of what happened to California’s energy providers, which taught us all the difference between privatization and deregulation. (And I must note, in fairness, that unlike the USPS, the Japanese Postal Service provides mail handling of pretty much unexceptionable quality.)

    Added an hour later: Because I’m distracted by the Vertigo DVD and am also a scatterbrained idiot, I forgot to note why I’m finally bringing up the Postal Service reform in the first place: It’s what drove the selection of new appointees in the cabinet reshuffle Prime Minister Koizumi announced today. Heizo Takenaka, who’s going to end up with more joint appointments than Stanley Fish soon, will still be in charge of economic policy and fiscal administration, and he’s also been named the head of Postal Service privatization and reform. That’s a new, ad hoc post, of course.

    Foreign Minister Yoriko Kawaguchi, who has distinguished herself largely by not having a big mouth like her predecessor Makiko Tanaka, is outgoing; she’d been reappointed in the last cabinet change. Her replacement is MP Nobutaka Machimura, who apparently has lots of connections in the US. He was Minister of Education back when (1) that’s what the position was called and (2) there was last a flap over Japan’s government-approved social science textbooks. More directly related to diplomacy, he was State Secretary of Foreign Affairs under…uh…Obuchi? Japanese PM’s sprang up and died like Mayflies in the late ’90’s, so I don’t remember. I wonder whether he was picked not just for his US ties but also because he’s somehow seen as being a good figure to guide the Japanese push for permanent membership on the UN Security Council? I mean, he would almost have to have been, but I haven’t seem him cast in that light in the preliminary reports.


    Someone always loves a little more / And I think it’s me

    Posted by Sean at 15:28, September 22nd, 2004

    The DPRK may be preparing to test-launch another missile:


    The United States and Japan have detected signs that North Korea is preparing to launch a ballistic missile capable of reaching almost anywhere in Japan, Japanese government sources said on Thursday.



    The preparations were detected after the reclusive communist state refused to take part in a fourth round of six-party talks on ending its nuclear ambitions and said it would never give up its nuclear deterrent.



    Tokyo and Washington had detected the signs after analyzing data from reconnaissance satellites and radio traffic, the Japanese government sources said.





    The Nikkei Japanese edition also reports that the North Korean central news agency was published as saying, “If the US brings about a nuclear war (on the Korean Peninsula), it is inevitable that US bases in Japan will draw Japan into the same nuclear war as well.*” Don’t you love that? The DPRK regime was just sitting there south of the Yalu, minding its own business, getting on with the quiet domestic tasks of deciding which citizens to imprison and which to let starve to death from its incompetent economic policies, when the US swaggered by and forced it to get all bellicose.



    Fortunately, no one’s certain that there’s a launch planned; everyone’s just on watch. We’ll see. As far as the blow it might deal to the six-member talks goes, who seriously believes the DPRK would have been persuaded to give up its missiles, anyway? It has a notorious record for breaking agreements. I don’t think negotiations should be stopped, of course–things could get really ugly if everyone openly gave up speaking to each other–but I think the disruption of this particular round of talks is less significant than having yet another show of animosity in the region.

    * Lit., “US bases in Japan will become a fuse that draws the flame of that nuclear war to Japan, too.” Evocative metaphor, huh?


    Items from Japan

    Posted by Sean at 23:33, September 13th, 2004

    Another Mitsubishi Fuso vehicle has had clutch failure–though this time there was no accident. The shaft detached and caused the dumptruck involved to stop in the middle of the highway, though. It was a 1984 model and, thankfully, I suppose, had a clutch that was already under recall (thankfully because it means they haven’t discovered yet another defective part).

    *****

    For obvious reasons, Hitomi Soga and her family have gotten much of the attention. But there are other touching stories among the repatriated abductees from North Korea. Kaoru Hasuike will be allowed by the law department of Chuo University to return to his studies. Hasuike is 46; he was abducted while a junior home in Niigata Prefecture on vacation in 1978. He hasn’t decided whether to go back to classes or do distance learning–understandably, there are significant readjustments he’s still making.

    *****

    More darkly, two death row inmates were executed today; one was Mamoru Takuma, who went on a stabbing rampage in an elementary school near Osaka in 2001, killing 8 children. As they always do when Japan carries out an execution, human rights groups (and the Japan Federation of Bar Associations) are understandably protesting the lack of transparency in Japanese capital punishment. This Reuters story outlines things pretty well. Japanese executions take place when they’re least likely to dominate the news cycle, and there’s no prior warning. I’m not familiar enough with the way it all works to know whether the ability to appeal is really significantly curtailed; the part about not letting the families of those to be executed know until the same day does seem pretty harsh.

    Of course, the reporter can’t resist ending this way:

    Capital punishment has aroused little debate among Japanese, who are shown by polls to strongly support the death penalty, and occasional efforts to suspend or abolish it have made little headway.

    But with Japan and the United States among a handful of advanced nations where the death penalty is carried out, questions are being raised and international pressure increased.

    Unless I’m remembering wrong, a woman Minister of Justice, Ritsuko Nagao, was the one who signed the highest number of execution orders in a single year in recent history. I think it was six inmates in 1996, but I’m not finding confirmation. This was after a long stretch in which executions had been few and far between in Japan. Lately, I think two or three a year has been the norm.


    North Korean blast not nuclear, regime tells lying foreigners

    Posted by Sean at 22:57, September 12th, 2004

    Okay, you know that mushroom cloud they saw over North Korea across the border from China on Friday? Well, we certainly heard about it here in Japan (flyover country for the DPRK’s test missiles). There didn’t seem to be much to say about it, since, unlike the explosion a few months ago, when casualties were reported almost immediately, there have been none from this weekend. It seems to be as certain as it can be that the explosion this weekend wasn’t nuclear. The DPRK says it was for a hydroelectric project. North Korea is very mountainous and has plenty of hydroelectric potential–in fact, it’s significantly more resource-rich in many ways than the South–so that’s not a far-fetched explanation. Neither is South Korea’s conjecture that the explosion might have been an accident in an underground munitions facility. In any case, the Chinese have reported no influx of the injured into their hospitals across the river, so it’s possible that it was a controlled blast with no injuries, or (more darkly) that the operation was so secret that the DPRK is not allowing the injured to be treated where they might be noticed. You never know, especially since the North Korean government would account for its actions the same way no matter which was true:


    The BBC said that when [DPRK Foreign Ministry official] Paek was asked why North Korea had not explained earlier about the blasts he told Rammell Pyongyang had not done so because all foreign journalists were liars.



    Jenkins in US Army custody

    Posted by Sean at 22:54, September 10th, 2004

    It does not seem frivolous on 11 September to update the story of Hitomi Soga, a now-repatriated Japanese abductee to North Korea, and her husband Charles Jenkins, accused deserter from the US Army during the Korean War. Japan has a mutual-extradition treaty with the US, so there was a long series of negotiations over whether he would bring their two daughters to Japan so that the four of them could restart their lives here. Ultimately, the family was reunited in Indonesia and came to Japan to have Jenkins, who is said to be ill, admitted to one of the major research hospitals.

    Japanese public sentiment is pulling hard for Jenkins to be permitted to settle with his wife in her hometown. The Japanese government, accordingly, pressed the US to show clemency. I don’t know how much that has affected Jenkins’s treatment–he just turned himself in–but I do know that it’s hard to imagine the following scenario surrounding an accused military deserter almost anywhere else in the world:

    Details are not yet clear, but according to the US Army, pay calculated at the rate for an officer of Jenkins’ rank and years of service would amount to base pay of $2200 per month. Adding in housing and living allowances would bring the total to $3270.

    [I’m snipping out the section that explains that he’s been advanced some cash already and will not be asked to repay any money even if found guilty.]

    [I]n Camp Zama, where Soga and Jenkins’s family would be able to live together, there are, in addition to barracks, family housing, a school, and recreational facilities. Jenkins would also be free to use the 18-hole golf course and fishing pond.

    Yeah, America’s the real world center of barbarous, unforgiving inhumanity, huh?


    The Axis of Evil becomes a grid

    Posted by Sean at 15:52, September 4th, 2004

    I haven’t had much to add to everyone else’s comments about the sort of people who would keep hundreds of children captive for days, with no water, in midsummer, and then bring the roof down on their heads. It does dominate the thoughts, though, especially in combination with other news this week.

    South Korea has been doing lab tests with uranium enrichment. The results were apparently a small amount that was “close to” weapons grade. Now, if there’s going to be a headline that reads “—– May Be Close to Developing Nukes,” I’d much prefer that the —– be South Korea over some of the alternatives. (Additionally, the experiment was done four years ago, and the IAEA inspectors found no evidence it had been expanded upon since then.) And despite the clear potential for diplomatic problems that would result from the ROK’s developing nuclear weapons, with the DPRK less than a two-hour drive from Seoul, who could possibly blame it for wanting to do so?

    I wonder, does North Korea get much play in the US media? Here, it’s in the news all the time. Some of the reasons for that are obvious: It’s nearby, so the potential for patrol boat skirmishes and things is high, and there’s some Japan-North Korea trade. But what you most memorably see (I’m talking over the last five years or so) on television are human interest stories about refugees. For a while there, it seemed as if there were a new Japanese wife of a North Korean escaping back here through China every Thursday. Often, she would tell the reporter, her voice and face distorted to protect her identity, about eating potatoes when there was no rice–a shocking deprivation to East Asians. And that was before the appalling Japanese abductee story broke and began dominating news coverage. Recently, the focus has also been more on diplomatic talks, particularly now that the six-way nattering over the DPRK’s nuclear program is doing the on-again-off-again thing.

    And that leads to the other exposure you get to North Korea here: excerpts from its news broadcasts, usually when some higher-up has made an anti-Japanese remark or some trade issue or summit has been reported on. The North Korean TV technology is so antiquated it has to be seen to be believed. The microphones have that dead sound the local news from an unaffiliated station had in the ’80’s. There’s only one camera angle. And this creepy girl in traditional Korean costume (whose job is to grin like a lunatic and deliver fulsome praise about Kim Jong-il) often appears against a blue screen. And I mean just a blue screen, as if they’d forgotten to put in the background footage. In a humorous-but-not-funny way, it reminds you what riches we have: the lamest music video by the most faceless new pop-product non-talent in our world gets production values that are many times better than the broadcasts North Korea uses to remind citizens that they live in the perfect society.

    I was going to say that this is all some comfort because, you know, if the DPRK can’t get it together to make a decent news broadcast, they probably can’t contrive something as tricky as nuclear warheads that detonate. But that’s ridiculous, because if there’s one thing all these types care about and will put every last resource into doing successfully, it’s wrecking things. The reasoning runs, If your way doesn’t produce a prosperous society that nurtures its citizens, don’t bother changing; just blow the opposition and their artifacts up (and don’t forget to torture the children while you’re at it) until there’s nothing left to stand as a rebuke to it. There’s no fate bad enough for such people, but the Russian authorities had the right idea in making them dead, even if it’s determined that they acted precipitously.


    Loose threads

    Posted by Sean at 12:25, August 22nd, 2004

    I know I have this tendency to point out Japan-related stories and then kind of drop them. I figure that interested people are probably looking at the same news sources I do. For anyone who’s been wondering, though:

    Charles Jenkins–US Army deserter, defecter to North Korea, and husband of Japanese abductee Hitomi Soga–is considering making a plea bargain to avoid being imprisoned by the US, with which Japan has a mutual extradition treaty.

    Mitsubishi-Tokyo Financial Group and UFJ Holdings are moving ahead with their plan to create the Bank That Ate the World, despite noises from Mitsui-Sumitomo Financial Group about UFJ’s broken promises and its own continued desire for a merger (especially the trust banks, I believe). UFJ is in bad shape; MTFG has actually officially repaid its federal bailout, so the idea is for money to start flowing UFJ-ward as soon as possible.

    Speaking of banks, Ashikaga Bank (for anyone who knows The Princess Mononoke, that’s the same compound as the hero’s name: 足利) will be the object of first bank bailout in a few years. Ashikaga had bad credit totalling around 36,000,000,000 yen (US $327,000,000). I don’t know whether there’s a connection, but it’s also well-known here as the only Japanese financial institution with normal relations with DPRK banks.


    Once an abductee, always an abductee

    Posted by Sean at 11:26, July 27th, 2004

    Ooh. This I hadn’t heard about the reunion of Hitomi Soga and Charles Jenkins:

    Jenkins told them that he had been set to take Soga to North Korea if they had met in Beijing, according to Japanese sources.

    North Korea authorities had promised a car with a driver and increased food rations if he managed to take Soga to Pyongyang, the sources said.

    But Jenkins didn’t reveal how he planned to take Soga to Pyongyang.

    Meanwhile, Chief Cabinet Secretary Hiroyuki Hosoya said on Tuesday that Jenkins had agreed to meet with a U.S. defense counsel to discuss a possible court martial to settle changes against him.

    That Jenkins was prepared for court martial, as conveyed to a relative who visited Japan last week, was on the news yesterday. What hadn’t been confirmed that was Soga’s instincts had been right about the meeting in Beijing. Good call. (And remind me again why a country that has to ration food is superior to anything?)

    ***

    And speaking of betrayals, yesterday, the Tokyo district court ordered a suspension of merger talks between Mitsubishi-Tokyo Financial Group and the UFJ Group (Japanese, English). The merger would involve reneging on an agreement between UFJ and Sumitomo Trust and Banking (why not get all the behemoth financial institutions to join in the fun while we’re at it, huh?) for Sumitomo to buy UFJ’s trust bank. Sumitomo, justifiably unhappy, is suing.


    Abductee and family in Japan

    Posted by Sean at 11:27, July 18th, 2004

    Those following the five-way diplomatic tug-of-war over the family of Hitomi Soga and Charles Jenkins probably know already that they’re…well, I was going to say “back in Japan, ” but only Soga herself had been to Japan before. What Jenkins feared, and the Japanese government tried to avoid, has happened: the US government has at least preliminarily made moves to have him extradited so he can be charged as an armed forces deserter. The initial family reunion took place in Indonesia–Soga flew from here, and Jenkins and their two daughters from the DPRK–because Washington and Jakarta don’t have a mutual extradition treaty (if that’s what it’s called).

    But Jenkins has serious health problems and needs surgery that he had to come to Japan for, so he, Soga, and their two daughters flew in yesterday. NNN (the Japanese equivalent of CNN, sort of) followed their bus from the airport to one of Tokyo’s research hospitals as if it were OJ’s van. Atsushi, who’s home for the bank holiday weekend, glanced up at a close-up of the family’s caravan and deadpanned, “The government put them on a Mitsubishi Fuso bus? Great. At least they’re headed for the hospital already.”

    The two daughters are 18 and 21, and much of the news coverage has focused on speculating what life will be like for them here. Me, I speculate that whatever happened to them would scramble their circuits. They grew up, after all, half-Japanese and half-American in an affluent family in North Korea. So both their parents were of intensely hated enemy peoples; their mother had been snatched from her home country when she was their age now. They were among the select families well-positioned enough to live relatively affluent lives in Pyongyang, and who knows whether they know what’s been going on in the countryside for the last decade or so. The people they meet in Japan may know more about the famines than they do. At least for now, the whole family is here. Now we just need to find out what happened to the half-dozen abductees the DPRK has coolly failed to account for.