Wednesday, November 21, 2012

Goshi Hosono Obviously Knows How Horror Movies Are Supposed to End


By now, the false ending has become such a staple of horror movies that you’ll be shocked if the monster/villain doesn’t rise up again when the good guys are hugging and/or kissing each other. And remember, Hatoyama has been there, done that. In 2010, he expressed his intention not to run again for a Diet seat when he left the prime minister’s office, only to change his mind not too long after. Now, today (Nov. 21), the day after telling his Hokkaido supporters that he wouldn’t be running again because he wasn’t willing to support a pro-TPP campaign platform, he is paying a visit to Prime Minister Noda for purposes unknown. Goshi Hosono, the smooth-talking head of the DPJ Policy Research Council, had the following to say about that according to Sankei Shimbun:

His words: If the media reports are true, I suppose that he chose honorable voluntary retirement.
What may have been going through his mind: I’m keeping my fingers crossed.

His words: Since it is a very serious decision on the eve of the election, Mr. Hatoyama is surely going to talk with the prime minister after making a firm decision.
What may have been going through his mind: If Hatoyama thinks that Noda is going to let him talk him into talking him out of retirement, he’s nuts… wait!

Tuesday, November 20, 2012

BOJ Governor Hits Back; Ball in Abe’s Court


No one will mistake Shinzo Abe, LDP President and odds-on favorite to become the next prime minister of Japan before the year is out, with an economist. Or even a financial analyst. Armed with a law degree from a safety school for the well-to-do, his main political interests mark him as a values conservative. He had never demonstrated much interest in economic policy in any of his high profile assignments, including his previous one-year venture as head of government. So, when he came out forcefully proposing a BOJ that underwrites construction JGBs*, punted for a 2-3% inflation target, and talked about amending the Bank of Japan Act to better coordinate fiscal and monetary policy, my first thought was, Who’s feeding him those lines? My money is on Abe’s buddy Yasuhisa Shiozaki, a former BOJ official who most likely has his eyes on the MOF portfolio.

Well, we may get to know sooner rather than later, since Dr. Masaaki Shirakawa, the midl-mannered BOJ governor, in an unusually blunt retort (at least online), that issuing construction JBGs “backed by the authority to print money could eliminate constraints (on expanding fiscal expenditures)”, that 2-3% inflation target was “unrealistic” and “could negatively impact fiscal reconstruction and the real economy” pair, and that he “fervently hoped that the independence of the BOJ would be respected.” Abe needs some cover fire.

Abe has been looking pumped, and he should be. New-found health—his tummy woes finally behind him, he’s cast off the funereal air that served him so well when he stood beside immediate family members of the abductees as a deputy chief cabinet secretary ten years ago—an unexpected come-from-behind victory in the October LDP presidential race, the LDP lead in the polls, and the bump/dip that his comments generated in the stock/currency market would boost anyone’s confidence. But Abe has always tended to talk too much. And, unlike, say, Prime Minister Koizumi, he’s not good at confining himself to talking points and repeating them over and over again. But he’s not Krugman. Or Obama. Or Oprah. He’s not a great explainer, nor does he exude convincing warmth. Toru Hashimoto routinely backs off from his policy stands, apologizes for indiscretions, and emerges unscathed, the tumbler mayor to Reagan’s Teflon president. Abe has no such Get-Out-of-Jail-Free pass.

I suspect that Abe is going to have walk back his statements a tad. And that improves the chances of Dr. Shirakawa being reappointed when his term expires in April—which I would personally welcome, since I made that call for a modest fee a month ago.

* “Construction national bond” is a term used for any JB that covers an expenditure that does not have to be written off during the same fiscal year. Some of it, such as a capital injection into a state corporation, has nothing to do with actual construction.

Monday, November 19, 2012

Azumi the Enforcer? Who’d a Thunk


Has ex-PM Yukio Hatoyama been doing anything but peeing inside the DPJ tent all year or what? I also thought that Jun Azumi’s appointment as Minister of Finance was a huge reach.

Fast forward. On Sunday, Azumi, now the DPJ’s Acting Director-General—de facto No.2, as DG Azuma Koshiishi, House of Councillors, is the new Mr. Irrelevant going into the House of Representatives election—kicked serious Hatoyama butt with the following statement on national TV:

“Anyone who wants to run as an official candidate from our party must keep our party’s promises no matter who he is.”

And that means the consumption tax hike and TPP, family ranch in Hokkaido or not. My guess is that Hatoyama will fall into line… until the next time that the bladdermouth springs a leak.

Way to go in the meantime though, Azumi. Maybe Noda did know what he was doing after all. (Of course there’s the matter of the other, less fortunate assignments including Ms. Tanaka, whose antics had been well-documented beforehand…)

How Can Guo Hui, Jimmy Wu, and Gordon Xiao Speak Ill of China?


The wiseguy answer, of course, is: Because they can. But why? Guo Hui can talk openly about his desire to quit the country because the sons and daughters of princelings are routinely securing green cards and permanent residences and citizenships in English-speaking countries, which fact the Chinese public is well aware of? Jimmy Wu and Gordon Xiao can talk openly about government corruption because the political leadership is talking about the corrosive effects of endemic corruption, which fact—the talk and the corruption—the Chinese public is well aware of?

Your guess is as good as mine. But the fact that the educated private sector upper middle class can talk openly about these matters and how they affect their hopes and fears about their future says that the markers are shifting in mainland China.

Saturday, November 17, 2012

Ishihara Has Seen the Future and Its Name Is Hashimoto, But What of It?


Or so he thinks. Osaka Mayor Toru Hashimoto’s Japan Restoration Party (JRP) is “absorbing” now former Tokyo Governor Shintaro Ishihara’s Party of the Sun (PTS) today. PTS had announced a merger with Nagoya Mayor Takashi Kawamura’s Genzei Nippon two days ago (15th), but that appears to have been put on ice at Hashimoto’s insistence. This is probably a temporary hitch; Hashimoto has always been clear that he would not collaborate for collaboration’s sake. Ishihara has reportedly accepted the PTS policy platform, and Kawamura will have to do likewise before Hashimoto gives his consent. Kawamura is a politics-first guy and the flotsam and jetsam that he’s gathered around him would like nothing better than to duck under the big tent; I’m pretty confident that he’ll come around in time to coordinate candidates for the House of Representatives election on December 16. Which is the point of it all, isn’t it?

That leaves Your Party out in the rain. It must be galling to Yoshimi Watanabe and his YP cohorts. Hashimoto lifted their small-government, pro-market agenda, Koizumi-alumni advisors and all and is going national, even as the original vehicle treads water. They’ve been around only three years, so it’s not as if there’s a lot of history behind it, but can they lay their egos to rest and subordinate themselves to a nationwide coalition? I’ll believe it when I see it.

If they all come together, though, the product will be a pretty formidable spectacle, with the ability to field candidates nationwide. If they can get through the weeks leading up to election day without its many parts speaking out every which way and squabbling amongst themselves, they will certainly be a formidable force at the polls. There’ll be a lot of talk about the policy differences between them, but the DPJ was cobbled together out of even more disparate parts, and the LDP is divided over, say, nuclear power and the TPP when you look under the covers.

I don’t think that the Third Force movements, largely or wholly united under the JRP banner, will cooperate with a post-election LDP-Komeito or (significantly less likely) DPJ-PNP regime. They’ll support any efforts that work in favor of their policy agenda and oppose anything that doesn’t. There’s no need to compromise; indeed compromise is dangerous when you’re trying to present an alternative to the status quo and not just an improvement.

This means that the two major coalitions will have to work with each other, because another bout of gridlock is the last thing that they can afford. They have to look good doing it, too, because the public will have another suitor at its doorsteps. That’s not easy to do when you’re the opposition, because whatever makes you look good is likely to make the incumbent regime good too.

Isn’t It a Bummer When You’re Not on That Mailing List?


(Scene from my childhood)             
Five or six Osaka girls, the closest thing to a clique in my sixth-grade class, smart, relatively well-to-do, arrive at the graduation ceremonies in matching dresses made for this special occasion—all except one, who is noticeably miffed and spends the day acting chummy with a girl who could have been a part of this group but was not because she was a last-year transfer and had not had enough time to fully integrate.*

* A few weeks ago, I received a xxth anniversary invitation for Elementary School XX class of 19XX reunion. The prettiest girl in the clique and the transfer girl—my next-door neighbor, incidentally—were on the organizing team. But no, I’m not going;I'm otherwise occupied. And it was that long ago, and now, that far away.

(Scene from my adulthood)
A former METI official and Diet member arrives late at a retirement party for a top METI official. Now this was just after the Recruit scandal, when the founder and CEO of the company shelled out lucrative purchasing rights—well below what the market would actually bear, as was typically the case in those days—for the Recruit IPO to a who’s-who list of LDP politicians, temporarily deflecting into their political trajectories and arguably toppling the Takeshita cabinet, broke and the first thing out of his mouth after the usual pleasantries is that no, he didn’t receive an offer and the most embarrassing about the whole affair is that he has to say this to his constituency because it reveals that he wasn’t important enough to be placed on the A-list.**

** Those were the days before it became fashionable for METI officials to seek political careers. Asked to run to replace a retiring high school alumnus, he had declined the first time around, but caved when the high school alumni leadership came calling again and told him that everyone else had refused and that it was his duty to run for reasons which I won’t go into here.

(Scene from Afghanistan)
So I can imagine how embarrassing it must be when you’re a journalist/analyst covering Afghanistan and Taliban accidentally CCs everybody on its mailing list and you’re not on it.***

*** Not so good if you’re a mole for the Taliban.

Friday, November 16, 2012

More DPJ Deserters? Meh


I can’t see more than another handful or two—ceiling ten?—of DPJ members of the House of Representatives jumping ship between now and the election, all of them professing opposition to TPP. (What else?). Where are they going to go? The Third force movements are now lining up behind TPP (Your Party: “Are you stupid or what?” Hashimoto: “Are you wimps or what?” Ishihara: “America, Schmerica, I need to cut a deal with Hashimoto.” Kawamura: “How high, sir?”), and they may not want to be seen as some kind of refugee boats. Post-dissolution defectors do not want to join the Ozawa team, even if his acquittal has been upheld on appeal; those people will be pretty toxic as far as media coverage is concerned. (Okay, some of them could join up anyway. Still, I think that that ship left a long time ago and I don’t think rats can swim that far.) And cobbling together a party or two of five just so they can take out zombie insurance? Good luck. Note that Eriko Fukuda had a place to land, the Green Wind and its five members.

Maybe I’m just projecting my hopes and fears; it’s just that the spectacle of HORs scrambling to keep their heads above water reminds me of how they dealt with rats when I was a small, very small child. And that’s a very depressing thought. In any case, this is very hunchy, but I needed to make the call so I’d have something to measure the actual turn of events against.

Pre-New Year Election Takes Care of One Problem


I previously mentioned in passing that DPJ refusal to give would-be defectors their leave could cause serious legal problems for them and the parties that would take them in. I thought that the resultant political bigamy could be a real problem, since there was a chance that the snap election would be held after January 1, the benchmark date for the Diet member headcount, whichthat determines the distribution of one half of the government subsidy for political parties. Well, the question became moot for the House of Representatives (HOR) since the Dietthat House is being dissolved today. The HORs lose their jobs instantly, which means that Article 4, paragraph (2) of the DPJ Bylaws no longer applies, freeing each and every one of them to leave the DPJ by simply filing a slip of paper, just giving the reason for his/her resignation.

No, Article 6 of the Organization Rules, which dictates the resignation procedure for non-Diet members, does not require a departing ex-loved one to tell the truth.

And What of the Next Election?


I think that Noda stanched the bleeding with his surprise move to dissolve the diet on his own terms. Caught off-guard, Abe scrambled, leaving viewers with the impression of voluble indecisiveness. He has been looking healthier and animated since his cure, but his tendency to over-explain, exposing himself to greater risk of damaging errors and out-of-context quotes, such as happened with Norimitsu Onishi’s “comfort women” article back in the day, remains intact. Abe also has been tacking towards support for TPP negotiations*, but Noda got there first, and more securely to boot. Abe will be minding his words on China, which will severely limit his ability to play the national security card. I still don’t think Noda and the DPJ has much of a chance retaining power—Koizumi for all practical purposes used the Post Office rebels to push the DPJ off center stage; deep-sixing the LDP and the Third Force movements is a very different task. But it’s better than nothing, which is what he would have wound up with if he’d dithered and backed into the snap election to ever diminishing public support. Additional defections certainly hurt though; let’s see how many actually leave.

The Third Force movement will rise as high as an eventual alliance allows them to. Noda’s November surprise actually helps bring the parties together. Since they have little time to continue preparations for running fully national campaigns, they may have no choice but to split up turf and support each other’s single-member district candidates in their respective strongholds. They could actually wind up better off that way. Of course all the maneuvering not to mention the outsized egos involved may wind up making the movements even more unwieldy and divisive than the post-1998 merger DPJ. Ozawa is the odd man out. He’ll try to leverage whatever he has left to navigate his way around the post-election landscape, but I agree with the conventional wisdom that he is a spent force.

In any case, barring a massive post-election realignment, it remains highly likely that 1) either the DPJ-PNP or LDP-Komeito will have a plurality but not a majority in the House of Councilors (HOC); while 2) the Third Force movements will work with an uncompromising eye towards the 2013 HOC election, when half the seats** will be up for grabs, and beyond. In the meantime, the most likely outcome is that the coalition winding up with the fewer seats in the House of Representatives will throw its votes to the other in the second-round run-off for the prime minister’s office. After that, the two sides will be on their best behavior through the upcoming 2012 regular Diet session for tax and social security reform and Diet downsizing, as well as other legislation and approvals for BOJ, FTC and other appointments, while remaining on alert for any errors and weaknesses on the other side to capitalize on. They both need to show that they are constructive and have the nation’s best interests at heart, and their policy positions on major issues are not that far apart. Even nuclear power is not a matter of pure pro- and con-. Besides, the Third Movement forces are unlikely to be willing coalition partners and more trouble than they’re worth if they are. They will see no value in compromising their policy positions to accommodate a minority government.

Speaking of Third Force movements, Hashimoto and your Party always favored TPP negotiations—it helps when you share the same METI and MOF alumni as advisors—and Ishihara has dropped his opposition, most surely in order to join hands with Hashimoto. There’s Nagoya Mayor Takashi Kawamura, but he’s less equal than the others, and should come around anyway if that’s the cost of hitching his wagon to a Hashimoto-Ishihara alliance.


* see, for instance, Yomiuri.
** The HOC is all but sure to be downsized as part of the reform process through the 2013 and 2016 elections.

Meandering around the New Chinese Leadership and Beyond


 Xi Jinping and Li Keqiang are 59 and 57 respectively. First, the other five members of the Politburo Standing Committee (PBSC), all male, are all 64 or older. They will all have to retire in 2017 under current rules, which do not allow reappointment to the Politburo of anyone 68 or older. Hu Jintao made it directly from the currently 205-member Central Committee to the PBSC at the 14th Congress and was elevated to the CCP Chairmanship (and Chinese Presidency) at the 16th Congress, but all other PBSC members appointed at the 16th, 17th, and 18th Congresses first became Politburo members before their next promotion. Second, only two women made the 25-member (including the 7 PBSC members) Politburo and they are 67 and 62. One will be gone in 2017, the other in 2022 under current rules. Put these two sets of facts together—the loosely used buzzwords currently in vogue among financial types and their minders appear to be “data points”—and it’s a good bet that the next pair of top leaders will be two male Politburo members 52 or younger who will be promoted to the PBSC at the 19th Congress. Only two men fit this description: Sun Zhengcai and Hu Chunhua, both 49. All the others are scattered between 67 and the mid-fifties.

Sun is an agricultural scientist by training—unlike Hu Jintao, Wen Jiabao, Xi and Li, he actually served as a cabinet minister, for agriculture—while Hu majored in literature and the Chinese language and appears to have made his mark as a propagandist. Both, like the four current and immediately preceding leaders, appear to have lived all their lives in China, way too late for training or education in the Soviet Union and a little too early for Western schools.*

Of course things could change. It’s not against the laws of physics to bump someone up from the Central Committee directly to the Standing Committee at the 19th Congress, then appoint that person party president or prime minister at the 20th. And there’s no Chinese law—not that this would be a problem if you catch my drift—that says that person cannot be a woman. They might decide to appoint a one-term president or prime minister, which would make the Standing Committee members between 53 and 57 also selectable. The retirement age may be raised. Scandals happen, and people die. And political cataclysm may blow the best laid succession plans to smithereens. These are all unlikely turn of events. But stranger things have happened, not least in China. So I’m going to stay tuned.

* Actually, I assume that an Ivy League diploma is still a negative for political advancement unless you intend to make your mark as a technocrat, a route that probably has a bamboo ceiling.

Wednesday, November 14, 2012

Another Thing about Noda’s Play


The DPJ was always going to be better off pushing the downsizing beyond the upcoming election because that would give more room for its SMD losers to come back via the regional proportional vote. Noda appears to have foisted the bulk of the blame for the delay on the LDP and its eagerness for an early snap election.

Ju-jitsu?

Noda Will Dissolve the House of Representatives on Friday


Today, during the party leaders’ Diet debate, Prime Minister Noda stated his willingness to dissolve the House of Representatives on the 16th,which would set the stage for a general election no later than December 24, if Shinzo Abe, the President of the LDP, would give his promise that the LDP would fully cooperate in reducing the number of Diet members* in the next regular Diet session.** The LDP leadership later convened and gave its blessing through Shigeru Ishiba, the Secretary-General, while Abe confirmed it in a speech that he gave later in the day. Any question of backtracking became moot when the Noda administration and the DPJ, LDP and Komeito met in the evening and agreed to hold the election on December 16.

At first glance, it looks like the kind of Hail Mary pass that only someone with skin in the game (or butt in the crack, pick your idiom) could draw up and about as good as it gets, given the circumstances. Noda was following the DPJ down the polls and facing serious dissent in his party. He needed to reverse the momentum, and the only tools at his disposal were a snap election...or resignation in favor of a more election-friendly face, most likely—but not quite surely—Goshi Hosono. But for the snap election to work in the DPJ’s favor, he needed a hook to reverse the momentum. TPP could be used as a wedge issue against the LDP, but it promised to be a divisive issue within the DPJ as well. And yesterday, the DPJ executive committee had come out against an early snap election, a typically human response that would bring temporary relief at the expense of greater pain in the long-run. But in downsizing the Diet membership, he had a populist issue that the rank-and-file could ill afford to oppose…in principle. By issuing the challenge in the Diet, he was also staring down the DPJ dissidents. His announcement and the subsequent maneuvering also rips media attention away from the Third Force Movements, who will also encounter difficulties as they have to split up the national turf and line up solvent and presentable candidates, all in the next three weeks***.

Will it work? Who knows? But Noda is certainly giving it his best effort. I have a new respect for the man and his political judgment.

* Yomiuri erroneously reports that Noda also included the five-up, five-down in his demand for a pledge. Jun Azumi, the DPJ Deputy DG talked up efforts to get it done by the 16th but had the wits not to make it a precondition of the snap election. There’s some chatter around the unconstitutionality of the current configuration, the latest quack-quacking coming from the HOR President. I think that I’ve addressed the issued to everyone’s satisfaction earlier on this blog. Suffice to say that a multi-partisan pledge will further assuage the conscience of the courts when they allow the results of the “unconstitutional” election to stand.
** A regular Diet session is customarily summoned in early January and usually runs into June or July.
*** The election will be formally launched on December 4.

A Truncated Commentary on the Party of the Sun


The Japan Renaissance Party  Sunrise Party (Tachiagare Nippon - literally "Stand Up Japan!")* renamed itself 太陽の党, literally “Party of the Sun. ” The gathering of mostly sexa- and septuagenarians did it to honor its new octogenerian leader Shintaro Ishihara. The name is a takeoff on the title of Ishihara’s famous award-winning 1955 novel 太陽の季節, literally “Season of the Sun”. Now, the book never appears to have been translated into English, so those who wanted to know a little more about the book but cannot read Japanese must have looked it up on Wikipedia, only to find a curious inscription in the list of adaptations:

“Shouji Ch**ko Man no Kisetsu, a 2011 eroge

Literally, “Season of Paper Screen D**k Man, a computer game with sexual content from 2011”. At that point, you will have no idea where this is coming from, so let me explain: The title is a reference to the protagonist of Ishihara’s novel, who stuck his d**k through a paper screen. I can do no more to enlighten you on the details of the screen-busting scene—or anything else in the book for that matter since I never read it and I never saw the 1956 movie adaptation—but the idea of the scene has been with me as a cultural icon of I know not what for as long as I can remember. I’m not the only one who has the notion rattling around in his head either, since every writer referring to the name of Ishihara’s new used-vehicle appears to feel obligated to refer also to the book and its screen-ripping scene—and little else of the novel, although the book wound up overshadowing everything else that he subsequently wrote, except maybe the nationalist screed The Japan that Can Say No, coauthored with Sony founder Akio Morita in 1991.

There are too many angles to this story to do justice to them with my limited writing skills, so I’m going to stop right here. Sorry about that. And you also have my apologies if I’ve ruined your Japanese paper screen experience forever. Just. Don’t. Think. About. It.

* Thanks to Michael Cucek.

ADD: Comment from W. David Marx:

I've read an old English translation published under the title Season of Violence. Not a bad book for something written by a 23 year old.

Also this:

Thanks, David.

Tuesday, November 13, 2012

The Fix Is (Almost) In on a Snap Election?


The media are now reporting that the DPJ/Noda administration and LDP-Komeito have officially cut a deal to authorize the issue of deficit bonds to meet the revenue shortfall in the annual regular budgets through FY2015, which also happens to be the year that the second phase of the consumption tax hike is supposed to kick in. The DPJ/Noda administration has already telegraphed its willingness to go the minimalist, five-up, five-down route with the House of Representatives to bypass the constitution question road bump and leave the reduction of the regional proportional seats for another occasion. The LDP is now willing to nominate members for the tax and social security reform commission, the third item on Prime Minister Noda’s legacy Make-a-Wish list. The two sides have even thrown in a kicker and decided to account for (in a half-assed way) the effects of disinflation on public pension payments, whose postponement is costing the national treasury an extra trillion yen per year. All this before Prime Minister discloses a snap election schedule, but all that stands between the Diet and an early call for a snap election is DPJ Secretary-General Azuma Koshiishi if the media and their reading of Noda words between the lines are to be believed.

So what gives? Why is everyone suddenly acting so reasonable and accommodating? Because if they all play hardball and let the Japanese treasury go off the fiscal cliff, they would be running the danger of being dragged off with it themselves, that’s why. Toru Hashimoto, and now Shintaro Ishihara, along with Your Party and the Nagoya/Aichi folks, are encountering their own problems getting their Third Force acts together, but at a minimum, they would be well-positioned to cash in on voter dissatisfaction. A quick snap election works in favor of established parties since it will also make the task of lining up credible candidates difficult for the Third Force movements.

I’ll be personally gratified if the election occurs by the end of the year as some media outlets are intimating that Noda intends to do so—I did make a call for two climaxes, one near the year’s end and another around the turn of the fiscal year, and got paid for doing it—but I’ll only believe it when I really see it, since DPJ members who do not see any chance of getting reelected in any case will try to postpone the day of reckoning as long as possible, a desire that Koshiishi appears to be doing his utmost to accommodate. Moreover, the DPJ has a significant pecuniary interest in postponing the matter until the year’s end because the 2013 subsidy for political parties will be calculated on the basis of the turn of events up to New Year’s Day.

Monday, November 12, 2012

Ichiro Ozawa’s Acquittal Upheld; Now What?


Today (Nov. 12), the Tokyo High Court rejected the special prosecutors’ appeal and upheld Ichiro Ozawa’s acquittal of charges of violating the Political Funds Control Act. This did not come as a surprise since legal experts had tended to expect that outcome, particularly after the prosecutors had not been able to secure a review of the evidence by the High Court. The prosecutors had already shown some reluctance in deciding to seek to overturn the initial verdict; it is likely that they will decline to pursue the case further in the Supreme Court. Notwithstanding the likelihood of this contingency, there had been relatively little mainstream media speculation* of any role for Ozawa in the ongoing efforts to present a Third Force alternative to the status quo or in the post-election political landscape, where neither a LDP-Komeito coalition government nor an unlikely continuation of the current ruling coalition between the DPJ and the People’s New Party PNP will command a majority in the HOC, a situation that is unlikely to change after the 2013 HOC election barring more thoroughgoing political realignment.

Looking at the numbers alone, this does not make sense. Ichiro Ozawa’s People’s Life First (LF) has 49 Diet members in its fold, 37 in the House of Representatives (HOR) and 12 in the House of Councilors (HOC). Many of the nine members of the Kizuna Party, who bolted the DPJ before Ozawa to escape supporters’ wrath at the tax hike, are believed to be associated with him. (Ozawa himself had his hand virtually forced by the followers who were poised to leave the ship without him.) Even without the five, the LF has the third largest contingency in the Diet, behind the DPJ and LDP, and dwarfs the other upstarts and, in HOR, Komeito as well.

However, there’s a major downside for any would-be collaborators, including Toru Hashimoto and Shintaro Ishihara, the two people who are emerging as the key figures in the immediate future of the Third Force movement. It is a downside so big that it has kept the mainstream media from spending much time on Ozawa’s post-acquittal prospects. Or so I think. Let me explain.

First, joining forces with Ozawa carries the taint of the old-school politics from which first the DPJ and now the Third Force movements are trying to dissociate from. Just defending an association with Ozawa will be a time-consuming negative and a drag on political momentum. For the acquittal will not reward Ozawa with a fully clean bill of health. The court of first instance made it obvious that it was merely giving him the benefit of the doubt regarding his understanding and knowledge of the nature of the inscription in question. Moreover, the mysterious maneuvers around the funding of the nine-figure real estate transaction will continue to resonate with the broader doubts around his financial and real estate holdings as well as the massive political funds, part of it coming from the proto-DPJ, squirreled away and folded into his personal fiefdom prior to the 1998 merger. Ozawa can bring the matter to political closure if he successfully defends himself in testimony before the appropriate Diet committee, an act that he has steadfastly refused to do and is unlikely to do any time soon.

Second, the sheer magnitude of the Ozawa team acts as a deterrent in itself. His minions easily outnumber the collective membership of the upstarts, who would not want to be at a numerical disadvantage going into the HOR election. At a minimum, most if not all of Ozawa’s HOR members will have to be accommodated in any coordination to maximize the elective value of the votes that the various Third Force movements can muster in the single-seat districts.

Third, and this is a related point, Ozawa has shown a repeated knack for dominating his political space—until he winds up wrecking it over the long- or not so long-run. Hashimoto and Ishihara, two of the most dominant and openly combative personalities on the Japanese political scene should have enough time cohabiting, if ever. Adding Ozawa to the mix comes across as preposterous. Plus, Ishihara has expressed his unwillingness to work with Ozawa on multiple occasions. Your Party will also flinch at an association with Ozawa.

Finally, it is unclear how much mojo Ozawa will retain post-election. His forces range from the few members of his entourage that have stuck with him through the years to the horde of vulnerable newbies fleeing what they saw as a ship sinking under the weight of the consumption tax hike legislation and the fallout from the Fukushima-daiichi accident. If conventional wisdom prevails, their HOR numbers—and their power to help elect a prime minister and pass budgets and legislation—will be greatly diminished. And the remainder will show little of the kind of policy spark that can draw media attention in the way that the new guard in the DPJ did in the years leading up to the 2009 takeover.

Of course there will be a minor flood of media reports over the first few workdays, and another, smaller burst when the public prosecutor formally folds (or, improbably, files an appeal with the Supreme Court). However, but I expect the excitement to die quickly, leaving the Third Force and the mainstream media to relegate Ozawa and his followers to the margins of the political story through the year’s end and the coming year.**

Sidebar: Some people, I’m sure, will revive anti-Ozawa conspiracy theories. First, the indictment: No way, in my view. Too many people, including two private lawyers who have no personal reasons to bear the brunt of the burden of the conspiracy, have to be in on the lowdown to make it work. That’s the same basic flaw of most conspiracy theories. Second, the media: Yes, sort of, but what there is, Ozawa has all but asked for it. I think it is true that the mainstream media and much of the tabloids/weeklies world do not like Ozawa, and I am sure that this affects how they report (or not) stories around him. But there are the facts. The money trail is odd, one that Yukio Edano for one in the DPJ had talked about openly even before the legal dam broke; likewise are his real estate transactions using political funds. On a less unsavory front, his penchant for setting up new political parties then wrecking them and shedding allies along the way, is well-chronicled. And when it comes to doing something with all this smoke, well, a little bit of public communications i.e. massaging/messaging the media could come in handy. Instead, Ozawa has been one of the most uncommunicative public figures on the Japanese political landscape, willing to open up only under his own terms, only on the subject of his choice, and if at all possible only before a uniformly favorable audience. This is not surprising for a man who lacks facility with words, clams up in the face of verbal challenges, and has stated a dislike for the staple of politicians: pumping-the-flesh, good old-fashioned election campaigning. It is surprising for a man who continues to seek elective office. The media is not likely to give its subjects the benefit of the doubt; Ozawa practically ensures that. It’s more bias than conspiracy. I suspect many of you already knew this story; it still bears mentioning, I think, on the occasion of what is likely to be his ultimate release from the criminal courts, but not the court of public opinion.

* The metropolitan tabloids, “sports” sheets, and weekly magazines, which cannot get enough of facts, factoids, and often lurid speculation around Ozawa, are another matter. However, their readership and, apparently, influence on TV political reports are significantly smaller.
** This is not to deny the possibility of the LF playing a PNP/SDP-like role if the numbers add up just so.

Sunday, November 11, 2012

Japanese Citizens Can Run the Beijing Marathon after All


Yesterday (Nov. 10), the Japanese media (Kyodo and Yomiuri) reported that the Japanese citizens could not register for the Beijing International Marathon (BIM) with the hosts citing “security” reasons. The Japanese Embassy duly registered a protest, and the hosts lifted the ban, all in a day’s work.

The ban was obviously related to the Senkaku situation. But how?

It’s an international sports event; a ban makes them look—unsportsmanlike. The International Association of Athletics Federations (IAAF), which “sanctioned and approved the BIM” according to the official BIM website, would not been pleased to hear of the ban, and likely would have imposed a penalty.

Nor is the original act the norm. Japanese skaters entered (and won both singles events at) the Beijing leg of the 2012–13 ISU Grand Prix of Figure Skating last week. However, that was an indoor crowd, spectators with tickets and invitees. Outdoor spectators on the streets are another matter, and even a small number of protesters could cause a highly visible and embarrassing ruckus or worse. So the hosts made a call. But with the story gaining media attention, someone, possibly higher up the China’s political hierarchy, apparently decided that avoiding further embarrassment was worth taking the unknown risk of failures in crowd control.

More generally, the Chinese executors of the get-tough policy on Diaoyu must have to play much of it by ear, with a sharp eye for self-preservation. There must be lessons here for the Japanese authorities to figure out on the Senkaku Islands, I just don’t have any good ideas around that.

Sidebar: I suspect that this is indicative of how the situation is being handled over there. There must be broad general orders that sanction inconveniencing the Japanese presence in mainland China, but the details have to be delegated along the political food chain, ultimately reaching the actual executor. This means that execution will vary from situation to situation, institution to institution, and even individual to individual. (We saw this unevenness last year in what individual custom houses were doing to trade with Japan in rare earth and other merchandise.) Given the human propensity to take credit and avoid blame, the executors will be guided in the details by his survival instincts and his reading of the prevailing political mood.

Whose Ethnic Garb at the Chinese Party Congress?


Punk rocker and Eurasia Group analyst Damien Ma moonlights as a blogger for The Atlantic website. He’s being uncommonly productive there recently, what with the Chinese Party Congress in progress. He’s made it so far to the pageantry of the first day. There, he writes:

“For every major Communist Party occasion, most of all the congress, several set pieces must be present: podium wrapped in flowers, minorities in their ethnic garb, sprinkling of female delegates, sleeping octogenarians, and bored leaders. The congress' opening ceremony did not disappoint on any of these fronts.”

And neither did the rest of his post. But what’s this about “minorities in their ethnic garb”? Ah, there it is. But don’t the Han people have their own “ethnic garb”? I ask Damien, and it appears that the Han don’t need to be represented because they’re not a minority. Wait, didn’t the British Empire used to trot out overseas subjects in the ceremonial dress of their origin on festive occasions?

China may recognize 56 ethnic groups, but the Han are obviously more equal than the others. And you can be sure that Beijing is not consulting the other 55 in dealing with their Diaoyu question.

It’s also funny how the financial crisis has made the world all but forget Tibetans and the Uighurs and whomever else that may be refusing to submit, but that’s another story.

Saturday, November 10, 2012

Mazie K. Hirono Would Not Have Been Elected Senator If She Were Not an Asian-American

And no, not because this was Hawaii, though that certainly must have helped, but because she’s by all accounts a self-described “non-practicing Buddhist.” And if you think I’m wrong, imagine a White politician trying to get away with being a “non-practicing Buddhist.” Let’s push this further and try “non-practicing Christian.” But I’m guessing that a “secular Jew” is acceptable. I’m also guessing that I know what “non-practicing” really stands for. And I’m guessing that the United States will see a woman become President well before any of these “non-practicing” people do.*

Such were the thoughts that this post on the Noahpinion blog (and some wine) touched off.

* Senator Hirono, of course, is not eligible for the Presidency since she is an immigrant. This is another one of the non-democratic anachronisms in the US Constitution.

Thursday, November 08, 2012

A Few Thoughts around the US Election

1.    Obama or Romney?
In the past, the Japanese political and business establishment would have been saddened by Romney’s defeat. The perception there is that Republican administrations tend to treat Japan more gently, both in style and substance. And the Noda administration and big business here must have welcomed comments from Glen Hubbard, a prominent economic advisor to Romney and a probable candidate for a key assignment in the event of his victory, in Nikkei Shimbun that a Romney administration would support Japan’s participation in the TPP negotiations. This time around, though, China has been the one that has been getting the short shrift from the Democrats with the Obama administration’s abandonment of a G2 perspective and adoption of an Asian “pivot,” broadly regarded and largely welcomed in the region as a counterbalance to an increasingly aggressive projection of Chinese power. So, although the Romney campaign had been pushing a very forceful line against China, “four more years” must not have seemed to be a bad consolation prize. At least that must be why there was little to no debate here over the relative merits of the two presidential candidates for Japan, or any display of the by now familiar anguish over the Japan “passing” in the foreign policy debate. On the latter point, maybe we’ve become so used to being sidelined that we don’t notice, but that’s too depressing an idea, and unnecessary at this point to ponder when there’s a more plausible explanation.

2.    Value of a Vote
The electoral college system came under criticism as the possibility that the popular and electoral votes might go their separate ways, which actually happened in 2000 then almost repeated in 2004, was extinguished for good for practical purposes only when the networks called Ohio for Obama with just three more states out of the 50 remaining to be called. Another, less serious charge is that the electoral college system forces presidential campaigns to focus on at most ten or so “swing” states while taking the rest of the US more or less for granted. This cannot be a healthy state of affairs, or so the story goes. What’s funny, though, is that similar complaints are not being made about the Senate, where each Wisconsin vote is currently worth about 66 Californian votes. That makes the most recent 2.30 (House of Representatives, 2009) and 5.00 (House of Councilors, 2010) that the Japanese Supreme Court has condemned look…absolutely “constitutional,” yet the people in California and New York appear to be too stoned to complain. Could it be that John Q. Public just doesn’t care, and that the only reason that the electoral college is part of the national debate is because it’s another fish to fry when the US media dishes out stories on election night? I mean, who wants that extra attention in the form of ever-more negative campaigning, robo-calls and the like.

3.    Mandate, Shmandate
And what’s all this talk about a “mandate”? Depending on whom you talklisten to, President Obama got a mandate because he won the popular vote and smashed Romney in the electoral college tally, in the process producing a near-sweep of the “swing” states; or, he didn’t get a mandate because he ran against a weak candidate and still failed to convince nearly half the US voters who actually voted. Well, Bush only became president because he won a 5-to-4 vote in the Supreme Court, but he still got his tax cut…because the Republicans owned both chambers and managed to get enough Democratic Senators to cross the aisle, sometimes with timely advice from their donors and lobbies, to cross the aisle to surmount considerable procedural obstacles (particularly in the Senate). Obama will have more difficulties in getting any legislation passed because the Republicans own the House of Representatives. (It’s more complicated than that, but let’s leave it there for now.) The “fiscal cliff” will be avoided though, not because Obama has received a mandate but because both the Democrats and the Republicans will be held responsible if the US government goes over the edge, which will not be a good thing for incumbents come 2014. Same thing with the Japanese “twisted” Diet and the Japanese “cliff”—which BTW MOF has been GPSing away every few months as if it were a hot-road mirage. “Mandate” is the language of pundits and is of little utility for explication purposes and even less for forecasting, and it’s a good thing that we don’t resort to anything similar in our public discourse.

4.    Nate Silver
Nate silver has been the undisputed forecasting star of the media coverage, making Roger Federer at his career peak look like an also-ran. I’d wondered how arithmetically possible it was to give even a small number of, say, 7 to 3 odds and wind up making a near-perfect call on the outcome at state level unless his model was terribly wrong. Stupid me, I hadn’t realized that Silver would be refreshing his numbers right up to the point that they closed the ballot box, so the calls would grow shorter and shorter (or is it longer and longer?) for a candidate who, like Obama in this election, enjoyed a clear last-minute polling trend in his favor. Two thoughts flow from this: First, pundit forecasts tend to become less relevant as the day of the election approaches, but that is also when they get the most air time. It is no surprise, then, that many of them are directing plenty of visceral anger and scorn towards him (while selectively citing polls where convenient), or simply ignoring him altogether. Thankfully, there aren’t nearly enough detailed, much less daily, and publicly available polls in Japan, which allows arithmetically challenged people like me to concoct stories around what little is around. Second, Silver’s model can only be validated if the calls that he—more accurately, his model—makes along the timeline are also accurate, and it should not be difficult for a capable statistician to figure out ways to gauge this. This is important because people will be making business-investment decisions along this timeline, decisions that will be affected by the outcome of the election. Again, the dearth of useful Japanese polls means that we won’t be seeing any Nate Silver-like figures here for a long time, if ever.

Wednesday, November 07, 2012

Do You Want to Know what’s Going to Happen to the Three Prospective Universities after All?


No? Oh, well, I’m going to tell you anyway.

Yesterday, MEXT officials backtracked further, saying that  the three prospective universities hadn’t been denied permission since there was nothing in writing and they’d misunderstood Minister Tanaka. Today, Minister Tanaka went further and allowed that the MEXT Three would be given permission under current standards after all.

So all’s well that ends well? Not so for the Noda administration, I think. Noda’s not going to dismiss Tanaka and Tanaka is not going to take leave of her own volition. And the bureaucracy is not going to take the fall for the “misunderstanding,” certainly not when the Noda administration’s life expectancy is estimated in months, no not weeks.

So Four Cabinet Ministers (Two of Them Exes) Walk into a Symposium…


Nikkei Shimbun and CSIS held a symposium on October 26. The following is the list of the participants:

Japan:
Genba, Koichiro (DPJ): Minister of Foreign Affairs
Hayashi, Yoshimasa (LDP); former Minister of Defense
Ishiba, Shigeru (LDP): former Minister of Defense
Kitaoka, Shinichi: Professor, GRIPS
Maehara, Seiji (DPJ); Minister for National Policy (DPJ)
Yabunaka, Misoji: former Administrative Vice Minister of Foreign Affairs

United States:
Armitage, Richard: former Deputy Secretary of State
Campbell, Kurt: Assistant Secretary of State for East Asian and Pacific Affairs
Green, Michael: former Senior Director for Asian Affairs, National Security Council (Senior Vice President for Asia, CSIS)
Hamre, John: former Deputy Secretary of Defense (President, CSIS)
Nye, Joseph: former Assistant Secretary of Defense

Campbell and Green are Japan hands and the other three (as well as CSIS) have been long associated with Japan. And who delivers the keynote speech? Kurt Campbell, Assistant Secretary of State.

This is what we are, where we are, in the Asia-Pacific region, which was the subject of the symposium. The DPJ and LDP should take heed.

Forfeitable Deposits Are the Least of Worries for Wannabe Diet members and Party Start-Ups


There’s an SSJ Forum thread developing on deposit requirements under the Public Office Election Act and its significance that was touched off by Michael Cucek on his blog. Anyone who isn’t subscribed to the Forum, should. In the meantime, here’s my comment minus a couple of quotes (and related text) from the thread.


A forfeitable 3,000,000 yen deposit for a single-member district (SMD) in the House of Representatives (HOR) appears to be a significant deterrent against running for a Diet seat if you are out of work, have only illiquid assets if any, is unable to secure support from any of the established parties, and lack name recognition. If you do not belong to this demographic, you have other, more serious concerns.

An SMD bid is expensive. You must expect any candidate from a major party to spend up to the legal limit of (19,100,000 + 15 x number of eligible voters in the SMD) yen. Other candidates from established parties may spend less, but are highly likely to incur expenditures well above the 3,000,000 deposit. That limit would be 22,321,040 yen under the latest National Census, in Kochi District 1, currently the smallest SMD available to you. It would be significantly higher in any metropolitan SMD. You must be willing to spend a substantial amount of money yourself if you want to be competitive, or have some other compensating feature to your makeup, to which I will come back later.

Coming up with that kind money is not a problem if you have plenty of liquid assets; it’s somewhat more problematic if you are married and need to take out a mortgage on the family home for that. (Some people do that, though, apparently.) In any case, the buck does not stop there. The official campaign period starts when the election is called, but you will have spent months if not years before that laying down the ground works of your official campaign, and that costs money too. Affiliation with an established party will alleviate your money concerns, but you will still be footing much of the bill.

It will also cost your time. Running for office, if you are serious, can be a full-time job. That means that you will have to suspend or otherwise drastically curtail your day job. That takes a huge leap of faith if you are a salaryman—unless you’re say, a Panasonic employee and you’re running as the labor union’s candidate *wink wink* so you can go back to your day job if your bid fails. It’s easier, of course if you are a doctor, dentist, lawyer or other professional with a well-established practice and can pick up where you left off if your bid is unsuccessful.

Name recognition can be a good substitute for the above. This is not a HOR SMD example, but Yukio Aoshima, a well-known writer/comedian/actor, tossed his hat into a Tokyo gubernatorial race as an independent, left the country in the days when there was no internet to speak of, and still won the race.

Of course, none of this matters if you’re out-of-work and penniless, and the only campaigning that you intend to do is use the free TV broadcasting airtime that MIC gives to each of the candidates to hold forth on the subject of your choice: Legalize pot? Why not? Ah, but there’s the matter of the 3,000,000 yen deposit… so what you need here is the support of the DPJ or some other party with street cred so you can get at least 1/10 of the effective votes cast in the SMD on the party name alone so you can get that money back.

Sidebar: A better place to look for a legally imposed financial barrier to new entries would be the Political Party Subsidies Act, under which the Ministry of Internal Affairs and Communications is distributing 32,014,332,000 billion yen this year to 11 political parties passing thresholds based on based on the number of Diet members they have and/or votes they received in the last lower house and last two upper house elections. (The Japan Communist Party refuses to accept the money on principle.) That can buy a lot of hay; in fact, this averages out to 44,341,180 yen worth of hay per Diet member. That means that you’re spotting the LDPs and Komeitos a huge cash advantage when you’re starting up a new party. It also explains the financial appeal of (presentable) B- and C-list Diet members to the latest crop of start-ups. (The arrangement is also likely to put regional micro-parties (four Diet members or less) at a disadvantage.)

Tuesday, November 06, 2012

The MEXT About-Turn: That Was Quick


On November 6, four days after MEXT Minister Tanaka announced that she had refused permission for three new universities to open for business in school year 2013, she finished a regularly scheduled press conference, then returned three minutes later to tell the reporters that she’s forgotten to say something important and announced that a “new framework would soon be established to decide anew under new standards, including the three universities.” This is being widely interpreted to mean that the three schools will be allowed to open for SY2013. The announcement took all of two minutes, and the minister refused to take questions.

She is playing within type. She tosses pointed barbs, which as often as not hit the mark, and the public is entertained. She makes an impulsive decision without considering the consequences or talking it through with interested parties. Forced to make a turnabout, she’s barely able to face up to the task of making the announcement, but not enduring the fallout. And that announcement as coda is typical behavior from a small child.

Noda all but asked for it. But I’m still surprised that it happened so quickly, from the beginning, to the not-quite-finish-yet.

Monday, November 05, 2012

I Don’t Get the Korean Wave, but That Doesn’t Mean It Sucks


The Korean Wave that has staked out a big chunk of Japanese entertainment turf has failed to touch me. Its contemporary and costume TV dramas leave me cold, while its pop groups, the articulate and well-groomed potpourri of eye candy, utterly fail to work their charms on me.* It’s not like South Korea’s offshore shenanigans have neutralized the potential of its soft power. My addiction to Chinese wushu serials, a misbegotten conglomeration of the Streetfighter arcade games, Chinese history mangled beyond belief, and the most hackneyed and unbelievable plots and narrative devices this side of Shakespeare, remains unabated despite Beijing’s repeated incursions into Japan’s undisputable territorial waters of the Senkaku Islands. And to be truthful, Perfume leaves me cold too,* so it’s not as if I have anything against pleasure-androidy song-and-dance groups just because I have a beef about Takeshima.

But that doesn’t mean Hanryu sucks; it only means that I don’t get it. So, if my professional interests dictate that I should understand it—it doesn’t, thankfully—I should at least make an effort to understand its public appeal, shouldn’t I?

Same thing for political analysis, yet it’s even harder to do.**

* I’ve always preferred disorder over order, which may be why I’ve always believed that Cyndi Lauper is vastly superior to Madonna.
** For corroborating evidence, you need only to look at what so many talking heads are saying around the US presidential election.

A Memo on Makiko Tanaka and Her Place in the Litany of the Noda Administration’s Ills


Prime Minister Noda’s cabinet assignments have been dictated less by the aptitude and experience of the candidates than by his desire to maintain party unity. He must have known the risks he was taking, the danger that any one of them could wilt in the national spotlight as the consequence of any combination of their verbal incontinence, occupational ineptitude and/or dubious associations*. He must have felt that he did not have the luxury of selecting what he thought was the best and brightest and let them pick their respective political teams, as Hatoyama did.

In the event, the risks materialized, forcing him to dress up four de facto dismissals as a couple of cabinet reshuffles within the first year of his regime, yet he failed to achieve his objective of maintaining DPJ unity. A drizzle turned into a downpour on June 26 as Ichiro Ozawa was virtually frog-marched out of the DPJ by supporters who feared the public backlash from Noda’s agreement with the opposition LDP-Komeito coalition to raise the consumption tax rate out, and wound up a couple of weeks later founding the People’s Life First Party consisting of 49 Diet members. It is unlikely that more than a sliver of that number would have left the DPJ if they had not believed that it would give them a better chance for political survival.**

But one of Noda’s more obvious traits is stubbornness, often but not always a virtue, and his third cabinet reshuffle in little over a year gave the public more of the same. On October 23, a little over three weeks after his third reshuffle in little more than three years, he wound up accepting the resignation papers of Keishu Tanaka, his Justice Minister for political financing irregularities—he had known that his political organization had accepted donations from a company controlled by a foreign national, which is illegal in Japan, and 30 year old associations with yakuza executives that he claimed to have severed after he became aware of their livelihood. Tanaka was a 71 year old pol who had been given a “safety” assignment despite his lack of legal expertise almost surely because of his role as leader of the group of DPJ members who traced their origins to the old Democratic Socialist Party***. Tanaka’s demise proved to be yet another nail in the Noda administration’s coffin, which continued its public opinion poll free-fall.**** And that brings me to the other hotspot in the latest cabinet reshuffle.

On November 2, another public relations disaster for the Noda administration occurred as Makiko Tanaka, the Minister of Education, Culture, Sports, Science and Technology, went against the advice of the duly required recommendation from the MEXT advisory council and denied three prospective universities permission to open for the next school year (April-March). Tanaka had been chosen purportedly to assuage dissidents who had talked of backing her in the leadership election. The reason given for Tanaka’s perfectly legal refusal is a plausible argument: more and more universities are chasing fewer and students, and the quality of the education is suffering as a result.*****

However, there was also a good case to be made for disconnecting the decision on the three prospective universities from the broader question of higher education reform and a very good case to be made for at least one and possibly two of them to go forward regardless of the direction any eventual reform goes.****** But Tanaka’s well-chronicled impulsiveness and willfulness got the best of her, drawing attention away from the very real problems of the Japanese higher education system, of which allegedly too much competition is but one, and towards the also very real problems of denying permission to three education business groups that had expended considerable resources to meet MEXT requirements, not to mention sending prospective students scrambling for alternatives—each of the three universities-to-be had a readymade customer base, at least for the first two years—that may not be readily available for them. As it is, given the dismal prospects for the DPJ in the next lower house election and the Noda administration even before that, it is all but certain that Tanaka will have a few months at most to oversee the reform process as MEXT Minister, all but ensuring that the three schools will open in 2014 after a one-year delay, possibly in 2013 in the case of an early snap election.

What is amazing if not surprising is that Noda assigned her despite the fact that many people had expected something of the sort to happen sooner or later. In fact, this will probably turn to be less devastating for Tanaka personally than the outbreak of ills during her last cabinet assignment as Minister of Foreign Affairs. It was her reward from Prime Minister Junichiro Koizumi for having helped him to win the LDP leadership election, leading to his election as prime minister. Of course Koizumi and the LDP were in much stronger positions than Noda and the DPJ, respectively, and they weathered the troubles free of the kind of existential threats that Noda is currently facing. As it is, the controversy provides yet more ammunition for the LDP and its leader Shinzo Abe, who currently have little more to offer the Japanese electorate than prospects that they may be less incompetent and less incoherent than the DPJ experiment is turning out to be.

* Amazingly, he appointed Kenji Yamaoka, Ichiro Ozawa’s one of few remaining longtime associates, Minister for Consumer Affairs even though his close association with the multilayer marketing industry was public knowledge. In Japan, multilayer marketing businesses are viewed with suspicion and are often conflated with Ponzi schemes. Actually, they are closer conceptually to the iemoto system for ikebana and other traditional arts, where each business group consists of layers of teacher-acolyte relationships piled on above another as a pyramid that the constituents climb layer by layer, coughing up ever greater sums of money for each laborious step up along the way. One wonders if the Japanese affinity for roleplaying games is not related with this historical cultural experience.
** Note that Ozawa himself was always reluctant to leave, since he was aware that it would leave him with a much smaller power base and little prospect of founding new, meaningful alliances .
*** The DSP is a conservative offshoot of the old Socialists hatched during the progressives’ version of the 1955 political reshuffle.
**** The Noda cabinet had fared considerably better (or considerably less bad) than the DPJ in public opinion polls. The most recent media polls clustered around the November 3-4 weekend showed the gap closing considerably.
***** The counterargument, which also has merit, is that competition is good. Just look at the proliferation of cheap, reasonable-quality merchandise and service at all the supermarkets and convenience stores. And don’t try to make me, the everyman consumer, sympathize with all those small, neighborhood grocery stores that went out of business as the consequence. However, let’s give the MEXT Minister the benefit of the doubt here, if only in view of the mismatch between social needs, personal aspirations, and the educational product and its packaging, as well as the massive personal investment involved for the customers.
***** One is being founded by a large group of vocational schools in medical and healthcare, both growth industries in a rapidly aging society. Another is an upgrade of a public two-year art school in a Northeast prefecture where such four-year education is not available. The third school is an upgrade of a junior college for women. Vocational school groups seeking more official status; junior colleges adding two more years to their program; and unisex colleges, almost always for women, going co-ed: those are the basic strategic decisions being made by existing higher education institutions, and the three examples fit right into those patterns.

Thursday, November 01, 2012

Why Is the LDP Playing Nice?


The LDP is now willing to take up the deficit bond authorization bill in the Lower House Budget Committee and select members for the Committee for the Comprehensive Reform of Tax and Social Security and Tax, not to mention moving forward with the five-up, five-down mini-reform for the lower house. There are several very good post facto explanations for this change of heart. First, the LDP has historically been more attentive to pleas from Keidanren and other business authorities, who, already un-amused by the government belt-tightening on top of the global and regional disturbance, will be beyond livid if the LDP and DPJ manage against all odds to drive the Japanese economy over the fiscal cliff. Second, the LDP is ahead. It does not need a game-changer. It will be content to play the equivalent of a possession game, making sure that the opponent doesn’t get an opportunity to score.

Doesn’t the LDP want an early election? Yes, but not at all costs. Push too hard and it runs the risk of pushing Noda off the cliff. If Noda’s position deteriorates further, it could precipitate further DPJ defections, all but forcing the DP to call for what will surely be a successful no-confidence resolution. If Noda calls a snap election, fine. But he is more likely to resign and let a caretaker prime minister call the snap election. What kind of a birthday bump would, say, a Prime Minister Goshi Hosono receive? That has the potential of an LDP nightmare in the making. In fact, Noda may anticipate his demise and resign without waiting for the resolution. Which brings me to my third point: better to escort Noda to the goal line if need be to make sure that he fulfills his promise to chikai uchi ni call a snap election. And if that allows Noda to carry on for a few extra months and put a few feathers in his cap along the way, so be it; that’s a small price to pay for a stab at four years of plenty. Speaking of which, a double election in July is looking mighty attractive…

No, I don’t think the LDP wants to stretch it that far, for that would mean that the Noda administration will have stocked its items inventory with the FY2012 supplemental budget, the FY2013 regular budget, and some meaningful legislation. Still, the LDP appears to be playing not to lose. And that buys time for Noda and the DPJ, and time can do so much. Stay tuned.

My Take on the BOJ Governor's Reappointment

The odds of Masaaki Shirakawa's reappointment when his term expires in April dropped somewhat with the government-BOJ “accord,” since it binds the BOJ to the Noda administration. with the market response tepid at best, the LDP will hammer away at the package as inadequate and Shirakawa will suffer collateral damage. However, the LDP's action when it takes power will be tempered by the fact that the opposition will do its best to sink any new nominee, which means that Shirakawa is still a reasonably good bet for reappointment, if he wants it.