Firm but Uneasy Market

Tokyo Stock Exchange finished its operation of this year on Wednesday. Nikkei Average of the day was ¥19,033.71, rising from the final price last year by ¥1,582.94. With great amount of money supply from Bank of Japan to the market, final Nikkei Average marked moderate growth for four consecutive years. However, Japanese economy still holds negative elements for next year, including end of inflation policy of United States Federal Reserve Board or decline of Chinese economy.

Final price on Wednesday was the highest record after 1996. Following rally of U.S. market, Nikkei Average rose up for three consecutive days. The market closed in the afternoon with the sound of bell rung by classic music conductor, Yutaka Sado.

In the first half of this year, stock market rallied with BOJ policy of monetary easing. Although the lowest price was marked in January, Nikkei Average rose with not only BOJ policy, but decision of introducing monetary easing by European Central Bank. After reaching ¥20,000 in April for the first time in these fifteen years, Nikkei Average kept on rising and marked the highest of this year, ¥20,868, in June. It exceeded the highest price in 2000, when bubble economy led by information technology appeared.

Chinese decline directly affected Japanese economy in the summer and after. Chinese gross domestic products in the third quarter went down below 7%, which was the same level in 2009 when Lehman Shock shook the world economy. After Chinese government devaluated Renminbi for three consecutive days in mid-August, Nikkei showed steep decline to ¥17,000 or below in September. Speculation on Chinese economy doubted its situation as bad as requiring for maintenance of export with manipulation.

When Chairwoman of FRB, Janet Yellen, announced the end of zero interest policy in December, Tokyo Stock Exchange was not affected so badly. Stable U.S. economy is also a stabilizer of Japanese economy. But, a great concern is the impact of FED policy on emerging economy. If money goes back from emerging countries to U.S., worsened emerging economy will affect Japanese stock market. Cheap petroleum also causes negative impact on the economy of oil exporting countries.

Shinzo Abe administration keeps on announcing that high Nikkei Average is a symbol of success of Abenomics. But, economists know the vulnerability of stock market supported by monetary policy. To persuade the world and Japanese citizens of its viability, Japanese government needs to make more efforts for further and sustainable growth.

Opaqueness in Explanation

To the strategy of shock and awe by their political leaders, both Japanese and South Korean nations responded immediately. Japanese conservatives started protests against the minister-level agreement on settling comfort woman issue. Former comfort women in South Korea were frustrated with the agreement without any consultation to them. Reconciliation of both nations is on its way.

While most Japanese welcomed the agreement between both Ministers of Foreign Affairs, some right-wing activists showed up in front of Prime Minister’s Official Residence in Tokyo and raised their voices. “The agreement was to droop the head unilaterally and apologize and compensate as a state,” said Makoto Sakurai, former President of an anti-Korean group called Zaitokukai, as shown in YouTube. They held a banner, which read “We protest Japan-South Korean agreement that injured honor and pride of our ancestors.” The place was the same place as where liberal activists had been protesting conservative policies of Shinzo Abe administration.

Governmental officers look like waning. “Making the largest compromise we could, though, we had not recognized legal responsibility,” told an officer of Japanese government to a question on consistency with Treaty on Basic Relations between Japan and Republic of Korea in 1965, which declared that all claims for compensation were settled. While previous administrations recognized “moral responsibility,” Japanese Foreign Minister, Fumio Kishida, used the words of “Responsibility of Japan.” To that description, some lawmakers in leading coalition began to question it, indicating possibility of criticism on its ambivalence.

In Seoul, former comfort women rejected the agreement in the meeting with the Secretaries of ROK Ministry of Foreign Affairs. “Why didn’t you tell us stakeholders before you agreed on it?” asked a woman in a house where former comfort women lived together. The focus was concentrated on a deal that both governments agreed on taking appropriate measures on a statue of comfort woman in front of Japanese Embassy in Seoul. While ROK explained it to have been built by private organization, Japanese government recognized the deal as removing the statue. Former comfort women firmly opposed to the removal.

Japanese governmental officials revealed that both governments reconfirmed removal of the statue and Japan’s offer of ¥1 billion for compensation was based on the relocation. It is possible that Japan’s pledge will not be fully implemented as long as the statue appears in front of the Embassy. The South Koreans can be protesting the political maneuver by protecting the statue.

New Phase of Japan-ROK Relation

Foreign Ministers of Japan and Republic of Korea agreed on final and irreversible solution of comfort woman issue in Seoul on Monday. Although detailed protocol has not been announced, Japanese Prime Minister Shinzo Abe and ROK President Park Geun-hye will endorse the agreement as soon as next spring. After a long period of quarrels, both nations seem to have reached a historical reconciliation over the wartime infringement of human dignity.

The voice of Japanese Foreign Minister, Fumio Kishida, was delight and clear at the joint press conference with ROK Foreign Minister, Yun Byung-se. “Comfort woman issue is a matter of harming honor and dignity of many women under involvement of military at that time. On that viewpoint, Japanese government seriously recognize its responsibility on it,” told Kishida. He stressed that Prime Minister Abe would express sincere apology and reflection to all the people who suffered from unhealed memory of tremendous pain.

For Japanese government, the most important point of the agreement was that it must be an “irreversible solution.” Putting aside the fact that it has been the Japanese political leaders, including Abe, who kept on overturning sincere apology made by former Chief Cabinet Secretary, Yohei Kono, Kishida insisted on that the agreement was final and irreversible solution. To implement the apology to former comfort women, Japanese government pledged to subscribe ¥1 billion to new organization for supporting former comfort women.

The substance of the agreement was nearly perfect for any political powers in Japan. “We can recognize the agreement as a progress for a solution,” told Chairman of Japan Communist Party, Kazuo Shii. While sober relationship with ROK has been a major weakness of Abe diplomacy, reaching final solution on comfort woman issue made a great political advance.

Why did it take so long time, anyway? It was Abe who complicated the problem by questioning traditional definition that Japanese Imperial Army had been involved in the comfort woman issue. By denying coerciveness of recruiting those women, Abe invited sharp opposition from South Korean public. It is still unclear how Abe changed his mind. Necessity in political and diplomatic requirement does not completely explain it.

Abe and Park had a telephone talk after the ministerial agreement. “I welcome that comfort woman issue is finally and irreversibly solved by the agreement,” told Abe. “Expressing apology and reflection leads to restoring honor and dignity of the victims and healing wounds in their heart,” replied Park. It is undeniable that the bilateral relation stepped into new phase of implementation.

We Won’t Pay for That

Tokyo Electric Power Company was the owner of First Fukushima Nuclear Power Plant at the time of severe accident in 2011, failing to keep on supplying electricity to the reactors. It still is so and TEPCO has a responsibility to compensate all the damages brought by the accident, needless to say. Now, the power company is rejecting to pay money for a part of decontamination effort, which was caused by their operation.

Mainichi Shimbun reported on Monday that TEPCO has been showing an attitude not to pay for decontamination efforts that was planned after the end of 2013. The reason they raised was a decision by Shinzo Abe Cabinet on December 20^th of the year, which required TEPCO to compensate for the cost on decontamination and building intermediate storage facility for radioactive debris that had been done or planned at the time. TEPCO argues that the decision did not determine what should they do for additional decontamination efforts.

One thing strange is that interpretation of the decision is different between Ministries. Ministry of Environment explained that TEPCO had not been accepting to pay for cleaning up the main roads within the most contaminated area, which had been planed after the Cabinet decision, while the company had been willing to pay for decontamination around public facilities.

Special Measures Act for Nuclear Disaster determines that a power generation company is responsible for the consequences of nuclear disaster and has to restore the status before the accident. It is more than obvious that TEPCO is responsible for decontaminating entire land, regardless the time when any one of the Cabinet decisions is made. “It does not make sense that compensations are distinguished depending on the time before or after the Cabinet decision in light of the Special Measures Act,” told an officer in MOE to Mainichi.

Strange is the recognition of Ministry of Economy, Trade and Industry. “The Cabinet decision did not say to demand for unplanned decontamination. We instruct TEPCO to abide by the decision,” told an officer in the Ministry. “We are appropriately responding to the Special Measures Act, compensation process in nuclear disaster and Cabinet decision in 2013, consulting with related Ministries,” said Public Affairs Room of TEPCO.

IF TEPCO rejects paying for the cost for decontamination, taxpayers will have to do that. Although nuclear power generation had an aspect of national project supported by the government, responsibility of accident has been recognized as attributed to power companies. That has been a conceptive basis of nuclear disaster management. One has to imagine that this is a pardon for TEPCO, expecting consecutive resumption of reactors all over Japan.

Japan v. Okinawa vol. 2

As a counteraction against lawsuit of national government for overtaking local policy decision in Okinawa, Government of Okinawa indicted Government of Japan on Friday, seeking unlawfulness of the suspension of power of Okinawan government. Governor Takeshi Onaga stepped into another legal struggle to protest building United States Marine Base in Henoko as an alternative facility of Futenma Air Base. It is highly unusual that national and local governments simultaneously file lawsuits against each other.

It was December 2013 when former governor Hirokazu Nakaima approved landfill in Henoko coastal area for building new base, overturning his campaign promise to oppose the project. Ten month after defeating Nakaima in a gubernatorial election with firm opposition to Henoko landfill, Onaga canceled Nakaima’s approval this October. Minister of Land, Infrastructure, Transport and Tourism, Keiichi Ishii, decided to suspend Onaga’s cancelation two weeks later and Government of Japan filed a lawsuit to seek administrative subrogation.

Onaga requested examination on the issue to Committee for Conflict Management between Natioal and Local Governments early November. The committee, consisted with scholars on law study, dismissed the request as inappropriate to deal with. Onaga took the next step, indicting national government, with disappointment to the conclusion of the committee, criticizing it as “regretful for denying committee’s own raison d’être.”

In the letter of complaint, Government of Okinawa argued that the status quo in Okinawa, in which American military bases were extremely concentrated, contradicted principle of local autonomy the Constitution of Japan guaranteed, and construction of the military base against general will of local people was violation of autonomy. It also criticized Ishii’s approval of the request from Okinawa Defense Bureau for suspension of Onaga’s decision to cancel landfill approval as inappropriate.

Onaga’s struggle in the court should be one of his actions for stopping the construction of military base by all means. Okinawa took a form of appeal lawsuit, which assumed dealing with appeals of private citizens to remove illegal use of administrative power. It is possible that the court does not accept the appeal from Okinawa. However, Okinawan government expects the court to issue an order for suspending the construction in Henoko at least until it makes a decision. The struggle between national and local government gets further complicated.

People Disappeared

 prefectural government of Fukushima released initial data of national census operated last year, which found that population of Fukushima Prefecture decreased by 5.7%, or over 110,000, from the number before East Japan Great Earthquake and the severe accident in First Fukushima Nuclear Power Plant. The reason was clear: evacuation. Since population is a basis for distribution of resources from the central government to local communities, Fukushima will further suffer from consequence of unprecedented disaster.

According to the prefectural government, the population of Fukushima was determined to be 1,913,606 at the time of October 1^st, 2015. The number get smaller by 115,458 than that in 2010, which had amounted 2,029,064. While males reduced by 39,715 during five years, number of female dropped by 75,743. This gender gap caused by a tendency that mothers had evacuated with her kids, escaping from negative impact of radioactive materials, leaving her husband in Fukushima to work. Male construction workers who dealt with decontamination effort also caused the gap.

Among six towns and villages where entire evacuation order was laid, four towns, Namie, Tomioka, Okuma and Futaba, counted no population. The rest of two, villages of Iitate and Katsurao, counted a few residents who declared to stay for three months or longer to prepare for returning or who had to stay in nursery facility because of illness. Although evacuation order to Naraha town was lifted in this September, the population of the town decreased from 7,700 to 976. It is clear that the nuclear power plant has created ghost towns around it.

Meanwhile, Fukushima government announced that deaths related to the earthquake and nuclear accident exceeded 2,000 by Thursday. While Fukushima lost 1,604 lives with direct impact of earthquake or tsunami, 2006 people died after they once saved their lives in the disaster. They must not have to die, if they had not left their home for so long. Number of related deaths in Fukushima is far greater than in other suffered area such as Iwate or Miyagi.

Urgent and important issue is how to take care of evacuees. National government decided to end support for evacuees from residential restricted area and returning preparation area in March, 2018. Budget of local government, highly dependent on subsidy from national government, will suffer from scarcity of reduced amount of money for reconstruction. While national government promotes returning policy, evacuees are getting more difficult to get back their 

Budget for Mobilization

Shinzo Abe Cabinet decided the FY 2016 budget bill on Thursday. Total amount of general account was ¥96.7 trillion, marking the largest budget for consecutive years. To implement his new political agenda, A Hundred Million Dynamic Engagement, Abe positively appropriated fiscal resources to nursery or local development. He did not forget supporting national security and overseas development aid. While relying on income of corporate tax, accumulated debt is still threatening the future of the nation.

Mobilization must be one of the most favorite words of Abe. He tried to mobilize all private corporations to implement his economic policy called Abenomics through raising salary of their employees, resulting in managers’ ignorance of governmental intervention. Now, he proceeded to the way for encouraging all citizens to contribute to his agenda through engagement in social activities for productive economy. This is the first annual budget for the target.

¥2.4 trillion was appropriated to A Hundred Million Dynamic Engagement. For implementing one of the new three arrows for growth, or 1.8 of hoping birthrate, ¥1.5 trillion was saved. The budget would be spent for increasing nursery facilities for kids of working mother. Subsidies for divorced family would be raised for the first time in these twenty-two years. To decrease job losses caused by necessity for taking care of old parents, budget for nursery for elder people was raised to ¥236 billion.

To support budget of local communities, Abe administration would establish new subsidy for vitalizing local economy amounting ¥100 billion. The subsidy will be used for elderly people to move from urban zone to local towns, expanding market for local products or developing infrastructure for concentrating people and business. On the other hand, national government would start asking expenditure of devastated local government in East Japan Great Earthquake, amounting ¥8 billion.

Defense budget broke the ceiling of ¥5 trillion for the first time. Japanese Self-defense Force will add another cruiser with Aegis information system, which costs ¥173 billion. ¥23 billion will be appropriated for introducing new air tanker, KC46A. Those equipments will be designated for defense of small islands in Pacific Ocean against Chinese advance.

With active spending mostly for people’s ordinary life, pretending to be determined in raising economy, Abe focuses on the victory in the election for House of Councillors next summer. Newspapers found camouflages in the budget, which was highly dependent on temporary growth of tax revenue, such as great amount of purchase of national bonds by Bank of Japan.

Stepping to Grand Opposite Coalition

Attempts of the opposite party for united effort to defeat the leading parties are appearing to be accelerated. Adding to the agreement between Democratic Party of Japan and Innovation Party to have united group in the Diet, Japan Communist Party shows willingness for cooperation in national elections. Opposing unilateral reform of Japanese government by Prime Minister Shinzo Abe, they are concentrating political power to get back to normal.

DPJ, JCP, Innovation and Social Democratic Party announced that they would raise a lawyer, Hiromi Abe, as their first common candidate for next election of House of Councillors next summer. It was achieved by the decision of JCP, which had independently been supporting its party candidate in every electoral district. “It will be the last chance to ask protecting constitutionalism and democracy of this country,” told Abe in her press conference.

The first showdown will be done in April, few months before the upper house election. For a supplementary election in Hokkaido 5^th district of House of Representatives next April, seeking an empty seat by decease of former Speaker Nobutaka Machimura, JCP considers supporting DPJ candidate without raising party candidate. JCP Chairman, Kazuo Shii, declared that his party would pull down its already declared party candidate, Mika Hashimoto, to establish basis of grand coalition against leading regime by Liberal Democratic Party and Komeito.

Asahi Shimbun revealed a story that Shii became active for the opposite coalition with relationship with former king maker, Ichiro Ozawa. JCP supported incumbent governor of Iwate, Tatsuya Tasso, former colleague of Ozawa, in Iwate gubernatorial election. During the campaign, Shii told Ozawa in a bullet train from Morioka to Tokyo that political struggle after passing new security law would be important. Ozawa replied to Shii that the opposite parties would not defeat LDP as long as they insisted on independent strategy. A month later, Shii emphasized reform of JCP for “national united government,” for which his party would review its traditional policy of cancellation of Japan-United States security treaty or abolishment of Emperor system.

Problem rather exists in DPJ than in JCP. Conservative lawmakers in DPJ, who attempted to dissolve the party for integration with former Innovation Party led by Toru Hashimoto, are determined to oppose coalition with JCP. Some argue that cooperation with JCP will reduce votes of DCP candidates. DPJ seems to make no important decision forever.

Imperial Looking Back This Year

Emperor Akihito remembered the year of 2015, the seventieth anniversary from the end of World War II, as leading his life with thoughts on the past war in many ways. In his press conference, Akihito insisted on importance of deepening knowledge and thought on war for the future of Japan. So, what events this year did make him so emotional on the war?

The annual birthday press conference was held on December 18^th, five days before his 82^nd birthday. “This is the seventieth year from the end of the past war. That war had indeed taken a number of lives, including non-military personnel,” said Akihito. “It makes me feel sad,” added him, “when I think about the fact that many people, who should have lived meaningful lives if it had been in a peaceful time, lost their lives.” When he referred to ship crews who lost their life without any military protection in foreign seas, he was so touched that he lost his words for a short period.

Memorizing the seventieth anniversary, Akihito was active in royal diplomacy this year. In April, he and Empress Michiko visited Republic of Palau, where Japanese Imperial Navy had deadly battles against United States Navy, and had memorial services for deceased soldiers. He thanked the Presidents of Palau, Marshall Islands and Micronesia for their attendance to the ceremony. “We must not forget that the past war left a great burden on the people living in the islands,” said Akihito in the press conference.

It is possible that Akihito referred to growing number of young people who did not know well about the war, because young movement against war was more active this year than in past few years. One thing obvious was that the movement was stimulated by unilateral legislative procedure for passing new security bills in the Diet. It was likely that the Emperor wanted to indirectly express concern on sharp opposition between the leading parties and moderate liberal powers in Japanese society.

Akihito also expressed his consolation to the victims of natural disasters this year. In May, explosion of a volcano in Kuchino-erabu Island, Kagoshima, exploded, caused entire evacuation from the island, which is still lasting. In September, Kinugawa River flooded in Tochigi, taking eight lives. It was his concern on preparedness for natural disasters and growing effect of climate change. He also told that he was relieved by voluntary effort to help suffered people in those disasters.

It has no doubt that his Heisei Era does not last forever. Elderly Emperor regretted his failure in some ceremonies, which would include wrong recognition of the agenda in a war memorial ceremony in Tokyo in August or interruption of schedule in an event for ocean development in Toyama in October. Easing official schedule is another issue he holds.

Leaving Forest Contaminated

Ministry of Environment offered an expert commission a plan not decontaminating forest area around broken First Fukushima Nuclear Power Plant in Fukushima. The ministry explained that they had not confirmed growth of radioactive materials in the air blown from the forest and removing fallen leaves would cause further flow of contaminated soil. In other words, national government indicated its intention to escape from its responsibility for restoring original status of suffering land.

Forest occupies seven-tenth of whole land of Fukushima Prefecture. National government issued a guideline to clean up the land within 20 kilometers from towns and where people would enjoy natural life like campsite or plantation of fungi. Rest of the forest has been left to consider how to deal with.

Ministry of Environment found that 80% of radioactive materials fallen on the soil in the forest stayed on the surface. They had not been blown away to the extent consistency of radioactive materials affected people’s life. Rain did not transport the radioactives to town. The ministry dismissed the possibility for contaminated forest to affect ordinary life of the people in Fukushima.

It has been said that the forest was too large to completely decontaminate. “It is difficult to decontaminate whole forest and negative effect of decontaminating effort can be predicted. We have chosen the best way for the residents around,” told a staff for decontamination effort in the ministry to Mainichi Shimbun.

The plan of finishing decontamination effort would receive a lot of questions. The biggest one is how can the government escape from responsibility for decontamination. After the severe accident in First Fukushima Nuclear Power Plant, national government admitted insufficiency of their traditional nuclear policy and promised to clean up the land. The offer to the commission meant that the effort would be incomplete leaving most of the land contaminated. It has to be said that the government is underestimating true cost of nuclear disaster.

Another is where the radioactive materials are going to. It is scientifically correct that disseminated cesium 137 has decades-long life. It will remain in the forest or flow with water, threatening health of residents around or mother nature. National government explained that it would build protecting fence, if flow of contaminated soil happens. But, that will not bring fundamental solution of decontamination. The Japanese cannot tolerate leaving the forest in Fukushima as useless.

Controlled Freedom of Juvenile Voters

It must be the reluctance of Japanese government to vest voting right on young citizens. Mainichi Shimbun reported that some of prefectural governments were considering requirement of in-advance reporting for high school students’ political activities after school. Bureaucracy could not imagine that setting limitation would create another political distortion. Here’s a conclusion: High school students do not have full-fledged freedom of thought.

According to the research of Mainichi, six prefectural governments, Miyagi, Ibaraki, Toyama, Fukui, Aichi and Mie, and three government-decreed cities, Sendai, Yokohama and Kobe, were contemplating whether they would ask report of their students participating in political assembly or demonstration. Other ten prefectures and one government-decreed city answered to query of Mainichi that they would leave the decision to each high school principal.

Constitution of Japan guarantees all citizens freedom of thought, which undoubtedly includes political assembly or demonstration. Responsibility on students’ activities after school is basically left to their parents, not teachers. The reason why schools are trying to intervene students’ activities is based on a guidance national government has delivered.

Ministry of Education, Culture, Sports, Science and Technology in October issued a notification on political activities of high school students out of their school to all local governments on October. That was basically a guidance to balance freedom of political activity and neutrality of education. “Political activities of high school students is not unlimitedly allowed, but laid under necessary and rational restriction,” said the notification.

The Diet passed new law to vest voting right on the people as young as at eighteen and nineteen years old. But, once the intervention of government creates two kinds of votes, vote with guidance of government and without. Does a vote with governmental guidance have the same value as another vote completely free from the intervention?

This is a fundamental question on freedom, equality under law or dignity of individual.

If the government did not want young people to have independent political thought, it must not allow them voting right. If Japanese bureaucracy wanted to achieve good reputation of advanced democracy from the world, stop intervention. Oppressing human rights and implementing democracy do not stand together.

Recommendation of Adams System

The advisory commission for election system reform in the House of Representatives summarized a draft for introducing new system with reduction of 10 seats out of 375. If the draft is applied, inequality on value of one vote will be contained within twice, a benchmark which Supreme Court required the House in 2011. However, incompetent lawmakers still argue whether the reform plan should be applied to their precincts.

The commission was established in September 2014, when the discussion over election reform was gridlocked by struggle over partisan interests. Although the parties had agreed on the necessity of reform to guarantee equality under law and to restore credibility on the Diet, they kept on insisting on their preferable reform some others could not accept. So, they gave up drawing conclusion and left the argument to the commission on the condition that all parties would follow the recommendation.

The draft of the commission was to draw the line of electoral districts in accordance with an old system in United States, called Adams System. It is said that John Quincy Adams, the sixth U.S. President, upheld a system, in which distribution of voters were determined by calculation. If it is applied to Japanese local government system, the seats of each prefecture will be quotient of the number of eligible voters divided by another certain number. When there is a prefecture with 400,000 of population and the variable is 200,000, two seats are distributed to the prefecture. The remainder will be counted as 1 seat.

Introducing Adams System, the commission recommended reducing 1 seat in each of 13 prefectures and increasing 7 seats in 4 prefectures including 3 additional seats in Tokyo. It also required reducing 4 seats in proportional representation. The House of Representatives will be constructed by 289 seats from electoral districts and 176 seats from proportional representation, if the draft is applied. The greatest value of one vote will be contained within 1.621 times greater than the smallest one.

With the greatest number of lawmakers, Liberal Democratic Party will have the greatest problem in introducing new election system. Although the leaders are willing to discuss the draft, lawmakers in the diminishing districts are protesting to it. Japan Communist Party is fundamentally opposing to decreasing any one seat. Other parties also referred to insufficiency of the draft. It is unclear that the fundamental basis of discussion, following any opinion the commission would conclude, will be implemented. This is what Japanese democracy is all about: interest of lawmakers overtakes interest of people.

Bazooka Unfired

Monetary market showed quick moves this week. United States Federal Reserve Board decided raising the target range for the federal funds rate to 1/4 to 1/2 percent on Thursday, finishing “zero interest policy.” As if being stimulated by U.S. policy change, Bank of Japan introduced supplemental policy for monetary easing on Friday. Although BoJ aimed to surprise monetary market, the prices in Tokyo stock market responded with confused up and down.

The decision of FRB to raise the federal funds rate for the first time in these nine and a half years was accepted as a positive sign in Japan. Nikkei Average jumped up by ¥303.65, marking ¥19,353.56 with expectation of preferable impacts of the policy change in U.S. Investors bought U.S. Dollar to seek high interest, dropping Japanese Yen to ¥122 for a dollar.

While it was worried that money flow from the world to U.S. would cause steep decline of emerging economy, monetary market looked like expecting no urgent change. “Concern on negative impact of rising federal funds rate on developing countries has already been recognized. The market is welcoming positive aspect of that,” said Minister for Economic Revitalization, Akira Amari.

But, the rally of Tokyo Stock Exchange did not last long. Right after the announcement of BoJ on Friday, Nikkei Average abruptly rose by ¥500 in five minutes. Then, realizing BoJ decision as partial adjustment, the average steeply declined, closing exchange of the day at ¥18,986.80.

New policy of BoJ was to extend average for redemption of purchased national bonds from 7 to 10 years to 7 to 12 years starting next month. That was based on an expectation that investment would be vitalized with low interest of long-term money rending, when BoJ raised the share of long-term national bond. The bank also announced that it would establish new purchasing share for Exchange-Traded Fund as much as annual ¥300 billion to increase money flow in the market.

Unfortunately, the announcement failed in surprising the market. “We estimated that this additional policy would be appropriate to firmly maintain the major monetary easing and to deliver regulatory measures without hesitation, if necessary,” told BoJ Governor, Haruhiko Kuroda. The assessment of the market was that the Friday announcement was only a preparation of the third Kuroda bazooka, following two monetary easing in April 2013 and October 2014. In addition, even skepticism over no third bazooka is spreading.

Unnecessary Argument over Defamation

For some reasons, a judicial branch of South Korean government decided to protect freedom of speech. Seoul Central Regional Court on Thursday found former bureau chief of Japanese Sankei Shimbun, Tatsuya Kato, not guilty on his article introducing a rumor that South Korean President Park Geun-hye had been with a man on the day tragic ship accident killed a number of Korean passengers in April 2014. Reviewing the history of the case, this indictment must be proved to be unnecessary.

Kato ran an article on the homepage of Sankei with headline of “President Park Geun-hye was missing on the day the ship sank – meeting whom?” The article was introducing rumors in South Korea, including a column article of Chosun Ilbo newspaper about her relationship with a man, and attributed those confusions to lame-ducking of Park administration. South Korean prosecutors indicted Kato with a charge of defamation after receiving accusation from civil groups.

While concluding Kato’s story as baseless, the court decided that the article was introducing public interest to the readers and had no intention to defame Park. “Even if the revealed were rumors, freedom of speech must broadly be guaranteed,” said the court. Japanese Asahi Shimbun questioned why Park had not stopped the prosecutors indict Kato.

The decision still has some obscure points. At the beginning of reading judgment, Chief Judge revealed a letter from South Korean Ministry of Foreign Affairs, which requested generous decision with diplomatic consideration. “We are asked to deal with the case in perspective by various people of Japan. Considering that December 18 will mark the fiftieth anniversary of South Korea-Japan Basic Treaty, we hope this kind of request to be sincerely considered,” said the letter. That unusual announcement invited a suspect on intervention of the executive branch to judicial decision.

There has been a tendency of putting pressure on media in South Korea. Japanese Mainichi Shimbun listed the cases in which South Korean President’s Office accused domestic media with suspect of defamation. They included a report of Korean Christian Broadcasting System that indicated Park’s visiting for mourning was a performance or an article of Segye Ilbo that introduced a document revealing involvement of Park’s close aide in personnel’s transfer. South Korean government has been oppressive on freedom of speech.

While the case on Kato can be concluded as unnecessary, here’s another question: Was Kato’s article necessary? It is up to Sankei which news they select. But, it is still unclear what did Sankei or Kato want to say with the article. What was the value of the article to report, while harming the sentiment of South Korean people? Japanese people experienced the same kind of sentiment when British Broadcasting Corporation introduced Tsutomu Yamaguchi, who suffered from two atomic bombs in Hiroshima and Nagasaki, as “the most unfortunate person in the world” in 2010. Generosity matters.

100-day Unfreedom of Marriage

The Supreme Court made two important decisions on marriage of the people. One was banning on remarriage of woman for 100 days from divorce. Another was maintaining the institution of requiring same surname for a married couple. While Civil Code, legislated in Meiji era, gives a couple a choice for one of their two surnames, 100-day ban does not make any sense in terms of gender equality instituted in Constitution of Japan. The decisions reflected a reality that Constitution was ruled by Civil Code.

Article 733 of Civil Code determines that a divorced woman cannot remarry for six months for avoiding trouble on biological identification of her new baby’s father between previous and new husbands. Supreme Court decided to shorten the period of marriage ban from six months to 100 days.

The reason was quite ridiculous. Civil Code has provisions that define a baby born within 300 days from the divorce as a child of ex-husband and a baby born after 200 days or more as a child of new husband. To determine baby’s father, the Court required all women 100 days of unmarried period, with which Civil Code cannot determine the father.

That decision was based on a notion that a baby would be born only by married couple, which concept had once existed in ancient Japan. Now, there are a various cases of unmarried sex or unmarried baby. Advanced biological technology can determine a baby’s father so easily and precisely that identification of father by birthday becomes significantly obsolete. If Supreme Court abides by the Constitution, it had to abolish the provision of unmarried period in Civil Code.

Although having a sense of insufficiency in light of human rights, constitutionality of choosing same surname can stand. “A husband and wife shall adopt the surname of the husband or wife in accordance with that which is decided at the time of marriage,” says Article 750 of Civil Code. A married woman has a right to choose her original surname with consultation with her husband. If she liked her original surname, she can socially use it in her office or other local communities. It is not a matter of gender equality, but of dignity of individual who has to abandon her or his surname. Supreme Court found a value of maintaining traditional sense of integration of married couple through surname.

But, judicial branch has to take note the fact that some couples decide unmarried family institution, because of the mandate for choosing one surname. It is necessary to reform legal system for couples not to have disadvantage stemming from choosing different surnames.

Revision of FIT System

After three years from introduction three years ago, Japanese government is revising feed-in-tariff system for renewable energy. Experts committee in Ministry of Economy, Trade and Industry summarized a draft for revising FIT system, which included suspension of license for company with long history of inaction as power generator or introducing competition for setting price of major solar power. Putting aside arguments over correctness of adding cost for the renewables on utility price, FIT system is reviewed for lowering the price.

Japanese version of FIT system was introduced in 2012, a year after the nation suffered from inexperienced severe accident in First Fukushima Nuclear Power Plant, in want of safe and reliable energy. Power companies were mandated to buy electricity produced by individual solar generator with price of ¥42 for one kilowatt hour. But, the price was initially set on a high level for promoting renewable energy. It actually declined to ¥37 kWh in 2014.

Looking at financial superiority in solar generation, a number of companies filed as renewable power generator. But, seven out of ten have found as not started operation of power generation, waiting for price down of the devices for solar generation. The expert committee recommended not registering a company as power generator until it would make contract with major power company. If they do not start power generation, the government will suspend the license.

Although assets for renewable power generation has grown as much as the capacity of ten or more nuclear power generation, nine out of ten renewable power generators concentrated on solar power. Other power resources including geothermal or wind power have increased their capacity by 4% compared to the level before FIT was introduced.

A systematic problem can be seen in the determination of price. Power companies are allowed adding the cost for buying electricity produced by the renewables, raising retail price of electricity. Negative recognition on expensiveness urges traditional power companies, interested in resumption of nuclear reactors, argue inefficiency of renewable energy.

As said, argument for the need of renewable energy is weak in Japan. The weakness stems from the high stakes on nuclear energy. It is still a mystery why the stakeholders are so enthusiastic on maintaining nuclear power plants, which waste has not found final destination to go.

Money Rules Architecture

Japan Sport Council disclosed two designs for new national stadium for Tokyo Olympic in 2020. Both drafts had common concepts, which was drawn by Japanese designer, which cost was cheaper than former one designed by a foreign designer and which concept was based on woody structure. Caused by steep growth in raw material for construction, the central facility for Olympic games will be looking boring. One can question: Did we really need to replace old national stadium?

As a conclusion of international competition, JSC in 2012 chose an outlandish design by Zaha Hadid, who had been dubbed as Queen of the Curve. While JSC initially estimated the cost for construction as ¥130 billion, it proved to be costing ¥353 billion after detailed calculation. In November 2013, JSC revised the plan with smaller floor limiting the cost as low as ¥178 billion, the estimation again hiked up to ¥252, because of inappropriate prospect on price of resources. Hadid plan was finally turned down.

New plan A will cost ¥149 billion. The building is 49 meters high, quite lower than 70 meters of Hadid plan, with three layers stand and roof made by mixture of steel and wood. According to Mainichi Shimbun, team A consisted with Japanese designer, Kengo Kuma, architect company, Azusa Sekkei, and joint developers led by Taisei Corporation. The concept was named Stadium in the Forest.

The cost of new plan B will be ¥150 billion, ¥0.1 billion higher than plan A. The height of the building is 54 meters. Its stand has two-layered structure and the roof has wavy look. The greatest uniqueness can see in 72 wooden pillars surrounding the stadium. The joint venture by major Japanese general construction corporation of Takenaka, Shimizu and Obayashi established team B with designer, Toyoo Ito, and architect, Nihon Sekkei. Its concept strictly matched with plan A, which was Stadium in the Forest.

One thing clear: both plans are definitely not international. JSC seemed not to have realized difficulty of implementing designs by Hadid at the beginning. The preparation team also faced sharp international criticisms in the plagiarism scandal over official logo of Tokyo Olympic. Japan got back to the basic of simple and sturdy, less personal and cheap is best.

Nevertheless, the leadership is unworthy designated efforts to recover failure in designing. President of Tokyo Olympic Organization Committee, former Prime Minister Yoshiro Mori revealed his preference to one of the two plans before selecting process. “Watching exterior, plan B is better. That has typical image of sports. It looks like pavilion of ancient Greece,” told Mori to the reporters. “Plan A has no brightness of having Olympic games,” he added. In Japan, someone always pull the legs of frontrunner.

Epoch Making Agreement

The world managed to keep the momentum for tackling climate change. Conference of Parties of United Nations Framework Convention on Climate Change concluded Paris Agreement on Saturday, which required all parties to make every effort to eliminate emission of greenhouse gasses in the latter half of this century. While both developed and developing countries shared necessity for setting binding goals, the agreement heavily relied on conscience of each country. Implementation is the biggest concern for the future of fight against threat of global warming.

It is true that the outcome of Paris conference cannot be underestimated. In the Article 2 of Paris Agreement, the parties were mandated to hold global average temperature below 2°C above pre-industrial levels and further pursue 1.5°C, to increase ability to adapt to the adverse impact of climate change and foster climate resilience, and to make financial flows consistent to implement the goals.

However, in the reflection of insufficiency of Kyoto Protocol in 1997, which set obligatory goal for reducing greenhouse gasses on each parties, Paris Agreement did not took a style of posing numerical goal on each country. While the agreement required designated effort to each party, it avoided demanding concrete achievement with actual time limit. Instead, it included a clause to require all parties review their efforts every five years.

Central concept of the agreement was equal but differentiated responsibilities. To tame the argument of developing nations, which insisted on that current global warming was brought by industrialization of developed countries, developed countries accepted broad responsibilities. The agreement mandated developed nations financial support for developing countries to take measures against climate change, not having actual amount of money.

How to reach the goal basically depends on each country. Although the conference encouraged the world independent on fossil fuels, there was no description on independent from atomic fuels. While it acknowledged the need to promote universal access to sustainable energy, the definition of sustainable energy is not clear. How the conference judges the agreement of Japan to export nuclear power plant to India?

Paris Agreement was epoch making in terms of setting alternative goals to Kyoto Protocol. But, it cannot be a viable scenario to achieve the environment completely preferable to human being. More determined study on true aspect of global environment and correct way to choose is needed.