Reconstruction Policy In Short

Reaching fifth anniversary from tragic East Japan Great Earthquake, newspapers started series stories that reviewed this post-disaster period. While reconstruction efforts have been coordinated by national government, which has a great amount of budget, the sufferers are still in dire straits. As far as those efforts are under strict control of bureaucracy, flexible application of reconstruction policy is hard to be expected.

Asahi Shimbun reported the situation of “public reconstruction houses,” which residents are aged people in a significant degree. In the research of the newspaper to 52 local governments, 9,787 residents out of 25,860 were at the age of 65 or older at the beginning of this year. 2,920 were in solitude. The ratio jumped up to fifty percent or higher in some cities and towns.

Why old people were concentrated to reconstruction houses? That is because they are recognized by banks as too old to have housing loan for building new private house. Some knows that they cannot live for a long time, even though they would have new private house. Meanwhile, young families can afford to build their own houses, taking advantage of public financial support or preferred loan of banks.

Aging of residents can cause isolation of individuals. In the case of Hanshin-Awaji Great Earthquake in 1995, a number of residents in public reconstruction houses were isolated after losing young people for running a residents’ association. That situation may lead to an unhappy death with no one’s care. Although local governments are trying to maintain people’s community in temporary houses, human resource for taking care of aged residents in reconstruction houses are in short. National government does not save sufficient budget for the problem.

Mainichi Shimbun picked mismatch of supply and demand in business reconstruction policy. One fourth of new businesses that were applied to a subsidy for business resumption and employment were dismissed with difficulty of keeping labor in suffered area. The subsidy has a condition to employ certain amount of people living in suffered area. That caused most dismissal of the subsidy. Price hike of raw materials, deterioration of management or inability of obtaining land for factory were also the reasons.

People and jobs are highly concentrated in Sendai, the biggest city in Tohoku area. Traditional businesses such as marine product processing factory had been run with low wage. After certain period of losing their employer, workers tend to find new job with higher wage in Sendai. If the government had to help local business, detailed policy must been applied.

No Substantial Achievement for World Economy

The news delivered from Shanghai by world major economies last weekend was as simple as declaring to do their best for stabilizing volatile market. While the declaration actually urged major economies to introduce structural reform or financial mobilization, it was not so easy for them to implement. Group 20 cannot be said as an effective framework to lead a solution on crucial issues.

Communiqué of G20 Finance Ministers and Central Bank Governors Meeting was just true in analyzing the situation of world economy. “The global recovery continues, but it remains uneven and falls short of our ambition for strong, sustainable and balanced growth,” said the communiqué. It raised vulnerabilities surrounding the world, including “volatile capital flows, a large drop of commodity prices, escalated geopolitical tensions, the shock of a potential UK exit from the European Union and a large and increasing number of refugees in some regions.” One who reads newspaper could have realized those problems before G20 declared it.

One topic was that G20 agreed on considering capital regulation, which limited capital flows out of emerging economies. Caused by monetary policy of United States ending zero-interest policy or steep drop of crude oil price, money is escaping from emerging economies. “Given the current development in the global economy, we will better monitor capital flows, including more timely identification of risks, and take stock of and review policy tools and frameworks as appropriate to address challenges arising from large and volatile capital flows, drawing on country experiences,” described the communiqué.

In terms of urging regulation on capital flows, Japan took an initiative with proposal of taking necessary measures. United States or International Monetary Fund followed Japanese leadership. However, the chair country, China, was reluctant in introducing actual policy, worrying inconvenience in capital flows in China. “Capital flows is temporary and unimportant problem,” told Governor of People’s Bank of China, Zhou Xiaochuan in his press conference.

After all, G20 countries were only successful in showing basic attitude of cooperation, leaving actual issues behind. U.S. expected China or Germany to have financial mobilization. While China showed its willingness, Germany was negative on it, raising possibility of bubble economy with huge financial debt. Japan urged China further effort for structural reform, a change from growth led by investment to consumption. G20 cannot determine what they can do.

Targeted by Pro-Japan Candidate

Did Japanese government wanted to intervene in United States Presidential race? The government disputed that a campaign promise of one of the candidates was based on a wrong recognition of Japan’s intervention in foreign exchange. It is going to make the thing straight through diplomatic channel. While the government believed in that the candidate was familiar to Japan-U.S. relations, Japan was not so big issue in the race.

It was an article on a regional newspaper in Minnesota, Star Tribune, posted by former Secretary of State, Hillary Clinton. “China, Japan and other Asian economics kept their goods artificially cheap for years by holding down the value of their currencies,” wrote Clinton in her article. Recognizing those activities destructive for American workers, Clinton promised to make efforts, as future President, for tough new surveillance, transparency and monitoring regimes as well as effective new duties, tariffs and other measures.

Diplomatic section of Japanese government must have shocked by the comment of supposedly pro-Japan candidate, which included Japan in Asian group of forex manipulators. Ambassador to U.S., Ken-ichiro Sasae, interpreted Clinton’s comment as a misunderstanding. “Foreign exchange rate stands on various elements and U.S. monetary authority does not have a notion that Japan has been manipulating it,” told Sasae in his press conference in Washington D.C. on Thursday. Sasae accepted Clinton’s comment as a human error and was going to urge her to have correct knowledge.

Bank of Japan has continuously intervened in foreign exchange, anyway. One of the big operations was exercised in the fall of 2011, when the bank sold ¥8 trillion of Japanese yen on one day. It was to block further hike of yen value at ¥75 against $1. Forex intervention is one of the official jobs of BoJ.

According to the description of BoJ homepage, its forex dealers arrive office as early as 7 in the morning. They convene morning meeting to analyze moves in European and American markets and make their plan for the day. When the market shows abrupt moves with possibility of negative impact on Japanese economy, the hotline connected with Ministry of Finance rings and the dealers are deployed to the desks and start monetary intervention based on a decision of the authority.

BoJ Governor, Haruhiko Kuroda, has been putting impact on market. When he referred to “too cheap Japanese yen” in June last year, value of yen suddenly dropped by ¥2. It is possible that ordinary operation of Japanese monetary authority was targeted by a U.S. Presidential candidate as negative against U.S. workers. Japanese government needs to understand that an important ally can be a target in the harsh race of presidential campaign.

Sharp Pain for Japan Corporation

The competition between a Taiwanese manufacturer and government-backed Japanese investment fund over buying deal of a major Japanese electronic maker was concluded as the first victory of foreign capital to include well-known Japanese electric brand. A traditional Japanese business model to raise private company with national support proved to be obsolete.

Japanese electronic maker Sharp announced on Thursday that it would accept a deal for buyout with investment of ¥489 billion offered by Hon Hai Precision Industry, or Foxconn, in Taiwan. With the deal, Sharp can spend ¥200 billion for development of next-generation liquid crystal panel or organic electronic luminescence. Hon Hai will buy ¥125 billion of preferred stock from main banks of Sharp and real estate for a factory in Sakai city, Osaka with the price of ¥50 billion. Total price of the deal goes up to ¥660 billion.

A governmentally backed fund, Innovation Network Corporation of Japan had been offering a deal of ¥300 billion of investment, which was dismissed by management board of Sharp. Main reason was opposition from two main banks, Mizuho and Tokyo-Mitsubishi UFJ. Mizuho raised a question whether liquid crystal panel was a technology for Japanese government to protect.

It was said that INCJ had been considering restructuring of electronic makers, including Toshiba, Hitachi or Fujitsu. That was an effort of Ministry of Economy, Trade and Industry, which had been said as the headquarters of Japan Corporation, to make Japanese electronic brands competitive in the world market again. But, there were not so much interest in the union of underdogs and government-made business strategy.

Under the umbrella of Hon Hai, the brand of Sharp will remain. Sharp as a whole can continue its effort for reconstruction without any concern of dissolving the group. Hon Hai will not require the main banks further financial support. However, it is still unclear that Sharp can be successful in changing its business model of concentrating its investment in one specific technology like liquid crystal panel. Entire concept of the future is not determined.

World competition in electronic business is growing to be sharp. China or South Korea has been broadening its share in the market. Toshiba, for example, is painful in its management scandal of false accounting. Restructuring is inevitable for all makers. But, they do not have a viable solution for survival.

Survival of Old Reactor

Nuclear Regulation Authority decided on Wednesday a draft of approval for 1^st and 2^nd reactors of Takahama Nuclear Power Plant, owned by Kansai Electric Power Company, in Fukui. That is actually the first case for nuclear power reactor to be approved its survival against a post-3.11 rule that nuclear power reactors should be killed when they would be forty years old. KEPCO and other owners are excited with a hope for improving their financial balance.

Under the administration of Democratic Party of Japan, every nuclear power reactor was basically determined to end its operation after forty years from the beginning. The regulation was set based on a scientific analysis that pressure vessel of reactor would be deteriorated by exposition to neutron for a long time. Two reactors had been destined to be ending its life this year.

However, the regulation has an exceptional rule that the reactor can be used for additional twenty years when its safety is strictly reconfirmed. While two reactors in Takahama were reaching the time limit of passing examination by July 7^th, KEPCO made every effort to maintain them. The company poured ¥380 billion into renewing the shield of cables in the reactors to reinforce them against heat or fire. NRA positively recognized those security measures.

At the beginning of NRA in 2012, Chairman Shun-ichi Tanaka told that forty years was a certain period and extension of twenty years was hard to achieve. But his words changed in four years. “Even an old reactor can overcome technological points,” said Tanaka on Wednesday. It is said that NRA was worrying about the risk of being indicted by KEPCO.

The decision of NRA left a precedent that an old reactor can survive by renewing shield of cables. News media dubbed it “Takahama Method.” KEPCO was delighted with a hope to have stable balance of company management, taking advantage of already invested assets. The government of Japan expects to achieve the goal of increasing nuclear power generation up to 20% of all power resources by 2030 through extending the life of old reactors.

But, the effort of KEPCO proved a concept that nuclear power generation is expensive. This technology of power generation has already cost hometowns of sufferers from severe accident in Fukushima, decontamination efforts by national government or deep skepticism on nuclear generation. More of it, there still is no final destination for use nuclear fuels. Japan is just addicted.

Confluence of Opposite Parties

It is still unclear whether the coalition can be a viable opposite power against great leading parties. Democratic Party of Japan and Japan Innovation Party overwhelmingly agreed on party integration before the election of the House of Councillors this summer. To counter unilateral advance of Liberal Democratic Party led by Prime Minister Shinzo Abe, they realized the necessity of greater core for political concentration. However, the effort is halfway, leaving policy behind.

The baseline of their integration had been dissolving both parties and establish new party for them to join. With legal requirement, some lawmakers of Innovation Party elected in the proportional representative could not change party affiliation, even though joining a new party would be decided. But, the size of both parties was different. While DPJ had 131 lawmakers, Innovation Party did 26. It is inevitable that DPJ members were frustrated with that unbalanced idea.

The final answer would be highly technological. According to news reports, DPJ is expecting that most lawmakers with DPJ will temporary leave the party, the rest will remain for maintenance of party organization, Innovation Party will be dissolved, DPJ will change the name of the party, and ex-DPJ lawmakers will return to the party with lawmakers from Innovation Party. This is the same method as DPJ used for party reintegration in 1998. The name of new party is considered as “Constitutional Democratic Party” or “Democratic Progress Party,” which can use an abbreviation of “Democrats” in the voting for elections.

Cooperative moves in the opposite parties accelerated the discussion. Five opposite parties submitted a bill for abolishment of new security legislation by Abe Cabinet last week. Even Japan Communist Party announced its willingness to turn down their candidates to concentrate the votes against Abe administration to an opposite candidate. DPJ and Innovation Party realized that this was the last chance before summer election for them to conclude their integration.

However, both parties have a significant difference over some basic policies. Innovation Party has been opposing consumption tax hike, which was initiated by DPJ administration. DPJ is not so radical as Innovation Party in decentralizing governmental power to local governments. Represented by President Yorihisa Matsuno, most lawmakers in Innovation Party once affiliated to DPJ. Even how they are appealing freshness of new party, it is possible for the integration to be resulted as making asylum of jeopardized lawmakers.

Changing Definition of Hibakusha

What is the definition of hibakusha? The answer may be changed after long dispute between the people and the government of Japan. The government has been recognizing the people who had been within the governmentally designated area as suffered from the atomic bombs. The people, who had been outside of the area, were appealing that they had also affected by radiation effused from the bombs. A regional court in Nagasaki found for the first time on Monday that ten people outside the area also had to be included in hibakusha.

After the World War II, Japanese government started applying supportive policy to sufferers of atomic bombs on Hiroshima and Nagasaki. When Atomic Bomb Medical Care Act was legislated in 1957, the government limited the area with affection of radiation within five kilometers from the point of bomb explosion in Nagasaki. But, with executive reasons, whole City of Nagasaki was designated as the suffered area. The area eventually broadened to some neighbor towns.

Drawing the line of suffered area made a great difference between hibakusha and non-hibakusha. Hibakushas were registered as victims of national war policy. When they showed “hibakusya notebook,” they could continuously receive medical care. But, non-hibakusha did not have the notebook, left behind of national support. They had to live their lives with constant fear of sudden appearance of atomic bomb diseases mainly represented by cancer.

After the defeat of first lawsuits in 2007 and 2008, the plaintiffs submitted opinion of MD. Koya Honda, who calculated hibakusha’s exposition to radiation based on the data obtained by Manhattan District Commission of United States Army for measurement of remaining radiation. Fortunately for “non-hibakusha,” the severe accident in First Fukushima Nuclear Power Plant in 2011 caused broad discussion over influence of radiation to human body.

Nagasaki District Court decided that the government had to issue hibakusha notebook to ten people out of the designated radioactive area. Based on a research of World Health Organization that indicated influence of radiation on the level of annual 25 mSv to children in Fukushima, the court recognized that those ten people could be affected by radiation from atomic bomb on Nagasaki.

Japanese government has strictly been reluctant to support non-hibakusha, because they thought once the suffered area had been broadened, a great number of people would be rushing to the government demanding medical or financial support. There is no difference, however, between psychological pains of hibakusha and non-hibakusha. Rest of non-hibakushas require sincere salvage for all of them.

Alternative Bills for Security

cNew security legislation made by Shinzo Abe administration, which enabled Japanese government exercising collective self-defense right, was apparent and designated violation of the Constitution of Japan, in terms of official interpretation of the government. The opposite parties submitted two packages of legislation, one of which was to repeal it and another was the alternatives. This is an effort to contain Japanese security policy within the constitution.

The draft for abolishing new security legislation was submitted by Democratic Party of Japan, Japan Communist Party, Innovation Party, Social Democratic Party and People’s Life Party. Claiming that new security legislation was unconstitutional because it allowed collective self-defense without direct offense on Japan or logistic support in the place close battle field, five parties aimed abolishing all eleven laws and limit defense policy to exercise of individual self-defense.

The alternative measures from the opposite parties consisted of three bills, submitted by DPJ and Innovation Party. One was revised version of Peripheral Situation Law. Crucially Affective Situation Law legislated by Abe administration enabled Japanese government exercising collective self-defense right without actual attack, causing criticisms that it was designated to help United States everywhere in the world.

The draft of revised Peripheral Situation Law limited operation of Japanese Self-defense Force to the area close to Japan, while it allowed supporting troops other than U.S. Force. It denied supply of ammunition or fueling military aircraft waiting for takeoff. It also included evacuation of Japanese citizens in foreign country in contingency.

The second bill was revising of Peace-keeping Operation Cooperation Law. While Abe administration allowed JSDF running to foreign troops for guarding, the draft limited the object to the civilians. And it also required advanced approval of the Diet for JSDF overseas operation.

The third bill was Areal Guard Law, which determined JSDF activity in “gray zone,” a situation between use of force and exercise of police authority. It enabled JSDF to support Coast Guard without cabinet decision, if the Diet would approve the area for the operation. Abe administration allowed such activities only with telephone conference by Cabinet members.

Main point of security controversy is whether Japanese government can take necessary measures within the principle of Constitution of Japan. While Abe administration thought that it was impossible for the traditional interpretation of the constitution to protect Japan, the opposite parties attempted to do that with current constitution. In other words, it is a struggle over post-war regime of Japan.

Unimplemented Bipartisan Promise

It took three years and three months for the two party leaders to discuss again about their promise to promote political reform. Former Prime Minister, Yoshihiko Noda, stood before the incumbent in Budget Committee of House of Representatives on Friday to ask how to implement the promise of reducing seats for the lawmakers. Well, Prime Minister Shinzo Abe has actually been leaving the issue behind. But, Noda has been leaving the opportunity to ask it behind, too. For whom the reform had to be done?

In November 2012, their standpoint was the other way around: Noda was Prime Minister and Abe was the president of opposite party. Abe’s Liberal Democratic Party was accusing Noda to implement his words that he would dissolve the House of Representatives to hear public voices in the election. Noda made up his mind and said “If you promise here that you will support reducing seats of House of Representatives in next session of the Diet, I will immediately dissolve the House.” Abe promised it and Noda dissolve House of Representatives. The general election in the following month resulted in a land-sliding victory of LDP.

Noda accused Abe not implementing the promise. “As far as we pose higher consumption tax rate, we had to show our determination to sacrifice ourselves. That was why we made a promise of cutting the seats. I thought that you would apologize to the public about it,” said Noda. Abe did not answer what he was asked. “When it comes to promise, you promised then LDP president that you would dissolve the House, as the response to LDP support for your tax and social security reform,” said Abe.

It was a usual logic Abe was always taking advantage of. When he is criticized on his policy, he will accuse former administration run by Democratic Party of Japan. Noda was frustrated with the way Abe talked. “You have one bad practice. It is justifying yourself by saying ‘better than DPJ.’ I hope you to correct your attitude,” told Noda.

Actual discussion over the seat-cutting is going ridiculous. LDP is postponing the reform until 2021. As long as the Supreme Court decided current election system was in a state of unconstitutional, the reform has to be done immediately. Abe made the second promise to Noda in the discussion, which was to start new election system with 10 seats reduction as soon as 2017. But, it is still unclear how Abe can persuade the lawmakers in LDP.

There is a saying among Japanese politicians: Politics is supreme moral. The truth is that words of Japanese politicians have been turning to lies. There is another saying in Japan: lying is the beginning of thieving. They are expected not to be gang of robbers against innocent people.

Embarrassing Colleagues of Prime Minister

Consecutive gaffes made by the lawmakers with leading Liberal Democratic Party and Ministers of Shinzo Abe Cabinet have caused growing criticisms on Abe’s handling of politics. They included racial discrimination against the top leader of “indispensable” partner of Japan, little knowledge on disputed islands in northeast of Japan or baseless prediction of bankruptcy with higher consumption tax rate. Prime Minister and his staffs have been pretending to have nothing to do with those scandals.

Many Japanese people must be embarrassed by his comment. An LDP lawmaker, Kazuya Maruyama, made a discriminative speech in Commission on the Constitution of the House of Counsillors on Wednesday. “For example, what will be the constitutional problem, if Japan becomes the fifty-first state of America? Then, collective self-defense right or Japan-U.S. Security Treaty does not matter. Congressmen elected in State of Japan, which has the greatest population, will be the greatest group. It is possible for a Japanese to be the President. In America, a black man is the President. He has blood of black people. This is a slave, you know. That is such a dynamic country,” said Maruyama. Everyone was appalled.

After newspapers grilled Maruyama next morning, accusing his careless speech, Maruyama explained that he had not have any discriminative intention. But, who does believe in his words? Surprisingly enough, he even had no knowledge that Barack Obama was not a descendent of African slave. It was also poor that he argued constitutional problem of actual security policy with possibility of being a State of America.

The opposite parties immediately started accusing him. Three parties including Democratic Party of Japan submitted a draft of resolution to recommend Maruyama of his resignation as a lawmaker. Leading party could not support him. A ranking member of LDP, Takeshi Noda, indicated that Maruyama’s gaffe could worth expulsion from the party.

Not only Maruyama, a close ally of Abe caused another problem. Minister of Finance, Taro Aso, said that there would be a hundred or a thousand of bankruptcy in small business along with higher consumption tax rate starting next year. Receiving criticism that he might have approved business collapses, Aso turned down the speech.

Minister in Charge of Northern Territory issue, Aiko Shimajiri, could not pronounce one of four islands, Habomai. “Habo--, well, what was this?” said Shimajiri in her press conference earlier this month. Minister of Environment, Tamayo Marukawa, denied scientific basis of governmental regulation on radiation level in Fukushima. Staffs of Abe administration are too careless on their speech.

Voluntary Evacuees Relieved

After the severe accident in First Fukushima Nuclear Power Plant five years ago, the government of Japan issued a policy to the people around for evacuation to escape from radioactive contamination. However, the government, which had been guaranteeing the safety of nuclear power generation, did not have enough credibility on its policies. Consequently, not only the people in evacuation area, but a number of families outside it, evacuated from Fukushima region. A regional court ordered the national government to compensate for such people on Thursday. It was the first case for the judicial branch to recognize the responsibility of the government to help those voluntary evacuees.

The man in his forties had been running some restaurants in Koriyama City, Fukushima, before the nuclear accident. He and his wife had ¥1.6 million of income from the business. Few days after the accident, they decided to evacuate Koriyama with their little kids and settled in Kyoto a few months later. But, the man could not find new business in Kyoto and started suffering from sleeplessness and depression. The man made a lawsuit, demanding Japanese government compensation for losing his business.

Kyoto District Court recognized responsibility of the government to help evacuees based on their personal conditions. Although the man left his hometown without evacuation order from the government, the court ordered the government to pay ¥30 million as compensation for the leaving. The court defined the governmental guideline for compensation as a list of possible damages to be applied. Voluntary evacuation was determined as inevitable as long as danger remained and information was in confusion.

Other evacuees were encouraged by the decision. Alternative Dispute Resolution Center received 18 thousands of dispute over compensation for the damages caused by 1F accident. Although 13 thousands have settled, 2,600 cases were denied. Compensation for voluntary evacuees has been smaller than that for official evacuees. Lawyers for voluntary evacuees recommend being consistent on their claims.

On the other side, the court made firm support for a governmental policy. Recognizing governmental guideline for radiation level as appropriate, the decision drew a line for compensation on August 2012, when the government decided that annual radiation level of 20 mSv or less was safe. Rational time period for voluntary evacuation was determined between March 2011 and August 2012.

The government promised right after the accident that it would continue its decontamination effort until radiation level would become as low as annual 1 mSv, which was realized as safe enough for human health. The decision may affect the discussion over the radiation level that will be set as the goal for decontamination effort looking endless now.

Taking Distance from Southern Sea

Japanese newspapers reported that China had deployed surface-to-air missile on disputed Woody Island in Paracel Islands in South China Sea. Recognizing it as China’s another action to militarize the issues in the region, United States government is getting cautious on the situation of the sea. Afraid of further military escalation, Japanese government showed passive response on the issue.

U.S. Fox News firstly reported the deployment of the missile on Woody Island, followed by Taiwanese Ministry of Defense that confirmed missile batteries set up. Fox reported that a photo obtained from satellite caught eight batteries and radar systems there. After China took control of Woody Island in 1970s, Taiwan and Vietnam has been claiming its administration of it.

U.S. government sharply responded. “There is every evidence everyday that there has been an increase of militarization of one kind or another,” told Secretary of Defense, John Kerry. Kerry indicated that conversation with Chinese officials over the next days would be serious one. Commander of U.S. Pacific Command, Admiral Harry B. Harris, expressed his concern on militarization of South China Sea, during his visit to Japan on Wednesday.

Chinese officials were ignoring dispute over the island. “It is just to deploy defensive equipment on our own territory. That is not militarization, but enhancement of defensive capability for our homeland,” told Hong Lei, a spokesman of Chinese Ministry of Foreign Affairs. Minister of Foreign Affairs, Wan Yi, stressed that demilitarization should not target one country or be exercised with multiple principles, criticizing Western media as fabricating news.

As Japanese media reported, China has been frustrated with Operation Freedom of Navigation by U.S. Force around South China Sea. According to Asahi Shimbun, Chinese military leaders were shocked by flying of U.S. strategic bomber B-52 within 12 maritime miles of an island being developed by China last December. China also deployed anti-aircraft cannon in Spratly Islands, indicating countermeasures against U.S. military advance in the region.

Japanese government showed concern on the situation in South China Sea. “We cannot ignore China’s unilateral attempt of changing status quo,” told Minister of Defense, Gen Nakatani. He also criticized Chinese President, Xi Jinping, as not implementing his words of not militarizing the region. However, Japanese government is taking action within the line drawn in the past. Escalation in South China Sea can mean deeper involvement in the dispute in the region. Shinzo Abe administration cannot afford to deal with new military controversy, while it is focusing on handling economic policy.

Money Goes Around

Bank of Japan started applying of negative rate to deposit of commercial banks. By imposing penalty on saving money, the policy aims to increase money flow in the market. So, does individual money willingly go out of bank accounts? Certainly, no. With pessimistic perspectives for the future of household economy, consumers are still saving their money. Money is just looking for alternative place to stay.

Mainichi Shimbun quoted a comment of an aged woman, consulting with the banker at the counter of Shinsei Bank in Tokyo on the first day of negative rate. Having realized that the interest for her deposit would be reduced, she decided to transfer her money from time-fixed deposit of the bank to trust funding operated with exchange of internal stocks. Although she did not like to be involved in complicated money market, it was inevitable for her to save money for her retired life in the future.

Monetary authority of Japanese government expects lesser amount of deposit in the banks. “In Japan, money is unevenly distributed to the savings,” told Minister of Finance, Taro Aso, in his press conference on Tuesday. However, there are a few beneficial places for individual money to go in a volatile economy these months. The stock price of a fire-proof strongbox maker has been rising after BoJ announcement of introducing negative rate, expecting higher demand for safes.

Short-term monetary market showed strange move on Tuesday. The interest of overnight transaction between financial institutions temporary marked 0%. One of the typical renders in the market was life insurance company. Because interest rate of the borrowers, or commercial banks, were too low to rend money. Insurance company is considering raising the price of life insurance and cut the return off.

Japan Post Bank, with its huge ¥205 trillion operating asset, depends 40% of its investment on national bonds. Decline of interest of national bond is damaging its business. The bank is looking for alternative option for its investment, including such high-risk financial instruments as real estate fund or unlisted stock fund. It should be possible for the bank to raise service charge for using automated teller machine.

Impact on local banks would be more serious. They do not have much income resource in overseas. With few chance to have profitable borrowers in local society, local banks have been dependent on national bond. Bankruptcy is not an unpredictable option for small local bank, which cannot find alternative business options, under unusually low-rate monetary policy.

Possible Crisis of Pension System

One short statement caused broad anxiety on pension system in Japan. Prime Minister Shinzo Abe indicated that benefit of public pension would be reduced, if the operation of pension fund fell in a long slump with consecutively dull trend in stock market. While Governmental Pension Investment Fund has been criticized as a gambling with pension money, Prime Minister for the first time admitted its nature of risking the people’s life. Mixed with uneasiness for the future of their economy, the Japanese people had to worry about their retired life.

In the discussion in Budget Committee of the House of Representatives, a lawmaker with Democratic Party of Japan, Yu-ichiro Tamaki, asked Abe of his idea about relationship between economic trend and pension system. “If GPIF fails in yielding profit, is it possible that pension benefit of each recipient will be reduced?” asked Tamaki.

Abe looked sober. “Without obtaining assumed profit, it will affect the payment accordingly. In the case that the system cannot afford to provide benefit, the benefit will be regulated,” told Abe. “But, we observe it in a long-term perspectives,” added Abe, “and temporary gain or lost would not be reflected to the payment.” Any sense of responsibility for losing public money could not be detected.

There were consistent skepticisms on GPIF from the beginning. The fund keeps pension money as much as ¥130 trillion, one fourth of gross domestic products of Japan. Abe administration decided to raise the ratio of stock exchange from 25% to 50% in 2014. It promoted outsourcing the operation, expecting higher return than buying low-interested Japanese national bond.

Tokyo Stock Exchange has experienced steep decline from the beginning of this year. Even how Prime Minister persuade the nation that short-term move has nothing to do with GPIF, most people feel uneasy about the future of their pension money, monthly deducted from their salary. While elder people are worried about their pension benefit, young workers are pessimistic on getting the return.

Negative elements surround Japanese economy. Affected by slowdown of world economy, Japanese economy is showing no good symptom. Japanese GDP in the fourth quarter of last year marked annual -1.4%, caused by low-level individual consumption and housing investment. Although Bank of Japan introduced negative rate policy, money seems to be going nowhere. Abe’s high-rolling economic policy might invite serious consequence.

Enthusiasm on Gravitational Waves

Some Japanese newspapers reported historical detection of gravitational waves by an American research institute as the top story with huge headlines on Friday, while others could not realized what the finding meant. TVs tried to explain the significance of the achievement using panels with colored drawings and charts. Although it was a result of long-time study and experiment of the international scientists in United States, Japanese media reported as an achievement of Japan, too.

“First Observation of Gravitational Waves” was the common headline for top stories of Mainichi and Yomiuri Shimbun. They reported that an international experiment team in a university in U.S., called LIGO, had successfully observed gravitational waves produced in unification of two black holes. The phenomenon was explained as happening when extremely heavy body such as black hole moved, causing moves of time stream or space around.

The existence of gravitational waves was predicted by legendary physicist, Albert Einstein, and the proving it has been called “the last homework from Einstein.” Observation of gravitational waves reconfirmed the rightness of his general theory of relativity, which analyzed gravity or structure of time and space. It is expected that the finding will be helpful for researching the shape of invisible celestial body or space in the state of newly born.

The observation was too big for media to explain its significance. “It is worth Nobel Prize” was a typical explanation. But, some argued that the achievement could not be evaluated by how many Nobel Prizes would worth. Unfortunately, Nobel Prize was only a scale for most Japanese to evaluate it. Anyway, it was surely a historical achievement, opening new page of physics.

Proud of past winners in Nobel Prize in Physics, Japan had to connect the finding to the nation. Japan has a facility for observing gravitational waves, called KAGRA, the project led by a Nobel Prize laureate, Takaaki Kajita. In the press conference, reporters asked Kajita whether he regretted about losing in the race. “I am delighted with a possibility that we can study new astronomy taking advantage of gravitational waves,” answered Kajita.

For scientists, observation of gravitational waves was new chance for their studies. But, the significance could not understood by Japanese media, which was always trying to be down to earth.

Scattered Plastic Bags

As reaching the fifth anniversary of East Japan Great Earthquake and the severe accident at First Fukushima Nuclear Power Plant, Japanese media organizations are focusing on review of reconstruction policy by Japanese government. The most difficult effort should be how to recover the contaminated cities and towns around 1F Plant. The government decided to concentrate all contaminated soil in Fukushima to the intermediate storage facility around the plant. Nevertheless, the government has obtained only 1% of whole site from the land owners. Contaminated soil is still scattered to everywhere in Fukushima.

According to a report of the Diet Investigation Committee in 2012, Fukushima Plant emitted 500 petabecquerel of radioactive iodine and 10 petabecquerel of cesium 137. Ministry of Environment and related local governments kept on scrape contaminated land in Fukushima Prefecture. Their effort produced 900 million cubic meters of radioactive soil, accumulated on 115 thousands of ground places.

Selecting place for the intermediate storage facility was highly controversial. People in Fukushima were negative in accepting the radioactive soil, because their homeland was already devastated too much. Then Minister of Environment, Nobuteru Ishihara, who currently replaced a scandalous Minister in Charge of Economic Revitalization, Akira Amari, resigned with his gaffe to settle the problem depending on power of money. Based on a condition that all the soil would be relocated out of Fukushima thirty years later, national government managed to persuade Fukushima to construct the facility there. The government assumed 16 square kilometers of the land around 1F Plant for storing the contaminated soil.

But, the land was owned by 2,365 people. MoE has achieved contracts for transfer of land ownership with only 44 owners, which would worth 0.15 square kilometers. It obviously is less than 1% of all 16 square kilometers. The Ministry has not determined where 990 owners are now. Missing owners possess one tenth of whole land for the facility.

Scattering plastic bags filled with contaminated soil disturb reconstruction. Even how escaping residents wants to get back home, they have to reconsider it in an environment of their houses surrounded by radioactive soils. If they tries to sell their houses, no price will be determined. Governmental authority is incompetent to remove those obstacles against reconstruction. Government officials are still worrying about reaching Tokyo Olympic in 2020 with scattered plastic bags here and there, rather than the future of the people evacuated from Fukushima.

Inappropriate Way to Spend Off-day

He was a young good-looking lawmaker who attracted Japanese public with his determination to have a certain period of recess for raising his newly born baby. Leaving his job to help his wife, who was also a lawmaker, would be interpreted as following of woman-oriented policy of Shinzo Abe administration. So, what did he do? He spent days with another woman. Receiving broad bashing from the public, he stepped down as a lawmaker, just because he had spent his off-day inappropriate way.

The scandal was reported by a weekly magazine, Shukan Bunshun, which had consecutively been reporting major gossips, including money scandal of former Minister in Charge of Economic Revitalization, Akira Amari. According to a report of Bunshun, a member of the House of Representatives, Kensuke Miyazaki, affiliated to Liberal Democratic Party, spend a night with a female TV performer at his house in Kyoto late January, leaving his pregnant wife in Tokyo. He had announced that he would take a recess after the baby would be born.

In his press conference on Thursday, he revealed his intention to resign as a lawmaker. “I deeply regret this contradiction between what I have been saying and what I have done,” told Miyazaki. He apologized his supporters, especially his wife, of his reckless behavior. While he admitted that he had met the TV performer three times, he also had, for a surprise of the public, such a relationship with other women than the performer. After all, Miyazaki repeatedly had inappropriate relationships after his marriage.

His wife must be furious. But, LDP leaders are so, too. Abe has been selling his policy for supporting working women to revitalize Japanese economy. Help of husband in raising child might have been encouraging his wife to maintain her job. Miyazaki’s scandal disseminated an image to the public that a husband may run to another woman leaving his pregnant wife, when he have enough time to do that. LDP lawmakers regret the scandal as negative image to have kid-raising recess.

Because of resignation of Miyazaki, supplementary election will be taken place in his electoral district in Kyoto in April. It is likely that the voters will be negative to next candidate of LDP. The opposite parties are considering broad cooperation, including Japan Communist Party. Kyoto is known as one of the few strongholds of JCP. If LDP loses in Kyoto, it will be affecting to the election of House of Councillors this summer.

Abe administration is in a negative trend this year with steep decline of stock market or resignation of Amari, who was in charge of Trans-Pacific Partnership. The scandal of young novice lawmaker may cause acceleration of downward pressure on Abe’s politics.

Still Reluctant to Election System Reform

Renouncing war is one of the basic principles of Constitution of Japan. Prime Minister, and President of Liberal Democratic Party, Shinzo Abe questions that concept. Party lawmakers are supposed to follow their leader. Possibly affected by their president, LDP is going against equality under the law, which the Constitution guarantees to the people as another important principle. LDP decided to have next election of the House of Representatives by current election system, which was regarded as in a state of unconstitutional by the Supreme Court.

After endless discussion over election system reform, the House of Representative launched a committee for the reform, consisted by scholars and experts. The committee concluded that seats of the House needed to be reduced by ten and gap of value for one vote should be contained within two times. All parties were supposed to follow the report of the committee.

Nevertheless, LDP had been reluctant to follow that, because negative impact of the reform would be the hardest for LDP. “Although reducing seat is necessary, it may destroy democracy, if we make a mistake in implementation,” told a lawmaker in a meeting of LDP. What does democracy mean for them? There was no explanation that current election system is democratic and new system is against democracy.

With persuasion of Abe, LDP once moved to accept the reform. However, LDP decided to introduce new election system after next national census, which was scheduled to be conducted in 2020, would be concluded. Receiving the result of the census 2020, it will take about two years to adjust the electoral districts. LDP can have more time for applying its candidates to electoral districts.

Before 2020, the term of current representatives will be expired. Although Supreme Court has concluded that current election system was in a state of unconstitutional for the past elections, LDP is ignoring it. The Court stressed that value of one vote should be equal between local and urban voters. But, rooted deeply on local voters, LDP is insisting on sending voices from local region to Tokyo, even how LDP administrations, connected with bureaucracy, have actually been centralized.

Opposite parties are disappointed to LDP. “I was appalled. Abe can’t escape from criticism that he lied to the people,” said President of Democratic Party of Japan, Katsuya Okada. Abe has been saying that the committee report should be respected.

Regardless the obligation of public servant including Diet members to respect the Constitution, LDP tends to think that the Constitution can be changed with two-third majority in the Houses. Having that majority in the House of Representatives, LDP lawmakers are less subjective to the Constitution. In this situation, constitutionalism is hard to stand.