‘Nippon.com’ offers a glimpse into wasteful Japan bureaucracy

TOKYO, Sept. 26, 2023—By coincidence, this reporter Sept. 26, 2023 stumbled into a website of an obscure entity called Nippon.com that clearly functions as a venues for providing offices and compensations for sitting there to retired bureaucrats and media old boys.

Nippon.com website (https://foundation.nippon.com/en/) lists Kiyotaka Akasaka, who had served as the head of the Foreign Press Center (https://fpcj.jp/en/) and a former official of the Ministry of Foreign Affairs as representative director. A former vice minister for international finance, Rintaro Tamaki who concurrently heads the Japan Center for International Finance (JCIF), sits as a trustee. Two Japanese newspaper editor/guest columnists (Akio Takahata of Sankei and Yoshiaki Ito of Mainichi newspapers) are on the board. Nippon Foundation and its sister organization Sasakawa Peace Foundation, which partially finance Nippon.com, have two seats on the board.

Nippon.com is a typical Japanese nonprofit in that that it is an entity vetted by government as a public interest organization that agrees to be under bureaucracy influence. As mentioned, it also provides comfortable heated seats to former top bureaucrats and those that cluster around them. Board and trustee officers receive salaries, expenses, and retirement benefits, Nippon.com said. Its mission statement says: ‘The Nippon Communications Foundation produces Nippon.com with one goal in mind: to share Japan, as it stands today, with the entire world.’ (BS and blushed.)

Nippon.com’s fiscal 2023 budget was 857 million yen ($$5.7 million), of that, government subsidies were 788 million yen ($5.2 million) and operation revenues accounted for only 89 million yen, reflecting that Nippon.com life is on subsidies. But executive compensation and salaries looked relatively generous at 286 million yen ($1.9 million). Officers and employees also receive health insurance and other social benefits.

Now, does anyone heard about Nippon.com, which was formerly called Japan Echo founded by the government decades ago. The site does have interesting looking articles but hardly of nature that can match those of journalism. It offers articles in a multiple number of languages, including Russian, but access seems to be limited — another example of bureaucracy first that leads Japan further away from the real world.

It’s the way to go for retired bureaucrats!

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Japan was among the world’s firsts to dabble into driverless cars: Now…

TOKYO, Sept. 24, 2023– It was in the 1990s. Japan was barely emerging from the bursting of the financial bubble, when the country seriously dabbled into driverless motor vehicle R&D, competing head-on with the United States in on-road experiments by pouring government and corporate money into developing technologies and infrastructure. For a while, Japan seemed to have leaped ahead of other countries in the global ‘CASE (connected, autonomous, shared and services, and electric)’ race as Japaneses automakers showed off futuristic concept cars at international motor shows, wooing rival foreign makers. Japan now is at the bottom of the rung.

This spectacular fall (from a bird’s eye perspective, Japan had been only standing still while the rest of the world was moving ahead in both R&D and commercialization) resulted from the occasional national paralysis caused largely by the intrinsic inter-bureaucracy turf battle for leadership roles and compounded by the reluctance of Japanese businesses for risk-taking in new technologies, in this case, driverless cars.

In this case, ministries and agencies concerned – which are almost all of them – must have smelled a very tasty pie aroma as they scrambled for a share and refused to back off with the thinking that driverless cars can secure them decades, not years, of administrative and regulatory work such as rules for preemptive safety and congestion-free traffic management.

Among the aspirants were the Ministry of Economy Trade and Industry, which was the very first bureaucracy that raised the hand to lead for its role to develop technology; the Ministry of Land, Infrastructure and Transport, the administrator of roads, traffic, and bridges and land mass; the Ministry of Internal Affairs and Communications, the doyen of many things including telecom, radio waves, privacy, security, firefighters, and many more; the Ministry of Finance, which controls the government coffers; and many more.

Don’t forget police, told the National Police Agency at an inter-ministerial meeting a few years ago. NPA said, ‘We need to make sure that driverless vehicles are absolutely safe and don’t cause expected and unforeseeable problems,’ NPA is said to have orated at the meeting. ‘We also have the authority to make arrests in case of accidents.’ What?! Arrest a guy who is invisible behind the wheel!?

That’s how Japan’s progress has been stalled while the rest of the world raced ahead diligently developing technologies and traffic rules initially according the U.S. National Highway Traffic Safety Administration and later the SAE (Society of Automotive Engineers), an independent entity also of the United States that has become a global standard setter for driverless cars, EVs and other new motor vehicle standards.

In 2017, Toyota Motor Corp. announced that it would accelerate ‘autonomous’ driving technology but since then hardly any follow-up reports from the company came out, and similarly, other Japanese automakers have been mute about their R&D. As of this writing, Honda Motor Co. seems to be ahead of the Japanese automaker pack, though the company’s technology looks no match to those of Waymo, Cruise and other U.S. robotaxi companies. It’s little surprise that Toyota chairman Akio Toyoda, the de facto Toyota leader instead of its CEO, hardly mentions CASE lately.

If Oda Nobunaga (1534-1582), who is revered as the most brilliant and courageous war lord even now, had been around, he should have crushed bureaucracy and encouraged private-sector innovations and prosperity as he did to his region, which was the most vibrant and dynamic economy of japan during that period.

Japan isn’t likely to see a leader like Nobunaga anymore.

Cold, sad truth of Japan’s driverless technology development inertia all points to the country’s centuries-old societal hierarchy that admires bureaucracy, entrusting government officials to set directions for just about everything, including industrial policy.

The robocar idea, which is known to be born in the 1930s in the United States, hit Japan in the 1960s alongside artificial intelligence in a presumed influence of Stamford University’s remote control technology R&D. In 1977, the Mechanical Engineering Laboratory of the former Ministry of International Trade and Industry (MITI) unveiled what it called the Intelligent Vehicle. The vehicle bore stereo cameras vertically to give it a two-dimensional view to recognize objects in front. The lab was founded in 1937 for developing all conceivable advanced technologies including advanced motor vehicles, AI, energy use optimization, robots, manufacturing methods, materials, and the environment. In 2001, it was reorganized into the Agency of Industrial Science and Technology of the Ministry of Economy Trade and Industry as a part of government reorganization.

The lab continue robocar R&D, experimenting driverless driving at 7 miles per hour in 1984. Its technology relied on roadside signals, traffic lane recognition, magnetic markers imbedded below the road, meaning the experiment vehicle relied on information it received from outside the cabin.

To date, most Japanese robocar technologies deploy the lab’s technology, including Subaru’s ‘Eyesight’ anti-collision system.

Waymo, Cruise and other American robotaxis use similar recognition methods but they also use computer programs that seem to let vehicle computers make decisions. Tesla also seem to use a similar program for its autonomous driving.

Why the Japanese automakers continue using the technology, which is like an invisible railcar rail, developed by a government lab? They feel obligated to be subservient to government, unlike in the United States, where private companies can take the lead in experiment new technologies, not government.

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China demands using domestic parts to Chinese EV makers

TOKYO, Sept. 18, 2023—In an ever escalating market hegemony move, China is demanding that Chinese EV manufacturers use only domestically-made electronic parts, in an apparent policy to domesticate EV supply chains, the Japanese national daily Yomiuri reported Sept. 18 in its electronic edition.

The policy was informally revealed in November 2022 by the Chinese Industry and Information Ministry’s former minister to a gathering of domestic automakers, the daily said, which quoted industry officials as saying that failure to clear numerical targets could be subject to penalties.

The alleged policy directive followed a report, the Work Plan relating to the steady development of the automobile industry 2023-24, that the ministry and the Ministry of Finance released on Sept. 1, 2023.

If true, the directive, while presumably orally conveyed to the industry, violate WTO conditions against discrimination of foreign businesses.

Yomiuri quoted Chinese research data as valuing 2022 Chinese auto parts market at 3.88 trillion yuan (roughly $500 billion, projecting to grow to 4.8 trillion yuan in 2028. Presently, U.S., European and Japanese parts makers command a lion’s share of the Chinese auto parts market, though Chinese auto and parts makers have been knifing that dominance with technologies they acquire from Chinese-foreign joint manufacturing ventures.

China also is expanding into the global fuel cell technology market – not a surprise since it already dominates solar power panels, electric home appliances, and numerous other markets.

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School lunch pantries aren’t the only failures: Ramen restaurants soar 3.5 times

TOKYO, Sept. 13, 2023—As pantry business failures spread across Japan, threatening school and workplace lunch services, spiraling food material and labor costs are bringing ramen restaurants to the knees, with the number of failures during the 2023 first eight months jumping 3.5 times to 28 compared with the same period a year ago, the corporate business research agency Tokyo Shoko Research reported Sept. 13.

Ramen businesses had been under the Covid-19 infection slack and 38 ramen restaurant chains went bust in 2020 – a far less casualties than feared – but the industry was later buoyed by generous government rescue subsidies, many making an impressive comeback, with the 2022 failure marking a record low of 21.

The 2023 ramen business environment is proving more dire and difficult to tide over: The industry’s benchmark costs that are meat, vegetables, spices and other materials are spiraling sky-high in line with the near historic weakening of the yen against other key currencies, energy, and labor.

A majority of ramen chains are operating with paid-up capital less than 10 million yen and workforce of less than a dozen.

Western Japan ramen business failures outnumbered those of eastern Japan including greater Tokyo, the impact seemingly reflecting another element: rapidly progressing population aging that seems to be developing faster in the west.

What’s the next industry to be hobbled? Many.

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Kishida’s ‘New Capitalism’ threatens school lunch; a top caterer to fail

TOKYO, Sept. 8, 2023—A top Japanese food catering service has failed to continue providing school lunch to schools near Mt. Fuji and elsewhere and meal services to businesses as its CEO blames on soaring food material, fuel, and labor costs, the rises that are sparked by prime minister Fumio Kishida’s ‘New Capitalism’ economic policy and the Ukraine war.

On Sept. 5, 2023, the Shizuoka Prefecture Education Commission reported that the prefecture had lost contact with HoYu Co. of Hiroshima, the food catering service contracted with the prefecture, and that the company began failing to provide school lunch to five schools from early September. More than 1,000 students and teachers were affected, the prefecture said.

HoYu also has been failing to deliver school lunch to Hiroshima-based public schools, and the prefecture government filed for penalty for violating a contract existing between the two parties, according to news reports. HoYu’s meal un-delivery problem also is hitting schools and other public entities in Miyazaki and other parts of Japan, the reports said. Altogether, schools and others in as many as 12 prefectures (out of 51 Japanese regions) were affected.

HoYu CEO Yoshi Yamaura Sept. 5 told reporters at the company’s headquarters in Hiroshima that of the 150 catering kitchens it operates in Japan, half had suspended operations. He argued that the company’s finances had deteriorated because of soaring material prices, fuel costs, labor, which it could not charge to recipients. Yamaura said he had requested recipients to agree to raise contract prices to reflect spiraling costs but was turned down.

Yamaura said he was processing to file for bankruptcy soon. Credit researcher Teikoku Data Bank estimated HoYu’s liabilities at 1.670 billion yen ($11 million).

Whether HoYu’s problem will be an isolated case has yet to be known. Some news outlets said Yamaura is ‘stingy’ and that has led to his company’s failure as the number of customers failed to grow as he envisioned.

Surging cost: Undeniable is that in Japan, prices and costs are spiraling upward almost at untenable pace in lockstep with rising grocery prices, fuels, and labor plus labor shortages, while the country’s per capital GDP has been slipping steadily, falling to 20th in 2021 as labor productivity in nominal terms has been flat since 2005, according to government reports and data.

The school and other facility meal service business condition is becoming even more difficult, observed Tokyo Shoko Research, a corporate business analysis agency, Feb. 8. While ‘large’ meal delivery companies with paid-up capital more than 100 million yen reported sales growth rise of 2.7 percent in 2022, income (profit) shrank 18.7 percent, it said. One near fatal impact on meal catering services, regardless of size, the agency said is that the government pulled off COVID-19 subsidies given them during the years until last year.

This would mean more catering service failures ahead.

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PM Kishida may retain his top aide mired in a murder scandal to fortify bureaucracy

TOKYO, Sept. 7, 2023—In ‘The Bad Sleep Well’ film part 2, Fumio Kishida, who is dubbed one of the most incompetent Japanese prime ministers, is poised to retain his top aide, Seiji Kihara, a former Ministry of Finance bureaucrat whose wife is under police investigation related to a mysterious murder case. Prospects of this appointment, if formalized in a soon-to-be-executed cabinet reshuffle, are already having a far-reaching rippling effect, embracing not only politics but the country’s fiscal and monetary policy: a stock market rise and the yen’s fall, for one.

‘The Bad’ is not Kishida. He serves exactly like ‘a figurehead shogun’ during the closing period of the Edo period ended in the 1860s when just about everything was decided by the ‘Roju,’ or senior samurai councilors, including politics and concubines.

The contemporary ‘Bad’ is not a single person, as had been during much of the 270-year-long Tokugawa Shogun reins. They are a hybrid group of old guards from the ruling Liberal Democratic Party and bureaucrats from key ministries, notably the MoF, the Ministry of Economy Trade and Industry, the National Police Agency and a few others.

Kihara had visited an LDP kingmaker after the Japanese weekly magazine Shukan Shincho began reporting about his wife’s alleged involvement in a murder case of 17 years ago, news reports have said. The kingmaker told Kihara not to worry about the reports, telling him, ‘I’ll take care of the case… You do your own work.’

The kingmaker as promised apparently told the present head of the National Police Agency, Yasuhiro Tsuyuki, to close the murder case, as well as Shunichi Kuryu, who is a deputy cabinet secretary working closely with Kihara. The NPA told the investigators of Tokyo’s Otsuka Police Station to stop the probe.

While avoiding the media, Kihara since then has been busy drafting policy papers for Kishida, making speeches at seminars, attending government policy commission meetings to sell Kishida’s socio-economic policy called the ‘new capitalism.’

The Bad had told police to arrest a lower house parliamentarian, Masaaki Akimoto, and on Sept. 7, they nabbed him for bribery. His arrest is widely viewed as an intimidation to other non main stream lawmakers from Kishida’s Liberal Democratic Party that have been overshadowed by a prolonged party control by the faction of the gunned-down prime minister Shinzo Abe and his cronies and are increasingly distanced from visible posts. ‘Akimoto is a sacrifice lamb,’ a columnist for a leading Japanese newspaper told me.

The Bad Roju LDP politicians and pro-LDP bureaucrats are rapidly expanding their reach, to many corners of Japanese socio-economic life, including financial and monetary policies and keeping Japanese government finances even more lax and interest rates at virtually zero.

On Sept. 6, vice finance minister for international affairs Masato Kanda, who has the ultimate authority for currency intervention, only reiterated that Japan would deploy every option to stabilize the yen, which dropped to nearly 148 to the U.S. dollar. Bank of Japan governor Kazuno Ueda has been mum about the financial market.

What was once hoisted as Japanese bureaucrats’ top priority – fiscal austerity – meanwhile has disappeared from their desks. On the Aug. 31 deadline, ministries and agencies submitted steeply-inflated fiscal 2024 requests , aggregating a record 114.3 trillion yen, from 111 trillion yen in the previous high of 2022. That’s not a small rise for a country where population is shrinking rapidly.

Bureaucrats no longer feel obligated to compile tight budget requests and instead plot for big numbers for creating work for themselves, the columnist said.

Japan is a perfect example where bureaucracy and bureaucrats-turned politicians thrive.

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Kishida and bureaucrats order ending a cabinet member wife’s murder investigation

TOKYO, Sept. 2, 2023—The script is different but the film’s title ‘The Bad Sleep Well’ is a snug fit to the unresolved murder case now unfolding in Prime Minister Fumio Kishida’s official residence.

The 1960 Akira Kurosawa film, known to be influenced by William Shakespeare’s Hamlet, was highly politically-oriented and clearly was intended to remind moviegoers about the ubiquity of corruptions and briberies of politicians and bureaucrats pervading during the period when Japan was rebuilding the war-ravaged country to prepare for the 1964 Tokyo Olympic games.

The film portrayed acts of chivalry and cunning performed by the Seven Samurai actor, Toshiro Mifune, against the head of a giant governmental housing development company, yet was outsmarted and killed. The mogul prevailed and smiles at the end.

Thanks to the film or not, Japan gradually began ridding itself of the centuries-old ignominious practice of ‘under-the-armpit’ gift-giving to government officials in ensuing decades, elevating its business ethics to the developed economy level and, though superficially, bribery-free.

The 2023 summer revelation can reverse course of political modernization and transparency, and throwback of the country to the nearly 300 years of Edo period bureaucracy grip of society that would empower politicians to do whatever they want yet even they can be entrapped in that legacy. There already are signs that all parties concerned are haunted: Kishida, for one, is totally powerless on this case and top bureaucrats have no choice but to suppress it with administrative power.

Here’s what’s happening: Deputy cabinet secretary Seiji Kihara, 53, widely recognized as Kishida’s right-hand like Walt Nauta for Donald Trump, leads ‘a dual family life’ of commuting between his mistress and her son and his real wife and family, according to the weekly Shukan Shincho’s June 22 edition. On a March 2023 day, Kihara went to Tokyo Disneyland to celebrate the mistress’s daughter’s birthday with her and daughter and three of them stayed at a nearby hotel. The next morning, they visited the adjacent Disney Sea and Kihara left for the prime minister’s official residence around 10:30 a.m. The mistress, 47, is a single mother who previously worked as a bar hostess. Kihara earlier had denied the relationship with the mistress as well as that the daughter was his own, but over time, he confirmed that the daughter as his own, according to the magazine. Kihara’s lawyer told the magazine that he would tell his wife when visiting the mistress’s residence.

This itself is a major scandal even in Japan, where sexual relationships are far more lax than in other countries, particularly for a political heavyweight. 

But the drama – the real story – takes a further turn: His wife, 44, was also a bar hostess working in Tokyo’s Ginza and remarried with Kihara in 2014 – that was 8 years after her previous husband, Taneo Yasuda, 28 (at the time of his death), a night club employee, died a mysterious death in his home in Tokyo’s Otsuka district on April 10, 2006, according to to the magazine’s July 13, 2023 edition. The first finder of Taneo’s body was his father, who reported to police that his son was lying in a pool of blood.

Kihara’s wife, who police later identified as Ikuko, told the father that she was sleeping alone in the second floor bedroom. She had two children with the dead husband. Taneo was stabbed from head to throat and autopsy revealed a large dose of stimulant from his body. The knife was placed – not discarded somewhere like in most murder cases – neatly by the dead husband’s body. 

Ikuko did not show up in her husband’s funeral.

Police continued investigating the case and followed Ikuko, who started working as a bar hostess, and in the spring of 2018, interviewed a man who was detained by police for stimulant possession. He eventually admitted hearing from Ikuko, ‘I’ve killed him’ and that when he visited Ikuko’s house, Taneo was lying bleeding blood.’

On October 9, 2018, the same police investigators swooped Kihara’s apartment in suburban Tokyo but did not question Ikuko because her children were home. A month later the police officers were relieved of the assignment, and they told the magazine that it was a message from police higher-up to close the case.

Taneo’s father and his sister submitted an appeal to police to continue investigating the case yet police continues to stonewall. National Police Agency commissioner Yasuhiro Tsuyuki has told reporters that their investigations turned up nothing suspicious and Taneo committed suicide, according to the national daily Asahi July 25.

In the August 13 edition, Shukan Asahi quoted Makoto Sato, former chief investigator of the case and now retired, sharply challenged Tsuyuki’s comments saying that Tsuyuki ‘fooled us and our investigations.’ Sato said police had been investigating the case with a 40-person team because of the extraordinary circumstances.

Tsuyuki’s NPA is threatening to sue Sato for violating municipal public workers’ confidentiality law. Sato told the magazine that if this case, for which so many investigators were mobilized over so many years, is closed by the authority, it would have an irreversible impact on the public trust of Japanese police – which has indeed over years been damaged by police officers’ errant conducts and acts, such as arresting wrong people as criminals and losing arrested suspects from police stations.

Bureaucracy controls widens. NTA commission Tsuyuki, 60, is a so-called ‘career bureaucrat’ who graduated from Kyoto University Law School and joined NPA hopping highly visible posts such as prefectural police headquarters and NPA criminal divisions. He was the chief of a team examine former prime minister Shinzo Abe’s shooting death. 

Tsuyuki is a stark contrast to Sato, a so-called non-career cop who chases criminals like a hound dog. Shukan Bunshun and other media warn that if the Kihara case is closed and Kihara, his wife and other accomplices are not nabbed, it would cause serious consequences not just on police moral but government in general as career bureaucrats, many of them eventually join politics, would opt to widen their administrative grips.

For now, Tsuyuki and other career bureaucrats, including another deputy cabinet secretary, Shunichi Kuryu, 66, are seeking evidence of Sato’s public servant confidentiality law violations, such as whether he received money and grafts from Shukan Bunshun and other media outlets. They have failed to date but their men are chasing Sato almost every day, the magazine said.

On the media, that Shukan Bunshun winning the case is all the more important now as it is the single news outlet that confronts the government head-on. All national newspapers have keeping mum on the case.

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First inter-racial fracas near Tokyo shows Japan’s racial policy inability

TOKYO, Aug. 13, 2023– What’s remarkable about Japanese politicians and bureaucrats is their utter ineptitude at handling important policies, and instead at showing shrewd skills at escaping them. Their handling (or not handling at all) of one racial case is a classic example. It’s an incident that has been smoldering for years and now is coming to the head as a litmus test for policymakers as Japan is poised to becomes a multiracial country.

On July 4, 2023, dozens of foreign residents, most of them believed to be Kurds from Turkey, battled against Japan’s riot police over a fracas between them and Japanese residents in Kawaguchi, north of Tokyo, the first such open standoff between foreigners and the Japanese since the end of World War II. The clash seemed to be about the foreigners’ manners that local Japanese saw as unacceptable. 

By some accounts, the tussle was the most serious in Japan since 1968, when Japanese students clashed against riot police. Yet, Japanese media treatment was muted to say the least. Major television stations and newspapers did not report about the Kawaguchi clash. The media presumably sided with the government’s attitude of not waking up a sleeping child (racial discrimination argument).

The Kawaguchi tussle seems to have been triggered over a Turkish national man who was assaulted by a multiple number of Turkish men in the city. The man appeared to have been rushed into a nearby hospital, and his relatives and friends and foes attempted to force into the hospital, according to Japanese news reports. The hospital called police and at the same time refused to admit all emergency admittance for more than 5 hours. Two men were arrested for battery to police officers and 4 others were arrested for murder charges. During the 5 hours when emergency admittance was suspended, the hospital received as many as 21 emergency requests.

The fracas was a tip of an iceberg of growing confrontation between Japanese and foreign residents of Kawaguchi over the past decade. The Japanese are arguing that the Kurds are violating community rules and threatening their peaceful living, such as driving large trucks in residential streets at high speed and causing accidents. Some Kurds claim that they are singled out as bad guys in racial discrimination. To complicate the situation, in October 2015, rival Turks and Kurds living in Kawaguchi battled in front of the Turkish embassy in Tokyo over early voting of the Nov. 1, 2015 Turkish parliamentary election, according to Japanese reports. The clash needed Japanese police intervention.

A majority of city assembly members had submitted in June 2023 a report to the city council and the national Diet, the prefecture and police to take action, according to a copy of the report. To date, however, except the July 4 riot police mobilization, lawmakers, the city assembly, the city hall (bureaucracy) and other public entities are lending deaf ears to the plea, most likely with the thinking that racial problems similar to those in the U.S. and other foreign counterparts are too complicated for them to handle.

Japan and Turkey have a mutual visas waiver agreement, and probably for that arrangement, many Kurds began arriving in Japan to live in Kawaguchi, where as many as 1,200 Turkish nationals live, many believed to be Kurds. Their visas are believed to be renewed, instead of recognizing them as refugees. Many other Kurds also are said to overstay their visas. Kawaguchi’s population is 600,000, of which 39,000, or 6.5 percent are foreign nationals making the city the largest foreign population municipality in Japan.

Though different in context, during the World War II period, Japan took many discriminating actions against Koreans and Chinese. The Japanese, considering them as a superior race, forced them to manual labor and little else, and even during the post-war period, they had been mistreated.

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Japan’s renewable energy projects are corrupt money wells for politicians

TOKYO, Aug. 11, 2023—They are not isolated scandals. Not only national lawmakers but local assembly persons smell money in Japan’s renewable energy businesses. So they woo and snuggle up to renewable energy companies while others craft startups for fat government subsidies.

On Aug. 5, 2023, Masatoshi Akimoto, a Liberal Democratic Party lawmaker who had espoused nuclear power free energy policy by serving as the party’s environmental commission, abruptly left the ruling party amid reports of prosecutor investigation of his alleged bribes from a window power firm, in a scandal that is believed to involve more politicians. 

To date, neither Nashimoto nor his LDP leader and prime minister, Fumio Kishida, said they would hold a news conference on his bribery acceptance from Japan Wind Development Co., a 100 million yen company that Masayuki Tsukawaki, a former Mitsui & Co. employee, started in 1999. In 2013, the Ministry of the Environment announced giving 4.2 billion yen to JWD for building and experimenting a multiple number of wind power facilities, a few months after he was first elected to the House of Representatives. The project has basically flopped for mechanical defects, noise complaints from residents, bird strikes and other reasons.

In the central prefecture of Nagano, a local building material maker, Seyano Co., Aug. 9 filed for bankruptcy with 6.5 billion yen debt for multiyear liabilities it had incurred for running the ‘F. Power’ project, a biomass generation facility.

Watahan Holdings Co., the local supermarket chain, is expected to acquire the failed company, probably excluding F. Power. 

F. Power was trumpeted by the prefecture government, the city of Shiojiri (population 25,000), local forestry associations, and Seyano in 2012, and the facility began operating in 2020 for power generation and wood processing. Even at the time when the project was incubated and revealed to the public in 2012, forestry professionals expressed lukewarm opinions.

‘The single biggest issue then – and even now – was how to secure wood to burn in the incinerator to generate power on a sustainable basis,’ Kanji Sadanari, a former head of a local forestry management alliance told me Aug. 11. ‘Bringing waste wood (such as branches that cannot be processed into lumber) to the furnace from the local forests was not enough at all, so it had to buy from other areas by driving large trucks for hours. It didn’t make sense from the beginning.’

Sadanari thought that despite all kinds of shortcomings, (prefecture government) officials (assembly members and prefecture bureaucrats) railroaded the project ‘for their interest. It’s the reason why, despite the large amount of debt (for Nagano), that small company’s (Seyano) name is cited in news articles.’

Sadanari said that most of F. Project’s budget was financed with prefecture subsidies all through the years, the reason why the debt ha become an outsize sum for the small prefecture.

Wind, biomass, solar farm power generation in Japan does not go a long way without government subsidies, and that is where lawmakers and bureaucrats intervene to build their interest, be it as bribery or (many unnecessary) administrative work.

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Japan’s national ID system moves a step closer to abolishment

TOKYO, Aug. 5, 2023—Fumio Kishida, the Japanese prime minister, expressed his resolve Aug. 4 to have all Japanese residents to carry the national ID card called the My Number card in the next five years, and his determination met more than a lukewarm response from the usually subservient Japanese media – most ignored him by not reporting the evening prime time news conference.

Kishida’s administration has been under increasing heat to abolish the ID system after numerous foulups of card holder privacy raising public skepticisms about the system’s security and the government’s capability at managing it. In some cases reported by Japanese media, cardholders’ healthcare and other residential and other personal information was put on strangers’ cards. 

The My Number card replaces the National Health Insurance (NHI) card, which all Japanese residents essentially carry for receiving healthcare services. In reality, however, many medical establishments, particularly individually-run clinics, do not accept the My Number card and demand that patients present NHI cards.

The digital affairs minister, Taro Kono, earlier this year said the government would cease using the NHI card in a year. A growing number of the public, increasingly concerned about the errors, have begun cancelling the card out of worries that the mishaps might become more serious as the card eventually is expected to embrace personal tax, banking and securities, and other varieties of information. Public distrust of the card system surged when Kono said earlier that the government would abolish the driver’s license replacing it with My Number. 

At the news conference, Kishida reiterated that his government would not change the policy of replacing the NHI card with the My Number card but that he would extend the validity of a quasi-My Number card – which will bear the properties of the NHI card – to be issued to individuals that do not hold the My Number card to as long as 5 years.

Issuing the quasi-My Number card is expected to require another huge budget appropriation since it is effectively an all-new system. It means a fresh administrative burden not only to central government entities but probably more to municipalities that have been screaming for labor and financial resources for My Number-related government programs having been implemented to date, including pass-through government incentive and subsidy payments to applicants.

By not announcing anything new at all at the news conference, the prime minister, whose popular support has been slipping steadily and now barely above 30 percent, announced that he’s done enough with My Number as he’s not going to be around too long. 

Oh, and he’s not the first Japanese leader to call it quits on a national taxpayer number system. While his predecessor, Shinzo Abe, was around in 2016, the government quietly phased out (but not legally repealed) what was called the Basic Resident Registry.

In 2016, only 1 out of 20 Japanese residents held the BRR. The BRR began in 2002 and by the end of 2015, 9.2 million BRR cards had been issued. The administrative cost at the time was estimated at $10 billion.

My Number cards were issued to slightly more than 7/10th of the Japanese population of 215 million as of earlier 2023. The administrative cost is not known, though it is believed to be several times more than the BRR cost.

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