My opinion this week(224):

Say stronger to America

July 4 is America's Independence Day. There is no doubt about the fact
that US is a top leader in the world in the field of politics, economy
and culture. Japan is still behind US in many respects.

Prime Minister Koizumi visited US and met President Bush. I watched his
press conference after his meeting with Bush in TV. Koizumi mentioned 
that he would welcome any request from US from now on. He would take
such request as valuable advice from a friend rather than a pressure 
from outside power. His comment is basically acceptable.

But I believe that he should add to say that Japan would also request
US more strongly about anything if it is necessary. US should accept 
them as advice from a good friend. There are many of such advice which
should be accepted by US even at this moment.

One of such example is signature of COP3 Kyoto Pact. While most developed
and developing countries in the world are going to sign this pact, US
rejects to admit the pact. Japan will also sign the pact as a chairman
of Kyoto conference but will postpone the sign if US will not participate
in it. Koizumi mentioned that Japan would continue to make all possible
effort to persuade US to join to the pact. But his stance seemed to be
a little weak. He should take much stronger attitude to US on this issue.

The same can be said with the rape accident happened in Okinawa. US is 
very slow to hand over the defendant soldier to Okinawa police. The reason
why they are very deliberate in handing over are not quite reasonable from
Japanese side. They mentioned some difference in legal system, basic right
of the defendant as well as the existence of JAPAN US Status Treaty. 

But anger and irritation of people of Okinawa should not be neglected. 
They are quite reasonable from any point of views. Why do Koimzu and 
Japanese Government take much stronger attitude to US on this issue? 

Ichiro has been selected as No.1 ball player in coming All Star Game. 
Total votes he got still ranked No.1 although votes from Japan is deducted.
This news shows generosity and fairness of American people and the country.
This news seems to have no relation with the news mentioned above. That's
not true. I would like to believe the basic fairness and generosity of this
country.

I believe that America is the country that has very clear scale to judge 
what is right and what is not right. It is obvious that they are wrong
as to two cases mentioned above. Japanese Government should take stronger
stance to US on those issues by saying "you are wrong". 

It is responsibility of Japan as one of a good friend of this great country.

2001/7/7
Tadashi HAYASE

My opinion this week(225):

Not a small but a big pain is necessary for structural reform

The biggest enemy for reform is some groups of lawmakers in ruling LDP.
Under recent bad economic condition, those LDP members who are against
Koizumi's reforms start insisting to put public money for conventional
public works.  

They advocate that this bad economy end up with economic panic in the
world generated by this country. They say that some improvement of economy
is necessary before structural reform. Some opposition parties such as
Communist Party and Social Democratic Party say structural reform will
bring considerable cut of social welfare.

Different from past Minister of Economic Affairs, Takenaka clearly mentioned
that the Government would not spend public fund to various public works
as in the past, although economic condition is worsening. Koizumi stress
the point that economy will get worse if there were no structural reforms.

Koizumi Cabinet is different in this respect compared with many cabinets
in the past. There are so many lawmakers and critics who believe the
importance of public works to stimulate economic growth. They are all 
strong believers of Keynes theory. They insist to put more public money
while total national debt exceeded now 500 trillion yen by now.

Schumpeter's theory of innovation is now necessary rather than Keynes
theory of public works. Structural reforms are in other word innovation
advocated by Shumpeter. Innovation is a process of creative destruction
that is the basis of economic growth. 

Koizumi was attending  a news show of Fuji TV on Sunday. He was questioned 
by many local small business leaders as how he will conduct reforms without
increasing many more bankruptcies and unemployment all over the country.  

Koizumi's answer to them was not necessarily quite crispy. But including
himself, all cabinet members should say more clearly about the greatness
of pain which would be expected from reforms. Miyauchi, President of 
Orix who was in the show with Koizumi stressed the need of constant 
innovation for any business in order to survive in competition.

Such people as Takenaka ,Miyauchi, etc. that are able to mention some
bigger pains are unavoidable in order to conduct reforms, are most 
necessary at the moment. Pains will be significant and not light. That's
what they  should say. 

High popular vote for Koizumi Cabinet seems to start changing a little
bit. They may go down while contents of reforms are getting more concrete. 
But Koizumi should not be afraid of that.

The only way he can attain reforms is to keep telling people some more
significant pains which must be endured by people are expected from now
on. 

2001/7/14
Tadashi HAYASE

 
My opinion this week(226): 
 
The meaning of only six votes 
 
Osaka's decade-long dream to host the 2008 Olympics officially ended  
when the International Olympic Committee eliminated the city after the first 
round of voting and awarded the Games to Beijing. Although the loss had been 
widely expected, Osaka could only get six votes  out of the 105 cast by IOC 
members. 
 
That was a great shock to the people concerned of Osaka city. But reaction 
of people in Japan is generally very calm and cool. There is no disappointment 
nor regret. People expect and know that Peking will win.  
 
China is very happy about it, of course. That's fine. The country will become 
more cooperative and peaceful in diplomatic measures in international  
community in coming years to succeed in the Olympic Games. That is good for 
Japan also. 
 
Citizen's supporting rate to host the game was very low for Osaka. This was 
confirmed in May, when an IOC independent survey showed only 52 percent of  
residents wanted the Olympics, the lowest figure of any of the five cities 
attempting to host the 2008 Games.  
 
The reason is obvious. Now, with over 5 trillion yen in outstanding debt from 
municipal bond issues, there is growing concern over spending more tax money 
on another bid. Why is the City in such bad financial condition going to 
hold an expensive event? The concern of citizens is quite reasonable as a 
matter of fact. 
 
What's more, I believe that Olympic Game itself is not quite attractive event 
any more worldwide. Their commercialism is now very notorious. In order to 
vitalize their economy and community, the city has to find out something new 
and fresh in this IT and Internet age. Some more meaningful and outstanding 
ventures. 
 
The theme and issue is,  of course, necessary not only for the city but also 
for this country as a whole.  
 
2001/7/21 
Tadashi HAYASE 

My opinion of this week(227)

Strategic Approach to Poverty Reduction

 Genoa Summit was over with Summary Statement announced at the end of 
conference. While reading the titled statement, I noticed one very
critical point. "Wow, is this the statement addressed to developing
countries?" 

 Isn't this the strategic approach necessary for Japan to conduct 
structural reform? 

 Although it is a kind of long, I refer the main portion of article 6
of "Strategic Approach to Poverty Reduction" announced at the end of
Summit as follows:

 "6. Open, democratic and accountable systems of governance, based on 
respect for human rights and the rule of law, are preconditions for
sustainable development and robust growth. Thus, we shall help developing
countries promote:

 -- Accountability and transparency in the public sector
 -- Legal frameworks and corporate governance regimes to fight corruption
 -- Safeguards against the misappropriation of public funds and their
    diversion  into non-productive uses
 -- Access to legal systems for all citizens, independence of the 
    judiciary, and legal provisions enabling private sector activity
 -- Active involvement of civil society and non-governmental organizations 
    (NGOs)
 -- Freedom of economic activities.  "

 If I were Prime Minister Koizumi, I must have stated the followings in front
of other leaders of G8 . 

  "Dear fellow members of the Summit, I will do my best to conduct our
structural reform as I promised all of you before following the principles
addressed in this Strategic Approach to Poverty Reduction."

2001/7/28
Tadashi HAYASE