My opinion of this week(278):

Exchange intervention

BOJ (Bank of Japan) started making exchange intervention by selling yen 
based on the judgement that strong yen would throw cold water on 
recent recovery trend of economy. The intervention costs already 3 
trillion yen. All other related Government offices such as MOF (Ministry
of Finance) supported such exchange intervention.

Mass media reported facts about it, but no criticism about that policies
have been heard from any other sources including famous economists.
Most of them seem to admit the validity of such intervention actions.

I myself are not versed in the mechanism of exchange market. I am just a
nonprofessional about it. But I am frank enough to express a great doubt 
about such intervene actions now being made by BOJ. 

Firstly, I have a doubt on how the current intervention is working 
effectively as a matter of fact. It seems it is not necessarily working
well. BOJ offered a corroborative intervention to other G7 countries.
But it seems that is not working as well.

Secondly, the basic question is whether or not such intervention itself
is right and reasonable as an economic policy to proceed a structural
reform of Japanese economy. Does Japanese economy still heavily rely on
export demand rather than domestic demand ? Why do they challenge to 
change that structure? 

Cheap yen and strong yen will provide have some plus and minus effects
correspondingly on economy. Strong yen trend at this time may provide
some big advantages on economic recovery on the other side of economy 
in the long run. 

Why are policy makers of BOJ and other Government officials so short
sighted? This may be  a kind of primitive but basic question I have on
the current exchange intervention being made by BOJ.

2002/7/6
Tadashi HAYASE

My opinion of this week(279):

Governor Tanaka

The Assembly of Nagano Prefecture passed the non-confidence motion 
against Governor Tanaka of Nagano Prefecture on July 7th. The Governor
Tanaka must decide three course of actions in next 10 days. The first
choice is that he will resign from his position. The second choice is
that he will dissolve the Assembly. The third choice is that he will
resign and run for a candidate for gubernatorial election again. It 
is possible that two election i.e. gubernatorial election and assembly
members election will be made at the same time.  

The non-confidence motion at this time is extremely rare in every sense.
Any scandals and/or any serious  misadministration at the side of Governor
are not involved with this resolution. Those assembly members who are 
for the resolution expressed a stiff resistance against Governor's
political stance and practice concerning his  declaration that he would
not build dams any more in Nagano Prefecture.

There may be various premises and reasons why they need dams and they
don't. But there are majority of people who supported Governor's 
policy to stop building dams in future. Provided that the supporting
rate on dam construction splits into half and half, the last decision
may be made by referendum of all inhabitants of Nagano Prefecture. 
Suppose the Assembly proposed such referendum, Governor Tanaka might 
have accepted it and referendum may be made. That is a reasonable course
of action at any rate.

It is highly doubtful that the Assembly passed the non-confidence
resolution based on the premise that they cannot admit various political
stance and approach of Governor Tanaka. It seems that they have not
understood Governor's political practices since his assumption of office.
He did not follow to many conventional customs and practices in 
administrative offices and assembly offices in the past. He made glass 
walled room on the first floor of Prefecture Office. He created a lot of
opportunity to communicate directly with many citizens at various places.
What's wrong with them? 

Those old assembly members did not like that kind of approach of Governor
Tanaka. That is the way how Governor Tanaka got support from majority
citizens.

Yes, there may be various small requests to be made against Tanaka. But
it is now the time that that kind of political stance shown by Tanaka
is now required not only for all assembly members and top management of
administrative offices in local government offices but also for those in 
diet members and high officers of central government.

I personally hope that Governor Tanaka will win and come back as the 
Governor when election were conducted. I believe it a milestone for the 
development of democracy in this country.

2002/7/13
Tadashi HAYASE

My opinion of this week(280):

Five increase, five decrease ?

A new constituency plan to increase five seats and eliminate five has
been finalized and passed the Diet after a long time processing. 
Newspapers reported that Hashimoto faction of Liberal Democratic Party
tried to pass the plan of three increase, three decrease but that plan
was rejected due to disagreement with New Komei Party. 

Needless to say, the plan is to eliminate the disparity in number of voters
per representation. That is very necessary and seems to be a kind of simple
actions. But the reason for taking such a long time argument is obvious.
Revision of constituency involves pros and cons of political parties and
diet members. 

Revision of constituency is necessary, of course. There exists some
great disparity in number of voters per representation in some districts
which against constitution. But is it so important that they take so much
time to argue in the diet? There is a more important issue that all
law makers to tackle to vitalize the current manky politics of this
country. We people of this country are tired of seeing so many scandals
by politicians these days. Resignation of Mr. Miyaji, Vice Minister
of Health Welfare and Labor Ministry has just happened during this diet
session. 

What is the key to realize political reform in this country? What 
are those diet members are arguing about? Five increase and decrease
of seats? 

I believe that decreasing of absolute number of seats at both
Parliaments is an answer to realize a real political reform. Law
makers are trying to cut some annual expenses of two Parliaments.
But what they are trying to do is just a drop in the ocean. Some more
fundamental and drastic reform is very necessary including the deduction
of size of two Parliaments. That is now the most fundamental political
reform.

Today is the day of information. All information is communicated so
fast through digital network including all sort of political activities
of the diet. Are so many number of diet members such as 700 really
necessary ? Will the quality of politics deteriorate by reducing a
number of members ?

I believe it is on the contrary. The quality of politics and law makers
will be improved much more. The value of a vote by people will
also increase by selecting less number of diet members.  

I just wonder why there exists not many arguments as such among
mass media and critics on politics. It is now the time to stir up the
argument what is really necessary to realize political reform of
this country.

2002/7/20
Tadashi HAYASE

My opinion of this week(281):

Basic Resident Register network

The change of Basic Resident Register Law is about to be done so that
all Resident Register system is computerized and networked each other
at national level. Basic resident data of Japanese  are controlled
under one unique number. 

Some big opposition rose from many groups of people including
ruling and opposition parties against introduction of a new system
at the final stage of such movement. The reason for the opposition
is that there are a serious possibility of infringing privacy of
citizens by introducing such network system. 

Such danger exists certainly. It is possible that some serious
leakage of privacy may endanger the basic right of people.

But is it the whole reason to stop introducing such very basic 
network system which is very necessary to develop IT infrastructures
of this country? Introduction of such system was stipulated by 
Basic IT Law by Mori Cabinet as I understood. Construction of
Digital Government is stipulated to realize administrative reforms
of this country. Computerization and networking of basic resident
registration is just a first step for total grand design of
Digital Government both at local and national levels.

That kind of scheme is just a first step to realize the  grand design
of IT strategy of this country. Without realization of such IT 
strategy, Japan will not be able to survive in globalize society.

Protection of privacy  of citizens is very important, of course.
But introduction of the network system is very important, too.

The biggest problem at the moment is that people have not much
interest in this issue compared with many other political issues.
I hope that each people of Japan should have more distinct 
understanding about the issue and clear-cut views on this very
critical issue.

20002/7/27
Tadashi HAYASE