Japan lacks fresh thinking

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Want to know why Japan’s earthquake recovery efforts are moving in slow motion? Ask the whales. Tokyoites have grown accustomed to shocking news items since the earth shook and the oceans rose.

Yet the tale of the whales and the $30 million (R251m) is what proved most disturbing – and shed fresh light on why Japan is either unable or unwilling to undertake the broad reforms needed to avert credit-rating downgrades and reverse deepening deflation.

Japan spent about ¥2.28 billion (R244m) on whaling hunting expeditions from funds allocated for recovery from the earthquake and tsunami. It’s a drop in the proverbial bucket, given that the government plans to spend at least $300bn rebuilding the Tohoku region. It’s a highly telling expenditure, though, with significance far beyond the price tag.

The whaling programmes carried out each year flout international conventions and dent Japan’s reputation, and for very little. Demand for whale meat is negligible: the industry survives because of huge public subsidies. Japan contends that using earthquake funds to boost security for ships will help them elude activists protecting whales. A successful hunt, it’s thought, will revitalise local coastal communities.

You know what would help more? Some fresh thinking. The devastation from March 11 required new ways of viewing and addressing Japan’s creaky economic model, ageing population and waning competitiveness. It necessitated a reboot of politics, the government’s role in the economy and Japan’s change-resistant, consensus-obsessed mindset. What we’re seeing instead is an inability to adapt on a national level.

Nine months ago, when the ground shifted under Japan’s feet, there was a fleeting glimmer of change, a hope that the disaster would end the political and economic stasis that has gripped Japan for more than two decades. Instead, tossing money at every problem without critical thought suggests that Japan is reverting to the wasteful ways that created a massive national debt and little growth to show for it.

One big question that hasn’t been tackled: whether to bother rebuilding parts of Japan’s northeast – given that they were dying a slow, steady demographic death anyway – or relocate the communities away from the sea. Rather than grapple with it, Japan is pursuing whaling. But you have to wonder: how many young people who long ago fled to cities like Tokyo are going to rush back to their ancestral homes to become whalers?

Consider what the brain trust in Tokyo is up to. Last month, Standard & Poor’s hinted that another credit downgrade is brewing as Japan’s public debt, already the developed world’s largest, increases unchecked by distracted lawmakers. So how do they spend their time? In tit-for-tat one-upmanship.

In November, a deputy to Defence Minister Yasuo Ichikawa was fired for comparing the relocation of a US airbase on the island of Okinawa to rape. Rather than move on and tend to the many dilemmas facing Japan, lawmakers spent last week crafting censure motions for the ousted official’s bosses. That’s a week that will never be used for developing strategies to address anaemic growth, deflation, a shrinking workforce, Chinese competition or rebuilding needs.

Both story lines, supporting whalers and pointless political posturing, are microcosms of why Japan isn’t rising to this year’s challenges. What we have is a failure to adapt to a dynamic set of problems that threaten economic well-being.

Japan is a top-down society. Right now, mayors in the northeast need a figure: how much they will get to fix airports, train stations, roads, bridges, schools, hospitals, telecommunications and ports. It’s hard to hire architects, assemble construction crews and procure materials when you don’t know your budget. Tokyo, instead, is obsessed with political infighting and old remedies for very new quandaries.

The upshot is that trust is breaking down on too many levels. Companies are reluctant to hire, communities are split between those who want to stay and those tempted to leave, citizens don’t buy the nuclear industry’s protestations of safety, and cynicism toward officialdom in Tokyo has rarely been higher.

It’s not a great environment for economic revival, never mind any semblance of confidence as Europe’s crisis foreshadows a global economic slowdown. That’s what happens in a country that gives higher priority to killing whales than to reassuring a traumatised population.

William Pesek is a Bloomberg columnist.

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Anonymous, wrote

IOL Comments
03:05am on 24 December 2011
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We should be so lucky in South Africa as to have a government whose major challenge is an infusion of fresh thinking. The Japanese have among the highest standards of living in the world, an excellent healthcare system, the cleanest environment (until the nuclear disaster), one of the best education systems in the world and a low crime rate. While I can never support whaling, I still have a great deal of admiration fr the Japanese people and a government that may be shortsighted but is ethical, competent and efficient in all the ways that ours isn't. You won't find Japanese officials stealing old-age pensions for example...

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zale, wrote

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08:56am on 22 December 2011
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same goes for SA Anc politicans do ntohing except line their pockets and fight for power while the country sinks

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Guy, wrote

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07:42am on 21 December 2011
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Wow there are so many similarities here between the Japanese political "posing" and South Africa's. Instead of many of our politicitians focussing on the welfare of the people, they are sucking funds for themselves and doing nothing constructive. We don't hunt whales, but we sure do spend a lot of money of other unneccessary projects. ("name changing" for one)

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