Japan's outdated corporate family model
Waka Ikeda is a Tokyo-based freelance journalist covering society, culture and the movie industry.
With Japan's fertility rate sitting at a paltry 1.2, the issue of work-life balance has gone from office chitchat to existential crisis. Some officials are advocating a four-day workweek for public servants, but are more fundamental changes needed?
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Japan Times
9 hours ago
- Japan Times
As election looms, Ishiba pledges ¥1 quadrillion GDP by 2040
Economic relief packages for present difficulties and economic goals for future prosperity are the strategies the ruling and opposition parties are employing ahead of the Upper House election next month, as they roll out their official campaign pledges. Financial aid to help households deal with the high cost of consumer prices, particularly those for rice and agricultural products, is a major part of each party's formal set of promises to voters who need help now. But Prime Minister Shigeru Ishiba's Liberal Democratic Party is also announcing an ambitious economic growth target for the distant future. 'We aim to achieve a nominal gross domestic product of ¥1 quadrillion ($6.9 trillion) by 2040 and I have instructed party executives to make increasing the average income by more than 50% from current levels by then as our party's first pledge in the upcoming Upper House election,' Ishiba announced Monday night. How, exactly, the LDP would achieve that was not made clear. The party plans to compile a more detailed policy platform next week. Japan's nominal gross domestic product in 2024 was ¥609.4 trillion, according to Cabinet data, while the average annual private sector salary in 2023 was ¥4.6 million, according to the National Tax Agency. To deal with present economic realities, the LDP and its coalition partner, Komeito, agreed Tuesday to include promises of cash payments in their respective Upper House campaign pledges, in response to recent consumer price increases. The exact amount each household would receive and under what conditions are yet to be determined, although the amount promised in the LDP's platform could be in the range of the tens of thousands of yen per person. Komeito, which has already announced its Upper House campaign pledges, is also promising to abolish the temporary gasoline tax rate of ¥25.1 per liter. It says the abolition date can be determined during year-end tax negotiations. In the meantime, Komeito supports a continuation of current subsidies to lower gasoline prices and expanding a tax-exempt limit for commuting allowances for employees who commute by private vehicle. The opposition parties are also gearing up for the Upper House race with a similar emphasis on pocketbook issues. Constitutional Democratic Party of Japan head Yoshihiko Noda speaks to reporters in Tokyo on Friday. | JIJI On Tuesday, Constitutional Democratic Party of Japan leader Yoshihiko Noda announced his party's platform under a slogan of promising to protect voters from rising prices, especially those for daily necessities. 'We'll implement immediate measures in the form of a meal support grant to alleviate the burden of rising rice prices. A onetime payment of ¥20,000 per person, equivalent to half a year's worth of consumption tax on food items, will be provided. After that, we will implement a zero percent consumption tax on foodstuffs for one year and up to two years,' Noda said. The CDP is also promising a review of Japan's rice policy to bring prices down, while emphasizing the importance of protecting both rice farmers and consumers. In addition, Noda presented the party's plan for dealing with gasoline prices. 'Our aim is to abolish the provisional tax rate and achieve a reduction of ¥1,000 per 40 liters,' he said. Other parties are now finalizing their election strategies, including the exact wording of their campaign promises. The date of the Upper House poll has not yet been announced, although July 20 appears to be the most likely. The current session of parliament is slated to end on June 22.
Japan Times
12 hours ago
- Japan Times
How ‘vintage' rice is shaking up Japanese politics
To solve the problem of soaring rice prices, Japan's turning to a classic retailer's playbook: rebranding the old as "vintage.' That's what convenience store chain Lawson is dubbing onigiri rice balls made from the grain harvested in 2021 and released from Japan's strategic reserves in an effort to bring down prices. Like eggs in the U.S., the cost of the country's staple, which has doubled over the past 12 months, has been dominating the headlines. And there's far more at stake than the size of the grocery bill: Rice could determine the fate of the government itself. The panic has already caused one political casualty and now hangs over the administration of Prime Minister Shigeru Ishiba ahead of this summer's Upper House elections, where voters are set to punish the government over dissatisfaction with inflation. But the crisis might also be the making of a future leader. Japanese have largely gritted their teeth and lived with the last few years of rising prices, surprising many (myself included). That's allowed firms to pass on increased costs in a way they've not been able to do for years. But rice is where consumers have drawn the line. The staple rose by 98% in the past year, adding almost half a percentage point to headline inflation. A 5 kilogram (11 pound) bag is more than ¥4,000 ($28); calorie-for-calorie, the grain is now more expensive than bread. Enter new Agriculture Minister Shinjiro Koizumi, who's winning hearts (and stomachs) with his approach. Earlier moves to release government stockpiles failed to cut prices. But within days of taking over, Koizumi bypassed auctions and directly sold strategic reserves to retailers. And it's working: Bags of this "vintage' rice are now on supermarket shelves for under ¥2,000. Rice is deeply connected with the Japanese state. Cultivation in its current form dates back more than 3,000 years, when it came from China or the Korean Peninsula. As the country proper was first being formed, authorities collected it as a tax on leased land; during feudal years, how much of the crop a lord could produce would dictate how far he could rise. Children are taught that there are seven gods sleeping in each grain, to encourage them to clear their bowl; sake, brewed from rice, is a sacred drink in Shinto rituals. The Rice Riots of 1918, which in a worrying sign for Ishiba erupted in response to surging prices, killed 20, led to 25,000 arrests and brought down the government. At one point, the staple made up 70% of the average daily calorie intake. In other words, rice is important. So for years, the government has been involved in the market, seeking to maintain self-sufficiency and keep prices at a level that leaves farmers in business but doesn't aggrieve consumers. Official policy created chronic rice surpluses in the 1960s, and so for decades the government paid farmers to make less. This system, known as gentan, was officially discontinued in 2018, but remains informally today, with the powerful Japan Agricultural Cooperatives, or JA, overseeing voluntary cuts. And consumption has been in free-fall for decades, as diets changed to accommodate more international foods. The average Japanese eats less than half the 118 kg a year they ate in 1962. But one reason for this year's shock appears to have been demand exceeding forecasts; with a declining population of farmers incentivized to produce less, it doesn't take much to create an imbalance. The current situation stems from contradictory policies. The government wants cheap rice, but only made in Japan. This is where Koizumi can shine. It is to his credit that he was willing to take on such a high-risk job. If he fails to reduce prices, he'll look incompetent; bring them down too much and he'll upset the powerful farming bloc. Perhaps he is looking to his father's playbook. Junichiro Koizumi, the fondly remembered prime minister of the early 2000s, made his name by putting country above party and tackling a vast vested interest, the mail and banking giant Japan Post. Privatizing it became his goal, a target on which to paint public dissatisfaction with the old ways. It became Koizumi Sr.'s greatest victory. Now, his son can do the same with the farming system, long known to be inefficient but now in need of urgent reform. With some 40% of paddy fields lying fallow, Japan could easily grow more by turning the excess into an export at a time of great premiums for Japanese food. Consolidation of its small farms, something JA will oppose, will encourage efficiency. Koizumi Jr. can imitate his father's legacy by tackling this holdover, taking on JA and showing that he's a man of action, too. The jury is out on whether the country will need a new prime minister after this summer's elections, but there will be a vacancy before too long. Koizumi did well in last year's leadership election, but his greatest weakness was his lack of accomplishments. Now, he has a problem that, like a vintage onigiri, he can really sink his teeth into. Gearoid Reidy is a Bloomberg Opinion columnist covering Japan and the Koreas.
NHK
13 hours ago
- NHK
Japan, Lithuania leaders agree to work together to bring peace to Ukraine
Japan's Prime Minister Ishiba Shigeru and Lithuania's President Gitanas Nauseda have agreed to work together to try to bring peace to Ukraine and to deal with various other matters. On Monday, Ishiba met with Nauseda in Tokyo. The Japanese prime minister said the two countries share a warm and strong bond that is symbolized by the "Visas for Life," which were issued by Sugihara Chiune during World War Two. When he was working in Lithuania, the Japanese diplomat saved many Jewish people who were fleeing Nazi persecution. Ishiba said he hopes that he and Nauseda can work more closely together to try to maintain and strengthen the free and open international order based on the rule of law. Japan's Foreign Ministry says the two leaders concurred that unilateral attempts to change the status quo by force are unacceptable anywhere. They agreed to cooperate to achieve a just and lasting peace in Ukraine. They reportedly shared serious concerns about the advancement of military cooperation between Russia and North Korea. They also agreed to cooperate further on a wide range of issues, including security, transportation, shipping and renewable energy.
