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Japan Times
20-07-2025
- Politics
- Japan Times
Performative ‘elections' expose a sad lack of vision
Under former Prime Minister Shinzo Abe, the Liberal Democratic Party's leadership offered the Japanese people and the region the Free and Open Indo-Pacific Vision (FOIP), Abenomics to revive the nation's economy after nearly three decades of stagnation and 'proactive pacifism' as guiding ideas for Japanese citizens. While not completely successful in realizing these visions, they offer a stark contrast to Japan's Upper House elections. These performative 'elections' have again exposed a troubling void at the heart of the island nation's political culture: the absence of any compelling strategic vision for the country's future. While political parties jostle for position and trade barbs over peripheral issues, none have articulated a coherent blueprint for addressing Japan's serious and mounting structural challenges. This vacuum of imagination reflects not merely political timidity but a deeper cultural reluctance to embrace bold leadership, a tendency encapsulated in the Japanese proverb 'the nail that sticks up gets hammered down.' The policy platforms on display during the campaign were notable primarily for their smallness of ambition. The LDP recycled familiar promises about economic revitalization and security enhancements, offering incremental adjustments rather than transformative solutions. The Constitutional Democratic Party of Japan countered with equally uninspiring proposals for modest wage increases and tweaks to social programs. Even newer entrants like Reiwa Shinsengumi and Nippon Ishin no Kai failed to break free from this pattern of cautious incrementalism. What makes this lack of vision more concerning is the magnitude of challenges Japan faces. The nation confronts a demographic crisis, with a rapidly aging society and plummeting birthrate threatening economic vitality and social cohesion. Gender inequality remains entrenched, depriving the economy of talent and perpetuating outdated social structures. The employment system struggles to adapt to a dynamic global economy. Educational institutions remain rigid, hierarchical and are ill-equipped to foster the creativity and flexibility demanded by the 21st century. Rather than grappling seriously with these existential challenges with a concrete vision, political discourse has increasingly fixated on the comparatively minor issue of immigration. Parties across the spectrum have devoted outsized attention to illegal migrants, migrant crime and border control measures despite scant evidence that foreign nationals pose any significant threat to Japanese society. Foreign residents constitute less than 3% of Japan's population and crime rates among immigrants remain lower than those of the general population. This misdirection of political energy reveals both the poverty of strategic thinking and a troubling susceptibility to populist scapegoating. The rise of parties like Sanseito, which has gained traction with its populist, right-of-center platform, reflects growing voter dissatisfaction with establishment politics. Yet this phenomenon represents less a coherent alternative vision than a protest vote against the status quo. Like similar movements in Europe and the Americas, Sanseito channels frustration without offering substantive solutions. Its popularity signals not the emergence of new ideas but the bankruptcy of old ones. This political paralysis stems partly from institutional factors such as the factional nature of Japanese politics, the power of bureaucracy and the influence of special interests. But it also reflects deeper cultural dynamics. Japanese society has long valued consensus over conflict, harmony over disruption and collective cohesion over individual initiative. These values have many virtues, contributing to social stability and group solidarity. Yet they also create powerful disincentives for the kind of bold, visionary leadership required to navigate transformational change. The contrast with other major powers is instructive. Whatever one thinks of U.S. President Donald Trump's 'Make America Great Again' vision or Chinese leader Xi Jinping's 'China Dream,' these leaders have articulated clear, compelling narratives about their nations' destiny. Their visions may be flawed, divisive and unrealistic, but they provide a sense of direction and purpose that mobilizes political energy and shapes public discourse. Japanese politics offers no equivalent. There has been no overarching narrative about where the country should go or what it should become since Abe. This absence of vision has concrete consequences. Without a clear strategic direction, policy responses remain reactive and piecemeal. Demographic decline proceeds unchecked because no party dares propose the radical reforms to immigration policy, gender relations or work culture that are necessary to reverse it. Economic stagnation persists because structural reforms threaten entrenched interests. Educational ossification continues because innovation requires challenging established hierarchies. The irony is that Japan possesses tremendous assets that could underpin a compelling national vision. Its technological prowess, cultural creativity, social cohesion and democratic institutions provide a strong foundation for renewal. A political leader willing to articulate how these strengths could be mobilized to address contemporary challenges might find a receptive audience among voters hungry for change. Such a vision need not mimic the nationalist populism of Trump or the authoritarian ambitions of Xi. As Phillip Lipscy of the University of Toronto alludes to in his essay "Japan: the harbinger state," Japan could chart its own course, offering a model of inclusive prosperity, sustainable development and creative adaptation to demographic change. It could position itself as a laboratory for solutions to challenges such as aging societies, work-life balance and technological disruption that other developed nations will soon face. It could leverage its cultural soft power and technological capabilities to shape global conversations about the future of human society. Developing such a vision requires political courage and the willingness to stick out, that is, to risk being hammered down. It demands leaders who prioritize long-term national interests over short-term political calculations. It necessitates a political culture that rewards innovation rather than punishing it and one that values bold thinking alongside careful consensus-building. The alternative is continued drift and a slow-motion crisis. Japan's challenges will not resolve themselves through incremental adjustments or wishful thinking. Where is the spirit and vision of the Meiji restorers, those who rebuilt Japan from the ashes of war after World War II or Abe and his team, who offered FOIP, Abenomics and the leadership that drove Japan to lead the Comprehensive and Progressive Agreement for Trans-Pacific Partnership? A compelling vision with concrete and achievable objectives would contribute not only to Japan's sustainable prosperity but also to its global influence. In an era when nationalist and authoritarian visions are ascendant worldwide, Japan could offer an alternative model, one that combines economic dynamism with social cohesion, technological innovation with cultural continuity, global engagement with national identity. The nail that sticks up may get hammered down, but the alternative is a political culture of timid conformity that guarantees only decline. Japan needs leaders willing to take that risk, to articulate bold visions and pursue transformative change. Until such leaders emerge, its enormous potential will be unrealized and its future increasingly uncertain. Stephen R. Nagy is a professor of politics and international studies at the International Christian University in Tokyo and concurrently a visiting fellow for the Hungarian Institute for International Affairs and the Japan Institute for International Affairs.
Japan Times
03-07-2025
- Business
- Japan Times
Foreign buying of Japan stocks hits longest spell since 2013
Foreign investors bought Japanese stocks for 13 straight weeks to June 27, their longest buying spree since 2013, data from Japan Exchange Group showed. The persistent buying — despite lingering concerns over U.S. tariffs and still sluggish domestic consumption — likely points to diversification away from U.S. equities, as investors pare positions after Wall Street's strong showing. "It's my guess that this reflects investors trying to diversify their U.S.-concentrated portfolio,' said Shuji Hosoi, senior strategist at Daiwa Securities, noting that such shifts could last about a year. Foreign investors bought ¥339.8 billion ($2.36 billion) of Japanese equities in the week of June 23 to 27, extending their net buying which began in the first week of April, when the market had plunged following the shock of U.S. President Donald Trump's extensive tariff plan, some of which has subsequently been amended. It is the longest stretch of net purchases since their 18 straight weeks of buying from November 2012 to March 2013, when investors snagged ¥5.7 trillion of Japanese stocks following radical economic stimulus by then-Prime Minister Shinzo Abe, or so-called Abenomics. The latest buying by foreign investors helped lift the Topix index to lofty heights. The Topix rose to a peak of 2869.07 on Monday, just off its record high of 2946.60 struck in July last year. The benchmark has lost steam since then on renewed worries about U.S. tariffs. But some analysts think their buying may wane. "There's no sense of euphoria we saw during Abenomics. I think foreign buying will slow in July,' said Kohei Onishi, senior investment strategist at Mitsubishi UFJ Morgan Stanley.
Yahoo
03-07-2025
- Business
- Yahoo
Foreign buying of Japan stocks hits longest spell since 2013
(Bloomberg) — Foreign investors bought Japanese stocks for 13 straight weeks to June 27, their longest buying spree since 2013, data from Japan Exchange Group showed. NYC Commutes Resume After Midtown Bus Terminal Crash Chaos Struggling Downtowns Are Looking to Lure New Crowds Massachusetts to Follow NYC in Making Landlords Pay Broker Fees What Gothenburg Got Out of Congestion Pricing California Exempts Building Projects From Environmental Law The persistent buying — despite lingering concerns over US tariffs and still sluggish domestic consumption — likely points to diversification away from US equities, as investors pare positions after Wall Street's strong showing. 'It's my guess that this reflects investors trying to diversify their US-concentrated portfolio,' said Shuji Hosoi, senior strategist at Daiwa Securities (DSEEY), noting that such shifts could last about a year. Foreign investors bought ¥339.8 billion ($2.36 billion) of Japanese equities in the week of June 23-27, extending their net buying which began in the first week of April, when the market had plunged following the shock of US President Donald Trump's extensive tariff plan, some of which has subsequently been amended. It is the longest stretch of net purchases since their 18 straight weeks of buying from November 2012 to March 2013, when investors snagged ¥5.7 trillion of Japanese stocks following radical economic stimulus by then-Prime Minister Shinzo Abe, or so-called Abenomics. The latest buying by foreign investors helped lift the Topix index to lofty heights. The Topix rose to a peak of 2869.07 on Monday, just off its record high of 2946.60 struck in July last year. The benchmark has lost steam since then on renewed worries about US tariffs. But some analysts think their buying may wane. 'There's no sense of euphoria we saw during Abenomics. I think foreign buying will slow in July,' said Kohei Onishi, senior investment strategist at Mitsubishi UFJ (MUFG) Morgan Stanley Co. (MS). SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too America's Top Consumer-Sentiment Economist Is Worried How to Steal a House China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
Foreign Buying of Japan Stocks Hits Longest Spell Since 2013
(Bloomberg) -- Foreign investors bought Japanese stocks for 13 straight weeks to June 27, their longest buying spree since 2013, data from Japan Exchange Group showed. NYC Commutes Resume After Midtown Bus Terminal Crash Chaos Struggling Downtowns Are Looking to Lure New Crowds Massachusetts to Follow NYC in Making Landlords Pay Broker Fees What Gothenburg Got Out of Congestion Pricing California Exempts Building Projects From Environmental Law The persistent buying — despite lingering concerns over US tariffs and still sluggish domestic consumption — likely points to diversification away from US equities, as investors pare positions after Wall Street's strong showing. 'It's my guess that this reflects investors trying to diversify their US-concentrated portfolio,' said Shuji Hosoi, senior strategist at Daiwa Securities, noting that such shifts could last about a year. Foreign investors bought ¥339.8 billion ($2.36 billion) of Japanese equities in the week of June 23-27, extending their net buying which began in the first week of April, when the market had plunged following the shock of US President Donald Trump's extensive tariff plan, some of which has subsequently been amended. It is the longest stretch of net purchases since their 18 straight weeks of buying from November 2012 to March 2013, when investors snagged ¥5.7 trillion of Japanese stocks following radical economic stimulus by then-Prime Minister Shinzo Abe, or so-called Abenomics. The latest buying by foreign investors helped lift the Topix index to lofty heights. The Topix rose to a peak of 2869.07 on Monday, just off its record high of 2946.60 struck in July last year. The benchmark has lost steam since then on renewed worries about US tariffs. But some analysts think their buying may wane. 'There's no sense of euphoria we saw during Abenomics. I think foreign buying will slow in July,' said Kohei Onishi, senior investment strategist at Mitsubishi UFJ Morgan Stanley Co. SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too America's Top Consumer-Sentiment Economist Is Worried How to Steal a House China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Japan Times
02-07-2025
- Business
- Japan Times
DPP pledges to increase take-home pay ahead of Upper House election
The Democratic Party for the People will seek to implement measures to increase people's take-home pay, its leader Yuichiro Tamaki said in an interview ahead of the Upper House election on July 20. Tamaki said that the opposition party will aim to win 16 seats in the race for the upper chamber of the Diet, Japan's parliament, as holding a total of 21 seats, including those not to be contested in the upcoming poll, would enable the party to independently submit bills needing budgetary measures. "We will make it a summer of raising take-home pay," he said, pledging the party's aim of increasing the country's annual gross domestic product to ¥1 quadrillion ($6.95 trillion) in a decade. Tamaki said that the DPP will work hard to promote investments, to increase education, science and technology budgets to around ¥10 trillion, and to resolve labor supply constraints by raising the minimum taxable income levels. He called the measures "the three arrows of the DPP," in an apparent reference to the "three arrows" of the late former Prime Minister Shinzo Abe's Abenomics economic policy mix. Tamaki said his party will focus on combating inflation in the Upper House race, arguing that the DPP is the only party seeking to tackle the issue head-on by raising incomes. He criticized the administration of Prime Minister Shigeru Ishiba, saying that the government has not fulfilled promises of raising the annual taxable income threshold and scrapping a provisional add-on tax rate for gasoline. His party and the ruling Liberal Democratic Party-Komeito coalition agreed last December to aim for raising the minimum annual taxable income level to ¥1.78 million. Tamaki declined to commit to cooperating with other parties after the Upper House poll. "Decisions will be based on policy" rather than party, he said. Regarding cooperation with opposition parties for the July 20 election, Tamaki said, "Basically, we aim to make our party bigger." At the same time, he noted that the DPP has experience of cooperating with other parties and the Japanese Trade Union Confederation, or Rengo, in certain single-seat constituencies. "I will respect the circumstances and history of each region as much as possible," he said. Tamaki avoided commenting on whether the DPP will continue policy negotiations with the ruling bloc after the election, saying, "It is unclear whether (the Ishiba administration) will continue." "We will cooperate where possible in order to achieve our policies, but will not cooperate where we can't," he went on. Tamaki said his goal of becoming prime minister remains unchanged, while noting that the timing and other related issues depend on the political landscape. He attributed the DPP's declining support rate in recent media opinion polls to turmoil over the fielding of a candidate under the proportional representation system in the Upper House race. "We will go back to basics and campaign on policies aimed at increasing take-home pay," Tamaki said.
