AMPONTAN

Japan from the inside out

Wet cement

Posted by ampontan on Wednesday, November 21, 2012

I wonder about these people who would take advantage of Hashimoto Toru’s popularity to win a Diet seat (by joining his party, the Japan Restoration Party).
- Maehara Seiji, head of the Democratic Party’s Policy Research Committee

We’ll act in such a way that we don’t become what the Democratic Party is now.
- Matsui Ichiro, Osaka governor and secretary-generation of Japan Restoration, in reply
————-
The key is when and to what extent Mr. Abe approaches the third forces (reform parties). I would really prefer that the electorate votes with that knowledge. But considering his position, it is probably to his advantage to keep that quiet for now.
- Yamazaki Hajime, journalist on economic matters and a fellow at the Rakuten Securities Economic Research Institute

THERE are eight million stories in the naked city, intones the narrator at the conclusion of both the film and television version of The Naked City, and this has been one of them. Shifting the dramatist’s eye to Japan’s lower house election scheduled for 16 December, there are what seems like several thousand stories, and the reform/regional parties that are fomenting revolution from the bottom up account for quite a few of them.

Telling some of those stories requires a list of the dramatis personae, however, and that’s where we’ll start.

* Hashimoto Toru, the mayor of Osaka, Japan’s second largest city, who became the nation’s most prominent regional politician to call for the devolution of government authority with stronger power given to local government. That has been an issue for more than two decades here, but he’s the man who achieved ignition and liftoff. He started a local party/movement called One Osaka that is now a national party known as the Japan Restoration Party.

* Watanabe Yoshimi, a former Liberal Democratic Party member and minister in the Abe and Fukuda cabinets with responsibility for governmental reform. A supporter of devolution and radical civil service reform to tame the Japanese bureaucracy and its political influence, he left the LDP when prime ministers Fukuda and Aso abandoned that course. He then created Your Party with independent Diet member and former MITI bureaucrat Eda Kenji.

* Kawamura Takashi, a former Democratic Party of Japan member and lower house MP. He ran in several elections for party president, which means he sees a prime minister when he looks in the mirror in the morning. He resigned from the DPJ to run for mayor of Nagoya on a platform of cutting municipal taxes and the remuneration of city council members by half. This is part of an ongoing movement for sub-national governments in Japan. He struggled to get his policy package passed by municipal legislators (natch), and stunned the political world and the country both when he resigned, ran again to make the election a referendum on his policies, and won in a walk. There’s more at this previous post.

He’s formed a local party called Tax Reduction Japan that is now a national party with six five members in the Diet. They want to reduce the number of lower house Diet members by 80 (to 400) and cut their salaries in half.

* Omura Hideaki, a former Liberal Democratic Party of Japan member and lower house MP. He forged an alliance with Kawamura Takashi during the latter’s second run for mayor of Nagoya. He was elected governor of Aichi, in which Nagoya is located, on the same day. He shares the same general political principles.

* Ishihara Shintaro, former upper house and lower house MP, and governor of the Tokyo Metro District. Everyone knows who he is.

The stupefying ineptitude of the Democratic Party government, the inability of the Liberal Democratic Party to reinvent itself as a coherent alternative during three years in opposition, the futility of seeking real reform from either of them, years of public dissatisfaction combined with a willingness to support anyone willing to take an axe to the waste and abuse in the public sector, and younger generations reaching middle age, have resulted in the national prominence of Hashimoto Toru. It soon became a question of when, not if, he would establish a national political organization. The answer was soon rather than late — less than a year after winning election as Osaka mayor, after spending three years as governor of Osaka Prefecture.

Here’s what he said at the time:

True reform for Osaka requires further amendments to (national) law. But even when we try to do something locally, we run into the wall of Nagata-cho (a metonym for the Diet) and Kasumigaseki (a metonym for the bureaucracy), who control the mechanism of Japan. We have to change Japan from the roots.

In addition to regional devolution, Mr. Hashimoto’s group also calls for the cutting the membership of the Diet’s lower house in half to 240, and cutting their salaries and publicly funded party subsidies by one-third.

At that point the narrative became one of wondering who would and would not become his political allies. Not only did they need to team with simpatico regional parties, Japan Restoration needed someone or some group with a national reputation. Eliminated right away were the establishment LDP and the labor union-backed DPJ, but everyone had discounted that because both were part of the problem and not part of this solution.

In an intriguing move, the Osaka mayor approached former Prime Minister Abe Shinzo in August to ask whether he would be interested in switching from the LDP to Japan Restoration. Mr. Abe expressed a strong desire to form some sort of alliance, particularly because they share an interest in amending the Constitution. But Mr. Abe eventually chose to remain in the LDP and run for party president, a campaign that he won.

While both men would surely like to work together, the LDP is unlikely to support the long-standing Hashimoto proposal to convert the consumption tax into a funding source for local government, and end the current system in which the national government allocates public funds. The shape and nature of any alliance will probably be determined after the election. The results will determine who needs whom, and the extent of that need.

* Hashimoto and Your Party

Speculation on ties with Japan Restoration had always started with Your Party, the first real national reform party. Several of their most important positions meshed, including the creation of a new system of sub-national governments with greater authority and civil service reform. They both also came out for eliminating nuclear power (probably for populist reasons), though Mr. Hashimoto has since backed away from that one. Further, Your Party supported Mr. Hashimoto in the election for Osaka mayor, and they share some of the same advisors.

At one point not long ago, people assumed that there would be a formal alliance. Rumors circulated that they had cut a deal in which Your Party head Watanabe Yoshimi would become the first prime minister if they won enough seats in the aggregate to form a government.

But that’s not how it worked out. The reason seems to have been a dispute over who was going to be the boss. Your Party held talks with the people from Osaka before Japan Restoration was formed, and they wanted them to join the existing party before they created their own. Knowing that his poll numbers are better Your Party’s (they can’t seem to hump it into double digits), Mr. Hashimoto refused and suggested that they disband and rearrange themselves.

Relations took a turn for the worse when three Your Party members, said to be unhappy with Watanabe Yoshimi’s leadership, quit and joined Japan Restoration. That caused more than a few unpleasantries to be hurled in the direction of Osaka.

But discussions resumed because an alliance remains in both their interests. They talked about cooperation to implement eight common policies, which at that time included opposition to the consumption tax increase, opposition to nuclear power, support for regional devolution and the state/province system, support for civil service reform, support for constitutional amendments, support for election system reform, economic growth policies, and foreign policy (they both favor participation in TPP).

The calls for a solid alliance seem to have come from Your Party, and Japan Restoration has turned down the offer for now. There was a meeting with Hashimoto Toru, Matsui Ichiro, and Watanabe Yoshimi at which blunt words were spoken.

Mr. Watanabe suggested they jointly offer an “east-west” slate of candidates for the lower house election, with Your Party covering the east (Tokyo and the Kanto region) and Japan Restoration covering the west (Osaka and the Kansai region). Mr. Matsui rejected it, and here was his explanation:

Their policies have not gained ground in the Diet, and they have become a group who can’t achieve them. Politics means taking responsibility for results. That requires a team that can create a decision-making approach.

Gov. Matsui also told Mr. Watanabe in so many words to come down off his high horse: “It was our idea to create a new type of political organization.” The Your Party boss responded that they’ve been calling for political reorganization from the day they formed the party (which is true). He asked again for an equal merger, and again he was rejected.

Mr. Matsui later said they will continue to talk to avoid running candidates in the same election districts, but it will be unavoidable, and they will try to minimize it.

Perhaps Japan Restoration has some foresight about Your Party’s fortunes. Mr. Watanabe campaigned several times for a Your Party candidate in a local election last weekend in his home district in Tochigi, but the candidate lost to one backed by the LDP and New Komeito.

Affairs are still in flux, however. Just yesterday Hashimoto Toru said Japan Restoration would probably be able to field only 100 candidates in time for the election. (One reason the major parties want an earlier election is to prevent the smaller parties from building a full candidate list.) He made a reference to working with Your Party if they also ran 100 candidates — in other words, supporting the east-west alliance he rejected a few weeks ago. Watanabe Yoshimi also gave a campaign speech today calling for the support of Japan Restoration.

Whatever is going on here, you won’t be able to read a reliable account of it in either the Yomiuri Shimbun or the Asahi Shimbun, the nation’s two largest newspapers. The Asahi is opposed to Mr. Hashimoto because they’re of the left, and the Yomiuri is opposed to him because he’s anti-establishment.

* Omura and Kawamura

As the story at the link above shows, Nagoya Mayor Kawamura Takashi and Aichi Gov. Omura Hideaki formed a regional alliance for the Triple Election in February last year. Both also organized political seminars this year to train people who supported their ideas for elective office.

Mr. Kawamura was the first to create a political party: Tax Reduction Japan. Mr. Omura followed by creating the Aichi is Top of Japan Party. The trouble started when he converted that party into the Chukyo Ishin no Kai, or the Chukyo Restoration Group, in August. The name is intentionally modeled on that of the Japan Restoration Party. His group was formed specifically to align with the Hashimoto group and fulfill the conditions for becoming a national party.

That cheesed off Mr. Kawamura, who was on an overseas trip at the time. He was miffed because the Aichi governor told Mr. Hashimoto about his plans, but didn’t tell him. The Nagoya mayor flew off the handle, saying their relationship of trust was broken and they couldn’t work together any more.

Some people saw it as a deliberate snub by Mr. Omura to break off ties with Mr. Kawamura. The former (at the left in the photo) is the straight-arrow policy type, while the latter (at the right) is the unkempt populist with a desire to be a major player. For example, he wondered if the Chukyo region would be relegated to being the subcontractor for Osaka.

Hashimoto Toru encouraged both of them to patch up their differences, because working together is would benefit everyone, and the policies were more similar than different.

And that’s just what the two men seem to have done while the media spotlight was pointed in a different direction. They announced an agreement to work together for the coming election after discussions that lasted late into the night of the 19th.

* Hashimoto and Omura and Kawamura

During the Triple Election campaign in Nagoya and Aichi, volunteers from the Osaka group went to the region to help both candidates because of their general agreement on devolution. Since then, however, it’s been a long strange trip that keeps getting stranger.

When Omura Hideaki created the Chukyo Restoration Group, Hashimoto Toru said that despite the name, they were unrelated to the Osaka group. They were independent and they hadn’t thought about an alliance for the national election. He added that Aichi support for their positions would be the condition for any alliance.

But then in October, a group from Osaka went to Aichi for a conference with letter from Hashimoto Toru asking Mr. Omura to form an Aichi Restoration Party. The alliance seemed like a natural: Not only are their policies similar, but they share policy advisors in journalist Tahara Soichiro, former Finance Ministry bureaucrat Takahashi Yoichi, and Koizumi Jun’ichiro’s jack of all trades, Takenaka Heizo.

The Aichi governor said that an alliance would take time, however, because he was still working with Kawamura Takashi. A blurb of two or three sentences appeared in one newspaper earlier this week announcing that Aichi and Osaka had worked out an agreement. In fact, Mr. Omura would be given the leeway to choose the candidate for one of the Aichi Diet districts in the election.

But just this morning, Mr. Omura announced that he would resign his position as advisor to the Osaka party to focus on his ties with Kawamura Takashi.

Your guess is as good as mine about this one. The best I can come up with is that working with Mr. Kawahara is a better way to solidify his position in Aichi.

—–
Meanwhile, Kawahara Takashi’s attitude toward an agreement with Hashimoto Toru was 180° in the opposite direction. He was so anxious to create an alliance that a hand was coming out of his throat, as an old Japanese expression has it.

He’s long been friendly with Ozawa Ichiro, but when he spoke at a political seminar for the People First Party, the new Ozawa Ichiro vehicle, he said his priority was working with Hashimoto Toru and former Tokyo Metro Governor Ishihara Shintaro. (That might also have been a function of his assessment of the extent of Ozawa Ichiro’s political influence in the future; i.e., not very much.)

The problem, however, is that both Mr. Hashimoto and Mr. Matsui have been giving the Nagoya mayor their cold shoulders. Mr. Kawamura thought a merger with Japan Restoration was going to happen when he reached an agreement to do just that with Ishihara Shintaro and his Sun Party, but no one else thought so. Mr. Ishimura thought it might be a problem with the tax reduction name in his party, and Mr. Kawamura obligingly offered to change it.

But Hashimoto Toru said the name had nothing to do with it: it was all content. He also said, however, that “In today’s circumstances, tax reduction is the wrong message.” That doesn’t necessarily mean the Osaka mayor is a tax hiker; rather, his position has always been that there should be a public debate and a consensus formed about what public services people want to receive. After reaching that consensus, it will then be time to figure out how to pay for them.

Mr. Kawamura, on the other hand, seems to favor the Starve the Beast approach: Don’t give the public sector the money to begin with. It isn’t widely known, but he also favors establishing neighborhood citizens’ councils to determine how public funds will be spent. In other words, his approach is the reverse of Mr. Hashimoto’s.

The Nagoya mayor is also opposed to TPP participation, while the Osaka mayor favors it. They were both anti-nuclear power, but Mr. Hashimoto has since modified that stance. Also, two of the five Diet members in Mr. Kawamura’s national party, which was formed at end of October, were LDP postal privatization rebels that former Prime Minister Koizumi threw out of the party. Hashimoto Toru supports the privatization of Japan Post.

Another reason Mr. Hashimoto cited for being unwilling to work with Tax Cut Japan is that another one of their Diet members, Kumada Atsushi, a lower house MP from Osaka, switched his party affiliation from the DPJ, but not before he accepted JPY 3 million to offset his campaign expenses. That’s not the sort of person he wants to work with.

Matsui Ichiro offered a blander rationale:

It’s not possible as of now. We haven’t had any policy discussions. There’s not enough time.

But wait!

After weeks of letting his tongue hang out in the national media, insisting that it would be easy to overcome the differences with Japan Reform, Mr. Kawamura announced today that he — he! — was rejecting an alliance with them. He’ll work with Aichi Gov. Omura instead.

But wait again!

Lower House MP Kobayashi Koki, Tax Reduction Japan’s acting president, said the whole point of the party going national was to work with people like Japan Restoration. After Mr. Kawamura’s announcement, he said he wanted to leave the party and join Japan Restoration. He got approval for both of his requests.

* Hashimoto and Ishihara

That brings us to strangest story of them all — the merger of Japan Restoration with Ishihara Shintaro’s four-day-old Sun Party and the appointment of Mr. Ishihara as the head of the party.

It was strange because Hashimoto Toru insisted that it wouldn’t happen, for several reasons. The first was policy differences — Mr. Ishihara and the Sun Party support nuclear power and oppose participation in TPP. Those positions are the opposite of those of Japan Restoration. The second was outlook. Mr. Hashimoto said an alliance was out of the question if the members of the Sunrise Japan party, the group that the Tokyo governor formed two years ago, joined the Sun Party. He explained that there would be no union with “pure conservatives”. (By that he means paleo-cultural conservatives.)

Another factor is that Your Party wants no part of Ishihara Shintaro at all. An alliance would threaten any cooperation with them.

The Osaka mayor said talks would get nowhere unless they changed their policies. What happened is that he changed his, even after Sunrise Japan joined the Sun Party. Here’s the list of common policies they agreed on:

1. Convert the consumption tax to a regional tax and cap the rate at 11%.

Making the consumption tax a regional tax will make a close relationship with the LDP difficult.

2. Begin discussions to achieve a state/province system

3. Implement measures to support SMBEs and microenterprises.

4. Social welfare funding sources: Eliminate the portion of central government tax revenues allocated to local governments, optimize social insurance premiums, reexamine benefit levels, and supplement the funding with revenues from the income tax and asset tax.

5. Take a positive attitude toward TPP negotiations but will oppose them if they’re not in national interest.

This is a compromise for both men.

6. Create rules and other safety standards for nuclear power.

Not only has is that a reversal of the Hashimoto position, it just might end opposition to nuclear power as a political issue. An NHK poll taken this week found that only 9% of the electorate considers it to be their most important issue.

7. Urge China to take Senkakus dispute to ICJ.

8. Prohibit corporate and group donations to politics.

[[UPDATE: Yankdownunder sent in this link showing #8 is now inoperable.]]

Mr. Ishihara suggested that he and Mr. Hashimoto share the party presidency, but the younger man declined and took the de facto number two position. His thinking was that he still has a job to do in Osaka, and Osakans would be displeased if he gave up his position a year into his term for a Diet seat.

Said Mr. Ishihara after the deal was cut:

The popular will is filled with fluffy ideas, such as ‘nuclear power is frightening’. Populism is flattering those ideas….The largest, most definite segment of the popular will, however, is ‘This country is in trouble. Do something!’ We must change the structure of governance by the central bureaucracy…

…People talk about a ‘third force’, but we have to become the second force. We have to discard our minor disagreements in favor of our greater agreements and fight together. I’ll be the one to die first, so I’ll pass on the baton later to Mr. Hashimoto. There’s no other politician who acts as if his life depends on it.

Putting aside the question of whether this merger pays off in votes and Diet seats, there are advantages for both parties. Don’t forget that Ishihara Shintaro was the co-author of the Japan That Can Say No. He now is allied with a popular and adroit younger politician who can create the environment in which public figures will stand up for Japan, rather than truckle to other countries. He’s also popular enough to drive the issue of Constitutional reform — and several other previously taboo issues besides.

For example, this week Ishihara Shintaro said this week that Japan should conduct a simulation of the use of a nuclear weapon as a deterrent. He added that he was not calling for a public discussion of whether Japan should now make nuclear weapons, but that it was only his personal opinion.

It might be only his personal opinion, but it has now been broached for public discussion. He added:

Saying that you won’t have nuclear weapons means that your voice in world affairs carries absolutely no weight. Even the US gets all wobbly when it comes to North Korea’s nuclear program.

There will also be no sucking air through the teeth and saying so sorry to China:

It would be desirable if Japan-China relations were friendly, but it would not be desirable at all if Japan became a second Tibet due to Chinese hegemonism.

For his part, Mr. Hashimoto is now allied with someone who has a power base in Tokyo/Kanto, giving the party a real east-west presence. That ally also has a national presence, which Mr. Hashimoto is still developing. It should not be overlooked that the most popular politicians in the country’s two largest cities are now allies working to reduce the power of the central government. (And Nagoya is the third-largest city; even without a formal alliance, Kawamura Takashi is likely to work with them more often than not.)

The drawback is that this merger creates a political party with as much internal incompatibility as the Democratic Party of Japan. One of Hashimoto Toru’s most prominent advisors and supporters is Takenaka Heizo, the Koizumi privatization guru. Also in the party by way of Sunrise Japan is that most paleo of paleo-conservatives, Hiranuma Takeo. Here’s what Mr. Hiranuma thinks of the Koizumi/Takenaka policies.

Perhaps it is the hope of the folks in Osaka that they’ll have outlived the paleos when the time comes they are no longer of use to each other.

*****
I’m no psephologist, and I have no desire to become one, so there will be no predictions from me about this election. You can hear all sorts of wildly varying predictions now anyway. The weekly Sunday Mainichi thinks the LDP and New Komeito combined will win 280 seats, giving them a lower house majority. They project the DPJ will win only 90 seats. The weekly Shukan Gendai, however, wonders if the LDP and New Komeito can reach 200 seats, and they think 75 is a real possibility for Japan Restoration.

The polls are all over the place, and as of this week, close to half the electorate is still undecided. A recent NHK poll found public interest in the election to be very high, and turnout could soar. That means anything in this election is possible, and all sorts of possibilities are flying around. There are now 14 political parties qualified to take part in the election, many of which will not exist at this time next year. One of them is a two-man party formed by a DPJ renegade and ex-People’s New Party head (and before that, ex-LDP honcho) Kamei Shizuka. Mr. Kamei formed his old party as a receptacle for the vested interests of Japan Post after he was dumped from the LDP for opposing privatization. He was a junior coalition partner of the DPJ for the specific purpose of allowing the DPJ to pass legislation in the upper house, and his reward was a Cabinet ministry. The party name for this dynamic duo is The Anti-TPP, Anti-Nuclear Power, Achieve a Freeze of the Consumption Tax Party. (Oh, yes it is!)

The cement in Japanese politics is now wet. The political realignment that people have been waiting for has arrived, or at least the first phase of it. The Big Bang election that just as many people have been waiting for has also arrived, or at least the first in a series of large bangs. If nothing else, the political class will finally learn what they can expect from the voters for betraying their trust and expectations after three years with the DPJ in charge. If they don’t now, they never will.

Afterwords:

* Prime Minister Noda Yoshihiko said this week:

I will not participate in a competition to lean rightward.

This is the self-described conservative speaking.

On the other hand, he has no choice, whatever it is he really believes.

Roughly 40% of the current DPJ MPs have close labor union ties, and the party’s largest source of organizational support is labor unions.

* During a 15 November TV broadcast, DPJ lower house MP and member of the Noda faction/group, said: “Noda’s attitude changed after he made the deal with Abe. He dissolved the Diet because Abe could put him in the Cabinet — particularly because the Finance Ministry wants him to see the consumption tax through.”

Sitting next to him was former agriculture minister, former DPJ member, and for another month anyway, lower house MP Yamada Masahiko. He heard this and marveled, “Oh, of course that’s what must have happened!” The announcer changed the subject.

Some people expect an LDP-DPJ-New Komeito coalition based on the consumption tax increase passage. Perhaps this has all been a chaban geki designed to stifle the local parties while the stifling’s still possible.

* Said LDP Secretary-General Ishiba Shigeru:

The LDP’s biggest foe is the LDP from three years ago, not the DPJ.

He’s right.

* Prime Minister Noda is demanding that all candidates sign a loyalty oath to the party’s policies. That was the excuse Hatoyama Yukio was looking for to retire from politics. It will save him the embarrassment of losing his Hokkaido seat outright, which was a real possibility.

* Former TV comedian and popular Miyazaki Gov. Higashikokubaru Hideo, who palled around a lot with Hashimoto Toru in 2008, is mulling a run as a PR representative for Japan Restoration in either the Tokyo or Kyushu bloc.

He considered running again for Tokyo Metro District governor — he lost to Ishihara Shintaro last year — but decided against it.

But that was earlier this week. Today he said he was still thinking about which he would do.

* Only the old-line journalists are talking much about Ozawa Ichiro in this election. I suspect he is a man whose time has come and gone, and people see him as holding a losing hand. Both Hashimoto Toru and Matsui Ichiro have said they weren’t interested in any arrangement with him. One reason is that his unpopularity would wound Mr. Hashimoto in the same way that Abe Shinzo’s decision to readmit the Japan Post rebels to the LDP wounded him.

* There are other local Restoration parties in addition to the ones discussed here. Three of them are in Ehime: One for the prefecture itself, with four prefecture council members, one for the city of Matsuyama, with 13 city council members (29% of the council), and one for the city of Seiyo, with seven council members (one-third of the total). They’re all working together.

*****
Everybody needs to go to the same karaoke box and belt this out:

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5 Responses to “Wet cement”

  1. Tony said

    Nice read!

  2. toadold said

    I was reading some bumpf and hysteria over at ZeroHedge.com about Japan’s financial situation when some one who was in favor of taxation in the comment’s section of the post referred to Noda as a trusted leader. The replies that statement generated were very close to the scatological and not safe to use in front of children, especially the ones from Japan.

  3. yankdownunder said

    and Osakans would be displeased if he gave up his position a year into his term for a Diet seat.

    I would think that displeasure would apply to Mr. Ishihara for the same reason.
    What unforeseen crisis justifies his quitting? His son losing LDP vote?
    Also he quit on Senkaku which makes me question his real motivation.

    I think he cares more about himself than Japan.
    ———–
    Y: I don’t know that he gave up on the Senkakus as the national government coopted him.

    -A.

  4. yankdownunder said

    8. Prohibit corporate and group donations to politics.

    http://www.yomiuri.co.jp/dy/national/T121121004014.htm

    Ishin drops policy of no company donations
    ————–
    Y: Thanks for this. I added it to the post.

    -A.

  5. [...] Japan might yet instruct the U.S. again how to be a reforming state. 2. Taiwan gets “Hong [...]

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