Japan Aff Michigan 2010 / ccgjp lab – 7wks
Exts: Japan Politics – Economy
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- Exts: Japan Politics – Economy
Exts: Japan Politics – EconomyHatoyama’s resignation has hurt the popularity of the DPJ. This popularity is needed for fiscal reformFujioka, 6/23 [Chisa Fujioka, 6/23/2010, Reuters News, “Japan PM seeks to quell Okinawa anger over U.S. base,” http://www.reuters.com/article/idUSTRE65M0TS20100623] Kan took over earlier this month from Yukio Hatoyama, who quit after sparking public outrage for breaking a promise to move a U.S. airbase off the southern island, reluctant host to about half the 49,000 U.S. military personnel in Japan. The dispute over where to relocate the U.S. Marines' Futenma airbase has distracted Washington and Tokyo as the close allies try to cope with an unpredictable North Korea and a rising China. It has also hurt the popularity of the ruling Democratic Party of Japan (DPJ) with voters ahead of a July 11 upper house election, which it needs to win for smooth policymaking, including efforts to rein in huge public debt. "I want to express my gratitude for the fact that this burden contributes to the peace and security of the Asia-Pacific region," Kan said at ceremony to mark the 65th anniversary of the Battle of Okinawa at the end of World War Two, in which about 150,000 Okinawan men, women and children were killed. "I promise to seriously try all the more to reduce Okinawa's burden related to the U.S. bases and eliminate the associated dangers." Kan, visiting Okinawa for the first time as prime minister, spoke at a memorial park where rows of black stones are engraved with names of those who died in the 82-day battle -- civilians and soldiers on both sides. Exts: Japan Politics – EconomyPrime Minister Kan is planning to solve Japan’s financial crisis and improve its welfare state. Schuman, Michael 6/23/2010 “Japan’s Economy: Nowhere to Hide” http://curiouscapitalist.blogs.time.com/2010/06/23/japan%E2%80%99s-economy-nowhere-to-hide/?xid=rss-topstories Growth, though, is what Kan is promising, or at least a Japanese version of it. In a long-term economic strategy report approved by Kan's cabinet a few days ago, his government vowed to achieve 2% real growth annually over the next decade. That may not sound like much, but to Japan that would be scorching. The economy has reached GDP growth of 2% or more only five times since 1992, according to IMF data. To meet that target, Kan intends to support new industries, like green energy, and tighten trade links to a growing Asia. But a big part of Kan's program is to try to unlock consumer spending in Japan, thus boosting domestic demand, eradicating excess capacity and finally putting an end to deflation. Like his predecessor, Kan intends to achieve those goals by turning to turn Japan into something like a European welfare state, with improved medical and child day-care services and outright subsidies to help families with young children. Here's what Kan said in a June 11 policy speech: If people are anxious about or distrustful of the social security system --whether it be about medical treatment or nursing care, pensions or child rearing--they will lack the confidence to allocate their money to consumption. Additionally, many aspects of social security can bring about growth by creating employment. Welfare programs/domestic plans are key to Japanese economy – create jobs and increase consumer spending. the Japan Times 6/12/2010 “Mr. Kan States His Approach” - http://search.japantimes.co.jp/cgi-bin/ed20100612a1.html Mr. Kan declared that in order to build society in which people have hope for the future, he will "rebuild the economy, state finances and social welfare in a unified manner" — in other words, build "a strong economy, strong finances and strong social welfare." Mr. Kan must mobilize all available political resources to achieve this grand goal. His basic approach is — in contrast with a "first way" of relying on massive public works spending and a "second way" of pursing market fundamentalism — to pursue a "third way," which will try to create demand and employment through efforts to solve various social and economic problems. In this line of thinking, he rejected the view that social welfare spending hampers economic growth and said that social welfare includes many fields that create employment, adding that people will start spending, thus increasing domestic demand, only when they have no worries about medical and nursing care services, pension and child-rearing support. For better administration of social welfare, he proposed introduction of a social security number system. This proposal must be examined from a wide range of angles through wide public discussion. Mr. Kan listed "green innovation," "life innovation" (industries related to health and child rearing), "the Asian economy" (especially Japan's role in building infrastructure in other Asian countries) and "tourism/regional revitalization" as areas where contributions to economic growth can be expected. He also stressed the importance of strengthening science and technology and human resources. He must flesh out his ideas in a "new growth strategy" to be announced later this month. Exts: Japan Politics – EconomyDPJ needs support for sales tax legislation Sieg, 6/26, [6/26/2010, Lina Sieg, Reuters News, “UPDATE 1-Japan Democrats may miss upper house majority-media”, http://www.reuters.com/article/idUSTOE65P00620100626] TOKYO, June 26 (Reuters) - Japan's ruling Democratic Party could well fall short of an outright majority in a July 11 upper house election and may need to find new allies to control the chamber and smooth policymaking, media reported on Saturday. That would complicate efforts by Prime Minister Naoto Kan to push ahead with efforts to rein in Japan's huge public debt, including a possible doubling of the 5 percent sales tax, that he has put at the heart of his campaign in a risky policy shift. The Democratic Party of Japan (DPJ), which swept to power for the first time last year promising to cut waste and focus spending on consumers, will run the government regardless of the result of next month's poll because it controls the lower house. But the party needs a majority in the upper chamber to enact laws and implement policies smoothly. A June 24-25 survey by the Asahi newspaper showed the DPJ could win about 54 of the 121 seats up for grabs in the 242-member upper house, short of the 60 it needs for an outright majority but in line with a target set by Kan. The Nikkei business daily predicted the DPJ could win more than 54, while the Yomiuri newspaper said it might get about 50. All three newspapers said it was up in the air whether the Democrats and their current tiny ally, the pro-spending People's New Party (PNP), could get the 56 seats they need to keep a combined majority together with an affiliated independent. Kan, Japan's fifth premier in three years, needs a robust showing by the Democrats to fend off any post-election challenge from party rivals, such as powerbroker Ichiro Ozawa, that could make him the latest of the country's revolving-door leaders. Support for the Democratic-led government and the party has rebounded since Kan took over from his unpopular and indecisive predecessor Yukio Hatoyama earlier this month.
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