Sunday, January 31, 2010

Foreigners Shouldn't vote in Japan.

The debate about opening the polls to long time residents of Japan, who are not citizens has been raging in Japan for months now. The current discussion is focused on whether Japan should adopt legislation to extend voting rights to Permanent Residents, who are not Japanese Citizens.

The proposed Foreigner's Suffrage bill has divided the government. The call for voting rights for long-time residents of Japan is in large part being pushed by the South Korean government. There are an estimated 400,000 Korean citizens currently holding Permanent Residency in Japan. Under current voting laws they are not allowed to cast ballots in elections. These Korean citizens are in large part fully integrated into Japanese society, speaking fluent Japanese, owning businesses and property. Many of them are third and fourth generation residents. Japanese Citizenship is based on lineage and these Koreans are kept in a pseudo-citizen category. Some of the Koreans who were Permanent Residents, have married Japanese spouses and have become naturalized citizens. Many of them are not currently Japanese Citizens.

It is my contention that in order to vote in any country, you should follow the legal avenues to become a citizen of such a country and not be voting from the outside in. Although these Korean citizens and a great deal of other nationalities currently reside in Japan on a full time, permanent basis they should not be voting in Japanese elections, be they local or national.

“The government should not be hasty in submitting a bill to the ordinary Diet session to grant local voting rights to permanent foreign residents in Japan, Internal Affairs and Communications Minister Kazuhiro Haraguchi said Saturday.” (1)
Haraguchi came out in support of the legislation back in the fall of 2009 and has since became a little more moderate on his stance as the above quote demonstrates. The Democrats have been attempting to open a more positive dialogue with Seoul on a variety of issues. The main focus of the DPJ has been to increase positive relations with the Asian community, and granting voting rights to non Japanese citizens seems to be another ploy to this end.

Prime Minister Hatoyama and Democratic Party of Japan Secretary General Ichiro Ozawa have been supporting the foreigner's suffrage bill and pushing for the proposed bill to make its way quickly through the necessary Diet sessions, so that it can be passed into law. The Democratic Party of Japan has been working towards Permanent Resident legislation since 1998, but due to staunch opposition from the Liberal Democrats they could not get the previous 12 bills through the house. (2)
Japan is often criticized by foreign residents as being slightly racist. Japanese citizens periodically look down on Korean Permanent Residents in Japan. Although granting voting rights to long time residents could alleviate some of these tensions, the vote specifically should only be granted to full fledged citizens of Japan.


(1)http://www.yomiuri.co.jp/dy/national/T100130005317.htm
(2)http://search.japantimes.co.jp/cgi-bin/nb20091009a1.html

Thursday, January 21, 2010

Unpaid Overtime is Killing McDonald's Managers

Japan is notorious for the long hours of work that companies expect from their employees. This service overtime is unpaid overtime that a company expects and often demands from employees. Periodically this culture of unpaid overtime ends up killing otherwise healthy employees who cannot physically handle the stress and the hours involved. The Japanese have a word (karoshi) which translates to roughly “death from overwork.” The latest death by overwork scandal is levied against McDonald's and is winding its way through courts here in Japan.

Recently a 25 year old male, who was managing a store in Kawasaki city collapsed and died due to karoshi. According to a story on the Yomiuri Online, “he was working on November 07, 2009 from noon to the following day at 5 a.m. He then came back to work the same day (Nov. 8) at noon. Soon after he collapsed and died.” (1) The victim's mother is trying to get compensation for the death of her son, but this week she lost a local court decision to receive financial benefit. The January 18, 2010 ruling upheld a labour standard assessment committee's denial to pay compensation.

The latest victim of a ridiculous schedule for the international hamburger shop is by far not the only one. In addition to the deceased manager in Kawasaki, a manager in Saitama Prefecture launched a lawsuit against McDonald's nearly five years ago regarding unpaid overtime. Also, a female manager died from overwork, due to her schedule, managing a Yokohama McDonald's in 2007.

McDonald's Japan lost a lawsuit two years ago with a former manager, who collected roughly $70,000 (USD) in compensation for all his unpaid overtime. Hiroshi Takano had worked an estimated 60-80 hours per month of service overtime, in addition to his normal, paid working schedule. Furthermore, he was denied any paid holidays for 63 days. Takano also sought a further $30,000 (USD) in compensation for mental suffering, but that claim was rejected by the court which heard his case.(2)

“(In October of 2007) A store manager with hamburger chain McDonald's in Japan who died of a brain hemorrhage was a victim of "karoshi" or death by overwork, a regional labour office said.” reports an AFP story from October 2009.(3) This manager who collapsed and died was a 41 year-old woman who was overseeing a Yokohama branch. Her family subsequently launched a lawsuit to collect pension money after the labour bureau ruled that he death was a “Karoshi” death.

“According to the court, the average annual salary of McDonald's shop managers stood at ¥7.07 million ($70,700 USD) in 2005. But the salaries varied, with some 10 percent of managers receiving only ¥5.79 million ($57,900 USD), a level lower than the average annual salary of assistant shop managers, based on evaluations.”(2)

Japanese blogs, and social networking sites are increasingly filling up with comments and posts about the negative aspects of taking a management role for McDonald's. On line users of 2CH have been discussing the seemingly high salary of managers for McDonald's restaurants, but have been warning others about the possibility of literally being worked to death, and discussing negative health aspects.(3)

Many McDonald's managers estimate that they spend roughly 80 hours per month engaged in unpaid overtime. The fact that McDonald's has been expecting managers to work 80 hours unpaid overtime for the past number of years is astonishing. This policy has led to lawsuits and deaths, but still McDonald's Japan expects far too much out of their managers and their policies have obviously changed little. The company has been able to escape with little more than a slap on the hand, despite the fact that karoshi deaths continue to plague the corporate giant.


(1) Yomiuri Online (Translated into English) http://job.yomiuri.co.jp/news/ne_10012004.htm
(2) http://search.japantimes.co.jp/cgi-bin/nn20080129a3.html
(3)http://www.google.com/hostednews/afp/article/ALeqM5gwgGnPxcowg7_uyZJCFFGXnT1N6w
(4) http://natto.2ch.net/recruit/kako/982/982941629.html

Saturday, January 16, 2010

Financial Irregularities threaten Hatoyama and Ozawa.

Japanese Prime Minister Yukio Hatoyama and Democratic Party of Japan (DPJ), Secretary General Ichiro Ozawa are under constant criticism by the Japanese media, regarding some allegedly sketchy financial deals and some questionable election funding. The continued probes are limiting the ability of the Democrats to govern effectively. As of Monday the DPJ will be beginning their first ordinary Diet session and will be under increased attack from the Liberal Democrats regarding the financial affairs of the both Hatoyama and Ozawa.

The Democrats have been battling with the problems for quite sometime now, and the subsequent investigations into some of the funding has led to arrests and ruined political careers inside the ruling party. Tomohiro Ishikawa a DPJ Lower House member was arrested on Friday in connection with financial irregularities, in connection with Ozawa's political funding. Ishikawa, is only the latest political victim of the Ozawa scandal. Two former Ozawa aides are facing the justice system over the 2004 Tokyo land deal when a reported ¥400 million changed hands without being registered. (1)

Currently, the members of the Democrat's coalition government are urging Ozawa to come clean on his financial dealings. According to an article on the front page of Saturday's edition of The Japan Times, the Secretaries General of both the Social Democratic Party (SDP) and the Kokumin Shinto (People's New Party) are calling for an explanation from Ozawa. “I expect (Ozawa) to make efforts to dispel public doubts,” said SDP Secretary General Yasumasa Shigeno. (2)

Prime Minister Hatoyama's financial dealings are also under a cloud of suspicion, but the Prime Minister has demonstrated a better ability than Ozawa to rise above the criticism. Hatoyama's financial donations in the lead up to his campaign and election last summer are under scrutiny and will be viciously challenged by the Liberal Democrats in the coming months. Hatoyama faces questions arising from his list of campaign contributors. It has become apparent that the Prime Minister's secretary had attempted to spread Hatoyama's family donations to a larger base of individual contributors. Hatoyama's family is extremely wealthy, due to the fact that his maternal grandfather was the man behind Bridgestone Corp. The Prime Minister's secretary apparently took large family donations and attributed them to a broader base of individuals, thus appearing that Hatoyama had a broader support base than he actually did. Some of the listed contributors were in fact no longer physically able to make donations, as they currently reside in the grave-yard. “It was only with media reports that deceased people had been falsely listed in Hatoyama's political fund reports as funding donors, and subsequent accusations from a citizens' organization, that the murky flow of vast amounts of funds surrounding the prime minister came to light.,” (3) reported the Mainichi Daily News in December.

The funding issues surrounding two of the Democrat's biggest political names could possibly have negative consequences in the upcoming House of Councilors election slated for July. Both Hatoyama and Ozawa will have to successfully deflect growing criticism from the media, the Liberal Democrats, the public and coalition partners in order to take full control of the governance of Japan.


(1)http://search.japantimes.co.jp/mail/nn20100116a1.html
(2)Kyodo. "Come Clean, DPJ's partners tell Ozawa." The Japan Times [Tokyo] Saturday, January 16th, 2010 , 3rd Edition, Front: A1.
(3)http://mdn.mainichi.jp/perspectives/news/20091225p2a00m0na014000c.html

Tuesday, January 12, 2010

International Parents on Edge in Japan

A Tennessee man was arrested in Japan a few months ago for trying to “kidnap” his children. The arrest lead to international media attention. Christopher Savoie, was jailed for attempting to “snatch back his children from his estranged wife,” in September of 2009. (1) The case has put a human face on the problem of foreign nationals losing their rights to interact with their children after their estranged spouses return to Japan without the consent of the other parent.

The case attracted attention from both American and Japanese sources and left many parents involved in international marriages wondering what exactly their rights were. Japan has yet to sign a Hague Convention that would bring the country closer to respecting a child's right to have a relationship with both parents.

“The Hague Convention on international child abduction stipulates that if a parent from a broken international marriage takes a child out of his or her country of residence without the other's consent, the child must be returned to that country.”(2)

Japan has drawn fire from international groups, and diplomatic missions for the way it handles international child custody cases and as the government moves closer to signing the Hague Convention the result will make the process fair for both sides. Many of the disputes involve American and Japanese parents, and the Japanese Foreign Ministry is looking into signing the Convention. The ministry has convened a task force on the issue and are presently debating the merits of signing the agreement.

According to the Asahi Shimbun, 81 countries are currently signatories to the Convention which stems from 1980. Japan is now the only G7 member nation which still has not signed the agreement. (2) To say that the agreement should have been signed long ago, seems at this point a bit of an understatement.

Apparently, Japanese law-makers have been reluctant to sign on to the agreement fearing that abusive ex-spouses will jeopardize the children's safety, which is a legitimate concern in a small fraction of the growing number of cases involved. Japanese customs are also at stake. In Japan, when courts are deciding the future residences in custody cases, they almost aways grant custody to the spouse that can spend more time with the children, usually the woman.

The custody of children in cases of international divorce is a growing issue that needs to be addressed and dealt with according to international standards. In a globalized environment, states must act with good-will towards one another and provide assurances that international norms will be respected. Having said this, Japan needs to sign the Hague Convention without delay, and put an end to these lingering issues of custody and visitation.

According to the Assembly for French Overseas Nationals for Japan and other groups supporting divorced parents in Japan, roughly 10,000 duel citizenship children living in Japan are prevented from seeing their foreign parent. (3) This is clearly a problem that needs to be addressed. Recently US, Canadian, British and French diplomatic missions ave made the case to Tokyo.

Hopefully for the diplomatic well being of Japan, the newly elected Democratic Party of Japan will get behind the effort to push the issue through and get the Hague Convention signed. Current Foreign Minister, Katsuya Okada has implied that he is willing to study the manner. Michele Bond a consular affairs employee with the American Embassy in Tokyo said that she met officials at both the Foreign and Justice ministries who told her that the government is “very seriously and carefully considering signing” the Convention. (4) The previous statement however, dates back to May of 2009. At this point it looks like the government is drawing closer to signing, but the sooner the better, for many children and parents who are waiting to reunite.






(1)http://edition.cnn.com/2009/WORLD/asiapcf/10/15/japan.custody.battle/index.html
(2)http://www.asahi.com/english/Herald-asahi/TKY201001080120.html
(3)http://search.japantimes.co.jp/cgi-bin/nn20091010f1.html
(4)http://search.japantimes.co.jp/cgi-bin/nn20090522a4.html

Saturday, January 9, 2010

Liberal Democrats forced to adapt

The Liberal Democratic Party (LDP) of Japan is an institution. The party had controlled the government of Japan for fifty years, relatively uninterrupted. However, with a bitter defeat in last year's election by the Democratic Party of Japan (DPJ), the once long serving party is in transition. The Liberal Democrats will not be returning to power, unless they restructure internally and provide some direction for the country.

The LDP had been guiding Japan's economy and foreign policy with a tried, tested and true philosophy that collapsed with the global economy a few years back, and most recently led to the embarrassing defeat in last summer's House of Representatives election. The loss was more of a referendum on the LDP leadership and ruling mentality, than it was a vote of confidence in the DPJ's ability. With voters disenfranchised, the polling numbers were drastically low, in an election that would re-shape the Japanese economy and global outlook. Voter turnout was estimated at roughly 50% in the election, but strong weather conditions and swine-flu (N1H1) apparently also kept voters from turning up. (1)

After so long, what went wrong for the Liberal Democrats?

Domestically, many news sources have attributed the fall of the LDP to the economic troubles that have recently rocked so many economies. This is no doubt a major factor in the defeat of the LDP. However, another reason that is less apparent was also at work when voters decided to hand the reigns to anyone other than the LDP. The Liberal Democrats had become a legacy party with a sense of entitlement, offering very few fresh ideas and little or no convincing arguments as to how they should, or even why they should fix the problems that had developed under their leadership. Rather, it was not only the economic plunges of the past few years that doomed the LDP, but it was also the lack of vision that the party displayed.

Kazuo Inamori, founder of Kyocera Corp, made the argument against Japan's virtual one party leadership in an October interview. Inamori believes that healthy debate and a government that shifts between parties is essential as Japan moves forward in the coming decade. "If government mismanagement provoked sharp criticism from the public and led to changes in power, political parties would naturally be imbued with a sense of tension, recognizing that only by delivering good government could they continue to rule."(2)

Current LDP President Sadakazu Tanigaki has to truly lead his party into a new era, in order to reaffirm the Liberal Democrats place as the institutional government of Japan. The recreation and transformation into a new and healthy party will take time and effort on the part of the LDP senior leadership. The party does have one strong advantage; they have the know-how and experience to govern. According to today's Japan Times, "Tanigaki has launched a council within the LDP to redefine the party's political ideals and devise strategies to retake power from the DPJ- led coalition." (3)

It is yet to be seen if this council can reshape the party or the policies in any meaningful way. There is serious doubt that the new party will be anything different than the same old Liberal Democrats in new clothes. The party needs to go shopping in the private sector and attract a few stars to the fold. It also needs to learn tough lessons from their only major source of competition, the DPJ. One such lesson is to take an increased interest in the Asian community and to continue to develop and foster closer relations with China. The future success of the LDP heavily rests on their ability to promote a few fresh ideas while balancing this change with the policies that have made them a success in the past. In the past the LDP has been conceived as a fairly good financial steward and must principally regain this perception. As a few fresh ideas, they could offer increased funding of Japanese defence and ring the patriotic bell, they could focus on popular environmental issues, diplomatically, they could support increasing relations with China and South Korea.

1) http://news.bbc.co.uk/2/hi/8228278.stm
(2) The Statement as written appears in Inamori, Kazuo. "Finally, a True Change of Government." Japan Echo Dec. 2009: pg. 11. The original Japanese version apparently comes from "Hatoyama Minshu yo, katte kabuto no o o shimeyo," Bungei Shunju, October 2009, pp.106-113.
(3) "LDP stumbles along the comeback trail." The Japan Times 9 Jan. 2010: A3.

Wednesday, January 6, 2010

Japanese Prime Minister engaged in delicate balancing act.

The Japanese government is in the middle of a delicate balancing act. Prime Minister Yukio Hatoyama and his coalition government are busy making inroads in a rising tide of Asian power, while preserving the close diplomatic relations with the empire that has helped provide their current prosperity.

The positive developments have been on the side of increasing the Japanese profile in Asian affairs, but many speculators and political junkies believe this move has come at the cost of Japanese/ American bilateral relations. Hatoyama had the opportunity to discuss Asian affairs with his counterparts, Primier Wen Jiabao of China, and President Lee Myung-bak of Korea at the second Japan-China-ROK trilateral summit meeting in October of 2009.

At the press conference following the summit, Wen Jiabao was the first to speak, "Through this summit, the future direction for Japan-China-ROK cooperation has become clearer, the content of that cooperation has been further enriched, and our determination is now firmer than ever before. I am convinced that the future of our trilateral cooperation will become even more attractive through the joint efforts of our three countries' leaders, governments, and citizens." (1)

Japanese relations with both South Korea and China have had a strained and difficult past, but recent agreements and moves by the three signals that they value each other, as a cornerstone in the development of a strong and prosperous Asia.

Hatoyama, speaking at an APEC conference in Singapore in November commented at great length about the growing relations with Asian countries. He has been increasingly forward in his hopes for Asian cooperation and growing diplomatic and economic relations. He has been a leading voice on developing a more powerful East Asian community. In Singapore the Prime Minister said the following regarding relations with China and South Korea, "We should be encouraged by the fact that the ASEAN countries, China, the Republic of Korea and others have begun to play a constructive role in the region and in the entire international community while working together to promote their economic development." Hatoyama then went on to say, "United States has been playing and will continue to play an important role in ensuring the peace and prosperity of Asia, including Japan." (2)

Hatoyama, shortly after being elected even suggested that an East Asian Union be created, based on the European model. Under the proposal, Hatoyama proposed the eventual introduction of a single currency for the Union, but noted the introduction of such a Union would take time.

Huo Jiangang, a scholar studying Japanese Relations at the China Institutes of Contemporary International Relations, "(has) listed the Korean Peninsular nuclear issue, free-trade agreements and unified currency among numerous difficulties before such a community is initiated. He also told the China Daily the following during an interview in September of 2009, "It is also hard for China and Japan to trust each other due to different value systems and fierce competition."(3)

The focus on Asia has cost Hatoyama some political capital with Obama and Washington. Hatoyama has in the past few months been busy paying lip-service to his American commitments. Hatoyama has recently said that the 50th anniversary of the signing of the Japan-US security treaty should be viewed as an occasion to expand bilateral relations, according to an article in Tuesday's Japan Times newspaper.(4)

The current squabbling between Washington and Tokyo on the Futenma issue remains to be resolved and could hurt bilateral relations moving forward. According to a 2006 security agreement between Japan and the US, the US Marine Corps Air Station Futenma located in Okinawa was scheduled to be moved Camp Schawb, also in Okinawa. However Hatoyama and his coalition government have reopened the issue, causing tensions in relations.

"The row over the base has underscored the Obama administration’s difficulties in finding common ground with Mr. Hatoyama’s slightly left-leaning Democratic Party government...Mr. Hatoyama has also seemed to pull away from Washington by allowing the Japanese Navy’s mission of refueling American warships in the Indian Ocean to end and telling Asian leaders that Japan has been overly reliant on the United States," writes Martin Fackler in a recent New York Times Article.(5)

As the Japanese government continues to examine the base issue in hopes of finding an amicable solution, officials have been stressing the importance of the US/ Japanese relationship. "Japan's diplomatic priority is to deepen its alliance with the United States, and resolving the disagreement with Washington over the realignment of U.S. forces in Japan is integral to this goal, Foreign Minister Katsuya Okada said in a policy speech Monday." (6)

As Japan moves to warmer relations with China and South Korea, they cannot cause serious and irreparable damage to their relationship with the current global superpower. It is obvious to many that the tide is shifting to a world increasingly run by Asian powers, but the shift will be a gradual one and will place Japan on a tight-rope for the near future. Japan has remained strong economically by being a relative mute power and Hatoyama's policy of strong statements and proposals on both sides of the fence will take a more balanced effort than he has currently provided. Domestically, Hatoyama can move away from American dominance, and remain popular at home. This of course will directly impact the defence of Japan and also could have economic consequences. Moving to a more pronounced role in Asian politics is dangerous long-term for Japan as the history of relations between Japan and China, and Japan and Korea suggests. One thing is clear; Hatoyama is engaged in a delicate balancing act, due to his Asian-centric statements and his countries commitments to American agreements.




(1)http://www.kantei.go.jp/foreign/hatoyama/statement/200910/10JCKkyoudou_e.html
(2)http://www.kantei.go.jp/foreign/hatoyama/statement/200911/15singapore_e.html
(3)http://www.chinadaily.com.cn/world/2009-09/23/content_8724372.htm
(4)Hongo, Jun. "Budget to be government's top priority." The Japan Times 5 Jan. 2010: A2.
(5) http://www.nytimes.com/2009/12/16/world/asia/16japan.html
(6) http://search.japantimes.co.jp/mail/nn20100106a3.html

Sunday, January 3, 2010

Junk Producing China set to Surpass Japan in 2010

China has cornered the market on economic growth. It seems that you can't read any business news without realizing the China is quickly becoming the second biggest economy globally. International Monetary Fund projections show that China is poised to steal away the second slot from Japan in 2010. This has large geo-political implications for both countries.

According to a recent Economic Times article the Chinese estimate on growth rate is 9.6% narrowing the gap with Japan. Chinese Gross domestic product (GDP) was pegged at $4.6 Trillion, while the World Bank estimates that Japan's current GDP is $4.9 Trillion. (1)

As China's economy continues to grow at a staggering rate it has had real business consequences for foreign firms trying to enter the domestic economy en masse, "The pace of growth is attracting more investment. Foreign direct investment climbed 32% in November to $7 billion from a year earlier. Luxury carmaker Bayerische Motoren Werke (BMW) said last month that it will build a new factory worth 5 billion yuan in China to tap an auto market set to overtake the US as the world’s largest," (2)

However, the simple fact that China is out producing Japan, does not instantly transform into large scale benefits for the vast Chinese population. It is hard to pin down exact numbers on the amount of Chinese people who live in extreme poverty, but estimates are often in the low hundreds of millions, accounting for a substantial percentage of the total population, perhaps up to 30 percent. In contrast Japan's number of homeless people is currently pegged at 15,000 but could be as high as 30,000 according to some reports, roughly 0.02% of the total population. (The preceding comparison is based on extreme poverty in China vs. homelessness in Japan, as it was the easiest comparison to make because there is virtually no one in Japan living in extreme poverty, the sources are from various outlets.) The fact that China will become the second biggest economy will eventually help these Chinese poor, but it will take considerable time for the country to develop into a first world economic powerhouse. The same is true for India, whose economy is growing by leaps and bounds, but still has a great deal of people in poverty.
China also faces another major stumbling block, the country's industries and businesses are based on building the worlds products. I will test this, and now ask you a direct question; Can you name one internationally successful Chinese Brand?....

Despite visiting China, and spending a considerable amount of time in Asia in the past three years, I was hard pressed to do this myself when first asked the same question this summer by Newsweek. I now can think of roughly one multinational Chinese brand, Tsingtao Beer, developed by German settlers in 1903. (3) Apparently the one Chinese brand I can name was developed by people of a different country. This phenomenon continues today as a large amount of domestically available Chinese goods are nothing more than stolen technology and infringements on foreign held intellectual property. Chinese industry and government has done very little to protect the intellectual property and patents of businesses that are producing in China and making the GDP balloon year after year.

"China's weak protection for intellectual-property rights—the patents and ideas that are the solid core of any brand—makes it risky for companies to invest heavily in innovations that could make them famous worldwide but could easily be stolen by rivals at home. Finally, the recent string of product recalls—including poisonous pet food and faulty tires—has left consumers wary of made-in-China goods," Craig Simons Newsweek (4)

One blatant and laughable infringement was targeted against Canadian mobile manufacturer Research-In-Motion, makers of the highly popular Blackberry. As the Blackberry was gaining interest in China, a Chinese company, Unicom released the "Redberry," on the heals of Blackberry's debut.(5) Both subtle and not so subtle infringements are obvious products of an extensive economic espionage effort orchestrated by the Chinese Ministry of State Security (MSS) and the technological collection bureau. The Chinese agents are well placed globally and target various industries in a growing number of countries. According to a recent book launched from Canada by authors Fabrice de Pierrebourg and Michel Juneau-Katsuya titled Nest of Spies, the Chinese threat works from a broad-based approach, with engineers, travelers and students providing information to central collection in China. That information is then passed on to Chinese Industry. This is another large factor in the internal growth of the domestic economy. If you don't have the technological know-how, any research and development departments and sub-par universities how do you acquire the technology that fuels growth? You could buy it, or as China continues to do, you can steal it from legitimate companies and nations, who educate the reverse engineers that China churns out.

Regarding Multinational Chinese brands, I named Tsingtao beer earlier, but upon second thought I was also vaguely familiar with Geely (a Chinese Auto Company) before recent announcements that the firm was buying Volvo from Ford. My first interaction with Geely was by pure chance. I was handed a blue hat with Geely written across the front of it at the North American International Auto Show in Detroit a few years back. The visor of the hat was massive, and it quickly became a joke. That hat sat in the trunk of my Volkswagen for about a year. Now the name Geely has become famous in the West, in conjunction with moves to purchase Volvo. The Hummer brand was also recently snatched up by a Chinese manufacturing and heavy equipment firm. China might not have any brands of its own but it is sure buying up globally recognized auto brands in a move in the right direction.

However Japanese global giants Honda, Toyota, Nissan, Suzuki, Mazda, Mitsubishi, Subaru, Isuzu, Kawasaki and Yamaha are still making automotive inroads largely due to the fact that the can make decent cars at fair prices. China might be cornering the market on the best price, for vehicles and a whole host of other products, but they are a long way away from offering decent and recognizable products.

Japan might be overtaken by China in 2010 as the second biggest economy based on GDP, but in all the areas that matter, China continues to be a third world country, producing the world's dollar store bargains.


(1)http://economictimes.indiatimes.com/news/international-business/China-on-course-to-overtake-Japan/articleshow/5379542.cms
(2)http://economictimes.indiatimes.com/news/international-business/China-may-become-second-largest-economy-in-2010/articleshow/5382123.cms
(3) http://www.tsingtaobeer.com/brewery/brewery.htm 
(4) http://www.newsweek.com/id/207381
(5) http://www.infoworld.com/d/applications/blackberry-meet-chinas-redberry-800

Friday, January 1, 2010

Food Politics: Japan has the Right Idea

Factory Farms are feeding millions of people globally with suspect sources of unsustainable beef, pork and chickens. These large scale producers of livestock in the United States and Canada have been jeopardizing the food supply. According to the www.sustainabletable.org a web-site devoted to changing the way we think about our food, the problems associated with factory farming include; excessive numbers of animals confined closely together, disregard for animal welfare, misuse of pharmaceuticals, mismanagement of animal waste, and socially irresponsible corporate ownership.

In the documentary film Food Inc, released in 2008, Robert Kenner takes the veil off North American factory food production and exposes the underlying and inherent problems associated with the disconnect between customers and consumers with the farmers and companies that increasingly supply their meat. The film and subsequent book make it very clear that the small group of companies that control the North American food production are unwilling to discuss their business to journalists or the media. These North American companies are beyond secretive, and have often resorted to lawsuits and thinly hidden threats if anyone associated with their business speaks publicly or cooperates in anyway with journalists or documentary film makers.

However, Japanese companies and government agencies have been focusing on informing customers, in stark contradiction to North American producers. In June of 2003, the Japanese government passed legislation requiring traceability from the farm through retail sale. On Japanese beef there exists a 10 digit Individual Identification Number that each cow is assigned at birth (with an ear tag) and this number follows the cow through his life, slaughter and sale to the end customer. The process was put in place after the outbreak of bovine spongiform encephalopathy (BSE) in the local Japanese cattle herd.
(http://www.oie.int/eng/traceability-2009/documents/speakers_presentation/4.5.Hirokawa.pdf)

As part of the traceability efforts, Japanese customers have access to various facts about the meat they purchase and consume. This information is available at the point of retail, in real time. Japanese corporations also helped lead the push on meat traceability and it was not something forced on them by government officials and regulators.
“The Aeon Company has developed one of the most comprehensive assurance systems for domestic Wagyu beef. Under this system, customers can enter a 10-digit code into a computer located in the meat sales area to obtain information about the beef they are purchasing (see Figure 1). The consumer can obtain a production record certificate that traces the meat back to the birth of the animal from which it was harvested, the BSE testing certificate, and a photograph of the livestock producer(s). This information is also accessible from the customer's home computer,” reports a 2003 article at the outset of the new traceability regulations. (http://www.card.iastate.edu/iowa_ag_review/fall_03/article2.aspx)

Currently, a Japanese customer can walk into a local grocery store equipped with a cell-phone and find out the following information about the piece of steak they are going to buy; birth date, sex, breed, location of cattle, transfer status, transfer date and the owners name and address courtesy of the following web-site, which surprisingly is available in both English and Japanese. The English web-site address is (www.id.nlbc.go.jp/english/). Many meat specialty shops will verbally provide customers this information as they interact with shop staff.

The Japanese traceability system ensures customers that their beef is safe, and with such free-flowing information, provides a model of success that North American consumers should be taking note of. Japanese food companies have been putting pictures of the farmers and producers of food supplies on packaging for years.

I recently noticed there was a picture on the label of my delicious pastry, as I opened it. It was then explained to me that this system helps Japanese customers feel connected with the producer or farmer. Further than that, it also logically affects the attitude of the farmer or producer. It makes the person directly responsible for the food known to the consumer who will eat the product. This in-turn makes the producer more responsible and lowers the chance for negligence. The information provided through a trace of the 10 digit Individual Identification Number provides the farmer’s name and address, having the same influence on his actions to act responsible.

North America needs to move in the direction Japan has regarding traceability of food sources, specifically meat. The big American food suppliers might be a touch more trust worthy if they were willing to offer all relevant information on animal products at the touch of a button.


On-line media consulted;

http://www.id.nlbc.go.jp/english/
http://www.card.iastate.edu/iowa_ag_review/fall_03/article2.aspx
http://www.oie.int/eng/traceability-2009/documents/speakers_presentation/4.5.Hirokawa.pdf
http://www.foodincmovie.com/about-the-film.php
www.sustainabletable.org