FROM THE EDITOR (IWAO Sumiko)

CHRONOLOGY (July - August 2001)

LAST CHANCE FOR REFORM (KOJIMA Akira)

Can the Koizumi Reforms Unleash Japan’s “Third Wave”? (Alvin TOFFLER, KOIZUMI Jun'ichirô)

Prime Minister Koizumi discusses his reform agenda with Alvin Toffler, a famous American futurist. Toffler notes the emergence of Japan as a third-wave economy where the most important factor of production is knowledge. Koizumi notes the constitutional limits on Japan’s international role, and he stresses his position that there can be no economic recovery without structural reform.

Let’s Sell Off Half the State’s Assets (KATÔ Hiroshi)

What is holding Japan back is the systems of indirect financing and centralized bureaucratic leadership, both closely related to the postal savings system. This savings system must be privatized. Other targets for privatization include the Japan Highway Public Corporation and the New Tokyo International Airport Authority. Private-sector operators would provide better services at lower prices, and the revenues from the sales would reduce the national debt.

The Shaky Finances of the Highway Corporation (KATÔ Hideki and the Japan Initiative)

The Japan Highway Public Corporation is officially in the black, but this is only because it uses an idiosyncratic accounting system that allows it to defer the repayment of its debts indefinitely. Under ordinary accounting standards it would be running a big deficit. In fact, it appears to be in worse shape than the former Japanese National Railways. And the problems of this corporation are symptomatic of the problems widely found among the many special corporations affiliated with the government.

Privatize the Postal Services (MATSUBARA Satoru)

The idea of privatizing the postal services (mail, savings, and insurance) was long taboo. It has been decided to turn these operations over to a new, government-operated Postal Services Corporation in 2003. But this is a peculiar halfway measure; full-fledged privatization is the proper solution. Fears that this will leave local regions without service are unfounded.

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THE CONVOLUTED SECURITY DEBATE (KAWACHI Takashi)

Collective Self-Defense and the Japan-U.S. Alliance (NAGASHIMA Akihisa)

As a recent U.S. report noted, “Japan’s prohibition against collective self-defense is a constraint on alliance cooperation.” Successive Japanese administrations have declared that Japan possesses the right of collective self-defense under international law but cannot exercise it under the present Constitution. Japan must reconsider this issue in the light of the role it expects to play, together with the United States, in contributing to the Asia-Pacific region.

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JAPAN AND RUSSIA

A Former Diplomat’s Advice on Talks with Moscow (EDAMURA Sumio)

The issue of the Northern Territories, islands off Hokkaidô occupied by the Soviet Union just after World War II, has long been a sticking point in relations between Tokyo and Moscow. Recently Russia and Japan have been focusing on the 1956 Japan-Soviet Joint Declaration, which called for the return of the Habomai islets and Shikotan following the signing of a peace treaty. The danger in this approach is that the Russians may expect the Japanese side to renounce its claim to the remaining two islands, which Japan is not willing to do.

Negotiations with President Putin: The Inside Story (MORI Yoshirô)

President Putin was an attentive and considerate host for Prime Minister Mori during the latter’s official visits to Russia. He has been working step by step to reach a settlement of the territorial dispute. But the process of building a consensus among the Russian public will take time.

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PERCEPTIONS OF HISTORY

Rethinking Japanese Colonialism (MATSUO Takayoshi, MITANI Taichirô)

The latest textbook controversy has raised anew questions about how to interpret Japan’s modern history. The country achieved parity with the European powers, but the record was marred by its invasion and colonization of other countries. The Sino-Japanese War of 1894-95 may be seen as the first step on the road to colonialism. Japan sought colonies to promote its own security, but colonization turned out to be the source of huge problems.

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A NEW CLASS OF DRIFTERS

No Future for “Freeters” (YAMADA Masahiro)

“Freeter” is the Japanese-English word referring to the many young people who move from one temporary job to another, often saving on expenses by living with their parents, instead of becoming permanent employees. Freeters dream of a better future, but in the meantime they are serving as a source of cheap, disposable labor. Unfortunately their prospects are bleak. Eventually their parents will grow frail, and they too will grow older and be discarded as a source of unskilled labor.

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CHEERS FOR MECHANICAL DOLLS (TAKASHINA Shûji)

State-of-the-Art Technologies of the Edo Period (SUZUKI Kazuyoshi)

The artisans of the Edo period (1600-1868) produced many remarkable devices, including mechanical dolls capable of eye-catching feats. These dolls may be seen as the forebears of today's robots. Japanese workers readily accept robots as team members; this is part of a long tradition of viewing machines as living beings and seeking to communicate with them.

Good Eating in an Age of Abundance (KISHI Asako)

Today’s Japanese are overnourished, and they consume only three-fourths of the food that is produced. People should observe thrifty eating habits centered on locally produced foods.

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ESSAY

Time to Overcome the “We Want to Be French” Syndrome (TANAKA Akihiko)

Many Japanese envy the French and other Europeans for their ability to speak their minds to the United States and wish their own country could do the same. But this is a superficial view and should not be made the basis for Japan’s diplomacy.