FROM THE EDITOR (SHIRAISHI Takashi)

CHRONOLOGY (July – August 2007)

LDP DEFEAT

Abe Takes an Electoral Beating (TAKENAKA Harukata)

PROBLEMS IN THE PENSION SYSTEM (KOJIMA Akira)

The Shock of the Pension Scandal (MATSUBARA Ryûichirô)

The slipshod handling of pension records by the Social Insurance Agency ranks as one of the worst scandals to hit Japan. It has shaken the people’s confidence in public pensions, a system that is all the more important now that families and companies cannot provide individuals with the support and care that they once did. In broader terms, the scandal has smashed the Japanese illusion about the ties between individuals and society. (Chûô Kôron August, 2007)

The Government’s Pension “Scam” (IWASE Tatsuya)

On top of the sloppy record keeping by the Social Insurance Agency, its employees have embezzled contributions from pension plan participants, and it has poured tremendous sums of money down the drain by constructing unprofitable resorts and other facilities. One of its main objectives seems to have been to provide cozy post-retirement jobs for agency employees. (Gendai, August 2007)

A NEW BUSINESS MODEL FOR THE CIVIL SERVICE (NARIAI Osamu)

The Kasumigaseki Brain Drain (TAKESHITA Tsuyoshi)

Elite bureaucrats have been leaving the civil service in growing numbers. Some young people have become disillusioned by the gap between their ideals and the realities of their work. Others move to the private sector to get higher salaries. And students from top-ranking schools like the University of Tokyo who would formerly have gone into the civil service are seeking careers as lawyers or other legal professionals. (Ekonomisuto, June 5, 2007)

Constructing a New Bureaucratic Model (NAKANO Masashi)

The drain of human resources from the civil service is particularly severe among those who studied abroad at public expense and have a relatively easy time finding new jobs. Many other bureaucrats would probably quit if they could. The root problem may be seen as the erosion of the power and authority that the bureaucrats once wielded. This has made it hard for them to portray their work as useful and important. (Ekonomisuto, June 5, 2007)

Civil Service Reform: Amakudari Is Not the Only Issue (MURAMATSU Michio)

One of the main targets of moves to reform the civil service is amakudari, the “descent from heaven” by which retiring bureaucrats get jobs at public-sector organs or companies with ties to their former agencies. But the reform process should also focus on such fundamental questions as “What is the nature of public service?” and “What role should civil servants play?” (Ekonomisuto, June 5, 2007)

MONETARY POLICY

The BOJ and the Market: Cues and Miscues (KODAMA Yûichi)

The Bank of Japan has declared its intention of improving its communication with the market, but gaps in mutual perceptions and expectations continue to surface. The central bank leaves itself plenty of room for discretionary maneuvering and is very averse to giving the impression that its policy is conducted in accordance with fixed rules. This makes it hard for the market to judge what it will do next. (Ekonomisuto, July 3, 2007)

A Talk with Japan’s Top Banker (FUKUI Toshihiko)

The governor of the BOJ explains his approach to monetary policy: Until the 1980s Japan could learn from the success stories of the advanced Western countries, but now it must write its own textbook. Global trends must be watched, but ultimately each national economy is still a distinct unit. And it will not do to regard any single tool, such as inflation targeting, as the answer to everything. (Shûkan Tôyô Keizai , June 16, 2007 )

INSIDE THE PALACE

The Scientist Emperor and His Love of Nature (WATANABE Makoto)

Emperor Akihito enjoyed observing fish even as a child and has been studying the taxonomy of gobies scientifically for more than 40 years. The numerous papers he has published have contributed significantly to this field. Since his accession to the throne, the press of official duties has limited the time he can devote to his scientific studies, but he continues to participate when possible in research sessions and similar activities. (Bungei Shunjû, August 2007)

HISTORICAL LEGACY

The Edo Foundations of Modern Japan (MIZUTANI Mitsuhiro)

Much of what is now considered distinctively Japanese took shape in the latter part of the Edo period (1603–1868). From around the mid-eighteenth century Japan developed what may be called a modern society, which would serve as the basis for building a modern state after the Meiji Restoration of 1868. Formerly people tended to think of Edo Japan as a miserable society; this was certainly not true, though now there is a tendency to view it in excessively positive terms. A deeper understanding is required. (Chûô Kôron, July 2007)

KEYS TO THE JAPANESE MIND

The Emperor as Culture (HASEGAWA Michiko)