----- Original Message ----- 
From: Mark Jones <[EMAIL PROTECTED]>
To: crl <[EMAIL PROTECTED]>
Sent: Thursday, December 28, 2000 8:39 AM
Subject: [CrashList] Japan's secret shame


The world sees Japan as a rich, successful country. But the economy is stagnating,
big companies are going bust, and workers are facing the unthinkable - the end of
jobs for life. Jon Snow on an unreported disaster.

Thursday December 28, 2000

The blade caught the morning sun. Despite the gloom beneath the bridge, I'd seen
enough to know that it was at least the size of a carving knife. This man meant
business. Even though we were on the other side of the river talking with other
homeless men, he had clearly decided he was going to see to us. With a roar he
grabbed his old bicycle, charged up the embankment and headed straight for us.
There was a block of flats a few hundred yards away. Our film crew of four split up,
and headed for different stairwells. Four floors up Mayu, a Japanese journalist
working with us, was hammering on doors begging to be let in. The crazed knife
wielder was closing in.

As suddenly as he had come after us, he disappeared. We sneaked down the hallways
and out on to the street again. In seconds he was back - but this time he had the
police with him. An amazing sight, here was a dishevelled vagrant, ordering first
two, then three, then five, and finally eight policemen to arrest us. And arrest us
they did. Two squad cars, and even the superintendent's limo attended the scene.

Our first night in Kyoto was spent in the cells. In the chaos of our arrest, Mayu
had become separated, so that only the three white men of our team found themselves
behind bars. The complainant arrived, still on his bicycle, but with no knife, about
10 minutes after our arrest.

Our lingually-challenged confinement and eventual release lasted three and a half
hours, and occupied the attention of all eight of the arresting officers. There is
little crime in Kyoto, but there is much homelessness. Yet even the homeless have
powers when foreigners come to call. They may have no social security, but they can
still make a citizen's arrest.

Somehow, you don't expect this rich, successful, country to sport rows of cardboard
box homes with desolate hungry men and women beneath every span in town. Ten bridges
in Kyoto, 10-20 beneath each - I suppose we met at least 200 homeless people, and
there were clearly many more that that. It is a new phenomenon that has hit a
society that has almost no provision for coping. For pride is the Japanese watchword
and nothing assaults pride so much as the loss of everything else, hence the ire and
fury that accompanied the threatening blade beneath the city's most westerly road
bridge over the Kamog river.

Japan is in unreported trouble. Sure, the statistics reveal little more than 0%
growth for the past 10 years, a massaged 1.5% this past six months that has already
dribbled to nothing. But they tell you nothing of the precipice this country is
hurtling toward.

Back under the next bridge, Hajime Tanaka, slurped tea. He had run a small business,
lost it, lost his wife and his three children, and now he had lost his home. His
pride, like his dirty white gloves, was still just about intact as he scoured the
river banks for cans. He can make #7 a day selling them in a country where the
average wage is #500 a week.

Takashi Matsuta is only a fraction luckier. A kimono weaver, his breathtakingly fine
woven wasteband lies on the table in front of his loom in the upstairs room of a
sweatshop. He earns no money, but is kept by the factory owner, a distant cousin.
The bottom has fallen out of the Kimono industry.

We were travelling the Tokaido Way - the old 400-mile imperial route that led from
the former capital to Tokyo. Travelling in a G7 economic powerhouse, an industrial
miracle maker - the birthplace of my hi-fi, my microwave, my television, even the
Walkman on my belt - yet now an undiscussed disaster on its knees. Even so, we don't
know it, and many of them don't either. We had been sent here to find out if the
recession was over, if Japan was coming back.

The dense elongated concrete coastal sprawl that spawned Japan's success still feels
prosperous, the trains run, the neon flashes and the cranes sprout above the
skyline. But, like the white gloves of the homeless scavenger, appearances in Japan
are deceptive. Beyond the convenience stores, the gambling halls and the noodle
bars, there is an event taking place that dwarfs any postwar recession Britain has
experienced.

You can hear the factory in Hamatsu where Yamaha makes grand pianos long before you
enter it. Infernal robotic fingers drum the keyboards for hours on end to see if
they fall apart. It is strange to see so singular a thing as a concert grand in
unfurnished rows of twenty. Four hundred people work here, four hundred jobs for
life. Like all old Japanese businesses, Yamaha looks after its workforce from the
cradle to the grave. Except that suddenly it can't. It has already laid off more
than 1,000. The world's appetite for grand pianos is sated. Mayu sat at a #7,700
grand and played sumptuous Schubert. Tears welled in the manager's eye. He knows
there's a problem; I don't think the workforce does.

Further along the Tokaido, as we arrived in Toyota, they announced the closure of
its biggest superstore, Sogo, and another 20 elsewhere in Japan. Sogo is the heart
of Toyota. The next day the country's second biggest life assurance company went
belly up with debts of #25bn.

Have we hit a particularly unfortunate week in Japanese history, or is this business
as usual?

The Japanese bubble, when times were good, saw the Toyota car company so pressed for
labour that Japanese migrants who had gone a century earlier to Brazil were
encouraged to come home.

Past the doomed Sogo store and up the hill we could hear the Saturday night partying
as soon as we opened the car door. Inside there were entirely Japanese-looking
people cavorting around doing the samba and the bossanova. Many of these "returnees"
speak not a word of Japanese. The quiet, introverted, indigenous Japanese resent the
bizarre bangs, crashes and whoops that accompany a good time for these people. The
conflict has turned so tense that a police unit has been formed to bring the two
communities together.

Japan is ageing so fast that the UN estimates that 600,000 immigrant workers will be
needed over the next couple of years to keep the place going even in a recession.
Yet as the tension in Toyota shows, even their own forebears have a rough time.
Traditional Japanese xenophobia is unlikely to take any more kindly to the Indians,
Chinese and Vietnamese knocking at the country's door.

The piledrivers, barge cranes and construction boats dominate the Takonome skyline.
Out at sea they are building yet another multi million pound airport. Nobody needs
it - the new, offshore Kyoto airport is just down the road. But the mayor, Seikoh
Ishibiashi, has secured the deal as a means of boosting the local economy. The
construction companies have already been prosecuted for paying wads of yens to local
officials, who have got away with suspended sentences. The whole project is adding
to the 700 trillion yen (#4.3 trillion) national debt which leaves Japan the most
indebted industrialised country in the world.

So who's worried? Certainly not the upper political echelons; for them it's business
as usual. Certainly not the managing dirctor of the telecom offshoot NTT DoCoMo.
Keiji Tachikawa told me: "Leave us alone for another 10 years and we'll fix it."
Other, younger Japanese men and women are not so sanguine. Junichi Izumi is a young
internet entrepreneur. Japanese does not fit well with the internet revolution and
he is toiling against the stream. But he is convinced the old guard who run Japan
don't even understand what it is. "In the summer," he told me "prime minister Mori
kept calling the IT revolution the it revolution."

The day we left Tokyo the minister of economic planning, Taichi Sakaiya, announced a
#64bn economic renewal programme. "It's focused on IT," he told me. Closer
inspection revealed still more construction projects. Sure, the new Tokyo sewerage
system does have an IT element, sophiticated computer sensors for checking sewage
levels. Japanese politicians, alas, appear to be subject to no such monitoring
system.

So why don't people talk about Japan's perilous economic state? Is it just too big
to worry about, too far away, too impenetrable, too threatening to the global
financial structures?

As I was leaving the minister's office, another vast life assurance company, Kyoei,
had just announced that it too was going bust with debts of #30bn.
 Guardian 29.12.00


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