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    Lingering questions about Japan Post

    The editorial in this morning’s Nikkei was about Japan Post reform and addresses several sticking points:

    Prior [to the release of the plan] the LDP compiled a document called “Modes of Thinking for Japan Post Reform.” In it, there were several problems with the government’s proposal indicated, including (1) the corporation that will be financed by the government will be state-owned and privately-managed, and so there are fears that its projects will fall prey to corruption, (2) the division of Japan Post into four companies simply increases the number of positions available for 天下り (amakudari: lit., “descent from the heavens”), (3) it has not been proven that the four new companies (posts, savings accounts, insurance, and counter services) will really be independent.

    Amakudari is similar to what we’d call a revolving door: the system in which high government officials retire to semi-public management or “consulting” jobs in which they can use their accumulated connections and influence to manage resources. Civil servants make less than they could with equivalent credentials in the private sector because the assumption that they’ll retire in their mid-50s and take more-lucrative jobs related to their fields. Government officials have complained about attempts to reform the system because–and it’s hard not to sympathize with them to some degree–they’ve all gone through their entire careers with the understanding that things would work this way. On the other hand, the number of redundant positions boggles the imagination, and attempts at reform are seen as suspect by the Japanese people.

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