I think it may be possible to mobilize public opinion to back a plan on utilizing the funds from dormant bank accounts. This is the topic I addressed in my opinion piece published in Sankei Shimbun, reprinted below.

A dormant account is a savings account that has not been used for an extended period of time. Most people who work in banking and finance know of the existence of these accounts, but few realize that the money in them is ultimately absorbed as profit by financial institutions. Savings in dormant accounts and accounts opened using an alias, which was legal until 2002, is believed to total well above 100 billion yen (1.2 billion dollars), thus offering a potential �ghidden reserve.�h In Britain and South Korea, funds have been set up to use the money from dormant accounts to support a range of social welfare programs. Japan should create a similar system as soon as possible.

A New Hidden Reserve
Most dormant accounts are low-balance accounts with less than 10,000 yen (120 dollars) opened by people before they were married. However, there are also a large number of high-balance accounts. A number of years ago, postal savings accounts bearing the names of animals as the account holders were a hot topic in the newspapers.

In Japan, savings accounts are classified as �gdormant�h when no deposits or withdrawals have been made from them in five to ten years. After the specified number of years elapses, notification is sent to the account holder and the savings becomes the property of the financial institution. Reclaiming money in an account is not easy. The account holder must submit the bankbook and name seal used to open the account, identify the branch name, and go through other troublesome procedures.

When the address of the account holder cannot be verified or no forwarding address exists, as is true in the case of alias accounts, the remaining money becomes the property of the financial institution.

Dormant accounts are found in all countries. The period of time before an account is classified as dormant ranges from three to seven years in the United States, depending on the state; seven years in Australia; and up to ten years in Canada. In countries where the savings become the property of the bank or other financial institution, serious concerns have been raised as to the propriety of this and various strategies have been devised to deal with the problem.

Britain, for example, established a fund in 2010 with the savings from accounts in which no transactions had been made during the past 15 years. It is now making available 53.0 billion yen (636 million dollars) for projects run by nonprofit organizations and social entrepreneurs. South Korea, meanwhile, established a foundation in 2008 through donations of money from dormant bank and postal savings accounts; and about 14.0 billion yen (168 million dollars) is being used to fund welfare programs with these funds.

Changes are underway in Japan, too. At the end of 2009, Hiroki Komazaki, chairman of Florence, a nonprofit organization founded to assist working parents, proposed that a fund be set up with dormant account money at as early a date as possible. In January 2011, Yasuo Tanaka of the New Party Japan remarked during a House of Representatives session that �glegislation must be revised so that the funds in dormant accounts can be transferred from financial institutions to the central government.�h Prime Minister Naoto Kan then voiced agreement, saying that this �his one way the money could be used�h and that he would �glike the opposition parties to also consider the idea.�h

Hundreds of Billions of Idle Yen
According to the Financial Services Bureau, Japan�fs three megabanks, including the Bank of Tokyo-Mitsubishi UFJ, absorbed 24.2 billion yen (290 million dollars) as profit from dormant accounts in fiscal 2008 (April 1, 2008 to March 31, 2009) and 30.3 billion yen (363.7 million) in fiscal 2009. Of the total among these three institutions, about 40% was claimed by account holders and returned. Not even the Japanese Bankers Association knows how much the nationwide total is, however. A number of experts, including Komazaki, have put the figure at close to 100 billion yen (1.2 billion dollars), but I believe it may be two or three times that amount if money in alias bank and postal accounts is included.

The establishment of a fund for dormant account money is now being considered by the Cabinet Office�fs Council for the Promotion of the New Public Commons. The Japanese Bankers Association and six other federations have submitted documents to the council expressing their opposition, maintaining that allowing funds to be transferred out of banks and other institutions without the consent of the account holders would damage the credibility of the finance system.

Their argument, however, is mere sophistry. Most of the money in dormant accounts is the property of individual account holders, and it is hard to justify its absorption by financial institutions.

The Great East Japan Earthquake left nearly 20,000 people dead or missing. Banks have set up desks to answer questions of the people in the affected areas. It would be an affront to people whose lives were cut short by the tragedy if the savings accounts they used regularly up until the earthquake ultimately ended up as dormant accounts.

As of June 2011, Japan�fs national debt stood at 943 trillion yen (11.3 trillion dollars). The country is on the brink of financial collapse. As the pool of available funds dries up, it will be necessary to use what we have more effectively, uncover hidden resources, and shift some of the burden from the public to the private sector in order to maintain and improve welfare and community services.

The Finance Industry�fs Social Responsibility
Though I do not wish to sound as if I am blowing my own horn, I would like to note that after the Great East Japan Earthquake, the Nippon Foundation distributed money to people who lost loved ones, launched 18 FM stations to air disaster-related broadcasts, built temporary housing for people with disabilities, provided support for 700 NPOs, and dispatched student volunteers to the area. Central and local governments are bound by various legal restrictions, which hinder the speed with which their programs can be instituted. The private sector has much more flexibility and can work more quickly. All we need is a system in place for using dormant account money, since we already have the know-how to make use of the funds.

The Financial Services Bureau should stop allowing financial institutions to classify dormant account funds as profit at the end of each fiscal year, and make public the details on how much money is in postal and bank accounts, including alias accounts.

Finance is the lifeblood of the state and a public matter. This is why public funds have been used to overcome financial crises. I am certain that a move to use the money in dormant accounts for the public good rather than let it become the profit of individual banks will foster greater public appreciation of the finance industry�fs corporate social responsibility and make it easier to gaining the approval of savers.

A Chance to Speak to India�fs State Leprosy Officers

In 2005, the nation of India achieved the target set by the World Health Organization of reducing the number of leprosy cases to below 1 in 10,000 population. This was a great achievement, and everyone involved in bringing it about deserves praise for helping to do away with leprosy as a public health problem.

This does not mean, of course, that we are in a world without leprosy today. It is vital to ensure that reaching this milestone goal in countries around the globe does not lead those countries to ease off in their fight against the disease and against the social and economic issues associated with it.

This was the gist of a speech I presented to the state leprosy officers of India, who gathered in the city of Goa on February 9 for a two-day conference. You can read my comments here on our website.

High-Level Meetings with the President and Cabinet Members
Trip to Myanmar (6)

During my visit to Nay Pyi Daw, I met with President Thein Sein and also had talks with ruling Union Solidarity and Development Party Secretary-General Htay Oo and five central executive committee members. I also had the chance to meet Foreign Minister Wunna Maung Lwin to discuss assistance for human resource programs in the lead up to Myanmar�fs chairing of the Association of Southeast Asian Nations summit in 2014.

A number of other government officials took the time to meet me during the visit to talk about a variety of issues. For instance, I met Aung Kyi, who serves as both the Minister of Labor and Minister of Social Welfare, Relief, and Resettlement, and discussed ways people with disabilities can be organized and the holding of the International Festival of Inclusive Arts in Myanmar. With Minister of Border Affairs Thein Htay, I had a conversation about the construction of elementary schools in border areas. And with Kyaw Myint, a member of the USDP Central Executive Committee and the former Minister of Health, I had a discussion regarding programs to distribute traditional medical supplies.

The visit to Nay Pyi Daw also gave me the opportunity to make the acquaintance of Minister of Industry Soe Thein and Minister of Education Mya Aye, who were present at my talks with President Thein Sein. On top of those meetings, I was able to renew my acquaintance with Yangon mayor Hla Myint, and to meet Aung San Suu Kyi (as I related in my December 27 and 28, 2011, blog entries).

At the suggestion of Shūichi Ōno, who is Executive Director in charge of international cooperation projects at the Nippon Foundation, a gathering was held during my visit to Nay Pyi Daw to bring together, for the first occasion in a long time, recipients of scholarships from the Nippon Foundation and Sasakawa Peace Foundation, as well as partners whom we have worked with to conduct various projects in the country.

In total, there were around a hundred people in attendance, including scholarship recipients at the United Nations University for Peace and the World Maritime University, individuals with physical disabilities, and those who have been involved in our school construction, distribution of traditional medicines, civil servant training, and empowerment of people affected by leprosy . It was a festive occasion that brought together old acquaintances and set the stage for future collaboration and network building.

General Than Shwe, dressed in a traditional ethnic costume, with Sasakawa Yōhei.

Than Shwe�fs Resignation and the Relocation of the Capital
Visit to Myanmar (5)

Some have claimed that the capital of Myanmar was moved from Yangon to Nay Pyi Daw, in the jungle, as a result of advice a fortune-teller gave to Than Shwe, the senior general of the junta. The real story is somewhat different, however.

Nay Pyi Daw is located near Pyinmana, which was home to the struggle to oppose British colonial rule. It was also the birthplace of the army. The new city is surrounded by mountains and far from the ocean. The decision to relocate was based on strategic considerations of security and a desire to close the books on Yangon, the capital under British rule, and open a new page in the country�fs history.




Myanmar is a Buddhist country, and it is not uncommon for political leaders to seek the counsel of monks who have undergone severe ascetic training. When Than Shwe made Nay Pyi Daw the capital, it was not in blind adherence to the advice of a Buddhist monk or fortune-teller, however. He gave a detailed explanation of why a new capital needed to be built and went ahead with the plans after obtaining the consent of the monk he consulted with.

Than Shwe�fs resignation is, however, remarkable. The silence of the media on the resignation of a man who was denigrated by the West for years as the dictator at the helm of a military government is hard to understand. Is it prudence on their part? Or could it be they assume Than Shwe continues to wield behind-the-scenes power, with President Thein Sein as a mere puppet? Yangon pundits for their part assert Than Shwe�fs resignation is indisputable and that the reason he has not appeared in public is because he is now wheelchair bound or has entered a Buddhist monastery. The truth of the matter is we simply don�ft know. Than Shwe has not made a single public appearance since the constitution was amended and national elections were held.

In April 2003, former Prime Minister Yoshirō Mori joined my talks with Than Shwe aimed at rebuilding bilateral ties. Meetings of this sort generally last 30 or 40 minutes, but ours was followed by a dinner party and continued for three and a half hours. Though neither of us brought up the topic of military rule and the democratic transfer of power, Than Shwe nonetheless commented: �gI personally do not think military rule is good. However, there are still a large number of armed insurgencies by ethnic minorities in remote regions, and until the situation is stabilized, military rule must be maintained. If it isn�ft, Myanmar will be another Balkan Peninsula.�h His remark gave me faint hope that Myanmar would set down the road to democracy once domestic stability was achieved. As it turned out, however, a different diplomatic path was chosen, with the enlightened politician Khin Nyunt ousted from his office as prime minister and bilateral ties with China strengthened in the aim of receiving more aid.

Than Shwe endured the harsh criticism from the West while undertaking preparations for a transition to democracy, which included revising the constitution, holding national elections, and laying the groundwork for the introduction of democratic policies. He also, of his own accord, put an end to military rule. The fact that Than Shwe has not been evaluated in an impartial manner seems to suggest that people these days have very short memories.

It is almost unheard of for a dictator to willingly step down. But Than Shwe did just that, against the predictions of the Western media. I, for one, feel that in the case of his rule the merits balanced out the demerits, and that he should be given credit for what he accomplished.

Prime Minister Noda�fs �gNever Give Up�h Gaffe

I applaud the determination expressed by Prime Minister Yoshihiko Noda in his New Year�fs press conference on January 4, 2012, to carry out a comprehensive reform of the social security and taxation systems in response to Japan�fs graying population and declining birthrate. However, I must reiterate my view, set down in the daily Sankei Shimbun in April and in December 2010 , that unless the government introduces legislation to reduce the number of seats in the upper and lower houses of the Diet and curb government spending through such measures as reducing the salaries and pensions of civil servants, it will be difficult to gain the nation�fs approval for a tax increase.

The major dailies had the following to say about the prime minister�fs press conference.

�gPrime Minister Yoshihiko Noda repeated the word �enever�f four times and followed it with �egive up,�f quoting former British Prime Minister Winston Churchill (1874-1965), who led his country through the crisis of World War II, thus laying bare his own resolve. Noda also argued cogently, �eI shall never give up on a just cause, and I firmly believe change is possible if the reasons for an action are fully explained.�h (Mainichi Shimbun, January 7 morning edition)

�gPrime Minister Yoshihiko Noda called for a dialogue between the ruling and opposition parties on the comprehensive reform of the social security and tax systems, including an increase in the consumption tax. He also said he would push for the early passage of a bill to reduce the number of upper house and lower house Diet seats at the upcoming ordinary session of the Diet to convene this month. Quoting former British Prime Minister Winston Churchill, who led the country during World War II, Noda said he would �enever, never, never, never give up�f and expressed his resolve to see his plan implemented.�h (Nihon Keizai Shimbun, January 5 morning edition)

�gWhile he replied to questions in a monotone voice, he stressed that a tax increase cannot be put off any longer. In the end, Noda quoted the following words of Winston Churchill that he learned in high school: �eNever, never, never, never give up.�f�h [Asahi Shimbun, January 5 morning edition; reprinted from the English-language Asahi Shimbun)

�gDuring World War II, Churchill led Britain in the fight against Nazi Germany under Hitler�fs rule, and at the height of the �eBlitz�f bombings by Germany of London, he made speeches over the radio and in Parliament to galvanize the nation. Ultimately, the country was victorious. �eNever give up�f is often interpreted to mean �eNever submit.�f�h (Sankei Shimbun, January 5 morning edition)

I for one was extremely interested in what views Noda, as the head of Japan, would express in his New Year�fs press conference.

At a time when politicians are under public scrutiny for cursory utterances, it is imperative that at the very least, the use of language and the content of speeches made by prime ministers should be checked by administration staff and subject to a review by experts. In this case, the media also failed to double-check the accuracy of the quotation. To make matters worse, it�fs questionable whether the quotation was even appropriate to the circumstances under which it was made. On both counts, Noda�fs use of the quotation can only be deemed careless.

Churchill did not say �gNever give up.�h What he said was �gNever give in.�h �gGive up�h and �ggive in�h are entirely different things. The daily Sankei Shimbun was correct in stating the common Japanese equivalent is �gNever give in.�h Unfortunately, it did not point out the mistake.

The quotation is taken from a speech Churchill made on October 29, 1941, at his alma mater, the Harrow School. The correct version is,

�g�c never give in, never give in, never, never, never, never�|in nothing, great or small, large or petty�|never give in except to convictions of honour and good sense. Never yield to force; never yield to the apparently overwhelming might of the enemy.�h

The developments that unfolded on the world stage in the years up to and months after Churchill�fs speech are as follows.

September 1939 - Germany invades Poland, whose allies, Britain and France, declare war on Germany, marking the start of World War II.
June 1940 - France surrenders to Germany.
September 1940 - Germany, Italy, and Japan form a military alliance.
June 1941 - Germany and the Soviet Union go to war.
July 1941 - US government freezes the assets of Japanese nationals living in the United States.
August 1941 - United States enforces an oil embargo on Japan.
- An economic blockade against Japan is implemented by the United States, Britain, China, and the Netherlands.
- US President Theodore Roosevelt and British Prime Minister Churchill release the �gAtlantic Charter�h statement.
October 1941 - Cabinet of Prime Minister Konoe Fumimaro resigns en masse, replaced by the cabinet formed by Tojo Hideki.
November 1941 - Hard-line �gHull note�h presented to Japan by US Secretary of State Cordell Hull
December 1941 - Japan attacks Pearl Harbor

I have tried to provide an overview of the international currents at that time. Japan was among the enemies Churchill referred to when he spoke about not giving in. Though many years have passed since then, the quotation still has no place in a speech by a Japanese prime minister. And the misquotation only makes matters worse. I cringe when I think how foreign academics and others got a good laugh at Japan�fs expense so early in the New Year. Am I the only one who feels like crawling into a hole?

Don�ft Let Japanese Agriculture Become a Boiled Frog

Starting off a blog entry with a reference to a boiled frog and Japanese agriculture is boorish and discourteous, especially to those working in the agricultural sector. Nonetheless, this is exactly what I think of when I hear of the growing concerns about the future of that sector if Japan decides to participate in the Trans-Pacific Partnership trade agreement. The �gboiled frog�h expression is frequently used in reference to a business that fails to perceive a threat to its survival because the change has been so gradual. Like a frog in a pot of water that is slowly heated to boiling point, it takes no measures to save itself. After decades of being coddled by protectionist measures, Japanese agriculture, especially rice farming, has lost its vitality and is unaware of the danger it now is in.

An Age of Food Shortages
Global food production can no longer keep pace with rapid population growth , and food�|like oil and mineral resources�|is becoming a limited resource countries must scramble for. No country facing a shortage of food at home is going to sell to other countries. In Japan farmers get 341 yen for a kilogram of rice and are protected by a 778% tariff on imports. It�fs unrealistic to expect that a country will sell us rice if and when we need it. We�fve got to get ourselves out of that pot of warm water and revitalize the farm sector. Food security is an urgent issue and one that requires a complete turnaround through agricultural policy reforms.

According to the Ministry of Agriculture, Forestry, and Fisheries, Japan�fs self-sufficiency rate is 39% on a calorie basis. The figure represents a 50% drop in 50 years. The situation is even graver when it comes to grains. Japan depends on imports for most of its wheat, soybeans, and corn, pushing down its self-sufficiency ratio to just 27% when it comes to grains. Among countries with 100 million people or more, it is way down on the bottom of the list.

The large-scale use of chemical fertilizers and introduction of hybrids enabled global grain production to outpace population growth through the mid 1980s. But since then, the global population has grown explosively and demand has outstripped supply. The shortage has been aggravated by other factors, including the growth in meat consumption in newly industrialized countries, the switch to biofuels, and abnormal climate conditions.

It takes about 11 kilograms of corn to produce one kilogram of beef, seven kilograms to produce a kilogram of pork, and four to produce a kilogram of chicken. Rising energy demand has also led the United States and Brazil to step up production of bioethanol made from corn. Their soybean fields are being converted into corn fields, a trend that bodes ill for Japan, which relies for 70% of its soybean imports from those two countries.

World grain prices have soared over the past decade. Wheat prices are up 500%, corn is up 300%, and soybeans are up 250%. In 2004, China, with a population of 1.3 billion, became a net agricultural importer. The UN World Food Programme reports that 900 million people around the world are threatened with starvation.

The Risk of Over Dependence on Imports
Given recent developments, it is clear that Japan�fs heavy reliance on imports is risky. About 2.6 million people are engaged in farming in Japan, but 61% of them are 65 or older, and the ranks of retired farmers are swelling. In contrast, there were only 13,000 people aged 39 or younger who joined this declining sector in fiscal 2009. In the years to come, abandoned farmland will become an increasingly common sight.

Japan�fs post WWII agricultural policies, which are rooted in the Staple Food Control Law of 1942, have been geared toward propping up rice prices and guaranteeing rice farmers a steady income. Rice has been given disproportionate weight over other crops, with the national agricultural cooperatives safeguarding farmers�f interests through rice-price negotiations. The industry as a whole has lost its ability to perceive the crisis, and conspicuously little progress has been made toward modernization.

In fiscal 2009 (April 2009 to March 2010), total farm output in Japan came to 8.2 trillion yen. Rice accounted for 21.9% (1.8 trillion yen) of the total, even less than vegetables, at 25.5% (2.1 trillion yen), even though rice farmers outnumber vegetable farmers five to one. In addition, tariffs on vegetable imports are virtually nonexistent, ranging from zero to three percent, yet Japanese growers still supply about 80% of the domestic market. The comparison is not flattering.

Saito Kazushi, a pig and rice farmer from Yamagata Prefecture in the northeastern part of Japan, is the founder of a local cooperative with 120 farming households and served as the only farmer on the panel of a national congress calling for the early participation in the TPP Talks. Saito warns, �gFarmers are about to become an extinct breed�c. In a decade, we will no longer have the people or technology to grow crops, and it will be too late to produce our own food even if we realize we must do that.�h

Some people claim that eliminating tariffs will open the gates to a flood of imported rice and lead to the demise of Japanese rice, since it wouldn�ft be able to survive the price competition. My own opinion is that Japanese rice will, like domestic vegetables and fruit, do fine on the international market because of the high standards of quality and safety. Japanese cuisine is popular internationally today, which is another reason it will likely fare well.

Courage and Decision-Making Power
I sometimes have the occasion to speak with young volunteers in the satoyama movement to conserve local forests and other land traditionally used and maintained by the community and in locales affected by the Great East Japan Earthquake. It�fs clear many people want to help revive rural areas by getting jobs in agriculture or fishing, but there�fs no system or way of helping them get started. Nor is there a way to assist them in finding new uses and markets for domestic rice.

The slump in domestic rice consumption has caused the price of a 60-kilogram bag to fall from 15,000 yen a decade ago, when it was four or five times more expensive than imported grains, to less than twice the price of imports today. Exporting rice may one day be a possibility. It makes more sense to remove the protective cocoon of tariffs and make agriculture a strong, viable industry. Participation in TPP is something we should not fear.

The Council for the Realization of the Revival of the Food, Agriculture, Forestry, and Fisheries Industries, chaired by Prime Minister Yoshihiko Noda, recently released a five-year action plan calling for the establishment of larger-scale farms that are 20 to 30 hectares in flatlands and 10 to 20 hectares in mountainous areas. It also called for steps to encourage more young people to take jobs in farming, such as subsidies for young farmers. Grants like these are available in a number of countries, such as France, which has a food self-sufficiency rate of 130%. Doing so would be a more meaningful and positive way of supporting the industry than providing subsidies to part-time farmers, who comprise 70% of the total.

People say that policy continuity is important, but in the case of agricultural policies in Japan today, we need to have the strength and resolve to disengage ourselves from the past. We must not let the country�fs agricultural sector become a boiled frog.

(The original Japanese article was published in the December 27, 2011 issue of Sankei Shimbun.)

Some Thoughts on the Great East Japan Earthquake

On October 4, 2011, I gave a talk titled �gSome Thoughts on the Great East Japan Earthquake�h to the Okayama Association of Corporate Executives. A portion of the speech was carried in the daily Sanyo Shimbun the following day. Though a few months have passed since then, I would like to reprint it here.

What Corporations Can Do To Bolster NPOs�f Relief Efforts
The Nippon Foundation has undertaken various initiatives using the proceeds of motorboat races held at 24 locations around Japan in a cycle, one could say, of �gactivities for and by the people.�h The Great East Japan Earthquake was an unprecedented calamity that shattered a 500-kilometer-long swath of coastline running north to south. Many people escaped with just the clothes on their back.

As somebody who experienced the Tokyo air raids during World War II, I know what it is like to lose everything except your life and live each day not knowing what the future holds. After the Great East Japan Earthquake, I decided I would go to Tohoku and pass out 50,000 yen to individuals there. While I realized the security precautions such an act required, I knew speed was of the essence if we were to help as many people as possible.

One thing that struck me was the appalling lack of information, something that became apparent as we and cooperating organizations from all over Japan, engaged in relief work. People in the stricken areas did not know where hot meals were served or where they could go to get clothing and food supplies. In the evacuation centers, a number of people had visual or hearing disabilities. Yet we didn�ft even have sign language interpreters for Chief Cabinet Secretary Edano Yukio�fs press conferences and other announcements that were being broadcasted on national television. After making repeated requests to the prime minister�fs residence, we were able to see sign language interpreters interpreting important announcements made by government on TV. But these were merely makeshift measures. No efforts are being made to learn from our mistakes and enhance our disaster preparedness. This, unfortunately, is the reality.

Many of you made donations to the Japanese Red Cross Society, Central Community Chest of Japan, and other organizations. A total of \320 billion was collected, but after 6 months, only a small portion had been distributed. In the city of Sendai, for example, just 35% was used. The central government, for its part, declared the matter �gtaken care of�h after meeting less than two hours and deciding local governments would be given 8 or 9 billion yen each. Everybody knows \100,000 in hand is worth more than a million yen a year after the disaster, but even so, the clock ticks and no action is taken. The failure to distribute the aid so generously provided by all of you frustrates me.

Japan is saddled with almost \1 quadrillion yen in outstanding debt, and the central government and local governments are finding it difficult to cover the growing costs of social welfare programs. Corporate social responsibility programs and nonprofit organizations activities offer one solution. Donations to NPOs are one way of enabling people in the stricken areas to live healthy, productive lives; and this is a goal that can be achieved.

Each year the Nippon Foundation ranks firms listed on the Tokyo Stock Exchange First Section, based on their corporate social activities. Today, corporations are regarded as corporate citizens and expected to contribute to society as such, but Japan lags far behind many other countries in this regard.

A growing number of young people express a desire to find employment at a company with a full range of social initiatives, and the question of corporate social responsibility is becoming a consideration for global investors and an investment standard. A growing number of consumers are increasingly basing their purchasing decisions on a company�fs environmental activities.

I would like as many needy or vulnerable people as possible to be helped through corporate initiatives and NPO activities. In this respect, the Nippon Foundation has a mission to play as an intermediary between NPOs and corporations.