Posts Tagged ‘LDP’

Candidate deposit requirement guarantees same faces on the ballot

Friday, October 26th, 2012

Ever wonder why so many Japanese politicians are old and that the only new faces tend to be their progeny? There are a number of cultural explanations for this phenomenon, but there’s also a financial one. It’s called the kyotakukin, or deposit, system.

The candidacy … paid in full (or How much is that politician in the window)

To run for any office in Japan, whether national or local, a person must deposit a certain amount of cash with the relevant election authorities. If the person wins, the deposit will be returned, but if the candidate loses and in the process fails to garner a certain percentage of the votes cast, he or she forfeits the money. The amounts required are high, and for national office almost prohibitively so. Candidates for prefectural and municipal office need to pay deposits of between ¥300,000 and ¥600,000, depending on the size of the constituency. However, candidates for the Lower House of the Diet have to deposit ¥3 million for a constituency seat and ¥6 million for a proportional seat. Constituency seats are decided for an electoral district simply by the number of votes cast in the district. Proportional seats are decided by the portion of votes a particular party receives on the proportional part of the ballot.

Many candidates, in order to guarantee success, run in both contests, because while they may lose in the constituency race, their party may gain a large enough portion of votes to allow them to be swept into office on the proportional ticket. In that case they have to pay deposits for both seats, meaning ¥9 million. If a constituency candidate doesn’t garner at least 10 percent of the total votes, he or she has to forfeit the deposit.

A few other countries have candidate deposit systems, but Japan’s is the most expensive by far. According to a recent article in the Tokyo Shimbun, the United Kingdom only requires the equivalent of ¥62,000 to run for national office, Canada ¥80,000, and Korea about ¥1 million, the highest after Japan. Most democracies either never had the system or have done away with it. Historically, its purpose was always obvious: to limit the number of candidates and make sure that those with financial power also held political power.

Continue reading about election campaign deposits →

How much money do rice farmers need to make from farming?

Friday, March 30th, 2012

Bags of rice for sale in a JA retail outlet

The Trans-Pacific Partnership trade agreement, which Japan endeavors to join, continues to be controversial, though most people in Japan only have knowledge about the broadest arguments. If Japan joins TPP, it’s the end of Japanese agriculture; if it doesn’t, Japan will not have access to one of the biggest markets in the world.

Several recent articles in the Asahi Shimbun at least give some idea of what rice farmers stand to lose or gain from the agreement. Two farmers are profiled, one in Fukui Prefecture, the other in Aomori prefecture. The Fukui farmer works a one-hectare paddy that he inherited from his father about 15 years ago. The paddy yields about 96 hyo (1 hyo = 60 kg) a year and ¥1.47 million in revenues, which breaks down to ¥1.1 in sales and the rest in government subsidies. When the Democratic Party of Japan became the ruling party, it threw out the old Liberal Democratic Party subsidy system, which basically discouraged farmers from growing rice. The DPJ subsidy, called kobetsu shotoku hosho (individual income compensation), pays them to grow by making up for any losses they might incur due to low market prices.

The Fukui farmer’s annual expenses for cultivating his paddy run to about ¥1.77 million, which includes ¥520,000 for outside labor. It’s implied that the paddy owner himself does very little actual farming. On his tax return he also lists in the loss column ¥600,000 in depreciation for his farm equipment. All in all, the farm in 2010 lost ¥300,000. However, he says it doesn’t really bother him. His main job is working for an electrical parts maker, which pays him a salary of ¥5.3 million. His wife also works, earning ¥2.8 million.

Continue reading about the cost of growing rice →

Lawyers’ livelihoods to get needier

Monday, October 18th, 2010

JFBA Hall in Hibiya: Not so exclusive any more

JFBA Hall in Hibiya: Not so exclusive any more

Six years ago when the Liberal Democratic Party overhauled the legal system and established the lay judge system, the revisions also included measures to increase the number of practicing lawyers in Japan by changing the juridical education and certification systems. Logically, that would mean allowing more people who took the bar examination to pass. The aim was an extra 3,000 law professionals entering the market each year, and though this target hasn’t been achieved on a regular basis (2,074 passed the test this year), the increase in the number of lawyers has had a big effect on incomes.

There were about 17,000 lawyers in Japan in 2000, and by 2008 the number had increased to more than 25,000. The government estimates that this number will double by 2018. Consequently, according to the Ministry of Health, Labor and Welfare, five years ago, before the influx of new blood was felt in the marketplace, the average attorney made between ¥16 and ¥20 million a year. Last year, the average attorney income had dropped to ¥8 million. No wonder you see so many lawyers these days moonlighting as TV talent.

Continue reading about Japan's high bar for lawyers →

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