Hatoyama: "The battle starts now"
Rizwan Ghani
September 18, 2009
Hatoyama after taking over Japan´s PM said I am excited by the prospect of changing history. "The battle starts now", he said. Undoubtedly, it is going to be Japan´s survival battle both on domestic and international fronts. Individually, I think PM´s clarion call for action is a watershed moment in country´s fight to realign Japan with the emerging Asian world order. At heart of Hatoyama´s battle is the replacement of failed pro-US capitalism model with a new social contract in the country that serves public on domestic front and protects and promote Japan´s geo-eonomic and geo-political interests. EU is also realigning with Asian world order.
Hatoyama has blamed Japan´s ailing economy a victim of American-led globalization and promised to introduce a plan called new social contract to cut government waste, rein in the national bureaucracy and restart the economy by putting a freeze on planned tax hikes, removing tolls on the highways and focusing policies on consumers, not big businesses. PM´s pro-public policies promise to end unemployment, create more jobs for youth, increase minimum wages and introduce same pay in every work place. It is a strong agenda at a time when world economy is in recession and country´s out of control budget deficit is sapping the national economy. However, for now Hatoyama is all set to implement "new social contract" to help Japan control piling debt, high unemployment, facilitate aging society and give incentives to help improve shrinking birth rates.
The critics of new social order argue that public mandate in lower house is no carte blanche for the Hatoyama to scrap pro-US capitalism economic model. PM cannot implement his plans immediately because ousted Liberal Democrat Party (LDP) holds majority in the upper house and its elections are due next year. According to the Japanese political system, all legislation has to be approved by the upper house before it becomes a law. Furthermore, he needs funds to implement new social order in which will only be possible with the support of country´s major stakeholders. At this time, there is no indication that pro-LDP multinational businesses and banking giants including Toyota and Sony are willing to shift loyalties and support PM´s government with no governance experience.
However, Hatoyama wants to spend his political capital to deliver on election promises. The opposition on the contrary would like to delay the process to erode Hatoyama´s party clean sweep in upper house. However, the change is already in the air. Yen has appreciated toward 90 per dollar after incoming Finance Minister Hirohisa Fujii said Japan´s new government is opposed to intervening in currency markets unless swings become excessive. PM believes stronger Yen in Japan´s interest as against the earlier views that weak Yen is good for global trade. Business community has welcomed Fujii. "He´s experienced. Fujii knows macroeconomic policy", remarked a senior fellow at the Tokyo Foundation, a think tank.
Economic experts feel that call for stronger Yen is part of unfolding de-globalization process. Obama´s "Buy America" clause is the new face of American protectionism. America cannot implement trade tariffs on Chinese goods and expect rest of the world to adhere to WTO protocols. Similarly, America´s failure to support a financial regulatory framework, unwillingness to hold regulatory setups accountable for their failures and bring an end culture of huge salaries and bonus in banking sector has undermined Europe´s confidence in America´s future economic policies. The move will only accelerate EU´s economic realignment with Asia because EU is already dependent on Asia for its energy needs.
On the international front, Hatoyama pledged to improve Tokyo´s relations with its Asian neighbors and forge a foreign policy that is more independent from Washington. It is a huge foreign policy change for a country that has been ruled by pro-US Party for almost five decades. Reportedly, Hatoyama wants to change Japan´s relationship with America. "Japan has been largely passive in our relationship, but I would like to be a more active partner", he said. Japan´s new Foreign Minister Katsuya Okada signaled on Thursday his centre-left government would seek to renegotiate an agreement on US military bases in Japan http://www.dailytimes.com.pk/default.asp?page=2009918story_18-9-2009_pg4_5 . Hatoyama foreign policy skeptics however believe upcoming UN meeting in New York will test PM´s promises of policy change towards Washington. International media especially American press and think tanks however maintain that Hatoyama´s US policy change is but campaign slogans.
EU Commission chief Manuel Barroso who has been re-elected to the office with the strong backing of France and Germany for another five years has supported views expressed in Hatoyama´s essay in which Japanese PM criticized US led globalization, Iraq war and pointed to the end of US global dominance. In his essay, Hatoyama hailed Europe´s integration efforts and wants Asia to emulate the effort in future with a political union and common currency. Barroso in a personal message to Hatoyama appreciated the converging views between Japanese PM Vision for Japan and the new political guidelines for the next EU commission. EU is trying to invent a transformational agenda to shape globalization with values promoting human dignity, using sound principles of decentralized governance. Barroso said Europe and Japan must work together to revive the global economy, reduce poverty and combat climate change. Barroso hailed Hatoyama´s decision to reduce greenhouse gas emissions by 25 percent by 2020 because EU has already proposed 30 percent reductions. Both leaders are expected to meet in G-20 Summit in New York next week.
These developments have raised the stakes for Washington in terms of its Asia-Pacific policy, calls for de-globalization, financial sector regulatory reforms, and climate change. In case of a rejection of Lisbon Treaty in upcoming Irish referendum the fate of globalization should be settled for good. Irish PM´s pledge to spend $189 bn public money to save banks has forced the angry masses to come on road to end "socialization" of Wall Street losses. EU leadership sensitive to the development is therefore looking for newer agendas. EU has also promised to uphold civil laws and support better pays. Unlike Washington that has failed to rein in Wall Street, uphold civil and working rights of Main Street.
If Hatoyama manages to stay his course on promised changes including foreign policy shift, Washington will lose Tokyo to EU. Since human rights play important role in EU foreign policy and with adoption of civil rights as part of its transformational agenda, it will be even harder for pro-Israel, anti-human rights imperial Washington to maintain support of its leftover allies and win hearts and minds in rest of the world.
On domestic front Hatoyama´s unfolding battle for a new social contract and political changes in Japan is of critical importance for the Japanese public and rest of the world facing expanding recession. On foreign policy level any success for Hatoyama in realigning the country with Asian economy will benefit both the region and the Japanese economy itself. With EU already on board and positive support from ASEAN and SCO within Asian framework, Japan´s chances are even better.
All this has brought Washington´s economic model and foreign policy under world´s spotlight. If Hatoyama manages to walk the walk, it is going to be a huge challenge for Obama. Tokyo like EU will base its appeal to rest of the world by upholding and respect International Conventions and Laws, International platforms including UN, ICJ, Diplomatic norms, immigration rights vs. Internment laws forcing naturalized citizen to relocate or leave the countries and holding states for war crimes. Obama will have to choose between country´s imperialistic policies or upholding international laws and conventions. Washington needs to understand that rightly or wrongly world respects America as land of law, justice and social equality. In terms of per capital income US is 17th http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29_per_capita.
Therefore, Obama has to accept the reality and review American policies to befriend rest of the world or continue with dead end policies that will only bring more death and destruction. Obama must withdraw troops from Afghanistan and Iraq and let democracies and local rule of laws take their own course to deliver. Today, corrupt Afghan and Iraqi regimes like most pro-American third world governments are milking ordinary people and leaving the negative fallout at America´s doorstep.
Thus, Hatoyama, EU, and American Democrats under Obama must help America recognize its blind spots to end international tyranny in the name of capitalism and so-called war against terrorism to restore rights of public and uphold international law for collective benefits. Remember, nine explosions in nine American cities on night of June 2, 1919 were used to "convince" the country that it sat on Russian-style Socialist Revolution. History of America in 1919 however shows that collapsed economy had promoting waves of strikes, riots and political violence.Ironic it maybe, Obama cannot avoid for long the shadows of Hatoyama's battle to replace capitalism with a new social contract on lines of New Deal to serve public and public alone.
Hatoyama has blamed Japan´s ailing economy a victim of American-led globalization and promised to introduce a plan called new social contract to cut government waste, rein in the national bureaucracy and restart the economy by putting a freeze on planned tax hikes, removing tolls on the highways and focusing policies on consumers, not big businesses. PM´s pro-public policies promise to end unemployment, create more jobs for youth, increase minimum wages and introduce same pay in every work place. It is a strong agenda at a time when world economy is in recession and country´s out of control budget deficit is sapping the national economy. However, for now Hatoyama is all set to implement "new social contract" to help Japan control piling debt, high unemployment, facilitate aging society and give incentives to help improve shrinking birth rates.
The critics of new social order argue that public mandate in lower house is no carte blanche for the Hatoyama to scrap pro-US capitalism economic model. PM cannot implement his plans immediately because ousted Liberal Democrat Party (LDP) holds majority in the upper house and its elections are due next year. According to the Japanese political system, all legislation has to be approved by the upper house before it becomes a law. Furthermore, he needs funds to implement new social order in which will only be possible with the support of country´s major stakeholders. At this time, there is no indication that pro-LDP multinational businesses and banking giants including Toyota and Sony are willing to shift loyalties and support PM´s government with no governance experience.
However, Hatoyama wants to spend his political capital to deliver on election promises. The opposition on the contrary would like to delay the process to erode Hatoyama´s party clean sweep in upper house. However, the change is already in the air. Yen has appreciated toward 90 per dollar after incoming Finance Minister Hirohisa Fujii said Japan´s new government is opposed to intervening in currency markets unless swings become excessive. PM believes stronger Yen in Japan´s interest as against the earlier views that weak Yen is good for global trade. Business community has welcomed Fujii. "He´s experienced. Fujii knows macroeconomic policy", remarked a senior fellow at the Tokyo Foundation, a think tank.
Economic experts feel that call for stronger Yen is part of unfolding de-globalization process. Obama´s "Buy America" clause is the new face of American protectionism. America cannot implement trade tariffs on Chinese goods and expect rest of the world to adhere to WTO protocols. Similarly, America´s failure to support a financial regulatory framework, unwillingness to hold regulatory setups accountable for their failures and bring an end culture of huge salaries and bonus in banking sector has undermined Europe´s confidence in America´s future economic policies. The move will only accelerate EU´s economic realignment with Asia because EU is already dependent on Asia for its energy needs.
On the international front, Hatoyama pledged to improve Tokyo´s relations with its Asian neighbors and forge a foreign policy that is more independent from Washington. It is a huge foreign policy change for a country that has been ruled by pro-US Party for almost five decades. Reportedly, Hatoyama wants to change Japan´s relationship with America. "Japan has been largely passive in our relationship, but I would like to be a more active partner", he said. Japan´s new Foreign Minister Katsuya Okada signaled on Thursday his centre-left government would seek to renegotiate an agreement on US military bases in Japan http://www.dailytimes.com.pk/default.asp?page=2009918story_18-9-2009_pg4_5 . Hatoyama foreign policy skeptics however believe upcoming UN meeting in New York will test PM´s promises of policy change towards Washington. International media especially American press and think tanks however maintain that Hatoyama´s US policy change is but campaign slogans.
EU Commission chief Manuel Barroso who has been re-elected to the office with the strong backing of France and Germany for another five years has supported views expressed in Hatoyama´s essay in which Japanese PM criticized US led globalization, Iraq war and pointed to the end of US global dominance. In his essay, Hatoyama hailed Europe´s integration efforts and wants Asia to emulate the effort in future with a political union and common currency. Barroso in a personal message to Hatoyama appreciated the converging views between Japanese PM Vision for Japan and the new political guidelines for the next EU commission. EU is trying to invent a transformational agenda to shape globalization with values promoting human dignity, using sound principles of decentralized governance. Barroso said Europe and Japan must work together to revive the global economy, reduce poverty and combat climate change. Barroso hailed Hatoyama´s decision to reduce greenhouse gas emissions by 25 percent by 2020 because EU has already proposed 30 percent reductions. Both leaders are expected to meet in G-20 Summit in New York next week.
These developments have raised the stakes for Washington in terms of its Asia-Pacific policy, calls for de-globalization, financial sector regulatory reforms, and climate change. In case of a rejection of Lisbon Treaty in upcoming Irish referendum the fate of globalization should be settled for good. Irish PM´s pledge to spend $189 bn public money to save banks has forced the angry masses to come on road to end "socialization" of Wall Street losses. EU leadership sensitive to the development is therefore looking for newer agendas. EU has also promised to uphold civil laws and support better pays. Unlike Washington that has failed to rein in Wall Street, uphold civil and working rights of Main Street.
If Hatoyama manages to stay his course on promised changes including foreign policy shift, Washington will lose Tokyo to EU. Since human rights play important role in EU foreign policy and with adoption of civil rights as part of its transformational agenda, it will be even harder for pro-Israel, anti-human rights imperial Washington to maintain support of its leftover allies and win hearts and minds in rest of the world.
On domestic front Hatoyama´s unfolding battle for a new social contract and political changes in Japan is of critical importance for the Japanese public and rest of the world facing expanding recession. On foreign policy level any success for Hatoyama in realigning the country with Asian economy will benefit both the region and the Japanese economy itself. With EU already on board and positive support from ASEAN and SCO within Asian framework, Japan´s chances are even better.
All this has brought Washington´s economic model and foreign policy under world´s spotlight. If Hatoyama manages to walk the walk, it is going to be a huge challenge for Obama. Tokyo like EU will base its appeal to rest of the world by upholding and respect International Conventions and Laws, International platforms including UN, ICJ, Diplomatic norms, immigration rights vs. Internment laws forcing naturalized citizen to relocate or leave the countries and holding states for war crimes. Obama will have to choose between country´s imperialistic policies or upholding international laws and conventions. Washington needs to understand that rightly or wrongly world respects America as land of law, justice and social equality. In terms of per capital income US is 17th http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29_per_capita.
Therefore, Obama has to accept the reality and review American policies to befriend rest of the world or continue with dead end policies that will only bring more death and destruction. Obama must withdraw troops from Afghanistan and Iraq and let democracies and local rule of laws take their own course to deliver. Today, corrupt Afghan and Iraqi regimes like most pro-American third world governments are milking ordinary people and leaving the negative fallout at America´s doorstep.
Thus, Hatoyama, EU, and American Democrats under Obama must help America recognize its blind spots to end international tyranny in the name of capitalism and so-called war against terrorism to restore rights of public and uphold international law for collective benefits. Remember, nine explosions in nine American cities on night of June 2, 1919 were used to "convince" the country that it sat on Russian-style Socialist Revolution. History of America in 1919 however shows that collapsed economy had promoting waves of strikes, riots and political violence.Ironic it maybe, Obama cannot avoid for long the shadows of Hatoyama's battle to replace capitalism with a new social contract on lines of New Deal to serve public and public alone.