It’s been a year since Shinzo Abe got financial markets excited with his plan to pull Japan’s economy out of its more than 15-year deflation. So has Abenomics been a success? Jonathan Soble, Tokyo bureau chief investigates: Read more
By Gideon Rachman
A few years ago Wired, the technology magazine, ran a regular feature called “Japanese schoolgirl watch”. The concept was not as dubious as it sounds. The idea was simply that the schoolgirls of Japan are technological trendsetters and that the gadgets they adopt today will go global tomorrow.
There’s been a lot written in the FT and elsewhere about the Trans-Pacific Partnership, or TPP. Here are five reasons you should care about this trade pact:
1. This is a big deal.
If, or when, it is finalised the 12-country Pacific Rim deal will cover countries responsible for almost 40 per cent of global GDP and involved in more than a third of global trade.
This chart is taken from a June 2013 report by the US Congressional Research Service. Some $18tn in goods is traded around the world each year these days. The countries in the TPP (The current “TPP 12”: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam) accounted for 36 per cent of that total in 2011.
♦ The anxiety over Japan’s sales tax may seem bizarre to outsiders, but it will be a stern test of Shinzo Abe’s popularity.
♦ James Politi looks at the impact of the sequester on Head Start, arguably the most high-profile casualty among the anti-poverty programmes.
♦ Nicolás Maduro is looking to blame anybody else for Venezuela’s economic problems – even Spider-Man.
♦ While support for Cristina Fernández ebbs in Argentina, Sergio Massa has risen to become one of the strongest potential candidates for presidential elections in 2015.
♦ Slate magazine imagines how the US government shutdown would be covered by the US media, if it took the same tone that it does in its foreign coverage.
♦ The Washington Post is crowdsourcing for ideas as to how congress can be punished for the government shutdown.
♦ Smuggled letters from westerners caught up in the crackdown on the Muslim Brotherhood reveal that terrible prison conditions remained unchanged and there is a new willingness to subject westerners to the same treatment as Egyptians, according to the New York Times. Read more
Not a milestone to rejoice in. Japan’s debt has tipped into the “quadrillion” zone for the first time. That is, as of the end of June, central government debt, looked like this: Y1,008,628,100,000,000, or $10.4tn.
It surely could not be a clearer message to Japanese Prime Minister Shinzo Abe that shilly-shallying over fiscal consolidation is no longer an option? Second-quarter economic output figures due on Monday are key to Abe’s decision about whether to raise consumption tax from 5 per cent to 10 per cent by 2015. Back in June in a speech in London, he pinned any decision to raise the tax – one he must make by October – on the strength of the economy in the second quarter. Read more
Shinzo Abe speaks at the Guildhall (Getty)
Shinzo Abe didn’t tell his British audience at London’s Guildhall anything new about Abenomics, his programme to reflate Japan’s economy back to health. But it is worth listening once again to the impassioned language with which he endeavoured to sell it.
Not since Junichiro Koizumi, the last prime minister to promise radical reform, has Japan had a leader so obviously energised by a sense of his own destiny. Mr Abe does not possess the charisma of the Elvis-loving Koizumi, but what he lacks in appeal he makes up for in zeal.
Mr Abe pledged to be “a drill bit that will break through [the] bedrock” of Japanese regulations. He promised to be “afire, burning with all the political strength I can muster”. To allow Japan’s economy to shrink would not just be unfortunate, he said, it would be nothing less than a “cardinal sin”. (In nominal terms, at least, Japan has evidently been a sinful place in recent years.) Read more