Japan

♦ Detroit became the largest US city to file for bankruptcy. Time magazine looks at the decay of the city. The Washington Post’s Ezra Klein points out Detroit is not alone.
♦ Sunday’s election for the upper house of Japan’s parliament is expected to give Prime Minister Shinzo Abe a stronger platform from which to shoot the “arrows” of his radical economic reforms, but some fear he may also strike a more nationalistic tone.
♦ Russian opposition leader Alexei Navalny was freed on bail Friday after being sentenced to five years in prison on embezzlement charges the day before. Our Charles Clover examines how his jailing tells you a lot about how political repression has evolved in Russia over the years. Masha Lipman looks at how the Putin government chose to eliminate their political opposition the hard way.
♦ The Guardian’s Patrick Kingsley examines the shooting of Muslim Brotherhood supporters outside the Republican Guards’ club in Cairo and finds that it was a coordinated assault on largely peaceful civilians.
♦ Marc Lynch at Foreign Policy argues that Washington should make a “much broader, more vigorous effort to engage publicly and privately across all Egyptian political groups and segments of the population” – but now is not the moment, with so much anti-American rhetoric swirling around.
♦ They were the irreplaceable loot from the art heist of the century. But to Olga Dogaru, a resident of a tiny Romanian village, burning them was the only way to save her son from prosecution. The problem is that he is the man charged with orchestrating the brazen theft last October of works worth hundreds of millions of dollars from the Kunsthal museum in Rotterdam. And the works were masterpieces by the likes of Picasso, Monet and Gauguin. Read more

By Aranya Jain

♦Hassan Rohani, the only moderate candidate left in Iran’s upcoming elections, promised reform and unveiled his past in a documentary aired on state TV.
Japan attempts to increase entrepreneurship by making taking out loans easier and encouraging innovation, but changing the system will not be easy.
♦ We are entering a new age of big data, and have yet to understand what this will mean. Our lack of privacy does not end with the NSA, as many big data companies are also able to collect our data trails, and infer things about us from them.
♦ Post-Arab Spring North Africa remains fragile, and is reminiscent of post-Communist eastern and central Europe, but what Africa needs is a role model for democracy.
♦ Snowden claims that the NSA has been hacking China and Hong Kong for years will test Sino-US ties.
♦ This website, via interactive graphics and charts, allows you to explore information about land deals, from a web of which regions are investing in each other to charts that delineate what the land is being used for.
♦ What Mandela’s legacy can leave behind – Roy Isacowitz argues that Israel should emulate Mandela to pursue peace but that it will not do so. Read more

♦ Martin Wolf argues that the UK industrial revolution shows the Reinhart-Rogoff thesis on debt is not always right.
♦ Frigide Barjot and her fellow protesters have taken the heat off Hollande as people take to the streets to protest over gay marriage rather than the state of the economy.
♦ The planting of sugar cane has exacerbated the effects of the worst drought in more than four decades in the Indian state of Maharashtra.
♦ Critics say that Nelson Mandela’s family members have been using his status for their own enrichment. Two of his grandchildren are involved in a US reality show called Being Mandela and his daughter has launched a wine business called House of Mandela.
♦ FT Alphaville take a typically irreverent look at the ‘tweet retreat’ in their Occupational Indifference series.
♦ The number of people in Britain receiving emergency food rations has more than doubled in the past year as inflation eroded incomes and government spending cuts have pushed hundreds of thousands into crisis.
♦ Jacob Heilbrunn at The National Interest examines Israel’s fraying image and the possibility that US interest in Israel’s fortune could wane: if Israel remains stymied in dealing with the Palestinians… its predicament is likely to intensify. And the range of options for dealing with the country’s mounting problems is likely to expand toward more radical solutions.”
♦ Japanese drivers are getting televisions installed in the front of their cars. “Japanese law prohibits “staring” at a screen while driving, without saying anything about glancing at one.”
♦ The New York Times is debating the usefulness of Nato.

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WASHINGTON, DC - FEBRUARY 22: Japanese Prime Minister Shinzo Abe is seen on a television monitor during a news conference on February 22, 2013 in Washington, DC. Abe is in Washington to meet with President Obama and discuss economic and security ties. (Photo by Brendan Hoffman/Getty Images)

Shinzo Abe in Washington on February 22 (Getty)

It’s rare that the sequel is better than the original movie, but so far Shinzo Abe II is doing much better at the box office than its ill-fated prequel. As we approach the first 100 days in office mark, here are five differences (and a few similarities) between Shinzo Abe I and Shinzo Abe II.

1. Shinzo Abe I had a dull subtitle. Constitutional Amendment failed to excite the public and never got anywhere. Deflation Slayer, on the other hand, the subtitle for Shinzo Abe II, has got everyone talking, from bond traders and currency speculators to ordinary Japanese fed up with economic drift.

2. It is often forgotten that Shinzo Abe I, released in October 2006, had a strong opening. Abe travelled to Beijing and mended relations with China. But the movie quickly trailed off as the plot foundered on a boring and jerky narrative involving disappearing pension records and a series of ministerial scandals. Shinzo Abe II was strong even before the opening credits rolled. Many audience members were so excited that shares soared and the yen weakened even before Abe appeared in the opening scene.

3. The plot of Shinzo Abe II is intriguing. It starts off as a story about a bold economic experiment, but no one knows how it will end. Will the Japanese economy at last gain some traction after 20 years in the doldrums? Or will the gamble end in catastrophe with hyperinflation and capital flight? Read more

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The suggestion that the rise in tensions between China and Japan could lead to a world war is a grim one. So I hesitate to admit that I quite enjoyed writing last week’s column - largely because it sent me scrambling back to some old books on the origins of the first world war, that I have not looked at since I was a student. My original article has also provoked some interesting reactions from historians and political scientists.

Professor David Stevenson of the LSE wrote a letter to the FT, agreeing that there are disturbing parallels between events in the West Pacific now, and the prelude to the outbreak of hostilities in 1914. He believes, however, that things will only become really dangerous, if and when the two sides become accustomed to the idea that they might go to war. Read more

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Reading to take you into the weekend…  Read more

The FT’s world news desk brings you their picks of the day… Read more

The victory of the LDP and Shinzo Abe in the Japanese elections completes a cycle in Japanese politics. The Democratic Party of Japan, which has crashed to defeat, came to power in 2009 intent on a rapprochement with China. That does not seem to have worked out – to put in mildly. Now Shinzo Abe, a nationalist who wants to re-write Japan’s pacifist post-war constitution, is to be prime minister. Read more

IMF headquarters in Washington. Saul Loeb/AFP/Getty Images

Saul Loeb/AFP/Getty Images

Yesterday, I was all “the emerging markets have a point about running the IMF”. Read more

Here’s some thought-provoking material to start off your week:

The row between China and Japan over their disputed islands seems to have quietened down. Still, the dispute is a nasty reminder of the potential for conflict between the two powers – and, also, of the risks that the US could get dragged in, writes Gideon Rachman. Read more

REUTERS/David Gray

A worker at the Jinyuan Company's smelting workshop prepares to pour the rare earth metal Lanthanum into a mould near the town of Damao in China's Inner Mongolia Autonomous Region. REUTERS/David Gray

 

The US, EU and Japan teamed up today – arguably for the first time since the Cold War – to bring an unusual joint case at the World Trade Organisation against China over its export controls on rare earths. Read more

Few can now doubt that Japan’s economy, hardly in the most robust of shapes anyway, has taken a battering from last year’s tsunami. On Monday, data showed that output fell between October and December for the third time in four quarters as companies battled a perfect storm of problems.  Read more