2011年2月 8日
Japan's Financial Problems
These days, it seems as though there is a story in the newspapers about Japan's financial problems almost every day. It is quite worrying, especially as the politicians only seem to be interested in scoring points against each other and promoting the interests of their own party or group.
As a non-Japanese person, one of the things that surprised me the most when I came to Japan was the system of accounting that is used here.
In the UK and New Zealand, every organization has an accountant. These people are usually very highly qualified, and they are experts in financial management. They are also very highly paid! (Actually, my brother's wife is one, although she is taking a break from work to look after my nephew and niece.) I was amazed to find that in Japan, even really big universities do not have proper accountants. I could not believe, for example, that the 経理課長 is usually not a qualified accountant, just someone from the office staff who has been promoted to that position. Is this common in other organizations in Japan?
One of the biggest problems I have seen in Japanese universities is the way that budgets are organized. Because universities don't have real accountants, everything has to be kept really simple. If your department is given a budget, you have to use all of it, and someone will get in trouble if you don't. The result of this is that there is usually a panic rush at the end of the year to spend the money on things people don't really want or need. Bookshop agents usually come around at this time trying to sell really expensive books because they know it is an easy way for teachers to use up money. I went for a walk with a friend who works at a university the other day, and he said he has just bought a really expensive computer (about 300,000 yen) that he doesn't need because the head of his department asked him to help use up the budget.
I have seen the same kind of thing in many different places in Japan. Of course, the head of department in my friend's story was just doing his job. He was worried that if he doesn't spend everything this year, his budget will be cut next year. As far as I know (please correct me if I am wrong), every organization in Japan is run like this. That is why there are so many construction projects in the spring when cities and prefectures are trying to use up their remaining budget. I even remember reading a story about a village somewhere in Japan that couldn't figure out how to spend all their money. In the end, they decided to give free helicopter rides to all the villagers so that they could see their village from the air! (Mind you, this was in the bubble era. I hope that nothing like that would happen today.)
From the point of view of an outsider, the Japanese system of accounting is absolutely crazy. It may have been okay in the days of the bubble, but surely it needs to be changed now. Based on my own experiences in Japan, I would guess that many of the financial problems could be solved simply by cutting all of this waste. Heads of departments should be given credit for not using all of their budget, not penalized for it. As far as I can remember, even though a lot of money was wasted in the police, not spending all of your budget was a feather in the cap of department heads, not something they got in trouble for. Being a competent financial manager was an important skill if you wanted to get promoted.
I would guess that consumption tax in Japan will be raised to 10% by the end of the year. I actually think this is a good idea if it helps the economy, but as a tax payer myself, I really hate to see all this money being wasted. As I said, though, the problem is not the people, it's the system. I don't think it is possible for Japan to get back on its feet until the whole system for handling budgets is changed, and real experts are brought in to deal with accounting in large organizations.
What do you all think? Do you have any experiences like mine? If so, please share them.
Bye for now,
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Comments
Hi David and everyone,
David,as you mentioned, since Japan is not in the day of bubble any more, government and offices should change their ideas and tackle seriously with the financial problems.
New mayor and new governor were elected in Aichi last(this?) Sunday.
Kawamura, former Nagoya mayor, was reelected and aims at the introduction of a permanent tax cut coping with the new Aichi governor,Ohmura.
I hope their policies including tax cut work well.
By the way,I like all the photos you took,especially the last one is really beautiful!
Hi toko-mom,
I'm in my late fifties ,and I know what you mean.
By the way, as for you question"母は元気にしています。" I would say, "My mother(mom) is doing well/fine."
＞母は元気です。
My mom is fine.
>母は元気にしている。
My mom is doing well/fine.
元気に暮らしていると言うニュアンスがでると思いました。あくまでも、私の考えなので信用しないでください；＾＾）
See you soon,
Anne
- Anne
- 2011年2月 8日 15:05
Hi David and all,
I’ve also heard that many organizations rush to use up the remaining budgets in the last minutes. I’ve never expected those money will be wasted like that. I agree with what you pointed out: not using all the budgets is such good thing that the organizations should be given some advantages. One thing I don’t like most about Japanese politicians/mass media is that they don’t show any respect to each prime minister but they just try to find out bad points to kick him out. Once the prime minister is elected, even though you don’t like him so much, I think we must rely on him and see how he will work with his men for a certain period. So much noise and complaints never let him work properly. By the way, I’ve watched a TV program last week: there is a very small independent village in Japan whose people never counted on government money. They had their own ideas and made money by themselves and used the money for true necessities. That was great to see.
- tsuneko
- 2011年2月 8日 15:10
I just made oyakodonburi for my dinner, and it was absolutely fantastic, if I do say so myself. I think I might give up writing and open a restaurant. Mind you, I only know how to make three things, so the menu will be quite short!
- David
- 2011年2月 8日 19:35
Oh,you did? Good for you! What else do you cook?
Well...omelet and...?
- Anne
- 2011年2月 8日 20:10
Very simple pasta. And mabo dofu. And that's about it.
Anne, what did you think of the Nagoya election? Do you think it will be good for the city?
- David
- 2011年2月 8日 20:23
Hi David and everyone,
As for the topic, I couldn't agree with you more. I hate to see our money being wasted, and I also think many of the financial problems could be solved simply by cutting all of the waste. Maybe the problem is not the people but the system, but most politicians don't know how to use money, and they won't change the way.
I hate to see politicians arguing or accusing each other too. Are they promoting the interests of their own party? It doesn't interest me at all. When I see that kind of thing on TV, I always think to myself, "Is there anything else to do??
By the way, I didn't know the expression "a feather in the cap". It's interesting.
Tomo
PS David - If you opened a restaurant, please let me know. I'd like to try your 'absolutely fantastic' oyakodon!
- Tomo
- 2011年2月 8日 22:25
Hi Tomo,
I hope you will come to my restaurant! The only problem is that I can never be sure how my cooking is going to turn out. This evening, it was fantastic, but I'm afraid it's not always that good. Actually, it's usually terrible, so I don't think I will get very many customers!
Regarding the topic, I've been thinking recently that Japan is in a lot of trouble because although the system needs to be changed, the system itself is set up so that nobody can change it. It's like an indestructible monster! No one can become a politician without following the old system, and if you follow the old system, you will be completely powerless as a politician because you will owe favours to so many people. (Maybe the mayor of Nagoya will be different?) Also, if you are really good, you will never make it to the top as the people at the top always block people with real talent because they are scared they will make them look bad. It's a Catch 22 situation. (I think we have talked about "Catch 22" before, haven't we?)
It's the same in Japanese universities. Everyone knows that many of them are in deep trouble, and there are plenty of teachers who want to do something about it, but they can't because everything has to go through committees, and those committees are all about politics.
In one university I worked at, I went to ask the 総務課長 if I could do something. He said that my idea would never be accepted, but that if I did 根回し to ...先生 and he did 根回し to ...先生, it might get through. In other words, the quality of the idea or proposal is not important. The only thing that matters is whether you have gone through the right people or not, and whether they like you or not. Again, I don't think this is a people problem, it's more of a system problem. I'm afraid I can't think of any good ways to solve it.
- David
- 2011年2月 8日 22:53
【訂正】
"Is there anything else to do?? → "Isn't there anything else to do??"
Hi David,
＞The only problem is that I can never be sure how my cooking is going to turn out.
My cooking used to be like that too. As you know, "practice makes perfect";-)
Yes, indeed. It's a Catch 22 situation. It's really difficult to break old systems or customs, isn't it? The system was made by people, so it should be able to be changed by people. We know the problem, but nothing has changed for a long time. As you say, there are always people who block good ones. I think the people are old ones. They don't want to do anything that has a bad effect on them. They don't want to change the system. Are they really thinking about the future?(not theirs but ours) People with real talent who try to change the old system will always be blocked by them. It's like "the nail that sticks up gets hammered down", isn't it? I wonder why those people can be chosen again and again.
Have a nice day, everyone!
Tomo
- Tomo
- 2011年2月 9日 08:34
Hi David,
Very simple pasta and mabo dofu? I see. Ok, if I hear words"fantastic!" hundreds of times from you, then I will visit your restaurant! Actually, we heard about the terrible story about cooking(egg),right?
I'll write about the Nagoya election later.
Remodelers is coming soon!
Have a lovely day,everyone
Anne
- Anne
- 2011年2月 9日 08:35
Oh no, it's snowing!
- Tomo
- 2011年2月 9日 08:36
teisei
'Remodelers is' should be"Remodelers are",of course.
- Anne
- 2011年2月 9日 08:39
Hi David,
To tell you the truth, I didn't know some of the problems which you pointed out in your post. I'm not good at politics and financial matters. I am ashamed myself to be told our own country's problems from a foreign person.
Why can't they leave the money for next year if they couldn't spend all the budget by that year? That's us, common people who have to endure a heavy burden. A lot of people work really hard to pay college tuition of their children. A friend of mine is working two jobs to pay her twin son's college fees while doing housework. It's ridiculous to waste money which we earned by working hard for spending useless thing! It seems that there are some rotten systems that have not been changed.
Oh no, please don't give up writing to become a cook who might serve terrible meals! (Just joking! We love your books. :)
Fumie
- Fumie
- 2011年2月 9日 09:38
Hi Ling,
Did you write a thank-you letter about your homestay in New Zealand, or was that someone else?
- David
- 2011年2月 9日 14:03
Yes, I wrote that story.
- Ling
- 2011年2月 9日 22:09
Hi David and everyone,
I'd like to share my idea about Nagoya and Aichi election with you.
Former Mayor Takashi Kawamura won more votes than Nagoya citizens had expected, and they said,"Yes!" for dissolving the municipal assembly.
Since there have been some conflicts between the mayor and the assembly, the victories became huge ones for him.
He said,"Today marks the first step to move Japan forwards from Nagoya and Aichi." after winning Sunday night.
He and the New Governor Omura pledged to push through tax cut proposal and they mentioned,"We can expect more money enough to cover the deficit."
They also said,"We are going change the system or organizations by cooperating with each other. We can reduce the waste of budget by doing so."
I am not surprised at the result at all. Voters have been fed up with old-style politicians (or policies) and they expect different and effective ways to solve these day's financial problems.
I am happy if my family's residential tax is to be 10% off,but I'm worried about that Nagoya city or Aichi prefecture can afford to cover the deficits or not.
To be frank with you, I don't think I support 100% Kawamura's policy(I wanted to say,"100% 河村さんの政策を支持するわけではない",does this make sense? Or does this mean"私は河村さんの政策を１００％支持していない。”？),but it is true that situations have been changing since he became the Mayor in 2009. Actually,I know some of my friends working for Nagoya city and I heard how working situations have changed from them.
His remarks and ways are a bit radical and I think he should sometimes listen to members of the assembly.
Kawamura aims to secure a majority of the seats in the assembly at the coming election on March 13.
I don't want his policy end up with a dream and want to expect what he is going to tackle.
Phew.. I've done.
Bye for now,
Anne
- Anne
- 2011年2月 9日 22:16
Hi Ling,
I used your paragraph in the book. If you would like me to put your name in it, please email me and tell me your full name.
Thanks.
- David
- 2011年2月 9日 23:00
Hi David,
It seems that there is nothing left to say about this week topic. This kind of topic makes me sick. As other members said, I don’t understand how they could use our money like that!!
After reading your entry, I was wondering if those things happen only in Japan. I mean, are there any organizations doing the same kind of stupid thing in the UK?
Take care,
amo
- amo
- 2011年2月 9日 23:54
Hi Amo,
I was just reading an article about Japanese politics, and it seems that the prime minister has a very difficult job. The politicians are only really interested in fighting each other.
Hi Anne,
Thanks for sharing your views. The sentence you asked about should be "I don't completely share Kawamura's views." Anyway, I hope he can make a real difference in Aichi.
- David
- 2011年2月10日 00:39
Hi David,
Thanks for your help!
I found out that the word 'completely' is used as 'partial negation(部分否定）.'
I also learned the use of "share" when you mean to say"支持する."
＊all とかalways は頭にありましたが、completelyを部分否定として使うことを、意識した事がありませんでした。
teisei:
>I don't want his policy end up→ I don't want his policy to end up
What is the weather like where you are?
It's fine but not windy around here,Nagoya.
Have a lovely day,everyone!
Anne
- Anne
- 2011年2月10日 09:02
Hi David,
Oh really? My pleasure! No need to put my name in it :-)
- Ling
- 2011年2月10日 09:50
Thanks Ling.
- David
- 2011年2月10日 09:57
Hi David and everyone,
I’m not familiar with topics about politics and finances, but I think David has made a good point on what has caused the financial problem. It’s not a people problem, but a system problem.
I’m very surprised to hear that many universities don’t have real accountants, I assume that many companies organize their budgets in the same way as universities, even though they have real accountants. I worked for a Japanese company for a short time several years ago in my country, I remember my boss was worried ’we need to spend more entertaining expense, otherwise we won’t get much budget next year’. Does Japan run a special accounting system which is quite different with other countries?
Hi Anne,
Thank you very much for explaining Nagoya election and Kawamura’s policy, I saw it on the top of news for a couple of days and didn’t know why, now I understood the reason.
Hi everyone,
We are supposed to have snow here in Tokyo and the temperature would be very low during the 3-day weekend. Take care & have a nice weekend.
- Ling
- 2011年2月10日 16:15
It's snowing - really snowing!
- David
- 2011年2月11日 08:38
Yes,indeed! Snowing!
- Anne
- 2011年2月11日 08:42
Yes, each department in our company also has budget. However we use percentage for budget to see how much we could reduce department expense compare to forecast which we made and we compare it to last year number. Point is how to make employee think about cost reduction. I think, this mechanism is really important. As a result, upper management can see that which department made lot of cost reduction easily and all manager will be evaluated based on this percentage (Cost reduction).
I think even if budget is less than last year, we can provide same service, make same product. But in order to do this, we have to improve something. In other word, something needs to be improved such as efficiency, automation.
Budget is not dinner. We can leave it for revenue.
Thanks,
Yuki
- Yuki
- 2011年2月11日 08:58
It had been snowing until about noon in Osaka but it already stopped.
Today's jaremaga is mine.(I mean I wrote the story.)
Fumie
- Fumie
- 2011年2月11日 15:12
Hi Fumie,
Are you a friend of Doug's?
- David
- 2011年2月11日 16:06
Hi Fumie,
You mean the story about a guy who has gotten a perfect score on the TOEIC 24 times? Who is he? He is your friend??
By the way, stopped snowing in Osaka? Here in Tokyo, is still snowing. It’s really cold and I don’t want to go out at all.
Take care,
amo
- amo
- 2011年2月11日 16:40
Hi toko-mom,
Thanks for your comment on the last entry. I understood everything you wrote.