Category Archives: Japan

Takasago-beya as Both the Yankees and the Dodgers

While Azumazeki-Beya had been open for only two years, Takasago-Beya was steeped in sumo history. Of the fifty-odd sumo-beya [sumo stables] currently housing rikishi [professional sumo wrestlers] in various parts of the surrounding neighborhood, Takasago ranked fifth in years of operation, dating back to 1878—by no means the beginning of sumo, but an age when the sport began to take on its present structure. In addition to Azumazeki-Beya, Takasago spawned Takadagawa-Beya, Nakamura-Beya, Wakamatsu-Beya, and Kokonoe-Beya. Takasago Oyakata had risen to yokozuna [grand champion] back in 1959, competing as Asashio [one of my childhood favorites—J.]. The fifth Takasago Oyakata, he had taken over in 1971 when the previous Takasago Oyakata, who had also risen to yokozuna competing as Maedayama, died. The line of oyakata stretched back to Takasago Uragoro, who oversaw two yokozuna and three ozeki [champions] of his own. Over the years, nearly one-tenth of the yokozuna promoted since the inception of the rank in the mid-nineteenth century (six of sixty-two, by this time) stomped their first shiko [raise one leg, stomp it, squat] into the Takasago-Beya keikoba [practice room]. If American Major League Baseball were a hundred years older (and if baseball players shared this unforgiving, monastic lifestyle), Takasago-Beya might be comparable to Yankee Stadium.

Takasago-Beya was perhaps more notable in a Brooklyn Dodger way than in a way befitting Yankee pinstripes. In addition to Taylor [Wylie], John [Feleunga], Konishiki [Saleva’a Atisano’e], and Nankairyu, Chad [Rowan] saw two other foreigners in the room, members of Takasago-Beya. While other sumo-beya had recruited rikishi from Brazil and Argentina, and would later look to Mongolia, the only foreigners yet to have really impacted the national sport were limited to this room. Twenty-four years earlier on a demonstration tour to Hawai‘i, the fourth Takasago Oyakata had taken a chance on Jesse Kuhaulua, the beginning of Hawai‘i’s connection with Japan’s national sport. Kuhaulua had trained and competed for more than twenty years at Takasago-Beya as Takamiyama. He now presided over asa-geiko [morning practice] next to the present Takasago Oyakata, on nearly equal terms, as Azumazeki Oyakata.

SOURCE: Gaijin Yokozuna: A Biography of Chad Rowan, by Mark Panek (U. Hawai‘i Press, 2006), pp. 38-39

In looking for links for this post, I came across an interview with Hawai‘i-raised amateur sumotori Kena Heffernan, Yale ’96, Sumo cum laude.

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Wordcatcher Tales: Nakayama > Zhongshan

In 1987–88, the Far Outliers spent a year teaching English at newly founded Sunwen College in Zhongshan City, Guangdong Province, China, about an hour by car north of Macao, which at that time was still a Portuguese colony. Our daughter, who was two at the time, learned to recognize the Chinese characters 中山市 (Zhongshanshi), which were ubiquitous on vehicles and signs around the city. (The photo shows her with the principal of her preschool, who was also the auntie of one of our students—otherwise they wouldn’t have taken her. They didn’t realize until too late that she was a year younger than the others in her class.)

We soon came to realize that hardly anyone in China recognized the Cantonese name Sun Yat-sen (孫逸仙), whose famous bearer is known throughout China as Sun Zhongshan (孙中山). The name of the college, Sunwen (孙文) was the same man’s “school name” (学名 xuémíng, informally 大名 dàmíng ‘big name’), the name he signed on official documents. The man had a lot of names.

What I didn’t realize until just recently was that the name by which he is known in China derives from the alias he used in Japan—and not vice versa—at least according to Wikipedia:

In 1897, Sun Yat-sen arrived in Japan, and when he went to a hotel he had to register his name. Desiring to remain hidden from Japanese authorities, his friend wrote down the Japanese family name Nakayama (中山) on the register for him, and Sun Yat-sen chose the given name Shō (樵).

Allegedly, on their way to the hotel they had passed by the Palace of Marquis Nakayama (family home of the Meiji Emperor’s mother) near Hibiya Park in central Tokyo, and so his friend chose the family name which they had seen hanging at the door of the palace.

For the most part of his stay in Japan, he was known as Nakayama Shō (中山樵). The kanji for Nakayama can be read in Chinese as Zhōngshān.

And now you can find universities, roads, and parks named for Zhongshan all over China and Taiwan (thanks to the imperialism of Japanese aliases, or the anti-imperialism of the alias holder, or something).

PS: Our daughter, whose first preschool was Zhongshan No. 2 Preschool (中山第二幼儿园) in Sun Yat-sen’s hometown, later graduated from Sun Yat-sen’s alma mater in Honolulu.

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Newsweek on Multiethnic Japan


The Asia edition of Newsweek for 11 September features “multiethnic Japan”—something that also struck me during my latest visit there.

Consciously or not, ordinary citizens and government bureaucrats still cling to the notion that Japanese society is a unique, homogeneous culture. There is a conspicuous lack of public debate about how this insular country should adjust to the reality that more immigrants are coming—and that those already here are changing Japan. “The government has no [comprehensive] immigration policy,” says Marutei Tsurunen. Rather, the approach is piecemeal, with different agencies issuing often contradictory regulations. Tsurenen should know. He’s a former Finn turned Japanese citizen and the only naturalized member of the national Parliament, or Diet.

Travel around Japan today, and one sees foreign residents holding a wide range of jobs: there are Chinese short-order cooks, Indian software programmers, Bangladeshi used-car dealers, Brazilian textile-factory workers, Sri Lankan department-store cashiers. The overwhelming majority of the approximately 15,000 ex-foreigners who now hold Japanese citizenship are Chinese and Koreans—but increasingly one can also meet people like Kaoru Miki (formerly Colin Restall, born in the United Kingdom). “Generally people don’t expect someone who looks like me to be a citizen,” says Miki, 33, who makes his living translating software into English. He was naturalized this spring.

The number of foreigners in Japan has more than doubled over the past 15 years—rising from 886,000 in 1990 to over 2 million today. That amounts to 1.57 percent of the overall population—still small even by Western European standards (not to mention the United States or Canada). But that figure tells only part of the story. The rise in the foreign population is taking place against the background of Japan’s demographic decline; as the population ages, native-born Japanese constitute a diminishing share of the work force. Meanwhile the number of marriages between Japanese and non-Japanese has been rising sharply. So-called international marriages made up 5.5 percent of the total in 2004 (the last year for which data are available).

The numbers also reveal a growing trend toward what one might call “genuine immigration.” For many decades, the bulk of foreigners in Japan were ethnic Koreans, the vast majority of them born in the country but not automatically entitled to citizenship. In recent years, as their members have either died out or increasingly opted for naturalization, their share of the total number of foreigners has been declining. Meanwhile, so-called permanent residents—foreign-born people who have chosen to live in Japan for the long term—are steadily growing. “It shows that immigrants, not generational foreigners, are now becoming the more common permanent residents in Japan, meaning they’re not going to leave,” says human-rights activist Debito Arudou, a former American turned Japanese citizen. “I used to say half of the foreigners in Japan were born here. Now it’s more like a quarter.”

And the fundamental consequence, says Arudou, is clear: “We’re going to see people who don’t look Japanese being Japanese. That’s undeniable.” Essentially, any foreigner who has lived in Japan for five years, can prove he or she is in good financial health and has no criminal record can petition the Justice Ministry to become a citizen. In reality, the naturalization process is more complicated, and can take about 1 to 2 years to complete.

I’ve added a little bit of visual confirmation on Flickr, where you can search for “international Ota City” in predominantly rural Gunma Prefecture.

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Remembering Iwo Jima, Both Victors and Vanquished

Joe Rosenthal has died. By a stroke of good luck, he was able to capture an image of victory after one of the most hard-fought battles of the Pacific War.

Joe Rosenthal, the Associated Press photographer who captured the enduring image of the American fighting man in World War II with his depiction of five Marines and a Navy corpsman raising a huge American flag over the Japanese island of Iwo Jima, died Sunday in Novato, Calif. He was 94….

His photograph of the flag-raising atop Mount Suribachi on Feb. 23, 1945, may be the most widely reproduced photo in American history. It was re-created on at least 3.5 million Treasury Department posters publicizing a massive war-bond campaign. It was engraved on three-cent Marine Corps commemorative stamps that broke Post Office records for first-day cancellations in 1945. It was reproduced as a 100-ton Marine Corps War Memorial bronze sculpture near Arlington National Cemetery. And it brought Mr. Rosenthal a Pulitzer Prize.

But almost from the day the photograph was emblazoned on the front pages of Sunday newspapers as a symbol of embattled patriotism, Mr. Rosenthal faced suspicions that he staged the shot, posing the Marines. He always insisted that he recorded a genuine event, and others on the scene corroborated his account.

“The picture was not posed,” Louis Burmeister, a former Marine combat photographer who was among four military photographers alongside Mr. Rosenthal as the flag went up, said in a 1993 interview for “Shadow of Suribachi,” by Parker Bishop Albee Jr. and Keller Cushing Freeman. [It’s amazing how persistent that rumor is in newsrooms that can’t spot photographs that are not just posed, but photoshopped, from current war zones.–J.] …

After being declared 4-F by the armed forces because he could see only one-twentieth as well as an average person, Mr. Rosenthal joined the United States Maritime Service, taking photos of Atlantic Ocean convoys. In March 1944, he went to the Pacific on assignment for the A.P. and later photographed the invasions of New Guinea, Hollandia, Guam, Peleliu and Angaur.

On Feb. 19, 1945, Mr. Rosenthal accompanied the early waves of a 70,000-man Marine force ordered to seize Iwo Jima, a 7.5 square miles of black volcanic sand about 660 miles south of Tokyo. The island, defended by 21,000 Japanese troops, held airstrips that were needed as bases for American fighter planes and as havens for crippled bombers returning to the Mariana Islands from missions over Japan.

By coincidence, the Japan Times [registration required] recently ran a fascinating profile of Gen. Kuribayashi, who commanded the Japanese forces on the island.

The warrior Japan chose to lead this fight to the last in the spring of 1945 was a mercurial, contradictory man: a samurai descendant and loyal servant of the Emperor who detested much of Japan’s authoritarian, military culture; a fanatical Imperial warrior devoted to his family; an elite graduate of Japan’s top military academy who read Shakespeare, spoke fluent English and narrowly opted for the army over a career in journalism.

“The United States is the last country in the world Japan should fight,” Kuribayashi wrote in a letter home days before his doomed forces inflicted massive casualties on U.S. forces landing on the 22.4-sq.-km (7-sq.-mile) island.

The tensions in Kuribayashi’s character, and his reluctance to go to war with the U.S., slowed his rise through the ranks of Japan’s military, says grandson, Yoshitaka Shindo. “My grandfather was sidelined because he didn’t fit in with military thinking. He had friends in America and respected the country.”

According to colleague Army Capt. Kikuzo Musashino, “The general spoke about his years in America, saying they had enormous industrial resources. He said: ‘When war comes, they can convert all that ability into military use. The people who planned this war in Japan know absolutely nothing about this. Whatever way you look at this war, we can’t win.’ “

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Wordcatcher Tales: Kimoi, Muzui, Mendoi, Omoroi, Uzai

Over dinner recently, the Far Outliers were talking about ways to describe food with a visiting Japanese college student (the niece of old friends) here for a bit of English immersion. The only Japanese equivalent for gross or yucky that came readily to mind was kimochi warui ‘unpleasant feeling’, which she shortened to kimoi.

(“Kimochi warui” is how my feistiest niece’s kindergarten classmates in Japan described her blue Irish eyes. “Your blue eyes give me the willies!” She always fought back when teased or excluded—and still does to this day.)

When I googled “kimoi”, I found an interesting set of similar terms on the sci.lang.japan FAQ wiki.

  • kimochi warui ‘feeling bad/unpleasant’
  • muzukashii ‘difficult’
  • mendoo kusai ‘troublesome’ (lit. ‘stinking of trouble’)
  • omoshiroi ‘interesting, funny’ (written ‘whitefaced’)

I don’t think you can describe these shortenings in strictly mechanical terms, especially when you include the final member of the set: uzai for urusai ‘noisy, aggressive, bossy’. (“Urusai!” is what people yell at loud revellers to tell them to pipe down.) In the other cases, the shortening rule seems to be to keep just enough syllables (or moras) to turn the compound into what sounds like a one-word adjective ending in -i in the present tense and -katta in the past. I suspect omoroshiroi ‘interesting’ would have ended up omoi were it not for the inconvenient homophone omoi ‘heavy’.

Mezurashii (‘strange, curious’), ne?

UPDATE: Two commenters who are far more kuwashii than me on Japanese have suggested that uzai is most likely short for uzattai, not urusai. That makes the shortening look a little more regular.

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The Showa War: Japan’s Poor Grasp of Global Trends

The Daily Yomiuri, Japan’s largest newspaper (and a far cry from the Daily Worker), has been running a series of historical retrospectives leading up to the August 15 shusen kinenbi ‘end-war memorial-day’. Notice that they call the war that lasted from 1931 until 1945 the Showa War, named for the third emperor of modern Japan, known outside Japan as Hirohito. Here’s the 18th instalment, about Japan’s poor grasp of global trends as several regional wars mutated into a global conflagration.

What should we learn from Showa War?

Many people who experienced the Showa War have died in the 61 years since the curtain came down on the fighting. To younger generations, the war is a distant event.

The Yomiuri Shimbun’s War Responsibility Verification Committee attempted to determine the truth behind the hostilities, examined the facts and found many lessons that can be learned. To close the committee’s yearlong verification process, we summarize the mistakes made by the political and military leaders:

A nation’s future will teeter on a knife-edge if it cannot accurately read the balance of power among nations and global trends. After World War I, Japan found itself in such a situation.

Japan’s first mistake was the Manchurian Incident.

At the Washington Naval Conference held in Washington from late 1921 to 1922, the Nine-Power Treaty, whose signatories agreed to respect China’s sovereignty, and the Five-Power Treaty that limited tonnage of aircraft carriers and capital ships by the United States, Britain, Japan, France and Italy, were concluded. The invasion by the Kwantung Army into Manchuria challenged these treaties, which formed the backbone of the international order at the time.

The expansion of the Imperial Japanese Army into Manchuria provoked a fierce response from the United States, the country that advocated compliance with international agreements, nonintervention in domestic politics of other countries, market liberalization and equal opportunities. The reaction led to the Stimson Doctrine of January 1932, named after U.S. Secretary of State Henry Stimson. The doctrine said the United States would not recognize any territorial or administrative changes imposed on China by Japan through the use of military force.

Japan’s growing isolation from the international community was highlighted by its withdrawal from the League of Nations in March 1933. Less than seven months later, Adolf Hitler’s Germany also left the league.

Japan’s plan to seek closer ties with Germany exacerbated this isolationism. The plan to conclude the Tripartite Alliance with Germany and Italy was once dropped due to circumstances in Europe described as “complicated and mysterious” by Prime Minister Kiichiro Hiranuma. However, dazzled by Germany’s string of victories in Europe, Japan finally concluded the Tripartite Treaty in September 1940.

Conclusion of the pact meant Japan was allied with the nation bombing London. This was a fatal choice.

The Japanese military, whose leaders mostly were pro-Germany at that time, were unaware of the repercussions the treaty would have on the Sino-Japanese War. Britain had further clarified its stance of assisting Chiang Kai-shek, and the United States also promised substantial assistance. Japan had, accidentally, internationalized the Sino-Japanese War.

Japanese military and government leaders at that time failed to accurately grasp the international situation. They did not understand the rise of nationalism in China that set the foundations for the country’s unification after the Chinese Revolution of 1911.

At the heart of the problem was the common perception in Japan in those days that “Shina [China] isn’t a country.” Japan justified its invasion into China by claiming that China was a “society of marauding bandits.” The prevailing view in Japan at that time was that Chinese people lacked the ability to establish a modern state.

Of course, a few politicians, such as Tsuyoshi Inukai, clearly understood the nationalism in China. However, such politicians were shunted from the political stage early on during the Showa War by acts of terrorism by the military, making it impossible for them to influence Japan’s policy toward China.

Furthermore, army officials who should have played important roles in policy toward China instead became “an advanced group” to lay the groundwork for invading China. Dubbed “army China specialists,” they included Kenji Dohihara, chief of the Mukden Special Service Agency, and Takashi Sakai, chief of staff of the China Expeditionary Force. As military advisers to warlords possessing territories in China, they used conspiracies and various tactics as if they were real-life characters from the “Three Kingdom Saga.”

They ignored moves by Chiang Kai-shek and other leaders of the Chinese Nationalist Party (Kuomintang) and the rapidly rising Communist Party led by Mao Zedong. They also failed to consider the united national front of the Kuomintang and Communists that would later determine China’s destiny.

The leaders lost a balanced perspective of the international situation because Japan analyzed only one-sided data collected from Germany in Europe and warlords in China.

In the Imperial rescript on the declaration of war against the United States, as well as Britain, Emperor Showa said the war was for “self-existence and self-defense.” However, Japan changed the purpose of the war to create the Greater East Asia Coprosperity Sphere after the war started. This was based on the concept of dividing the world geopolitically into four spheres–East Asia, the Americas, Europe and the Soviet Union–in which Tokyo planned to create a self-sufficient bloc of Asian nations led by Japan and free of Western powers.

However, this concept ignored the existence of China and focused too much on ideology. Consequently, it opened the door to an almost limitless expansion of the battle, although Foreign Minister Mamoru Shigemitsu, who played an important role in wartime diplomacy, took steps such as holding the Greater East Asia Conference in November 1943.

As Japan sought to bring an end to the war, it asked the Soviet Union, which had remained a virtual enemy of Japan, to serve as a mediator in peace negotiations. Japan’s leaders were unaware that the Soviet Union had pledged in a secret agreement at the Yalta Conference to enter the war against Japan within 90 days of Germany’s defeat, the U.S. success in developing atomic weapons and the U.S.-Soviet tug-of-war for the postwar global political leadership. In the end, Japan suffered two atomic bombings and was attacked by Soviet forces in the final days of the conflict, which led to the incarceration of many Japanese in Siberian internment camps after the war.

via Foreign Dispatches, who comments:

The day that Korea’s largest newspapers are capable of such candor about the less than glorious aspects of their country’s past is the day that I’ll know there are more than two true liberal democracies in East Asia (Taiwan being the other apart from Japan). As for China – well, I won’t expect any such thing in my lifetime …

UPDATE: Taiwan urges Japan to ‘face history

UPDATE 2: As commenter Peter North observes, this piece is far from hard-hitting. Instead, it reads like a wishy-washy committee report. The other instalments I’ve read are similar in that regard.

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Oil Barons of Baku, 1901-1905

By 1901, Baku was supplying half the world’s oil. It became an international city overnight, and the local Azeris were soon outnumbered by Russians, Georgians, Ossetians, and others from the four corners of the earth. Between 1856 and 1910, Baku’s population grew at a faster rate than that of London, Paris, or New York. The Nobel brothers, who dominated the industry in the first decades, invented the concept of the tanker to handle the demand for Baku oil in the Far East, appropriately naming their first tanker Zoroaster. They made the bulk of the family’s fortune in Azeri oil, though brother Alfred’s invention of dynamite is more famous.

The oilmen came in all stripes—Swedes and Jews and Poles and Armenians—but the dominance of big foreign groups like the Nobels and Rothschilds didn’t last long. By the turn of the century, half of the tanker business and much of the production was in local hands. So-called oil barons arose from both the peasantry and the feudal aristocracy—anyone who dug a hole in the ground and got lucky. (The Nobels tried whenever possible to buy out these new oil barons, along with smaller producers. According to documents in the Baku archives, Abraham Nussimbaum sold the Nobels most of his wells in 1913, on the eve of the Great War, a highly opportune business decision.)

The new oil millionaires became great philanthropists, determined to turn their city from a provincial backwater into the finest Islamic city in the world—a showcase of the possibilities of the positive merger of East and West. As the representative local group, the Muslim oil barons felt the most obliged to make showy public statements with their new wealth. They took grand tours of Europe and hired architects to build copies of the mansions, museums, and opera houses they had seen, all in an attempt to anchor their city in the Occidental future rather than its Oriental past. While some Azeri Muslims were outraged by the education of women or their appearance onstage or in an office building, Baku benefited from having been so long at the crossroads of East and West that people were used to new fashions and change.

Equal parts Dodge City, medieval Baghdad, industrial Pittsburgh, and nineteenth-century Paris, fin de siècle Baku was the last great city built before the First World War spoiled the dream that the West could keep expanding forever in a grand civilizing pageant. It was a place of fantastic extremes of wealth and poverty, where gas lights and telephones made a stark contrast to camel caravans and emaciated Zoroastrian monks. The city’s wild and clashing history came to ahead at the turn of the century, when it was the “Wild East” frontier of Europe, the world’s greatest oil-boom town: A British visitor at the time wrote, “One might almost fancy oneself in an American city out west. There is the same air of newness about everything, the same sanguine atmosphere. Everyone is hopeful.”

Yet by 1905, the entire Russian frontier was bathed in blood, as the empire entered the first of its revolutions. The unrest reached from the coast of Korea to St. Petersburg’s Nevsky Prospekt, and Baku was not spared. The revolution came, as many do, on the heels of a disastrous war, one of the bloodiest in history. The czar’s advisers had dreamed up the 1904–5 Russo-Japanese War in part as a means of diffusing revolutionary tension, by acquiring, via quick victory, an injection of patriotism as well as some much-needed timber concessions on the Korean coast. Instead, the Russians experienced total defeat. The catastrophe in the Far East—against a people the czar called “little, short-tailed monkeys”—made the Russian Empire look fragile and moribund. As the war’s losses sank in—in addition to the hundreds of thousands of dead soldiers, practically the entire Russian Navy was sunk by the Japanese fleet—years of left-wing terrorism and czarist oppression collided in a year of uprisings, ethnic cleansing, and generalized breakdown.

The semi-destroyed Russian military was in no position to quash the unrest. The only part of the vast czarist navy that had not been sunk by the Japanese was the famous Black Sea Fleet, and on its main battleship, the state-of-the-art Potemkin, the sailors rioted in the spring of 1905 and shot their officers. All around the Black Sea and the Caspian, public order broke down. While the staggering numbers of Russian dead, machine-gunned on the icy hills of Manchuria and the Korean peninsula, showed the new lethality of war, the revolutionary terrorism and pogroms that arrived inside Russia that year showed the new brutality of politics—and both foreshadowed what horror might be born through the mediums of modern mass violence.

SOURCE: The Orientalist: Solving the Mystery of a Strange and Dangerous Life, by Tom Reiss (Random House, 2005), pp. 11-13

One of the most intriguing photographs reproduced in the book is labelled “Muslim-Jewish Christmas party, Baku, 1913.” Days long, long gone.

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Filed under Caucasus, Central Asia, energy, industry, Japan, military, nationalism, religion, Russia, Turkey, war

Mike Plugh’s Darvish Watch

Japundit contributor and kuwashii Japan baseball fan Mike Plugh has created a Darvish Watch blog devoted to the young Iranian Japanese pitching phenom, Yu Darvish. Here’s an excerpt.

The million dollar question is, “Who in the World is Yu Darvish?” This phenom has burst on the scene in Japan and is a marvel to behold on the mound. He lacks the polish and seasoning that a true star pitcher possesses, but it’s important to keep in mind that we are talking about a 19 year old player that was rushed to the pros by a team [Hokkaido Nippon Ham Fighters] looking to stake its identity among a field of more famous teams.

The story begins with a Japanese woman and an Iranian man, who married and settled down in Osaka, Japan to raise a family. The elder Darvish was a player for the Iranian national soccer team, and met his wife in the United States while the two attended university. His athletic roots were apparently passed on to his son, as the young Darvish began to show his uncanny baseball skills as a second grader. Progressing quickly, Yu Darvish joined a boys baseball league in junior high school and became the ace of the rotation in no time. As a 16 year old high school student in Sendai, Miyagi Prefecture, this stellar young pitcher struck out 11 consecutive batters and 13 overall to lead his team to the finals of the prefectural championships. He also threw a 4-hit, 80 pitch, complete game shutout in one hour and nineteen minutes that season topping out at 87 MPH against neighboring Iwate Prefecture’s top club. That was just the beginning of the story.

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The Economist on Japan’s Economic Recovery

“As Japan emerges from an era of a zero interest rate,” the Economist recaps its long economic downturn and its rising prospects for recovery. Here are a few excerpts.

Japan’s experience is unique. The country’s decade and a half of stagnation stands in bleak contrast to the blistering growth that preceded it and that enjoyed more recently by many other rich economies, notably America. Japan is not alone in having had a banking crisis brought on when an asset bubble burst. America had its “savings-and-loan” mess in the 1980s. Sweden had a crisis like Japan’s in the early 1990s. And in 1997-98, a financial typhoon tore through most of Asia. Yet in all these instances, action was, on the whole, fairly swiftly taken to write off bad debts, clean up banking systems and restore economies to growth. By contrast, Japan was mesmerised. For too long, instead of seeking to bring its financial system back to health, it appeared to place its hopes in great dollops of spending on public works to get the economy moving….

Japan was lucky. It began its long malaise as one of the richest societies on earth. But its subsequent performance was abysmal. Between 1990 and 2005, real growth averaged just 1.3% a year. Without the malaise, Japan’s GDP would have been about 25% higher in real terms than it is now. In nominal terms, Japanese GDP remains below its 1997 level, thanks to deflation (see chart 1). Over that same period from 1997, the nominal GDP of neighbouring South Korea, which bore the full brunt of the Asian financial crisis, has risen by 65%; America’s is up by 50%. Japan’s stagnation, then, represents a great squandering of wealth and opportunity….

Why did the recovery not arrive earlier? One reason must be that, with the real level of non-performing loans in the banking system undeclared for so long, huge provisioning by the banks merely aggravated a state of financial disruption: banks could not afford to make fresh loans, even to good prospects. Another related reason is that until the banks had cause to deal with their loans, the troubled companies that had taken the loans out had little incentive to restructure. Japanese companies are now in much ruder health, but that is largely because of measures taken only in the past few years.

At the policy level, the government made two huge blunders. The first was to raise the consumption tax in 1997, which wrecked economic confidence. Just as confidence appeared to be recovering in August 2000, the BoJ declared an end to deflation and raised rates. The economy again went into a tailspin and the bank decided to retreat to zero six months later. But with prices falling, the expansionary effect even of a zero rate was lost, since real interest rates remained positive. A radical new measure was tried by the BoJ: in effect, printing money by stuffing the accounts that banks hold at the central bank with free cash. That super-loose liquidity, known as “quantitative easing”, was withdrawn this spring.

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Ho-hum: Asashoryu Wins Again

The Nagoya Grand Sumo Tournament this year started out with many hopeful contenders, from the giant Estonian rookie Baruto to the veteran Japanese ozeki Tochiazuma, but each began to fade during the second week while the sole yokozuna Asashoryu cruised to his 17th victory, clinching it on the second-to-last day with a record of 14-0. His nearest rival, newly promoted ozeki and fellow Mongolian Hakuho stood at 12-2 when he faced Asashoryu in the final bout of the tournament, which turned out to be the most exciting bout of all. Hakuho won it, finishing just one loss behind the grand champion at 13-2. Barring injuries, there is a very good chance that the Sumo Association will promote another Mongolian to yokozuna by the end of the year.

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