Restricted Access, Book Two of the Cartel Series
Farm regions, for instance, are not only part of Nokyo, the broad family of agricultural cooperatives that together function as a cartel but also are political cartels in their own right. Throughout their four decades in power, Japanese Liberal Democrats have carefully maintained an electoral imbalance that heavily favors rural constituencies, even as the population of the nation has drained from the countryside and packed into the cities.
Once elected, a Lower House Dietman can advance only if he joins a faction in the Diet led by a big-name Liberal Democrat who can dispense election funds and influence and whose own ambitions aim at the cabinet. Diet leaders must maintain a large faction of loyalists year after year in order to advance their careers. Political offices themselves become near-cartels made up of the families who support Diet members and return them to office. Every candidate has a standing group of informal supporters who mobilize votes and contributions.
These backers include businessmen, local government officials and politicians, groups associated with Nokyo in the case of farm constituencies , and important members of the community. As their Dietman works his way up the seniority ladder in Tokyo, they benefit from the connections and introductions he can provide, as well as from access to the civil works pork barrel and government investments he can secure for the district. Japanese politicians enjoy the same advantages of incumbency that their American counterparts do; they grow stronger with each election unless confronted with unusual mishaps.
And Japanese support groups may actually prolong the incumbent atmosphere beyond the death or retirement of the original politician by continuing their support if a son or daughter from the same constituency chooses to run. Indeed, 6 of the 20 members of the first cabinet selected by then-Prime Minister Toshiki Kaifu were the offspring of former national politicians. The hold on a Diet seat enjoyed by a particular politician, then, can be transferred to a dynasty, and a constituency can become a living political cartel.
Japan will not change its deep-rooted, multifaceted cartel system simply because a foreign power demands that it do so.
Capitalism in Japan: Cartels and Keiretsu
Baffled by this fundamental difference between the two nations, the U. Something new and very different is needed. A bilateral, political management of the U.
- Stone Soldiers 2 (Battle Cards) (The Social Workshop).
- Calls made for urgent law changes to prevent car insurance market 'cartel'!
- Klondaeg Saves Fromsday.
- Related Content?
The ultimate message George Bush carried to Tokyo last January, after all, was that the government will indeed intervene at the highest levels to protect strategic U. But although the U. As economist Leon Hollerman has pointed out, these are not free-market, but anti -market movements. While officially denying that it is doing so, the United States, in effect, is demanding to be admitted to the cartels, not to the markets they blanket. This startling adaptation to the Japanese system informally accepts the strength of the grip that cartel arrangements exert on Japanese business.
It may prove to be the most pragmatic way for U. But such moves demand careful consideration. How far will this policy transformation go, and what will the results for U.
Supply-side, laissez faire economics has already positioned the Japanese as if they are American suppliers—in large part with the encouragement of their U. The U. Another vexing problem is that while there are strong feelings about competitiveness and industrial policy on Capitol Hill, there is nothing close to a consensus in Congress.
' + regionname + '
The Japanese showed a fine understanding for American political dynamics when they deflected criticism of their closed markets and cartelized production groups during the Bush visit. They deftly evoked the executive compensation controversy then flaring in the United States and suggested that Americans themselves believed the real problem was not closed Japanese markets but U. Moreover, executive branch personnel change over so often that the institution is deprived of the technical knowledge and institutional memory that is so vital to directing such policies over the long haul.
In an imperfect world, it is unlikely that Washington will devise a perfect competitiveness scheme for the United States. But that does not mean American political pressure cannot produce results with Japan. Given a choice, the United States should recognize that Japan primarily represents a political problem, not an economic or industrial one.
The government could then use its real leverage over Tokyo on behalf of U. A serious rupture with the Americans would not only hurt Japan in the United States; it would also make its expanded role in Asia harder. And it would put the European Community on notice about potential difficulties with Japanese investments there. Japan is aware that undesirable political consequences may ensue should it fail to resolve problems like industry targeting, dumping, local-content rule violations, or open home-market reciprocity.
American design, construction, and engineering expertise, for example, is seeping into Japan as a result of American governmental pressure. Still, it remains to be seen whether the incisors that the JFTC watchdog is displaying will develop into fangs. A more powerful antitrust agency can emerge in Japan only if new consumer advocates—not cozily recycled Ministry of Finance bureaucrats—are appointed to the JFTC in the future. Japan has many reasons to avoid alienating its customers and friends overseas.
Its population is aging, which will mean that more jobs will go unfilled at home. Japan has not demonstrated willingness to import labor, and if that position holds, it will have to send production jobs offshore. Another problem stems from the crucial role that software will play in the industrial segments that Japan sees as most promising.
Since all software, defined broadly, is culturally driven, Japan must quickly gauge and respond to hundreds of messily different cultures in order to keep its edge on the market. That challenge will be especially hard to meet for companies whose management cannot be readily grounded in the soil of the host country.
Computer and telecommunications systems require that programs written in local languages achieve technical standards compatible with local practice. Home entertainment gadgets need music, movies, and programming that are popular with their audiences. Hollywood acquisitions by Sony, Matsushita, and Toshiba corroborate the vitality of these connections. Even cars have to be styled with the colors, materials, accessories, and features that fit market conditions wherever they are sold. These outlays will be unpredictable gambles, particularly given that European and American competitors are intent on confronting the Japanese high-tech challenge.
A Japanese corporation that loses a technology race could be losing not millions but hundreds of millions of dollars. That risk multiplies geometrically if real protectionism bars the Japanese from overseas markets. The risk of ignoring the overt politicization of economic and trade issues would be impossible to calculate. But Japan will not make that mistake. It will look overseas for solutions and form new partnerships, perhaps even new cartels, with foreigners. And by doing so, Japan will, with one move, soften its capital risks, supply requisite software, and ameliorate the calls for protectionism.
This is an adversarial process, of course, in which the Japanese will most likely continue to strive to supply an indispensable component or technology and thus maintain control over each relationship. But the struggle means opportunity for American companies that understand Japanese cartel strategy and its idiom. Triple benefits will reward those companies that make the effort. They will capture new sales, gather knowledge of the Japanese marketplace, and gain a position of their own in the cartels that serve it.
With patience, they can even secure a niche within the heart of the keiretsu, those closed-door councils where products are conceived and designed and where the Japanese corporations synergetically transform their technologies into markets. Ideally, they will be able to contribute their own product design expertise from the start and participate in important manufacturing and marketing decisions.
Motorola and Texas Instruments, for instance, both have a design-in relationship with Sony. Still, both T. Even a few American auto-parts manufacturers are starting to look like tentative members of Japanese supply families. But success can be had. American companies will need to juggle several perceptions of the Japanese; sometimes they will see them as competitors, sometimes as partners, and sometimes as both, simultaneously.
Cartel leniency in the UK (England and Wales): overview
They must do so shrewdly, keeping clear goals of their own in mind, and without paranoia. Underestimating Japan has proven to be an expensive mistake. Demonizing Japan could lead to tragic consequences. Their plans will be complicated by the swirling disequilibrium and indecision of American foreign policy. Alliances of all strengths and durations with governments and domestic or foreign partners must fit markets as they emerge.
Kozo Yamamura Seattle: Univ. Robert L. Cutts, president of Prime Incorporated, a Tokyo-based communications company, has lived in Japan for 26 years as an economic correspondent. Urgent legislative changes have been called for to prevent cartel-type operations in the motor insurance industry. It comes as a major investigation by the European Commission into motor insurance here is focusing on allegations the industry has created obstacles for new players to enter the market.
Following a series of raids last year, investigators are now analysing whether foreign companies are facing barriers to entering the Irish market. The Alliance for Insurance Reform called on the Government to make urgent legislative changes to force more competition and transparency in the industry. The Alliance, which is a pressure group of businesses and charities seeking reform of the insurance sector, said the market here was restricted.
After dawn raids last year, European Commission investigators are now probing claims a new insurer coming into this market has to be nominated by an existing player to join lobby group Insurance Ireland. Membership gives access to various databases. However, Insurance Ireland insists it is fully compliant with competition law. The focus of the EU probe is whether membership of Insurance Ireland is restricted. Being a member of Insurance Ireland gives access to databases which allows companies to see information on penalty points, driver licences and claims history.
Alliance spokesman Peter Boland said allegations of restricted access to the insurance market were not surprising. He claimed the insurance industry was operating under a "cloak of secrecy" and was resisting attempts by the Government to set up a national claims database. Mr Boland called on junior finance minister Michael D'Arcy to face down vested interests and force the setting-up of the claims database.
Calls made for urgent law changes to prevent car insurance market 'cartel'
And he claimed that the Central Bank was hindering consumers after abolishing the so-called 'Blue Book'. This meant there is now no useable data available on the industry. In , Insurance Ireland's membership included 12 companies providing motor insurance By last year, this had increased to 18, it said. It said databases it operates were opened to non-members and members of Insurance Ireland.
- Cartel leniency in the UK (England and Wales): overview | Practical Law.
- Yawning: a natural way to de-stress?
- Calls made for urgent law changes to prevent car insurance market 'cartel' - ykifekeqexyj.ml;
- What cartelisation means for parties, and party systems.
- From Each According To His Ability: Essays on Karl Marx and Classical Political Economy (The Collected Papers of Robert Paul Wolff Book 2).
- Christianity: The End of Spiritual Confusion: TRANSFORM YOUR ZEAL FOR GOD INTO KNOWLEDGE OF THE CHRIST!
It said the European Commission was in an information- gathering phase and had not made any findings or raised any objections in respect of membership of Insurance Ireland. Charlie Weston Former government minister Mary O'Rourke has revealed she has been targeted by fraudsters. David Chance Leading insurer CFM Group has criticised plans for an insurance levy, saying it will be passed on to consumers rather than acting as a deterrent to premium increases. Charlie Weston TOO many people have been taken out of the income tax net, putting a huge burden on middle and higher earners.
Calls made for urgent law changes to prevent car insurance market 'cartel' Stock photo.