“My Political Philosophy” (Chap3) Yukio Hatoyama Monthly journal “Voice” September Issue Aug 10th, 2009

Chap3 Restoring the Weakened Sphere of Public Service

In our present times, fraternity can be described as a principle that aims to adjust to the excesses of the current globalized brand of capitalism and make adjustments to accommodate the local economic practices that have been fostered through our traditions. In other words, it is a means of building an economic society based on coexistence by switching away from the policies of market fundamentalism and towards policies that protect the livelihoods and safety of the people.

It goes without saying that the recent worldwide economic crisis was brought about by the collapse of market fundamentalism and financial capitalism that the United States has advocated since the end of the Cold War. This US-led market fundamentalism and financial capitalism went by many names including the "global economy", "globalization" and "globalism". This way of thinking was based on the principle that American-style free-market economics represents a universal and ideal economic order and that all countries should modify the traditions and regulations governing their own economy in order to reform the structure of their economic society in line with global standards (or rather American standards). In Japan, opinion was divided on how far the trend towards globalization should be taken on board. Some people advocated the active embrace of globalism and supported leaving everything up to the dictates of the market. Others favored a more reticent approach, believing that effort should be made instead to expand the social safety net and protect our traditional economic activities. Since the administration of Prime Minister Koizumi, the LDP has stressed the former while we in the DPJ have tended towards the latter position.

The economic order or local economic activities in any country are built up over long years and reflect the influence of each country's traditions, habits and national lifestyles. Therefore, the economic activities of individual countries are very diverse due to many factors including the differences of history, tradition, habits, economic scale and stage of development. However, globalism progressed without any regard for various non-economic values, nor of environmental issues or problems of resource restriction. The economic activities of citizens in small countries were severely damaged, and in some countries globalism has even destroyed traditional industries. Capital and means of production can now be transferred easily across international borders. However, people cannot move so easily. In terms of market theory, people are simply personnel expenses, but in the real world people support the fabric of the local community and are the physical embodiment of its lifestyle, traditions and culture. An individual gains respect as a person by acquiring a job and a role within the local community and being able to maintain their family's livelihood.

If we look back on the changes in Japanese society that have occurred since the end of the Cold War, I believe it is no exaggeration to say that the global economy has damaged traditional economic activities and market fundamentalism has destroyed local communities. For example, the decision to privatize Japan's post office placed far too little weight on the institution’s long history and the traditional role that its staff held in the local community. It also ignored the non-economic benefits of the Post Office and its value in the community. The logic of the market was used to justify taking such a drastic step.

Under the principle of fraternity, we will not implement policies that leave economic activities in areas relating to human lives and safety, such as agriculture, the environment and medicine, at the mercy of the tides of globalism. Rather, we need to strengthen rules governing the safety of human lives and stability of people's livelihoods. Our responsibility as politicians is to refocus our attention on those non-economic values that have been thrown aside by the march of globalism. We must work on policies that regenerate the ties that bring people together, that take greater account of nature and the environment, that rebuild welfare and medical systems, that provide better education and child rearing support and that address wealth disparities. This is required in order to create an environment in which each individual citizen is able to pursue happiness.

Over recent years, Japan's traditional public services have been eroded. The ties that bring people together have become weaker and the spirit of public service has also dimmed. In today's economic society, economic activities can be divided into four sectors: governmental, corporate, non-profit and household. While the first, second and fourth categories are self-explanatory, by the third category I mean the types of mutual assistance which were once provided by neighborhood associations and which are now also provided through the activities of NPOs. As economic society becomes more advanced and complicated, the scope of services that cannot be provided by the authorities, corporations and family members grows increasingly wide. That is why the more industrialized a country becomes the greater the social role played by NPOs and other non-profit organizations. This is the foundation of ‘coexistence’. These activities are not recorded in the gross domestic product, but when working to build a society that has truly high standards of living, the scope and depth of such public services, as provided through non-profit activities, citizen's groups and other social activities, are of great importance. Politics based on ‘fraternity’ would restore strength to Japan's depleted non-profit (public service) sector. It would expand the non-profit sector into new areas and provide assistance for the people who support these activities. In this way, we aim to build a society of coexistence in which people can rediscover the ties that bring them together, help each other, and find meaning and fulfillment in performing a useful social role.

It is of course true that Japan is currently facing a fiscal crisis. However, ‘fraternal politics’ aims cautiously yet steadily for the path that will achieve both the restructuring of government finances and the rebuilding of our welfare systems. We reject the Ministry of Finance-led theory of fiscal reconstruction that relies on the imposition of uniform restrictions on, or the abolishment of, social welfare payments and which seeks to take shortcuts by raising consumption tax. Japan's current fiscal crisis is the result of long years of mismanagement by the Liberal Democratic Party. More specifically, it is a reflection of the crisis affecting Japan's economic society which stems from the bureaucrat-led system of centralized government and the indiscriminate spending facilitated by that system, from the social safety net collapse and greater inequality of wealth that results from an uncritical faith in globalism and finally, from the public loss of faith in politics following unhealthy collusion between government, civil service and industry. Therefore, I believe that it will be impossible to overcome Japan's fiscal crisis without devolving power to local authorities, implementing thorough administrative reform and restoring public trust in the sustainability of social security systems, particularly pensions. In other words, resolving our fiscal problems is impossible without comprehensively rebuilding Japan's political systems.