Japan’s Economic Strength

I would like to respond to the opinion expressed by Karel van Wolferen in his perspective on Japan (“U.S., Europe: Beware the ‘Bubble,’ ” Commentary, Nov. 11). While he made a number of absurd accusation about Japanese society, I agree with him that the rescue measures to save troubled financial institutions is nothing more than a “systematic transfer of wealth from the private sector.” He seems to believe that the Japanese people accept it because Japan Inc. controls the media and fails to provide objective views.

Fortunately, Van Wolferen is wrong. The pressure from the public opinion forced the Japanese government to scale down the rescue measure. The new plan will still cost the taxpayers, but is much smaller in scale and healthier than the one originally proposed.

The majority of Japanese population, working for small- to medium-size companies, did not play the stock market, did not buy real estate, did not benefit from the “bubble” economy. The Japanese people did not welcome “transfer of wealth.” He is also wrong in saying that the financial institutions have sacrificed profits to strengthen Japan’s industrial base. The banks have been the major beneficiary of the so-called “bubble” economy.

Japan is struggling to change itself to a more democratic and open market. However, it is not going to help Japan if the U.S. stops pushing Tokyo to adopt the principles of free trade and a free society. The U.S. government is increasingly trying to take advantage of Japan Inc. or the “powerful informal network of both the public and private sectors.” In recent trade negotiations, the U.S. seems to have stopped pushing Japan toward free trade, which Japanese consumers long for. Instead, the U.S. is pushing the “network” to import U.S. products at the expense of free trade (and democracy). This kind of pressure will only strengthen the “powerful informal network,” instead of weakening it. If it continues, Van Wolferen’s view of Japan will come true.

NOBUTAKA KITAJIMA

Calabasas