Japan… a country that brags about two things: The first one is their used underwear vending
machines (really you can find on the streets!)
The second one is their immigration rate, which is, by far, the lowest in the developed
world.
By comparison, in the United States, the foreign-born population has risen to 14%.
Canada and New Zealand have 20% and 25% respectively.
While Japan has less than 2%.
So, what’s the reason for this?
Well, that’s their restrictive immigration system.
This makes Japan something of a dream country for politicians like Donald Trump or Marine
Le Pen.
If there is a word to define the current political debate, that word would be “IMMIGRATION”.
In Europe, countries argue about what to do with the refugees.
And it seems that politicians across the board share the opinion that immigration is a problem
that needs to be stopped:
So then, Japan is the perfect example for what it means to live in a country free of
immigrants.
And now you might wonder What does this mean for their economy?
Do they really save money because they don’t have to spend anything on social policies
for immigrants?
Do Japanesse workers enjoy a better standard of living because they don’t have to compete
with foreign workforce?
Today on Visual Politik we will answer all those questions.
But before, we are going to have a look at the specifics of their immigration law.
ONE COUNTRY, ONE CULTURE, ONE RACE
This statement was said by the man who was the Prime Minister of Japan in the mid-1980s,
YASUHIRO NAKASONE.
It clearly summarizes the immigration philosophy of Japan.
Basically, there are just two ways of getting into the Land of the Rising Sun: one is with
a work contract, the other is with a tourist visa.
If a company wants to hire you overseas, you will still need a visa.
And the only way you get a visa is by having a university degree or having some specific
skills that are practically impossible to find in the Japanese labor market.
So, if you are just a construction worker, you’re never going to be able to get a work
permit…
That is unless you use this other program...
“Since Japan didn’t have a law to accept workers from other Asian countries, like Vietnam
or the Philipinnes, they created the so-called TECHNICAL INTERNAL TRAINING PROGRAM”.
This in summary is like becoming an Intern in Japan… but getting half of the salary
that a Japanese intern would get.
Not only that, but with this “technical internal training program”, your boss is
allowed to hold onto your passport and even access to your bank account.
More worryingly, since they started this program, thousands of Asian immigrants have just disappeared.
“When the Union representative spoke with me, she said that my attitude was bad and
that If I continued to have this attitude… if my actions continued, her friend would
hire a hitman to kill me”.
So what if you enter with a tourist visa?
Well, in that case, you can stay in the country for a year and half as long as you can prove
you are studying Japanese.
Once that time has passed, you need to be hired by a company.
And that can lead to a work visa.
But watch out!
Unlike other places like the US or the EU, the Japanese working visa specifies your profession.
This means if you have a work visa for being a chef, you cannot work as anything other
than a chef.
If you break this rule, your work permit will not be renewed.
There is only one really effective way for a foreigner to make a living in Japan:
“The easiest way to live here is by marrying a japanese person”
Now you can understand how it is possible that a country with over 127 million inhabitants
has just 2 million immigrants.
But what consequences does this have on the daily life of of Japanese citizens?
WHO PAYS JAPANESE PENSIONS?
Japan is the oldest country in the world.
Not because of their long history but because of the average age of their population.
In fact, estimations say that in 90 years, they will lose over 44 million inhabitants
(about the entire population of Canada) because of this.
This wouldn’t be a problem if it wasn’t for the Social Security problem.
As you know, the pension system in most of the countries works this way: the people who
are working today are the ones who pay the pension of those who are retired.
As the workforce gets smaller and smaller, year after year, there are less and less people
paying the pensions...
And more and more retired citizens needing to draw social security.
And this is why things like this happen:
“Social security contributions cover only 60 per cent of these benefits.
The remaining 40 trillion yen comes from taxes or, more precisely, public deficits”.
By the way, this beautiful sound you are listening to is the music of MESCALINA, a rock and roll
band from Spain who sent us their music.
If you like it, check the links on the description box below.
So even if the social security contributions are increasing year after year, Japan cannot
pay their pensions effectively.
And this is why… and pay attention to this, Japan has the highest public debt IN THE WORLD.
Their debt is more than double their GDP.
And their fiscal deficit (the difference between their income and their spending) is higher
than the US one.
In other words… if Angela Merkel goes there, she is gonna get really angry!
Mow you might be wondering: What does this have to do with immigration?
The answer is, well, A LOT.
You see, we all have heard about how expensive it is to integrate immigrants.
You have to pay social programs, integration courses, etc… but no one talks about how
much it costs for a normal, native citizen.
For example, an American-born citizen costs the government an average of $150,000 from
birth until he or she is 16 years old - and this is only education and healthcare.
Depending on the state, you might add in other spending.
All this money the government views as an investment - money the government will get
back the day that citizen starts working and paying taxes.
On the other hand, let’s take the example of a Vietnamese immigrant to Japan.
He comes to the country when he is old enough to start working.
His education and healthcare was already paid for by the Vietnamese government.
In an average of two years, this immigrant will find a job.
Of course, it might be a low-paid one, and, therefore, he will pay little tax.
But the Japanese government didn’t have to invest almost any money into him.
So, in other words, immigrants are free cash for the government.
Since Japan has so few immigrants, they are losing out on this influx of easy money.
This is why, in the middle of a fiscal crisis in the year 2015, the Japanese Premier, Shinzo
Abe, made this announcement.
“Japan is under pressure to accept more immigrants as the workforce shrinks”
But, despite what it looks like, this is not Japan’s biggest problem: Japan has seen
20 years go past without any economic growth.
This is what experts have called the “lost decade”.
And yes, immigration has a lot to do with this as well.
THE COUNTRY THAT STOPPED INNOVATING
We all imagine Japan as the country of technology and innovation.
The country where companies like Nintendo, Sony, and Toshiba were all born.
Nonetheless, all these firms are very OLD!
Nintendo was founded in 1889.
Toyota was created in 1937.
Actually…
Can anybody name five Japanese companies created in the 21st century?
I´m sure you couldn´t.
But, you could easily name 5 or 10 American enterprises created in the last decade.
“Immigrant founders started 52 percent of all new Silicon Valley companies between 1995
and 2005”
The entrepreneurial rate among the immigrant populations is between two and three times
higher than natives.
And this is a trend you find in every country.
For instance, one of the founders of Google, Sergey Brinn, was born in Moscow.
The co-founder of Whatsapp, Jan Coum, is Ukrainian.
But it’s not just about Silicon Valley start ups.
Just have a walk in your neighbourhood and you will see hundreds of Chinese stores, Mexican
restaurants, and all kinds of small businesses created by immigrants
It makes complete sense that immigrants will have an entrepreneurial spirit.
At the end of the day, those who leave their country are natural risk takers.
Not only that, but immigrants brings another culture with them which makes it easier for
them to think outside of the box.
Let’s look at an example: Charles Ferlmant was a German immigrant who arrived to New
York City in the 19th century.
Soon he realized the workers in the city needed some kind of food that could be easily cooked
and sold on the street.
That’s when he decided to import sausages from his home country - this is how the HOT
DOG was born.
Today, this meal feeds millions of people around the planet.
And this is just one example, there are thousands of stories like this.
In short, when cultures mix, new ideas and new methodologies are created.
This is what businesspeople call INNOVATION.
And this is the special sauce that makes companies and countries grow.
So What´s going on in Japan?
Unsurprisingly, the have the lowest entrepreneurial rate in the Industrialized world.
Just 7% of their population decides to start a company.
By comparison, in Canada or New Zealand, this percentage is 10%.
The Japanese dream is not to start a business, but to get hired by one that already exists.
You know, those big companies like SONY or TOSHIBA, those companies that have same corporate
structure and the same work culture that they had in the eighties.
“Traditional Japanese electronics powerhouses such as Sharp and Sony have incurred huge
losses and shed thousands of jobs, while competitors Apple and Samsung have continued to increase
their market shares.”
Those who like football/soccer might keep up with the UEFA and the World Cup.
Twenty years ago, there were at least two Japanese companies sponsoring this events.
In 2016, the European Cup had zero Japanese sponsors.
No matter where you look Japanese firms are struggling to compete with European, American
and even Chinese companies.
And the reason is not a lack of money but a lack of innovation.
This explains why Japan’s economy have been frozen for two decades.
And of course, this has an impact on the daily life of it’s citizens.
In order to keep a high level of productivity, Japanese workers have the longest working
hours and the shortest vacations in all the OECD countries.
And, meanwhile, they have the same salary that their parents had.
So now we want to hear your opinion.
Do you think Japan should open their doors to immigrants?
Or do you still think immigration is a problem that needs to be stopped?
You can leave your response in the comments!
Soon we are going to be posting a video explaining how Israel has become the world’s leading
innovation hub thanks to their immigrant population.
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