In December 2008, The Japan Foundation hosted a study tour to Japan entitled ‘Overcoming Poverty through a Social Inclusion Approach: The Status Quo of Asia and Oceania in a Globalised Economy’. The project was organised as part of the JENESYS (Japan–East Asia Network of Exchange for Students and Youths) Program with activities taking place in Tokyo and Matsuyama.

Alaina de Vries
Department of Housing, Families, Community Services & Indigenous Affairs (FaHCSIA)

The JENESYS program provided me with a unique opportunity to examine the issue of poverty from a global perspective.  While the participants were from vastly different countries in terms of political and social systems, it was possible to detect common themes and issues facing us all.  In this time of global economic downturn it was timely to examine the preparedness of our social support systems and what steps might be taken to improve outcomes for the socially excluded.

The mix of participants’ backgrounds added an important dimension to the program.  It allowed me to reflect on the importance of government policy areas establishing and maintaining links with academics and researchers so that evidence can be drawn on quickly to support the development of effective government policy.

Reflections on the Japanese social support system

The most significant difference between the Australian and Japanese social support systems is that Japan operates on a social insurance system, which is largely based on corporations and the concept of ‘lifetime employment’.  It is clear that this was once an effective system, which is evidenced by Japan’s rapid development after World War II into the second largest economy in the world.  The resulting affluence of the vast majority of the population seems to have greatly affected the psyche of the regular Japanese citizen.  During the JENESYS tour we frequently heard that there is a general impression of Japan as a wholly middle-class society, and that there is no one living in poverty.

However we began to see otherwise.  From the people we spoke to and the organisations we visited it became evident that the cracks in Japan’s social fabric have started to appear.  The need to stay competitive in an international economy has led to an increase in demand for a competitive, flexible workforce.  Therefore casual workers are on the increase, but the structure of Japan’s welfare system has not adapted to accommodate this change.  Casual workers have limited access to the benefits enjoyed by full-time workers, and have very little job security.  Homelessness is on the increase.  The opportunity to talk with a few homeless men at Kotobuki-Cho left a lasting impression on me.  It was striking to hear how joblessness almost inevitably leads to marital breakdown and often to homelessness.  This is partly due to the structure of the social insurance system but also the shame attached to being reliant on government money – many would actually prefer homelessness to this loss of pride.  In any event, there is only a minimal government-funded safety net for the unemployed, and this can be very difficult to qualify for.

The longstanding perception that there is no problem with poverty in Japan has left the not-for-profit sector quite underdeveloped, and broader Japanese society appears largely unsympathetic toward the socially marginalised.  However this perception may be starting to shift.  During our stay we heard the news that Sony was laying off 800 workers in an effort to cut costs in these difficult financial times, and this is not an isolated incident.  We were taken to visit a few pioneering organisations that are helping the increasing numbers of unemployed, homeless people that are just starting to become visible on the streets of Tokyo.  We met Charles McJilton, who has established the very first food bank in Japan to redistribute food to the community that would otherwise go to waste.  We also visited Moyai Independent Life Support Centre, which assists victims of domestic violence access housing and other support services that are otherwise unavailable in Japan. 

While the situation in Japan does not reflect anything like the poverty seen in some other countries in the East Asia region, it does appear that some fundamental problems have begun to emerge and yet the social framework is not well positioned to address them.  Action should be taken now in order to give Japanese society the best chance of resiliency during these globally turbulent economic times.  During the course of my stay in Japan I made three broad observations of some target areas for reform:

1. Dual wealth redistribution systems

The current system involves a social insurance system administered by one government department, and a general revenue funded safety net administered by a different department.  The administrative costs of administering these two systems could be significantly reduced by one streamlined system.  For example, a progressive tax system, with support for those who cannot work paid out of general revenue.

2. Cultural attitudes toward societal issues

There appears to be limited awareness of the causes and prevalence of social issues such as domestic violence and homelessness.  Government should work to begin to shift perceptions and remove the stigma currently attached to such issues.  Media campaigns could be one such avenue for creating this shift.

3. Erosion of family support structures

An ageing population and low birth rate has led to the erosion of traditional family support structures, so that the aged and unemployed are increasingly vulnerable and at the mercy of corporations which dictate working conditions.  Industrial reform should be pursued.  Widespread change is required to put in place minimum standards for casual workers and ensure access to appropriate health and other services.

For me, the program left me with a sense of the importance of social support structures.  The individualism so fervently pursued by Japanese society in efforts to compete in the global market seems to have significantly eroded the sense of ‘community’.  The take home message for me is that we should not pursue development at the expense of community, because when markets fail, and they will, there needs to be family and community support to prevent people withdrawing from society.