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Japan’s ruling party puts legacy of Abenomics in focus.

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Japan’s widening wealth gap has emerged as a key issue in a ruling party leadership contest that will decide who becomes the next prime minister, with candidates forced to reassess the legacy of former premier Shinzo Abe’s “Abenomics” policies.

Under Abenomics, a mix of expansionary fiscal and monetary policies and a growth strategy deployed by Abe in 2013, share prices and corporate profits boomed, but a government survey published earlier this year showed households hardly benefited.

Mindful of the flaws of Abenomics, frontrunners in the Liberal Democratic Party’s leadership race – vaccination minister Taro Kono and former foreign minister Fumio Kishida – have pledged to focus more on boosting household wealth.

“What’s important is to deliver the benefits of economic growth to a wider population,” Kishida said on Thursday. “We must create a virtual cycle of growth and distribution.”

But the candidates are thin on details over how to do this with Japan’s economic policy toolkit depleted by years of massive monetary and fiscal stimulus.

Kono calls for rewarding companies that boost wages with a cut in corporate tax, while Kishida wants to expand Japan’s middle class with targeted payouts to low-income households.

The winner of the LDP leadership vote on Sept. 29 is assured of becoming Japan’s next prime minister because of the party’s parliamentary majority. Two women – Sanae Takaichi, 60, a former internal affairs minister, and Seiko Noda, 61, a former minister for gender equality – are the other candidates in a four-way race.

Parliament is expected to convene on Oct. 4 to vote for a successor to Prime Minister Yoshihide Suga, who announced his decision to quit less than a year after taking over from Abe.

A government survey, conducted once every five years and released in February, has drawn increasing attention to trends in inequality during Abe’s time.

Shigeto Nagai, head of Japan economics at Oxford Economics, said the survey revealed “the stark failure of Abenomics to boost household wealth through asset price growth.”

Average wealth among households fell by 3.5% from 2014 to 2019 with only the top 10% wealthiest enjoying an increase, according to a survey conducted once every five years.

Japanese households’ traditional aversion to risk meant they did not benefit from the stock market rally, with the balance of their financial assets down 8.1% in the five years from 2014, the survey showed.

“We think the new premier will need to consider the failures of Abenomics and recognize the myth that reflation policies relying on aggressive monetary easing will not solve all Japan’s problems without tackling endemic structural issues,” Nagai said.

Bank of Japan Governor Haruhiko Kuroda defended Abenomics and said the pandemic, not slow wage growth, was mainly to blame for sluggish consumption.

“Unlike in the United States and Europe, Japanese firms protected jobs even when the pandemic hit,” Kuroda said when asked why the trickle-down to households has been weak.

“Wage growth has been fairly modest, but that’s not the main reason consumption is weak,” he told a briefing on Wednesday. “As the pandemic subsides, consumption will likely strengthen.”

 

(Reporting by Leika Kihara; Editing by Simon Cameron-Moore)

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Doug Ford says Ontario opposition playing politics over his 'bang on' comments about immigrants – CTV Toronto

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Ontario Premier Doug Ford said he believes opposition parties are playing politics over his comments on immigrants and said he’s been told his remarks were “bang on.”

Ford was asked on Wednesday by Brampton East MPP Gurratan Singh in Question Period whether he is ready to apologize for the comments that “play into racist stereotypes about new Canadians.”

“Those comments were hurtful, divisive, and wrong,” Singh said.

Ford responded to Singh by saying he has been “inundated with messages from your community, the Sikh community, that said ‘You were bang on.'”

The comments about immigrants were made in Tecumseh while Ford was speaking to reporters about a labour shortage on Monday.

“We’re in such desperate need of people from around the world,” he said. 

The premier then specified that he only wanted “hard-working” people to come to Ontario.

“You come here like every other new Canadian. You work your tail off,” Ford said. “If you think you’re coming to collect the dole and sit around, it’s not going to happen. Go somewhere else.”

On Wednesday, Singh asked Ford if he was ready to apologize, adding the comments were “just plain wrong.”

“Stop playing politics and let’s speak the truth,” Ford responded to Singh. “You know the backbone of this province are great hard-working immigrants.”

“My phone is blowing up all night, all day, day before, from immigrants telling me their story … I’m the biggest pro-immigrant premier we’ve ever seen here.”

Ford told Singh he will “go to his community and door knock and see the response from the Sikh community.”

He said he’s been told already by the Sikh community that his comments were “bang on” and that he needs to “stay focused.”

Many Ontario politicians spoke out and demanded Ford apologize on Monday.

Ford was asked on Tuesday by the NDP to apologize for the “discriminatory” comments. He did not, and instead used the opportunity to say he is “pro-immigration.” 

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How green politics are changing Europe – BBC News

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The Greens

An ocean of conservative blue blankets the electoral map in Germany’s southern state of Bavaria.

And yet the conservative vote actually fell across Germany in last month’s federal vote, while the Greens achieved their biggest success yet,.

In an election dominated by climate change, a speck of green has made a ripple in Bavaria. For the first time a Greens candidate was directly elected to represent Bavaria in the federal parliament.

It is symbolic of the creeping rise in support for European green parties, from Hungary to Finland.

Bavaria's electoral map

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The new MP, Jamila Schäfer, beamed with satisfaction when she recalled her surprise victory in Munich-South, by a wafer-thin margin of 0.8%. Only once before had the CSU lost the constituency since 1976.

“This is a major sign of change,” Ms Schäfer told the BBC.

A campaign ‘close to the people’

The Greens won 14.8% of the vote nationwide, appealing beyond their eco-protest roots with Annalena Baerbock standing as candidate for chancellor. Now they are in talks to share power as part of a three-way coalition.

Greens co-leaders Angelina Baerbock (L) and Robert Habeck (R)

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Ms Schäfer, 28, is the Greens’ deputy federal chairwoman and typifies a party that has undergone a national makeover after years of power-sharing in several German states (Länder).

She rose through the ranks of Green Youth, taking part in school strikes against education reforms, long before Swedish activist Greta Thunberg made her name by skipping classes for climate protests.

Climate change was consistently ranked as the most serious facing Germany in opinion polls ahead of the election.

Even so, Ms Schäfer targeted her “close-to-the-people” campaign in Munich-South on housing, pensions and taxes.

Green shoots of success

Once ridiculed by many as idealistic hippies, Green parties increased their vote share in 13 European countries at the most recent national elections. In six of those countries – Austria, Belgium, Finland, Ireland, Luxembourg and Sweden – green parties have a share of power in coalition governments.

A map showing the countries where green parties hold power

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In all those cases, the Greens are pressing their partners to adopt more ambitious targets for lowering carbon emissions. Elsewhere, the green mayors of Amsterdam and Budapest are aiming for carbon neutrality by 2050 and 2030 respectively – to balance the greenhouse gases emitted and absorbed by their cities.

Despite last month’s election success for the German Greens, even co-leader Ms Baerbock admitted they had failed to live up to early opinion poll ratings: “We wanted more. We didn’t achieve that.”

Given the urgency of curbing emissions, what’s holding the Greens back?

Trust and fear of change

One explanation is that mainstream parties across Europe have elevated climate change to the top of their agendas.

“If you’re concerned about the climate, it doesn’t follow that you’re going to vote green,” Adam Fagan, a political scientist at King’s College, London, said. “It means you’re going to scrutinise the manifestos of the main parties for their green credentials.”

A map showing the percentage of votes for green parties in recent European elections

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Green parties tend to do better in countries with more proportional systems, as used by the European Union for its parliamentary elections. For example, the Greens/EFA bloc gained 25 seats with 10.8% of the vote in the 2019 election to the European Parliament.

“People think putting the Greens in power [in the EU] is less dangerous,” said Philippe Lamberts, co-president of the Greens/EFA.

“From the right and the left, there’s always a question hanging over us: can you really trust the Greens with the economy?”

National election results suggest the answer is no.

To reduce emissions, the Greens say big structural changes to the economy are needed. While those reforms are necessary, they scare people and put them off voting green, Ms Schäfer said.

“They’re worried they’ll be the losers of big transformation,” the MP said. “It’s a lack of control that people are afraid of. But we need to convince people that our politics is not about giving up control.”

‘Killing the planet’

It’s even more difficult in Southern and Eastern European countries, where support for green parties is fragmented or non-existent. Surveys show that climate change is far from a top priority in post-communist countries such as Poland, the Czech Republic and Lithuania.

Voters and political parties there are generally more concerned about economic development or migration, leaving environmental issues to civil society groups.

Mr Lamberts believes voters find the message that their country’s model is “killing the planet” unpalatable.

Unlike in many of the other former Soviet-bloc states, green parties have made inroads in Hungary.

Gergely Karácsony

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The green LMP party has won seats in three consecutive national elections since 2010, while Dialogue received 11.9% of the vote in an alliance with the Hungarian Socialists in 2018.

Dialogue’s success came under the leadership of Gergely Karacsony, who was elected mayor of Budapest in 2019.

He defeated the nationalist incumbent by rallying opposition parties behind his liberal platform, and promising solutions not only to environmental issues, but economic and social ones too.

“In Hungary today, there are three different crises. A democratic crisis, a social crisis and an environmental crisis,” Budapest’s mayor told the BBC. “The advantage of the green movement is that we have proposals for all three.”

He linked green policies such as urban foresting and carbon-free public transport to Hungary’s poor record on air quality and other environmental problems.

Particularly in post-Soviet countries, the mayor said, social justice must go hand in hand with the green transition.

“We cannot put the costs of sustainability on disadvantaged segments of society.”

Jamila Schäfer speaking at an event

Andreas Gregor

What worked in Budapest may not necessarily follow elsewhere, but green candidates have achieved electoral success where they have channelled voter discontent, united the opposition and diversified their offer beyond the environment.

If the Greens can build on these gains, there is a future for them in coalitions, Professor Fagan said.

“Green politics in Europe is getting bigger and stronger, and I’m sure it will grow in the coming years,” Ms Schäfer said.

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Biden says he’s concerned about Chinese hypersonic missiles

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U.S. President Joe Biden said on Wednesday he is concerned about Chinese hypersonic  missiles, days after a media report that Beijing had tested a nuclear-capable hypersonic glide weapon.

Asked by reporters as he was boarding Air Force One for a trip to Pennsylvania whether he was concerned about Chinese hypersonic missiles, Biden said, “Yes.”

The Financial Times said at the weekend that China had tested a weapon in August that flew through space and circled the globe before cruising down toward a target that it missed. China’s foreign ministry denied the report.

 

(Reporting by Nandita Bose; Writing by Mohammad Zargham; Editing by Leslie Adler)

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