You may not appreciate my argument about borrowing to consume. At least, I know of a country that borrows even to run its own elections. That is directly borrowing to consume. You may call the investments in infrastructure wasteful investment but the point I am making is that that investment is feasible. Contrast that to a country that is badly in need of infrastructure, yet takes the money but you cannot see the infrastructure. At best you see half-built infrastructure that is left to rot. It may not make sense to you but if you introduce the element of corruption and kickbacks resulting in over bloated contracts, you would begin to appreciate the point I am making.
Japan can repay its debt if it reduces further investments in infrastructure which you think is wasteful. In the case of many African states, this is not option. There is another important point on this but it is not popular so I will hold on to that argument.
The argument about domestic borrowing is simple. When your debts are domestic held debts, you are able to wean yourself from external shocks. You can make economic decisions that favor you . Once majority of your debts are in foreign hands, you are at the mercy of external investors.
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Of course, he is warning them against China. I speak as an African. The Chinese cannot be trusted. They are just taking advantage of the bad leaders on the continent and ripping them off. They know most of the leaders are corrupt and unaccountable to their people, so China promised not to interfere in their internal affairs. This way they got them. Also, China is getting all the advantages on the blindside of these greedy bastards.
1, They pretend they are giving huge loans at competitive rates but the sheer size of those loans make it impossible for them to pay back.
2, Since they know it is practically impossible for them to repay, they insert a clause that says failure to pay by this period, you would forfeit this resource. Many African countries are trapped in this but cannot get out because they badly need the money.
3, The Chinese government is giving these loans but at the same time creating a job market for Chinese citizens on the African continent. The Chinese population is increasing very fast. Any project backed by a Chinese loan must be executed by a Chinese contractor and you would usually find that about 60% of the staff working on a particular project would be Chinese.
4, Most of the projects are executed poorly at exorbitant costs
So all what Abe is telling them is becareful. Think about the next generation and not only themselves and their immediate families,
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Japan may have a huge public debt but they have invested the monies in projects that are feasible , verifiable and in the long run financially viable. The opposite is the case for African countries. Most of the debts have gone into consumption and so there is a huge mismatch between what is on paper as debt and what actually pertains on the ground. Whereas Japan can repay their debts, and by the way, a chunk of the debt is owned domestically, a chunk of Africa's debt is owned externally and there is no hope that they can repay. May countries in Africa just came out of HIPC and many of them have taken loans sometimes exceeding the dreaded 60% levels. In addition, the projects that have been embarked on using these loans have been executed poorly because of corruption.
So what Abe is simply saying is that African governments must watch out otherwise the future looks bleak for the next generation who have the responsibility to repay all these loans but would have no resources to depend on or even enjoy the so-called projects that these loans have been procured for.
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@Aly Rustom. Vodafone was here sometime ago but could not compete. Infact, they failed to understand the market and so they eventually sold it to Softbank.
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For those of you arguing that going to the UN will worsen his case, just remember that the lawyers are not stupid. They are more experienced than we here parading as street lawyers. International diplomacy works and any action meant to exact pressure on any government does work effectively. No government fears its people but fears outsiders. If it is part of their strategy to get him out, so be it as long as they are not doing anything illegal. I can understand that people will argue that they are putting Japan in a bad spotlight but to whose expense. Rationality does not count when you are pushed to the wall. The prosecutors are doing their thing ,let the defendants do their thing. He cannot be suffering and still be thinking about protecting his captors.
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Finally gets bail.
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It is very refreshing to hear that the job market is improving for job seekers. In my personal view, I prefer that there are more opportunities for workers to choose who to work for than less opportunities. More options means employers have to work hard to attract and maintain their staff. This means they have to do the right things like paying well, treating workers as assets and not as dispensable tools. It is all good for me.
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There my lovely Bureaucrats go again. I can tell you with certainty that foreigners in Japan are one of the most law abiding in the world. The laws are stringent enough to scare foreigners from doing bad things. Nonetheless, there are clear cases of foreigners not playing by the rules. Those foreigners must be investigated and punished as deterrent to others. Having said that I think, this action by the ministry is much ado about nothing. The results of the survey has failed to validate their thinking especially about foreigners. You have about 125,000,000 million Japanese and yet you want to target about 2,000,000 foreigners. The result of their painstaking and expensive survey showed nothing against foreigners. The question then is ,is this not the typically stereotypical mindset of those in authority to find fault with foreigners at all cost for any rot in the system? They should look within and they will find the answers.
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