Saturday, July 25, 2020

Relaxed Immigration: The key to rejuvenate aging workforce of Japan

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Syed Ahmed Uzair

Article Title

Relaxed Immigration: The key to rejuvenate aging workforce of Japan

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Global Views 360

Publication Date

July 25, 2020

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Two Japanese people with briefcase and umbrella

Two Japanese people with briefcase and umbrella | Source: Bantersnaps via Unsplash

Late in 2018, a bill was passed in Japan to widen the entry of immigrant workers. The bill was to mitigate severe shortage of labor amidst an aging population and falling birth-rates. Prime Minister Shinzo Abe described the bill as a much-needed reform to ensure the smooth functioning of Japanese  economy. The bill makes it easier for immigrants to work for longer duration in Japan.

More than 20% of Japan’s population is over 65 years old which is the highest proportion in the world. It is projected that by 2030, one in every three people will be above 65 years or older and one in every five will be 75 years or older.

The fertility rate has fallen to 1.4 children per woman in Japan which has been attributed to a host of factors including changing lifestyles, people marrying late, not marrying at all, and the economic insecurity of the younger generation. It is projected that by 2050, Japan’s population will decline by twenty million while the world population is expected to increase by two billion.

Japan has traditionally been quite homogenous with  very little diversity to show. This trend now appears to be changing as today nearly three million migrants live in Japan which is three times more than the figures of 1990. As the country struggles with a rapidly aging population and severely declining domestic labor, the number in all likelihood is only going to increase.

Conservative Prime Minister Shinzo Abe based his support for the reforms in immigration policy on demographic arguments.The conservative section of the parliament has been a staunch supporter but the left opposition has been critical of the bill citing concerns about a lack of regulation on the employers which could lead to over-exploitation of the workers. Prime Minister Shinzo Abe’s government promised to set up a hundred consultation centers nationwide for dealing with issues related to workplace abuse specifically for the migrant workers.

However, that’s as far as those resisting the bill have gone. Nationalist and xenophobic voices protesting the bill have failed to gather steam. In fact, according to a survey by Nikkei in January 2020, almost 70 percent of Japanese said it is “good” to see more foreigners in the country.

Japan’s aging population has made it difficult to find the workers and some companies have more than 120 job openings for every 100 job seekers nationwide. Quite evidently, immigration now appears to be the most feasible solution for Japan- a country that has traditionally been restrictive with its borders when it comes to ethnic diversity.

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February 4, 2021 4:48 PM

Kenyans turning to mobile loans in times of COVID-19

The economic impact of COVID-19 is felt on the personal finance of people across the world who are looking for ways to tide over the situation. In Kenya, people are lapping the short-term credit in the form of digital loans by mobile money operators. The number of people taking digital loans has doubled during the COVId-19 induced lockdown period.

Boston Consulting Group's Consumer Sentiments Survey conducted in April and May 2020 reported that "In May, 29 percent responded that they had taken out a short-term loan, compared to 16 percent in April. Mobile money operators were the most common sources of this credit”

Kenya is a pioneer in using mobile money transfer services as the key tool for providing financial inclusion to its citizens. A simple money transfer service, M-PESA launched in 2007 has transformed the financial service industry in Kenya. Today mobile money operators are providing multiple services like digital loans, marketplace for small businesses and farmers.

Digital loans are easy to process and disbursed but there are concerns of shaming the defaulters and compromising the data security of clients. The Digital Lenders Association of Kenya (DLAK) which is a body representing the digital lenders of Kenya has distanced from two of their members, Okash and Opesa over unethical practices. These mobile apps have shared the details of defaulting customers with the moneylenders and asking them to recover the money.

DLAK also stated that Opesa and Okash are known for attacking a client's data privacy which is against the Kenyan data protection laws and has additionally spoiled the reputation of digital leaders in Kenya.

In April 2020, Central Bank of Kenya barred unregulated digital mobile lenders from forwarding the names of loan defaulters to credit reference bureaus. A huge number of Kenyans have been recorded on Credit Reference Bureaus by digital money lenders for loans as little as $5.

Central Bank of Kenya governor Patrick Njoroge told during a press conference in May 2020 that the central bank in consultation with the mobile money operators and digital lenders is presently working to develop a model where the borrowers are protected from mistreatment of online moneylenders.

The borrowers are looking up to the regulatory authorities and the industry bodies to come up with a mechanism which will protect their interest in times of such a health and economic emergency.

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