APRIL 2008

UNIVERSITY OF TOKYOGRADUATE SCHOOL OF PUBLIC POLICY
NEWSLETTER
Published April 30, 2008 (Issue #13)

Contents:Second Public Forum Sponsored by Sompo Japan Insurance Inc.
First Public Policy Education Forum
Report on SIPA / GraSPP Exchange Event
Reflections on Four Years as DeanPg. 2Pg. 4Pg. 5Pg. 6

SECOND PUBLIC FORUM [Risk Management and Public Policy]
Sponsored By Sompo Japan Insurance Inc.
Text by Naoto Adachi (Part-time Lecturer)
February 29, 2008- Over 200 individuals came together to attend the Second Public Forumon Risk Management and Public Policy sponsored by Sompo Japan Insurance Inc. The
theme of the lecture was “Considering Tokyo’s Foundation: Risk Management of Landand Soil”. The forum consisted of two parts – keynote presentations and a panel
discussion – preceded by opening remarks by Dean Yoshitsugu Kanemoto.
Key Note Presentations
Professor Kimiro Meguro, the Director of the International Center for Urban Safety
Engineering (ICUS) at the University of Tokyo’s Institute of Industrial Science, was thefirst keynote speaker. His speech which was on the topic “Urban Deterioration andDisaster Counter-Measures when Countering Earthquake Risk” emphasized the essential
elements for creating a city that is less susceptible to earthquake damage. Employing
images and simulations based on actual experience and introducing data from a number ofearthquake disaster areas such as the Great Kobe Earthquake, Professor Meguro led theaudience through an easy to understand presentation that touched upon themes such as theimportance of conceptualizing the possible impact of disasters and the problems associatedwith misplaced public confidence that current earthquake countermeasures will besufficient. Additional approaches to mitigating the adverse impact of earthquakes throughpreventative earthquake resistant reinforcements were then introduced. To support andpromote such preventative measures, a plan calling for public assistance and cooperation
was put forth. Additionally, a proposal for reconceptualizing earthquake insurance wasintroduced. Finally, Professor Meguro concluded by emphasizing the need to focus on
strategies to maintain and enhance the high quality housing stock for Japanese housing fora number of years.
In the second keynote presentation, Professor Makoto Saito from Hitotsubashi
University’s Faculty of Economics spoke on the theme “Considering Tokyo’s
Foundation – Information, Standards, Technology and Markets Pertaining to Risks
Associated with Earthquakes and Soil Contamination”. The presentation began with ananalysis from an applied economic perspective of how risk aversion distorts the process ofassessing soil contamination risk associated with earthquakes. It was pointed out that theprocess of facilitating a suitable risk mitigation approach required the establishment of risk
policy measures which include the clarification of safety standards and the creation of
mechanisms for adequate dissemination of information related to such risks. Professor
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1Saito concluded by encouraging the panel discussion members to deliberate over hiscontention that free market mechanisms were necessary constituents to facilitate both
improved risk evaluation proficiency and more effective distribution of risk.
Panel Discussion
The panel discussion was moderated by Visiting Professor Makoto Saito and included aspanelists: Professor Kimiro Meguro (the University of Tokyo), Professor Yoshihiro Fuji
(Sophia University’s Graduate School of Global Environmental Studies), Mr. Keita
Nishiyama (Director of the Industrial Structure Policy Division, Economic and IndustrialPolicy Bureau, the Ministry of Economy Trade and Industry), Mr. Yoichi Satake (Directorof the Real Estate Investment Market Office, the Real Estate Industry Division, the Policy
Bureau, the Ministry of Land, Infrastructure, Transport and Tourism), Mr. Kenjirou
Fukunaga (Managing Director and CEO of Field Partners, Ltd.) and Mr. Masami Ishii(Director and Managing Executive Officer of Sompo Insurance Japan Inc.).
The following topics were scrutinized by the panelists:(1) Current Status And Future Prospects Of Soil Contamination Risk Management
Due to lack of legal clarity in regard to the scope of risk and the assignment ofresponsibility in soil contamination cases, a degree of over-compensation has been evident
in real estate transactions. The hope was expressed that standards can be established togovern land use. In order to create such standards, a framework for distributing risk must,at its core, incorporate current scientific understanding of the risks associated with soilcontamination.
(2) Disclosure Of Relevant Risk Information In Support Of Real Estate Transactions
Although access to information has improved via the Japanese Real Estate Investment
Trust (J-REIT) information portal, insufficient information on specific housing lots hasstymied the risk assessment process.
(3) Disclosure Of Associated Risks In Accounting Records
Concerning the liquidation of assets for debt repayment, current market value can be betterreflected by internalizing projected costs associated with remediation of polluted soil andfuture earthquake reinforcement costs. Disclosure of such projections along withapplicable environmental tax impact estimates would help clarify true corporate value.
(4) The Role Of Financial Markets In Risk Management
It is becoming apparent through the rising number of households subscribing toearthquake insurance that interest in mitigating earthquake risk is increasing. To mitigate
risks associated with earthquakes, provision of capital through financial markets in theform of Catastrophe bonds (CAT bonds) has received a great degree of attention.
Moreover, in regard to indemnification of complex risk, it was put forth that a valid
response may be found in the creation of “captive reinsurance structures” whereby
subsidiary companies are formed to insure the specific risks associated with the parentfirm.
(5) The Role Of The Government In Risk Management
There appeared to be agreement that public administrative efforts to facilitate adequate
disclosure of risk information must also be mindful of maintaining a balance between
establishing standards to adequately cope with risks while also supporting thedevelopment of the workforce. Bureaucrats and citizens alike share the burden for seeking
solutions to advance the interests of society. Based on this assertion, there was general
GraSPP April 2008 Newsletter2agreement that less tenuous, more effective regulations governed through an improved
regulatory environment will help nurture robust markets.

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3INAUGURAL PUBLIC POLICY EDUCATION FORUM
Assistant Professor Ryo Sahashi
As was announced on our homepage and in the 11th edition of our newsletter, theUniversity of Tokyo’s Graduate School of Public Policy have been chosen by the Ministryof Education to take part in a network consisting of top public policy schools around theglobe with the aim of introducing a double degree system in the near future.
Building upon previous study abroad agreements with the Lee Kuan Yew School of Public
Policy at the University of Singapore and the School for International and Public Affairs atColumbia University, agreements with Science Po in Paris and the University ofCalifornia’s San Diego campus bring the total of schools that students can choose from tofour. Moreover, this term, 20 courses credits delivered in English are on offer.
Spurred on by the forces of internationalization, efforts are underway to coordinate
internationalization plans and curriculum with select schools. In addition to this, the needto put in place mechanisms to help leverage synergies in order to capitalize on
collaborative research opportunities has become evident. This implies a need for those incharge of facilitating these relations to seek ways to cooperate more effectively.
In order to achieve these objectives, in March 2008, eleven faculty and staff members
were appointed to various position of responsibility to oversee efforts to cultivate stronger
relationships with the four aforementioned institutions and to strengthen relations withthree other prominent institutions- the London School of Economics, the Woodrow
Wilson School of Public and International Affairs at Princeton University and the Schoolof International Studies at Peking University. It is within this backdrop that the inaugural
Public Policy Education Forum was organized.
On March 14, a public event was held at the Tetsumon Memorial Hall in the Education
and Research building of the University of Tokyo’s Faculty of Medicine. On that day,Junji Nakagawa, the head of the international planning office from the university’s
Division for International Relations provided all those in attendance from the variousfaculties and departments within the university with an update on developments related tothe university’s international expansion strategy. This was followed by detailed
introductions, given by representatives of the various faculties within the university, of theinternationalization strategies being formulated at the school level. A deep interest in theinternational undertakings of the various schools and departments was evident in thedetailed questions asked by 50 or so of the study abroad hopefuls, university staff andinternational representatives from other universities that were in attendance. The enquiries
ranged from specific requests for elaboration of concrete elements of curriculum andstrategic plans within specific schools to more general enquiries about international
prospects for student employment.
On March 15, the venue shifted to Administration Building #2 for an education conference
which included international representatives from partner schools and representative
faculty members from the Graduate School of Public Policy. A robust exchange of ideas
ensued as the participants examined the curriculum differences between schools with theend result being a better understanding of the different expectations of program graduatesthat these curriculum differences portend. In the afternoon, a Q&A session with study
abroad hopefuls was organized. Then to conclude the festivities, representatives from allparticipating schools came together to discuss concrete measures for facilitating progressin improving cooperation.
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4Over these two days, the bonds between the Graduate School of Public Policy and thepartner schools were strengthened. In the process, the Graduate School of Public Policy
was also able to fortify the foundation for catalyzing further internationalization initiatives.

REPORT:
AN EVENING OF INTERNATIONAL EXCHANGE BETWEEN SIPA & GRASPP
Contributors:
Naoko Kato (2007 Master of International Public Policy Program Graduate)
Makoto Tsujiguchi (2nd year Master of International Public Policy Program student)
Ayako Hiramatsu (1st year PhD student; Graduate School for Law and Politics)
On Monday, March 17, an international exchange event took place between students fromColumbia University’s School for International and Public Affairs (SIPA) and theUniversity of Tokyo’s Graduate School for Public Policy (GraSPP) at the Sanjo
Conference Hall. The event was part of an annual “Japan Tour” program in which students
from SIPA are welcomed as a valued part of GraSPP’s international outreach program.
Roughly 50 students from SIPA and 25 students from GraSPP and other departments
participated in the event. The event was organized around three main activities which
included a keynote speech from Professor Takatoshi Ito of the University of Tokyo’s
Faculty of Economics, a group discussion involving the students and a social mixer.
Professor Ito’s keynote presentation covered an extensive amount of territory relating toJapan’s current economic situation and future economic prospects. Taking on therespondent’s role, Professor Keisuke Iida of the University of Tokyo’s Graduate School
for Law and Politics then treated those to his comments and opinions on the issues
presented. In the subsequent group discussion, a diverse array of perspectives were enticed
from the international participants on a multitude of Japanese themes ranging from social
welfare amidst Japan’s aging society, policies for dealing with Japanese demographic
change amid a declining birth rate and Japan’s lifelong employment system. Althoughfrequently prefaced with caveats such as “I’m not sure whether or not such a policy would
be effective in Japan but…” SIPA students of various nationalities offered insights into
policies from the United States and their home countries and in doing so catalyzed avigorous, highly thought provoking exchange of ideas.
During the social mixer which took place in the Sanjo Conference Center Dining Hall,students had the chance to network while enjoying food and refreshments. Those inattendance enjoyed discussions on various topics ranging from career prospects to Japan’s
public policies. Many of the GraSPP students in attendance have not had the chance tostudy overseas and so they found the cultural exchange experience to be both fulfilling andenjoyable. As one participant summarized, “To have the chance to have a focused
discussion on a topic with people from diverse backgrounds who hold different opinions
arising from divergent values was of great significance to me”. Added another, “It was
insightful to have the chance to speak with students who came from countries that I havelittle knowledge of.” At the end of the four hour event, many expressed their desire to have
many more events like this in the future.

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REFLECTIONS ON FOUR YEARS AS DEAN
Akira Morita
In March of this year I stepped down as Dean of the Graduate School of Public Policy
after serving two terms and four years. When I think back to 2004, which was the firstyear of the university’s corporatization movement and the year the Graduate School of
Public Policy was established, I harbored a great deal of apprehension over whether or not
such a graduate school could be established under such severe financial constraints.
From the beginning, I found myself presented with five primary challenges as Dean. Firstand foremost was ensuring the provision of a high standard of education to the students
here. Though far from complete, I endeavored to ensure that we enticed lecturers that had
front line experience in the fields of global politics, economics, and public administration.
Nurturing the development of courses and support mechanisms that are relevant topractitioners was of particular concern.
The second challenge was to generate a degree of positive awareness within society atlarge in regard to the value of the education offered through GraSPP. In that regard,
whenever possible we embraced opportunities to put ourselves before the media eye andintroduce the allure of our school to the public. Current students and alumni havecontributed greatly to these efforts.
The third challenge was to harness the enthusiasm of our teaching faculty and infuse suchzeal into our courses. To facilitate this process, it was essential to provide support to ourtop class faculty members to allow them to pursue their academic interests with theknowledge that this would cascade down into our programs. The results of this are clear.
We now offer over 100 courses and students are afforded a unique opportunity to electcourses that most appeal to their interests and aspirations.
The fourth challenge was to reduce the amount of administrative responsibilities
commonly placed on academic faculty in order to allow faculty members to focus on
research and teaching. This was achieved through the development of a formalorganizational structure that featured planning and management specialists to oversee
administrative activities. Fortunately, cooperation between academic and administrative
staff has been further enhanced by the superb staff that has joined our cause.
Finally, the fifth challenge was to tap into external funding in order to provide the muchneeded resources for financing these support systems. Fund raising was by far the mostvexing challenge given the need to preserve academic independence. However, throughinitiatives such as improved targeting of research funding requests and initiation of acorporate sponsored lecture series, we have seen a steady increase in industry support
funding.
Thanks to our superb academic and administrative teams and the unparalleled enthusiasm
for learning displayed by the students at GraSPP, we have, in my opinion, laid thegroundwork for the graduate school we began to build in 2004. However, around theworld, there is a heated competition between schools such as ours for attracting top
students and progressively providing the highest possible standard of education. In order
to be recognized on this global stage as a school of high repute, our school still has a great
deal of work to do in further refining and implementing our development strategies.
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From last year, we have taken advantage of financial assistance from the Ministry ofEducation, Culture, Sports and Technology to expand the number of courses taught inEnglish in response to an initiative to improve cultural exchange with prominent foreign
graduate schools. It is expected that this will allow top students from around the world toselect our program as a candidate school for study abroad. Furthermore, as is the case withall top graduate schools around the world, we are now working on plans to improve theintake of experienced professionals to our graduate programs.
There are many issues to contend with, but I now entrust such development issues toincumbent dean, Professor Kanemoto. I would like to conclude this message by thanking
all those who lent support to our fledgling program from the start. To all the staff andstudents who have given me such support, I thank you from the bottom of my heart.

Editor’s Note 13-02
GraSPP extends our well wishes to departing Dean Morita who laid the foundation of ourprogram. We also welcome our new Dean Kanemoto who will lead us in future expansion
plans. We are certain that everyone involved will do what they can to lend support to ourplans for further development. (Editor)

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