Some years ago, there was a lot of sound and fury about privatizing the postal service. Not only was it going to be broken up into separate banking, insurance, and postal companies, these were then to be privatized. As it turned out, the trinity was split and them put under a postal holding company. So there was not really any split. Just another layer of bureaucracy. Same people doing the same things and sharing the same facilities. No significant change. Thanks, Koizumi.
And along with the “privatization,” shares of stock were issued. Of course, the fact that the government holds 100% of the postal company’s shares makes a bit of a mockery out of the protestations of privatization, but that’s another thank-you to Mr Koizumi. And adding insult to this injury, the postal monopoly on delivering the mail has been retained.
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So the government, rather than relaxing the regulations and letting the other companies actually compete on an even footing, has dug in its heels to protect the monopoly business of its 100% government-owned “private company.” Surely this is an area that is ripe for reform. Start by selling the government’s holdings. And then there would be no reason to protect the monopoly. Eventually, Koizumi’s famed “min-ei-ka” could be more than a fairy tale.