February 11, 2014
SUO-OSHIMA — Tourists come to Suo-Oshima, a Japanese island city in the southern Yamaguchi Prefecture, to taste the local Mikans citrus fruit and swim in the turquoise waters of the Seto Inland Sea.
But after crossing the only bridge that leads to Suo-Oshima, you may also notice the public signs notifying locals of a recent death. This town has a population of 18,000, of which 48.5% are over 65 years old — a record in Japan. In 2013, the town registered 470 deaths compared to just 70 births.
“In 1948, when I was born, there were 64,800 residents,” mayor Takumi Shiiki remembers.
The figures from the latest national census confirm that the population has never grown in this city since World War II. The overall decline of the region, which was infamous as a pirate hideout in the 16th century, is mainly due to a lack of economic dynamism.
Besides a dwindling fishing and farming economy, there are hardly any prospects here. From the start of the Meiji era (1868-1912), a chunk of the population emigrated, particularly to Hawaii.
“If you want to work here, you have to work for the government or be hired by the agricultural cooperative,” a young local says. Those who leave for Osaka, Fukuoka or Tokyo for their studies never come back.
The problems of an aging public
The situation in Suo-Oshima illustrates, more than anywhere else in Japan, the problem of the country's aging population. The latest demographic statistics, released on January 1, show that more than a quarter of the Japanese population will soon be over 65. By 2060, the proportion is set to reach 40%.
A traditional home in Suo-Oshima (Wikipedia)
For Shizuo Niiyama, head of the Hakuseiji temple on Okikamuro, the second island of Suo-Oshima, “the town has become an example.” The demographic decline can be measured by the number of abandoned houses. By walking along both islands, strolling around in their coastal villages, the visitor is sure to see old, crumbling buildings and stores that have shut down. Some houses have already collapsed and are disappearing underneath wild grass.
Ageing has a cost. On a national level, social security represents 31.8% of the 2014 budget, one of the only expenditures that can be increased. In Suo-Oshima, the total amount given to the elderly — including social welfare payments — amounts to 9.2 billion yen (65 million euros) per year.
The town has three public hospitals and 76 geriatric facilities — retirement homes, day care and rehabilitation centers. This sector employs 1,350 people. “It seems like a lot, but actually, we need more beds, doctors and nurses,” Mitsuo Tani of the local social aid association explains.
The situation is made even more difficult with the relative poverty of the population. “There are many retired people who used to work in the farming or fishing industries,” Tani continues. “They receive the basic pension, between 50,000 and 60,000 yen (353-464 euros) each month.” They could apply to the local welfare but, “out of pride or because they sometimes have savings, they refuse to do it.”
Just because the services are available doesn’t mean that everyone attends, especially the daycare centers for lonely people, like the Honobonoen Center, beside the city hall. “We have 16 members, but some don’t come every day,” director Shozo Kobayashi explains. Members pay 15,000 yen (105 euros) for 14 days. The rest is taken care of by social security.
On January 8, there were 7 people at the Honobonoen center. Haruyo Hara, 97, returned from Osaka where she has spent most of her life. “I was surprised not to see any children around. I’m afraid that one day, there won’t be anyone left. People leave and we don’t see them again," says Saburo Nakamoto, who used to work for the postal services.
Here, the youngest seniors take care of their elders. The mayor’s wife, 64, is in charge of a group of volunteers who go shopping and watch over 25 homes for her neighborhood’s elderly people.
M. Ebisuzaki, 75, was born on the Okikamuro Island and worked in a cement factory in Tokuyama. When he retired, he decided to come back. “I wanted to grow vegetables and read books.” But instead of that, “I’m part of the volunteer firefighters and provide guided tours for tourists. I’m overwhelmed.” Another local man in his seventies, is drying out seaweed on a low wall of the fishing harbor. He also claims not to have any spare time. He returned here for his retirement because “it’s here that his ancestors are.” He also adds that "everyone helps each other" here.
In order to become more dynamic the town is looking for solutions, especially by developing tourism, which currently brings over 900,000 visitors per year. It is also trying to draw in new residents. Hikaru Yashiki, who was born on the island, was sent to Tokyo on January 11 and 12 to take part in a trade show promoting Japanese cities. “For 10,000 yen (70 euros) per week, you can spend up to 4 weeks in a Suo-Oshima home. A good way to get a taste of life here," he says.
The city hall has hired a financial adviser who helps interested people to plan their settling-in. Some make the move, but they’re still not enough to stop the current decline.
“If Suo-Oshima disappears, it means the whole of Japan could disappear one day,” Shizuo Niiyama, a monk, warns. “The government must react,” he adds.
But, authorities are not doing much, especially not for the declining birth rates. And Japan remains hostile to immigration, except when it comes to compensating immediate and specific needs. To deal with the short-handed workforce, the government is counting on the employment of women and elderly people, even considering using robots.
This leading French daily newspaper Le Monde ("The World") was founded in December 1944 in the aftermath of World War II. Today, it is distributed in 120 countries. In late 2010, a trio formed by Pierre Berge, Xavier Niel and Matthieu Pigasse took a controlling 64.5% stake in the newspaper.
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It is today a proven fraud, nailed by the French stock market watchdog: Air Next resorted to a full range of dubious practices to raise money for a blockchain-powered e-commerce app. But the simplest of errors exposed the scam and limited the damage to investors. A cautionary tale for the crypto economy.
October 27, 2021
PARIS — Air Next promised to use blockchain technology to revolutionize passenger transport. Should we have read something into its name? In fact, the company was talking a lot of hot air from the start. Air Next turned out to be a scam, with a fake website, false identities, fake criminal records, counterfeited bank certificates, aggressive marketing … real crooks. Thirty-five employees recruited over the summer ranked among its victims, not to mention the few investors who put money in the business.
Maud (not her real name) had always dreamed of working in a start-up. In July, she spotted an ad on Linkedin and was interviewed by videoconference — hardly unusual in the era of COVID and teleworking. She was hired very quickly and signed a permanent work contract. She resigned from her old job, happy to get started on a new adventure.
Others like Maud fell for the bait. At least ten senior managers, coming from major airlines, airports, large French and American corporations, a former police officer … all firmly believed in this project. Some quit their jobs to join; some French expats even made their way back to France.
Share capital of one billion
The story began last February, when Air Next registered with the Paris Commercial Court. The new company stated it was developing an application that would allow the purchase of airline tickets by using cryptocurrency, at unbeatable prices and with an automatic guarantee in case of cancellation or delay, via a "smart contract" system (a computer protocol that facilitates, verifies and oversees the handling of a contract).
The firm declared a share capital of one billion euros, with offices under construction at 50, Avenue des Champs Elysées, and a president, Philippe Vincent ... which was probably a usurped identity.
Last summer, Air Next started recruiting. The company also wanted to raise money to have the assets on hand to allow passenger compensation. It organized a fundraiser using an ICO, or "Initial Coin Offering", via the issuance of digital tokens, transacted in cryptocurrencies through the blockchain.
While nothing obliged him to do so, the company owner went as far as setting up a file with the AMF, France's stock market regulator which oversees this type of transaction. Seeking the market regulator stamp is optional, but when issued, it gives guarantees to those buying tokens.
The infamous typo that brought the Air Next scam down
Raising Initial Coin Offering
Then, on Sept. 30, the AMF issued an alert, by way of a press release, on the risks of fraud associated with the ICO, as it suspected some documents to be forgeries. A few hours before that, Air Next had just brought forward by several days the date of its tokens pre-sale.
For employees of the new company, it was a brutal wake-up call. They quickly understood that they had been duped, that they'd bet on the proverbial house of cards. On the investor side, the CEO didn't get beyond an initial fundraising of 150,000 euros. He was hoping to raise millions, but despite his failure, he didn't lose confidence. Challenged by one of his employees on Telegram, he admitted that "many documents provided were false", that "an error cost the life of this project."
What was the "error" he was referring to? A typo in the name of the would-be bank backing the startup. A very small one, at the bottom of the page of the false bank certificate, where the name "Edmond de Rothschild" is misspelled "Edemond".
Before the AMF's public alert, websites specializing in crypto-assets had already noted certain inconsistencies. The company had declared a share capital of 1 billion euros, which is an enormous amount. Air Next's CEO also boasted about having discovered bitcoin at a time when only a few geeks knew about cryptocurrency.
Employees and investors filed a complaint. Failing to find the general manager, Julien Leclerc — which might also be a fake name — they started looking for other culprits. They believe that if the Paris Commercial Court hadn't registered the company, no one would have been defrauded.
Beyond the handful of victims, this case is a plea for the implementation of more secure procedures, in an increasingly digital world, particularly following the pandemic. The much touted ICO market is itself a victim, and may find it hard to recover.
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