This article is from the Japanese FAQ, by TANAKA Tomoyuki tanaka@cs.indiana.edu and Olaf Meeuwissen olaf@IMSL.shinshu-u.ac.jp with numerous contributions by others.
the most important work on the topic has been Charles Douglas
Lummis's essay available in English and Japanese: "ideologie
tositeno eikaiwa" (English conversation as an ideology).
the main point of this essay is that teaching of English
(conversation) in Japan is filled with American racism.
i read the suggestion that Japanese schools should not hire
narrow-minded white Americans as English teachers, but instead
should consider hiring open-minded non-whites or non-Americans:
Singaporeans, Kenyans, ....
i read this suggestion in at least two books, one of them (i
think) was entitled "eigo sihai e no iron".
recently i saw two good illustrations of this suggestion.
1. some English teacher quoted from his Japanese student's
homework without the student's permission solely to
ridicule his/her English.
see also:
http://freespace.virgin.net/r.barnett/jappics/student.html
2. another English teacher rambled on, making inane
claims in snobbish, pseudo-academic language.
summary:
Japanese universities hire foreign English teachers for
helping Japanese students learn (international) communication.
hiring narrow-minded white Americans as English teachers
goes against this goal, as they
1. ridicule Japanese students ; and
2. rather than communicate clearly, confound and
confuse using pseudo-academese.
 
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