Koizumi-Led LDP Logs Historic General Election Win.

(From Journal of Japanese Trade & Industry (JJTI))

A historic outcome ensued after Japan's latest general election that took place in the year marking the 60th anniversary of the end of World War II. A strategic campaign of Prime Minister Koizumi Junichiro, which highlighted whether to push reforms by realizing postal privatization or backtrack on the reform drive, fully paid off and brought the ruling Liberal Democratic Party (LDP) a landslide victory. The LDP acquired 296 of the 480 House of Representatives seats at stake, securing a majority for the first time in 15 years. Along with its coalition partner, New Komeito, the ruling camp took 327 seats, more than two-thirds of the 480 seats, making it possible to enact bills even if the House of Councillors rejects them. The main opposition Democratic Party of Japan (DPJ) had tried in vain to wrest power from the LDP. Japan's politics has now entered a stage of stability led by the LDP at least for the time being. LDP Faces Test of Achieving a "Small Government" Backed by overwhelming public support, Koizumi will seek to carry out his long cherished privatization of Japan Post. However, this is only one of the tasks that should be addressed by the government. Japan is beleaguered with a huge public debt of around \770 trillion and a falling birthrate. The LDP had pledged to draw a conclusion by FY 2007 on how to carry out a fundamental reform of the nation's taxation system, including the consumption tax. In particular, the LDP will be urged to specify how to rehabilitate the nation's debt-ridden finances. Specifically, it needs to grapple with politically sensitive issues such as a review of fund allocations between the central and local governments, a reduction in the number of public-sector workers and a curb on healthcare spending. The New York Times construed the LDP's big win as the result of Japanese voters' support for ...