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Koizumi's third cabinet could be the charm
By Richard Hanson

TOKYO - There's a saying in Japan that the third time is decisive - and maybe this time it will also be the charm when it comes to reform. That old saying is one that Prime Minister Junichiro Koizumi, 62, probably had in mind this week as he carried out his third cabinet reshuffle, an annual one-man, autumn show since sweeping into office on a populist reformer's wave in April 2001.

Depending on how you view Koizumi, the prime minister on Monday either implemented a stroke of political genius and visionary reform or appointed his loyal associates in an effort to shore up his legacy and turn significant progress into positive achievements.

Some say Koizumi has used this latest, far-reaching shakeup to firm up his power in order to push ahead the privatization of the nation's highly politicized postal system and enact other broad structural reforms. These are mostly completed reform tasks, such as cleaning up blatant pork-barrel boondoggles like building highways and bridges.

Another view is that on Monday Koizumi filled his new cabinet with what one newspaper described as associates and unassuming individuals in an apparent attempt to leave behind a "legacy" in postal privatization and foreign policy - areas where the prime minister has made great strides, but not always scored clear-cut successes.

After a lackluster showing last July in a major national election for the Upper House of the Diet (parliament), Koizumi has been sharply criticized for his handling of such pocketbook items as support for reforming the national pension system (to which a number of politicians, including Koizumi, were delinquent in past payments).

So Koizumi draped himself in his trademark drive as the mail-system reformer.

"We have finally reached the core base of reform that is postal privatization," Koizumi said after the official cabinet attestation (swearing-in) ceremony at the Imperial Palace. "I have reshuffled the cabinet to push through that reform." The footnote is that Koizumi has already said this will be his last administration, when his term as president of the governing Liberal Democratic Party (LDP) expires in 2006.

In effect, the argument goes, Koizumi wants to be a lame duck and eat it too.

Others say the prime minister's record and the choices that he made in selecting this cabinet indicate that the new cabinet could turn out to be the most active and effective group in a long time. With no major impediments in sight, the cabinet looks ready to go to work.

The standard 18-member cabinet, including the prime minister, has 11 new members, including several who have never served in a cabinet. Moreover, Koizumi was able to pick and choose his team from a considerable talent pool within the ruling party, including some people who were bitter opponents a couple of years ago when the anti-Koizumi forces stymied his efforts at structural reform. But help was on the way.

In the darkest days of the early summer of 2002, the prime minister received a strong personal boost from big business and the Japan Business Federation (Keidanren). Koizumi went on to a surprise political breakthrough with Japan's threatening neighbor in North Korea in September of that year, making a historic trip to Pyongyang and opening talks aimed at normalizing relations.

That has been a rocky road. But Koizumi benefited from these diplomatic breakthroughs in gaining support for Japan's current role in Iraq, where it has sent a humanitarian contingent of the Self-Defense Forces at the request of the United States. So far, Koizumi's standing staunchly behind US President George W Bush has not hurt him in the polls.

Koizumi's domestic agenda is a clear priority. He dubbed the reshuffled government "the cabinet to realize postal privatization".

Symbolic of that undertaking, on Monday Koizumi appointed his ace economic and financial whiz, Heizo Takenaka, 53, to rule over a newly created cabinet post of state minister of postal reform and privatization. Takenaka retained the economic and fiscal policy portfolio. But Koizumi gave the post of minister for financial affairs (banks, brokers and such) to a rising young star, Tatsuya Ito, 43, a member of the large faction that opposes the prime minister.

The increasingly well regarded Chief Cabinet Secretary Hiroyuki Hosoda and Finance Minister Sadakazu Tanigaki were reappointed, to general satisfaction. Taro Aso, 64, was also kept on as the powerful minister of public management.

Koizumi retired the foreign minister, a non-politician who was appointed after an early appointee, Makiko Tanaka, was fired. The new foreign minister, Nobutaka Machimura, is a loyal Koizumi supporter who ran the LDP's election bureau over the last three elections. Machimura was formerly an official with the defunct ministry of international trade and industry (MITI). A major goal for Koizumi is obtaining a permanent seat for Japan on the UN Security Council, and the new foreign minister will be his point-man in the campaign.

Personal loyalties again counted high. Koizumi appointed a close friend, former LDP vice president Taku Yamasaki, who lost his seat in the Lower House in the general election last November. His job will be personal adviser on affairs involving the planned realignment of US forces in Japan.

Also appointed from among the younger generation of the party was Yasufumi Tanahashi, 41, the new minister in charge of science, technology and food-safety affairs. The new cabinet also includes two women: Justice Minister Chieko Nono, 68, an Upper House member of the LDP, and Yuriko Koike, who retained the post of environment minister concurrent with her role as minister in charge of affairs relating to Okinawa prefecture and the territorial issues over the disputed islands held by Russia off eastern Hokkaido.

There are some new and old faces. Yoshinori Ono, 68, an LDP Upper House legislator, was named head of the Defense Agency, after a career as a tax expert. Yoshinobu Shimamura, 70, who returned to the Lower House seat as an LDP member last November, was named minister of agriculture, forestry and fisheries. His district is downtown Tokyo. A former Finance Ministry official, Yoshitaka Murata, 60, a Lower House LDP lawmaker, was named chairman of the National Public Safety Commission.

Eleven of the reshuffled cabinet members are newly appointed, including Nariaki Nakayama, 61, a Lower House member of the LDP, now minister of education, science and technology, and Kazuo Kitagawa, the policy chief of LDP's coalition partner New Komeito, now minister of construction and transport.

On the ruling LDP hierarchy, the prime minister, who also is party president, used his third cabinet reshuffle to rehabilitate a colorful former agriculture minister, Tsutomu Takebe, to replace Shinzo Abe as secretary general of the LDP. Takebe is known as a staunch advocate of postal privatization and the prime minister's other structural reform initiatives. (He was forced to resign a cabinet post two years ago in a scandal involving his staff.) The new LDP executive lineup also includes a former international trade and industry minister Kaoru Eosin, who succeeds Fukushima Nukaga (a key member of the largest faction in the party) as chairman of the LDP's decision-making Policy Research Council; Fumio Kyuma, acting secretary general of the LDP, takes over from Mitsuo Horiuchi as head of the LDP General Council.

This left pundits speculating over Shinzo Abe's new lesser role as an acting secretary general of the LDP. Abe is widely touted as a future prime minister, a post that his famous grandfather Nobusuke Kishi held in the early postwar period, and that his late father, former foreign minister Shintaro Abe, sought to hold.

Abe's case also sheds light on one of the mostly unspoken questions of politics and ideology in Koizumi Cabinet III. Some more liberal members of the LDP are alarmed by what can be described as a rightist view on the part of Shinzo Abe, whose home base of Yamaguchi prefecture on the southern tip of the main island of Honshu is generally conservative.

Abe is outspoken about the threat of North Korea and is generally anti-communist, for example. Prime Minister Koizumi has a solid conservative streak, with his own home base in Yokosuka, not far from Tokyo and the headquarters for much of Japan's uniformed military forces, as well as the US 7th Fleet.

This in part explains why the prime minister has continued to anger China, and other victims of Imperial Japan's wartime aggressions, by visiting Tokyo's Yasukuni Shrine, where the spirits of Japan's modern war dead (along with several World War II Class A war criminals) are looked after. Many people are trying to persuade Koizumi to change because of the emergence in China of somewhat more liberal leaders.

Prime Minister Koizumi has proved that he possesses deep insight into how to manage the Liberal Democratic Party, which bodes well for the chances of his reforms of the postal system during the lifetime of this cabinet. Three chances will have to suffice.

Richard Hanson, veteran correspondent and expert on the Japanese economy, finance and politics, is the author of Money Lords: The Pride and Folly of Japan's Finance Ministry Elites.

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Sep 29, 2004



Falling numbers in land of rising sun (Sep 21, '04)

Postal reform: Koizumi's check is in the mail
(Sep 16, '04)

Koizumi's legacy could be a strong economy
(Jun 3, '04)

Reforms: Can't please everyone all the time
(May 4, '04)
 


   
         
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