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    Japan
     Jan 27, 2007
Page 3 of 3
The political stakes are rising in Japan
By Hisane Masaki

will turn their back on the DPJ. Under pressure within the DPJ, Tsunoda resigned as the Upper House vice president on Friday.

The bottom line is that the DPJ has not benefited from the LDP's troubles and fall in popularity. According to recent opinion polls, the DPJ has seen its public support rise only slightly. This means that the party has failed to win over people who have withdrawn



their support from Abe's LDP.

In a development that sent shock waves through Japanese political circles, entertainer Sonomanma Higashi handily won last Sunday's gubernatorial election in Miyazaki prefecture, western Japan, by running as an independent. Higashi, an apprentice of comedian and film director "Beat" Takeshi Kitano, beat two former central government bureaucrats - one backed by the LDP-led coalition and the other by two opposition parties, including the DPJ. The results were widely taken as showing profound distrust of the existing political parties among Japanese voters.

But it may be that voters are more concerned about pocketbook issues than the constitutional revisions. One of Koizumi's slogans was, "There will be no economic growth without reform." One of Abe's slogans is, "There will be no future for Japan without growth." The Japanese economy is renewing the record postwar growth spell. But the benefits of the current economic expansion have yet to filter through into households as well as small businesses and rural areas fully.

Personal consumption remains weak as most Japanese workers have not seen their wages rise during the current economic expansion. In addition, although Koizumi is widely credited for beating deflation and turning around the ailing economy, critics say his laissez-faire, market-oriented structural-reform program has left the negative legacy of a widening gap in society, especially between rich and poor. Abe has vowed to address the disparity issue, but he has yet to produce tangible results.

The opinion poll by the Asahi Shimbun published on Wednesday showed that 50% of the respondents now perceive Abe as a "politician who is out of touch with the public sentiment". A whopping 89% said they cannot feel their income has grown, while 48% said it is "inappropriate" that Abe has picked constitutional revisions as an Upper House election issue.

Apparently bearing in mind growing criticism of his economic policies, which are widely seen as being heavily in favor of corporations, Abe said at the recent LDP convention, "Economic growth is not for business enterprises, it is for the public ... Therefore, I would like to do my best to make the economic recovery extend to households."

Speaking as a guest at the same party convention, even Akihiro Ota, head of the LDP's junior coalition partner New Komeito, said, "I want the LDP to consider ordinary people and small and medium-sized companies, which is our party's standpoint."

For fear of drawing an angry backlash from many workers in the upcoming Upper House race, the LDP-led coalition has already given up the idea of presenting to the current ordinary Diet session a bill for what is called the Japanese version of "white-collar exemption", which was to do away with overtime pay for company employees in managerial and related positions (see All work and no pay, January 6).

So on the surface, the DPJ's strategy of making the widening income gap a key election issue may look more promising than Abe's focus on constitutional revisions. Issues closely related to people's daily life, especially the increasingly uncertain future of the nation's social security system, have been matters of greatest concern for voters in recent national as well as local elections. It remains to be seen, however, whether the DPJ's election strategy will work as fully as it expects.

Rehabilitating the creaking social-security system, including pensions, medical insurance and nursing-care insurance for the elderly, has emerged as a pressing task for the government, amid the rapid aging of society and continued decline in birth rates. Government finances remain in dire straits. Japan's fiscal condition is the worst among major industrialized economies, with the deficits held by the central and local governments totaling a staggering 1 quadrillion yen ($9 trillion). This figure translates into about 8.3 million yen ($68,700) per person in a nation of about 127 million people.

Many critics charge that both the LDP-led coalition and the DPJ are irresponsible because the former has opted to steer clear of a possible hike in the currently 5% consumption tax until after the July Upper House election and the latter has dropped its earlier proposal for an increase in the tax rate to 8%. Many experts say - and even many voters feel - that a hike in the consumption tax will become inevitable in the not-so-distant future to finance rising social-security costs and stem an even further rise in government debts.

Hisane Masaki is a Tokyo-based journalist, commentator and scholar on international politics and economy. Masaki's e-mail address is yiu45535@nifty.com.

(Copyright 2007 Asia Times Online Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

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