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    Japan
     Jul 28, 2007
Page 1 of 2
A moment of truth for Japan's Abe

By Hisane Masaki

TOKYO - When Japanese voters go to the polls for the House of Councilors (Upper House of the Diet, or parliament) elections on Sunday, an opposition victory is widely seen as a safe bet, and attention is focused on how big Prime Minister Shinzo Abe's ruling coalition will lose.

The coalition between the Liberal Democratic Party (LDP) and its junior partner, New Komeito, has continued to be on the defensive



in the face of a barrage of attacks from the opposition over a pension scandal, by far the biggest issue in the triennial poll.

Among other issues are a possible increase in the consumption tax, the perceived widening of the gap between rich and poor, educational reform, cleaner politics, and reform of the public-service system. Although Abe initially vowed to make any constitutional amendments a key election issue, foreign and security policies, as well as the constitution issue, have been largely pushed to the back burner.

When results are made known on Monday, with the expected defeat of Abe's coalition, it will not automatically lead to his resignation, because the coalition is in full control of the House of Representatives, the more powerful Lower House of the bicameral Diet. Abe doubles as LDP president.

Nevertheless, if the coalition fails to retain a majority in the 242-seat upper chamber, the Abe government will be a lame duck, at best, because it will face significant difficulties in pushing through its legislative agenda. This would result in political paralysis and fuel pressure for Abe to dissolve the House of Representatives early for a general election.

Former prime minister Yoshiro Mori, a mentor of Abe, acknowledged on Thursday that if the ruling coalition loses a majority in the Upper House, the premier will be forced to dissolve the lower house before too long.

And if the ruling camp loses its majority in the House of Councilors by a large margin, then Abe may even be forced to step down. But his resignation would not change what Japanese call the "twist phenomenon" of the House of Representatives being dominated by the ruling camp and the House of Councilors controlled by the opposition camp. Some pundits even say that Sunday's election could trigger a new wave of realignments in Japanese politics.

Markets watching closely
If Abe stays in office despite his coalition losing control of the Upper House, the effects on the financial markets might be limited. As things stand, however, Abe's resignation and a subsequent period of political confusion and instability cannot be ruled out. If this happens, both the Japanese currency and stock market will likely face selling pressure. The Bank of Japan might then be discouraged from raising interest rates early. Many analysts have so far expected the next rate hike by the central bank by late August.

At stake in the polls are half of the 242 seats in the House of Councilors. Of the 121 seats being contested, 73 will be elected in prefectural electoral districts and the remaining 48 through proportional representation. A total of 377 candidates vying for the 121 seats are making last-minute appeals for support before the 17-day official campaign period ends on Saturday evening. Of the 377 candidates, 218 are running in prefectural electoral districts and 159 in proportional representation.

At present, the LDP-New Komeito coalition has a majority of 134 seats, with 110 held by the LDP and 24 by New Komeito. The biggest opposition party, the Democratic Party of Japan (DPJ) has 81 seats, and the rest are held by smaller parties and independents.

The 121 seats up for grabs were elected in the summer of 2001, soon after Abe's predecessor, Junichiro Koizumi, took the helm of the LDP and the government. In that election, the LDP won big amid a wave of "Koizumi fever". The then-tripartite coalition of the LDP, New Komeito and the now-defunct Conservative Party boosted its strength in the Upper House to 138 seats. The LDP alone won 64 seats, more than half of the seats up for re-election.

In the most recent Upper House election in the summer of 2004, however, the LDP-New Komeito coalition failed to win a majority of the other 121 seats contested, gaining 60 seats. What was more shocking for the LDP - and for the then-LDP secretary general, Abe, in particular - was that the party won only 49 seats, significantly down from 64 in the 2001 election and even fewer than the 50 seats won by the DPJ.

The ruling camp has 58 seats, including those of allied independents, that are not being contested in Sunday's election. To maintain a majority in the Upper House, the ruling camp therefore needs to win at least 64 seats, including those of independents cooperating with the ruling parties. If New Komeito secures 13 seats, the same number it won in the 2001 Upper 

Continued 1 2 


Japan: A political tsunami approaches (Jul 6, '07)

Headwind for Japanese change (Apr 20, '07)


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