Hate him/love him

International Economy, The, Summer, 2004

In the recent upper house elections in Japan, the governing Liberal Democratic Party lost seats. The party was still able to form a coalition and hang on to power, but in a weakened state.

What this means, according to top Japanese officials, is that Prime Minister Koizumi will need to push ahead with structural reforms such as overhauling the postal service and selling off state-owned assets in order to strengthen the party's future election prospects. The LDP has been split over the desire for change. Koizumi's talk of reform, along with his "maverick" image, have won relatively high public approval ratings. Yet his proposals have been opposed by many in the LDP. Now, it appears that the LDP government could be headed for defeat in lower house elections in 2007 unless a popular Koizumi can drive up support for LDP candidates. Thus, although many LDP stalwarts detest their "maverick" leader, they may have to make good on his reform rhetoric to ensure their own political survival.