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Japanese Media Predicting Landslide Victory for Democratic Party of Japan
By: Darrel Whitten   Friday, August 21, 2009 8:53 AM

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Recent voter surveys by the Asahi Newspaper and the Nikkei (Japan Economic Journal) are now predicting a landslide victory for the Democratic Party of Japan (DPJ, Japan's equivalent of the Democrats in the US) over the Liberal Democratic Party (LDP, Japan's equivalent of the Republicans), which has ruled Japan for all but a couple of weeks since the end of World War II.

The Nikkei survey between August 18 and August 20 of 210,000 voters nationwide with 110,000 respondents indicates that the DPJ could win over 300 seats in the Lower House, or easily more than the minimum 241 seats required to capture a simple majority. If so, the win will be even more of a landslide than when the extremely popular Junichiro Koizumi and his band of reformists won for the LDP in 2005.

One of the DPJ's main political platforms is administrative reform, which has become one of the Japanese electorate's consistent demands and was a major driver for the Koizumi Administration's popularity. Since Koizumi stepped down as Prime Minister in September 2006, the ruling LDP has substantially backed away from administrative reform.

The DPJ plans to strengthen its power to determine and implement policy by appointing more than 100 DPJ politicians to government positions, and bring leading party politicians into the cabinet. Favoring a Westminster-style (U.K.) parlimentary Cabinet, the DPJ not only wants to expand the power of the prime minister's office, but also to make the cabinet the center of national policymaking by wresting de-facto control from Japan's various bureaucracies, such as METI (Ministry of Economy, Trade and Industry, industrial policy), the MOF (Ministry of Finance) and ministries that have long aggressively resisted reform, like the Ministry of Agriculture, Forestry and Fisheries (MAFF) and the Ministry of Land, Infrastructure, Transportation and Tourism.

If they do gain power, the DPJ must be prepared for a long, hard struggle to implant not only formal policy making but new customs and informal practices into long-standing collusive relationships between governing politicians and bureaucrats, and they will very much need the support of voters for the freedom to experiment, float trial balloons and launch test programs to mold Japanese politics and policy, and to redeploy still substantial national savings away from extremely wasteful and often pork-barrel existing government programs and institutions in order to put Japan back on the road to sustainable growth and generate sufficient revenue to meet the Japanese people's need for social security.

The twin challenges will be re-inventing Japan's outdated growth model while repairing government finances to stem what will soon be government debt in excess of 200% of Japan's GDP.

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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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