The End of a Political Era?
Prime Minister Aso likely to be unseated
On the 30th of August, Japan’s citizens will vote to elect a new government.
The two leading parties agree the economy is in dire need of revitalisation. With the ruling Liberal Democratic Party (LDP) having failed to fix the economy, the Democratic Party of Japan (DPJ) is expected to win voters’ confidence. The DPJ is expected to win not because of its fantastic plans, but because voters want to express their disapproval with the LDP’s mismanagement of the country.
With an ageing population and a national debt exceeding 200% of the country’s GDP, many doubt whether the pension system is going to be able to support them when they retire. The LDP’s credibility received a big blow when it became apparent the government lost a large amount of records. These records link who paid what amount into the pension scheme. This could potentially result in people not having access to the full amount of their retirement benefits.
The big industrial firms have always had a close relationship with the government. Government bureaucrats made sure fiscal policy funds were channelled to these enterprises while in return they would receive well paid, cushy positions in these firms when they retired. With an ailing economy, this system has been widely criticised. Why would bureaucrats receive such cushy positions when failing to increase the living standards for Japanese families?
With many DPJ party members failing to agree on a consensus on major policy issues, the question is whether a DPJ government will bring any real change?