TOPICS Abe Administration Launched – Facing the Challenge of Mending Ties With China and S. Korea – by Okabe Hiroshi

IBERAL Democratic Party President Abe top leaders of the two countries in his second finances. To cope with these problems, the L Shinzo was elected ’s 57th prime week of office. new prime minister has come up with a fresh minister on September 26. At 52, Abe The Koizumi administration, which set sail slogan, “No fiscal reconstruction without eco- became the country’s youngest prime minis- in April 2001 amid the worsening banking cri- nomic growth.” To manage the Japanese ter after World War II. He is also the first sis and deflationary pressure, worked on the economy under that slogan, the Abe adminis- prime minister born after the war. Abe says privatization of postal services and the reduc- tration is to pursue a growth strategy aimed he “will accelerate and reinforce” the struc- tion of public works spending under the slo- at helping Japanese corporations to foster tural reform promoted by the government of gan, “No economic growth without reforms.” vitality and thus boosting the nation’s eco- his predecessor, Koizumi Junichiro. At the Five years and a half have passed since then. nomic competitiveness. same time, he says one of his Cabinet’s top The Japanese economy has overcome the In the ruling coalition, voices are gaining priorities is education reform. On the foreign tough issue of banks’ swollen nonperforming momentum for a hike in the consumption tax policy front, Abe, who sees the Japan-US loans and is headed for its longest uninter- rate from the present 5% in order to finance alliance as the basis of Japan’s diplomatic rupted postwar expansion in November. But increasing social security costs amid the and national security policies, has moved to Japan suffers from such “chronic illnesses” graying population and to avoid a collapse of mend soured ties with China and South as a declining birthrate and the graying of state finances. But the Abe administration Korea, visiting Beijing and Seoul for talks with society, and worsening debt-ridden state intends to put priority on rebuilding the state finances by cutting fiscal expenditure before Photo: Kyodo News discussing tax hikes. The new administration plans to assist unemployed people and man- agers of failed firms in order to honor Abe’s pledge to create a society where struggling people can have “second chances” of employment and business management. The move reflects the Abe administration’s atten- tion to criticisms that income disparities are widening in Japan due to the Koizumi admin- istration’s structural reforms. On the foreign policy front, the biggest issue is to improve Japan’s relations with China and South Korea that have deteriorated due chiefly to a dispute over Koizumi’s repeated visits to the war-linked Yasukuni shrine in Tokyo, where Class-A war criminals are honored along with the war dead. Abe had indicated he was willing to meet with the top government leaders of China and South Korea, saying, “Japan’s door is always open. Precisely because there are conflicts of inter- est between the countries, it is important for the top leaders to have heart-to-heart talks.” Meanwhile, Abe appointed five special advisers to the prime minister on the key themes of national security, economic and fiscal policies, North Korea’s abduction issue, education reform and public relations activi- ties, beefing up the premier’s office to imple- ment policy management like Washington’s Prime Minister Abe Shinzo (center) and his Cabinet White House.

JAPAN SPOTLIGHT • November / December 2006 3 TOPICS 1st Heir in 41 Years to – Debate over Revising Imperial House Law Shelved –

RINCESS Kiko, the wife of Prince for as long as 41 years generated con- throne from the viewpoint of gender P Akishino, gave birth to a baby boy on cerns about the continuity of Japan’s equality. Thorough and calm discus- September 6, the first heir born to the Imperial line, thereby prompting the gov- sions may be necessary to make a final Chrysanthemum Throne in 41 years. ernment to set up a panel in 2005 to dis- decision on the matter.

The boy, named Prince Hisahito, is the cuss revising the Imperial House Law. Photo: Kyodo News ’s first grandson. stands third in The panel has since recommended line to the throne after changing the law to make the emperor’s and Prince Akishino. The birth first child succeed the throne irrespective of the baby boy has led to the shelving of of its sex, a move allowing females to debate over revising the Imperial House ascend the throne. Law to allow females and their descen- Now that the continuation of Japan’s dants to ascend the throne. Article 1 of Imperial line has been secured for now, the 1947 law says Imperial successors the government is set to put on hold the are limited to males who have discussions about the legal amendment. on their father’s side. Based on the law, The number of Imperial Family members, the Imperial throne has been taken over however, is destined to decrease in the by “Y chromosomes” for as long as years ahead, because Princess Aiko, 2,000 years – a unique feature of Crown Prince Naruhito’s daughter and Japanese culture that is different from only child, and other female family mem- the royal succession system in Europe. bers will have to relinquish their royal The falling birthrate has become a title following their marriages in accor- serious issue not only for the Japanese dance with the Imperial House Law. public but for the Imperial Family as well. Some Japanese people maintain that Princess Kiko holding the new-born Prince The fact that no baby boy had been born females should be allowed to ascend the Hisahito Tokyo to Bid for 2016 Olympics – Plans to Stage “Compact Olympics” –

HE Japanese Olympic Committee The 1964 Tokyo Olympics, the first ing slated for October 2009 in T (JOC) has nominated Tokyo as such Games held in Asia, paved the way Copenhagen. The United States is widely Japan’s candidate to host the 2016 for the Japanese economy to follow its viewed as Tokyo’s most prominent rival Summer Olympic Games. The Tokyo high-flying growth. Tokyo because no Summer Olympics have taken metropolitan government underlined the Ishihara Shintaro says he wants to “put place since the 1996 Atlanta Games. city’s functions featuring a high degree of together the wisdom and expertise of a Three US cities are vying to host the 2016 urban accumulation that makes it possi- number of people” in order to win the event – San Francisco, Los Angeles and ble to stage “the most compact Olympics selection process by the International Chicago. In addition, Brazil’s Rio de in the world.” Specifically, it said 26 of Olympic Committee (IOC) and host the Janeiro strongly hopes to become the first the 28 sports competitions can be staged Games for the first time in 52 years. city in South America to host the Games. at venues to be located within a radius of Tokyo faces a test of its ability to come A fierce global competition is expected in 10 km. Tokyo’s big name and large bud- up with ideas that can be highly rated the final selection process. get, combined with the JOC’s wish to internationally. pick an internationally competitive city, The IOC is set to choose the host city Okabe Hiroshi is a business news editor led to the selection of Tokyo. for the 2016 Olympics at a general meet- at Kyodo News.

4 JAPAN SPOTLIGHT • November / December 2006