Reformist former Prime Minister Junichiro Koizumi must be wondering whether to be glad or sorry. On the one hand, his vow to 'smash' his own party, the Liberal Democratic Party LDP, looks as if it could be accomplished in the lower house election, set to take place in 40 days. On the other hand, his economic policies, which favoured Japan's largest and most international exporting companies, could be slowed or reversed.
That's not a bad thing. The widening wealth gap and decreasing portion of GDP going to the labour force in Japan has crimped consumption and made the country more dependent on exports. These have fallen 50% in the first half of this year,...
¬ Haymarket Media Limited. All rights reserved.
