"Japan is likely to experience a landslide within its party landscape
after the election. But even if Koizumi's kamikaze attack works, he
doesn't have much time left. His term in office as head of the LDP --
and as prime minister -- ends in September 2006."

DER SPIEGEL 33/2005 - August 15, 2005
URL: http://www.spiegel.de/international/spiegel/0,1518,370248,00.html

Japan
 
The Hour of Revenge

By Wieland Wagner

First he was fêted as a rock star, but now he's despised by his own
party. By holding new elections, Japanese Prime Minister Junichiro
Koizumi hopes to get rid of opponents to reform within his party and,
in doing so, finally lead the world's second-largest industrialized
nation out of its economic malaise. The coup could signal the end of a
political era.


Is the sun going down on Koizumi's premiership?

In tough situations, Japanese Prime Minister Junichiro Koizumi likes
to think about the kamikaze pilots who were brave enough to give their
lives by crashing into enemy targets in World War II. Before taking
office more than four years ago, he told the parliament that in those
moments he tells himself: "Put yourself in the position of those
pilots." Since last week, the Japanese have been experiencing what
Koizumi meant by that.

First the wavy-haired prime minister shocked the nation when he
dissolved the lower house of parliament and called for new elections
on Sept. 11. Members of parliament from his own Liberal Democratic
Party (LDP) were the ones who brought down his postal service
privatization reforms in the upper house.

Koizumi has launched a purge against dissidents in his party --
essentially a coup from above. And it gets even more dramatic: Just as
it celebrates its 50th anniversary, Koizumi has split the LDP, almost
constantly the ruling party since 1955, dragging the world's
second-largest industrialized nation into deep political uncertainty.

The rest of the world is looking to East Asia with concern, since it
needs Japan to offer leadership in the region right now. In the most
recent six-nation talks in Beijing, North Korean dictator Kim Jong Il
once again refused to abandon his nuclear program. Tokyo's ties to its
increasingly powerful rival, China, are at an all-time low, since the
two countries normalized relations 33 years ago. But the most
dangerous conflict of all is lurking off Japan's coasts, where the
country and its neighbors are quarreling over islands and bodies of
water presumed to hold oil and natural gas reserves.

Politically confusing times would also be fatal for the economy.
Despite signs of a recovery and a drop in unemployment to 4.2 percent,
the Japanese are cutting back on consumer spending. Asia's former No.
1 nation is desperately trying to pull itself out of a deflationary
spiral.

Settling scores

But since last week, Tokyo has been primarily concerned with itself,
and life in the government section of town is as turbulent as in a
kabuki theater. Despite all the commotion, it was a minor issue that
triggered the Koizumi revolt. Granted, LDP rebels had brought down the
prime minister's central project, the postal service reform. But
instead of working out a compromise, Koizumi took the opportunity to
embark on a campaign of revenge against his opponents within the party.

In the wake of his decision, which the Japanese newspaper Gendai
called nothing short of a "suicide bombing," the prime minister
suddenly seems liberated from all the troublesome details of running
the government. He's a little similar to his German counterpart,
Gerhard Schröder, in this respect. But unlike the German chancellor,
Koizumi doesn't have to point out the dangers posed by dissidents
within his own ranks. Hated by many in the LDP, the reformist
politician saved his skin by essentially campaigning against large
sections of the party. Now the LDP is paying the price for having
elected an outsider to the position of prime minister in spring 2001.
But the party was struggling in the opinion polls at the time, and
desperately needed a savior. The approach worked. Japan's 27th
post-war prime minister, with his bold promises of reform, presented
himself as a self-confident leader to the Japanese.

Unlike his rather bland predecessors, "Jun-chan" vowed to lift the
country out of the deep crisis it had slid into when its economic
bubble burst in the early 1990s. The system of "Japan Inc." -- an odd
mixture of socialism and market economy, complete with lifetime job
guarantees and automatic promotions -- had long since become outdated
as a result of globalization.

The Japanese celebrated Koizumi like a rock star, buying key ring
pendants embossed with his likeness and listening to a CD of Elvis
Presley hits that the prime minister had compiled himself. But in
voting for his LDP, voters also kept the opponents of reform in
office, and they put the brakes on unchecked reforms, even showing
little concern when the party leader threatened to destroy the LDP
after they continued to oppose his reform platform.

Shaking up Japanese politics

Nevertheless, populist Koizumi struck a completely new, raw tone in
Japanese politics. Instead of appointing cabinet ministers on the
basis of consensus or following the suggestions of powerful party
bosses, he brought outsiders into his government. Instead of playing
golf with fellow party members, he spent his weekends listening to
Wagner operas at home or watching Westerns. One of the prime
minister's few confidantes was his older sister Nobuko, who was also
his secretary.

The outsider cold-bloodedly began forcing the country to abandon its
sluggish group mentality. In return, his enemies multiplied within his
consensus-loving party -- a pragmatic alliance of associations and
professional groups, in which LDP bosses distribute tax money to their
respective clientele and, in return, collect contributions (and, in
some cases, bribes.)

In reforming the postal service, Koizumi also planned to dry up his
LDP opponents' sources of funding, and that's what led to the rupture
within the party. The Japanese postal service, which holds deposits of
savings and assets worth roughly US$3 trillion, is the world's largest
banking and insurance organization. In addition, the country's roughly
400,000 postal workers serve as an important support contingent for
the LDP. Koizumi argues that the government's withdrawal from the
postal service is a condition of further reforms: a new pension system
for the aging Japanese nation as well as a restructuring of its
national debt.

At more than US$6 trillion, Japan's national debt is higher on a per
capita basis than that of any other leading industrialized country.

But the prime minister and his party had long since given up fighting
over Japan's future. Instead, LDP conspirators met in geisha bars near
government offices to plot ways to repay "dictator" Koizumi for the
humiliation they had suffered. The prime minister, for his part, was
just waiting for the right opportunity to mow down his adversaries.
But dissolving the lower house of parliament? "Not even Hitler would
have come up with that idea," complains Shizuka Kamei, one of
Koizumi's rivals.

37 LDP dissenters had already voted against the postal reform in the
lower house. To repay them for their disloyalty, Koizumi has now
deleted all reform opponents from the list of official LDP candidates
in the current election campaign, claiming that the step was necessary
to "destroy the old LDP."

Suddenly Japanese politics are exciting again. Experts on TV talk
shows have been weighing the various possible election scenarios: Will
Koizumi's purged "new" LDP finally be forced to step down, or will the
prime minister's coup force the nation to take his side?

Koizumi has already won the first round in this political drama.
According to opinion polls, his approval rating has shot up to almost
50 percent. But this still doesn't mean that the Japanese will also
vote for the other members of his "new" LDP. The ruthlessness with
which he is now dispatching so-called killer candidates into the
election districts of former party friends could act like a boomerang.

The opposition Democratic Party (DP) could ultimate benefit from the
LDP's self-destruction. But when it comes to important reform issues,
the DP's members are almost as much at odds with one another as the
Liberal Democrats.

Ultimately, Japan is likely to experience a landslide within its party
landscape after the election. But even if Koizumi's kamikaze attack
works, he doesn't have much time left. His term in office as head of
the LDP -- and as prime minister -- ends in September 2006.

But he is banking on the idea that the Japanese will see few
alternatives to Koizumi. Indeed, he has been telling his fellow
Japanese that if he loses the election, "then I will resign." The
lonely prime minister thinks this is a potent threat.





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