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Koizumi Countering Challenge From Within
November 26, 2001

Summary

Japanese Prime Minister Junichiro Koizumi is facing organized opposition to
his economic reform program from within his own Liberal Democratic Party.
Last week 55 LDP lawmakers launched an organization to present their own
reform ideas to the government. But rather than see his position in the party
weakened, Koizumi may be using the challenge to consolidate his control over
the ruling party and its agenda.

Analysis

Fifty-five lawmakers from Japan's ruling Liberal Democratic Party launched an
organization Nov. 16 to challenge the economic reform programs of Junichiro
Koizumi, the country's prime minister and president of the LDP. The "Alliance
to Save Japan," which drew members from several factions of the ruling party,
will present its own proposal for the reform of public corporations to the
government at the end of the year.

The emergence of organized opposition from within his own party is presenting
both a challenge and an opportunity for Koizumi, who remains highly popular
in Japan. The prime minister is apparently willing to give ground on some
policy aspects to appease some of the counter-reform elements in the party.
At the same time, he is pressing forward with other plans that weaken the
power of LDP stalwarts, increase his control over the party and bolster his
credibility as a reformer.

Koizumi rose to power by portraying himself as a radical reformer, someone
willing to tackle Japan's economic malaise and entrenched party politics head
on. Following on the heels of the unpopular Yoshiro Mori and uncharismatic
Keizo Obuchi, Koizumi seemed all the more inspiring to a Japanese public
coming to grips with grim economic realities.




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