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A Year of Change for Japan

December 30, 2009

The year 2009 has been unusually eventful in Japan. The government had to work hard to fight the recession. And in the second half of the year, general elections took place, with the opposition party receiving the majority and causing a historic change in government. All the while, Japan has been more vulnerable to the actions of its neighbours, especially North Korea, which tested missiles and a nuclear device.

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Yukio Hatoyama in his first press conference as Japan's prime minister
Yukio Hatoyama in his first press conference as Japan's prime ministerImage: AP

Japan was hit especially hard by the global financial crisis due to plummeting demand for electronics and cars. In 2009, the economy shrank, production receded and unemployment rates rose. While the government is now aiming at annual growth rates of two percent, the beginning of this year looked bleak. The country has been going through its most difficult recession since the Second World War and is counting on innovation and the government's economic stimulus package to come out of it.

No wonder that the economic crisis was also a major issue in Japan's parliamentary elections. Axel Klein, a researcher at the German Institute for Japanese Studies in Tokyo, explained the differences between the positions of the two major parties:

"The Liberal Democrats want to make sure that the economy gets better. That will make the pie bigger, so that everyone gets a piece. But the Democrats have a slightly different approach. They say we have to increase domestic demand first by giving people more money and encouraging consumerism. That will help the economy."

Japan's historic elections

The historic elections took place on August 30th and before that, incumbent Prime Minister, Taro Aso tried his best to keep his party, the Liberal Democrats, or the LDP, in power, "History has always seen the LDP go into a campaign under the flag of a leader. I will be that leader and do everything to unite us in our struggle. I am sure that you expect me to work very hard for my victory."

But Aso failed to convince the Japanese voters, and after 50 years of almost incessant rule, his party, the Liberal Democrats, handed over the reigns to the opposition after elections on August 30th. Yukio Hatoyama, from the Democratic Party of Japan (DPJ), was sworn in as Japan's new Prime Minister on September 19th. And he announced an agenda of change:

"We have to turn Japan into a country in which the people take charge. History hasn't changed yet. Change will depend on how we fulfill our duties. The time has come to get rid of the ministerial bureaucracy and set up a new system."

New foreign policy

The Democrats also promised changes in Japan's foreign policy, including a more independent stance vis-a-vis its most important ally, the United States. A case in point is the presence of US troops in Okinawa. Japan's wish to withdraw the troops was a major point of discussion during US President Obama's visit in November. Prime Minister Hatoyama said,

"The agreement between the USA and the former Japanese government must be taken seriously. But the decision of Okinawa's government and the will of the people there must also be taken very seriously. We must take all sides into consideration before we come to the right decision at the right time."

But Japan has not been too quick to change policy direction in all foreign affairs. Japan's new Foreign Minister, Katsuya Okada, is following in his predecessors' footsteps, for example when it comes to North Korea.

Author: Sarah Berning
Editor: Thomas Bärthlein