Japan’s Lower House election creates growth momentum

(VOVWORLD) - The coalition of Prime Minister Shinzo Abe’s Liberal Democratic Party and its junior partner Komeito scored a major victory in the Lower House election last Sunday. The victory made Prime Minister Abe the longest-tenured Japanese leader and paved the way for his economic stimulus policies and constitutional revisions to strengthen Japan’s military against a growing threat from North Korea.
Japan’s Lower House election creates growth momentum  - ảnh 1LDP leaders, Prime Minister Abe, and President of LDP Policy Research Institute Fumio Kishida (Photo: THX/TTXVN)

Winning two thirds of the Lower House gives Mr. Abe the political muscle to advance his monetary policies to stimulate Japan’s economy, revise a pacifist Constitution that dates back to World War II, and clarify the powers of Japan’s Self-Defense Force.

Creating conditions for economic growth

When Prime Minister Abe resumed power in December, 2012, Japan was facing numerous problems including a slowing economy and growing inflation. His top priority then was implementing his economic reform plan called Abenomics which increased government spending and loosened currency to stimulate growth.

During Mr. Abe’s term of office, Japan’s economy has turned around. The unemployment rate fell sharply to 3% and exports grew due to the devaluation of the Japanese yen. Indexes on the Japanese securities market have hit record highs in recent years. Despite much controversy, Abenomics has proved effective. Analysts say Abe’s victory promises continued economic growth and stability and reflects public support for Abenomics. Many Japanese enterprises hailed the victory of Abe’s coalition as a sign of political stability. They want the new coalition government to deal with Japan’s labor shortage, boost productivity, and complete current economic restructuring.

Stability, national security maintained

Revising Article 9 of the Constitution to increase the role of the Japanese Self-Defense Force and the government’s capacity to deal with a possible conflict with North Korea was key to Mr. Abe’s victory. His North Korea policy has received support of Japanese voters.

Since World War II, the US army has been responsible for ensuring Japan’s security and national defense. Japan has had only a small military force for self-defense. Under Abe, the Japanese Self-Defense Force has taken an increasing role. But if the Prime Minister wants to turn the Self-Defense Force into an army by changing Japan’s 70-year old pacifist Constitution, he must be careful that he doesn’t increase Japan’s involvement in wars. Recently, Mr. Abe postponed his Constitutional revision until 2020 saying that any changes will first require public debate.

The new term of the Lower House will extend until 2021.

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