Japan's economic reforms

Shinzo Abe.
Shinzo Abe.
Japan Prime Minister Shinzo Abe appears to have strengthened his hold on power given the country's ruling coalition looked to be heading for a resounding victory in lower-house elections at the weekend.

Exit polls, a usually reliable predictor of the final results in past Japanese elections, indicated the ruling Liberal Democratic Party would easily retain its majority.

The Liberal Democrats, a conservative party, has been in power for most of the post-World War 2 era.

It may have fallen short of securing a two-thirds majority on its own, but will have done so with its coalition partner, the Buddhist-backed Komei Party.

A big victory will help Mr Abe pursue his agenda, including increasingly important economic reforms, restarting nuclear plants and revising Japan's constitution.

Many Japanese were bemused by the election, with most thinking it unnecessary.

Turnout was put at 52%, low by Japanese standards.

Some Japanese were angry at the waste of money spent on the snap election but Mr Abe, if nothing else, is a seasoned and experienced politician.

Calling the snap election after some high-profile resignations of cabinet ministers for various indiscretions ensured Mr Abe had a mandate to pursue some of his more controversial reforms.

He has been facing stiff resistance to his economic remodelling and the Lower House mandate gives the ruling party the ability to pass legislation even if it is voted down by the Upper House.

The snap election can also be seen as a cynical move to lock in four more years of power before his popularity slips, but that masks the state of the Japanese economy and the need for reform.

Japan is said to be the world's third-largest economy behind China and the United States.

Its farmers and businesses, particularly manufacturing industries, have been protected from outside competition.

The prime minister described the snap election as a referendum on Abenomics, reforms which are so distinctive they are named after him.

Mr Abe has a three-pronged strategy: cheap credit, public investment and structural reforms - including raising the number of women in the workforce and opening up the country's highly protected agricultural sector.

His economic policy hit difficulties when Japan slipped into recession in the three months ended September, amid weak consumer and corporate spending.

Analysts blamed that on April's rise in consumption - or sales - tax from 5% to 8%, which hurt consumer spending.

On the same day he announced the snap election, Mr Abe said he would delay until April 2017 a 2% rise in the same tax originally planned for next October.

Mr Abe must now use his mandate to silence critics in his own party who believe the tax rise should have gone ahead as scheduled so Japan can start addressing its huge public debt - now more than twice the size of the economy.

The world of agriculture and business has been banging on the barriers of trade with Japan for generations.

Although there has been some progress, not enough has been achieved in opening Japan to trading countries like Australia and New Zealand.

More access will help strengthen the economies of the transtasman neighbours.

There will be concern from a wider perspective about two of Mr Abe's plans - the restarting of nuclear reactors and his proposal to expand Japan's military global reach by lifting a post-war ban on collective self-defence.

Mr Abe says his priorities are economic recovery and Japan's proactive contribution to peace.

Creating laws to help protect the security of the Japanese people has much wider connotations than just contributing to peace.

Japan is already offside with neighbouring China and Korea for Mr Abe's visits to controversial shrines remembering fallen Japanese soldiers.

Japan and China both lay claim to islands in the Japan sea and Korea holds long animosity for atrocities committed during World War 2.

Japan does provide peacekeeping forces to world trouble spots, but the thought of Japan increasing its military presence to protect its citizens will be of major concern to some.

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