Most Westerners have not understood the tight grip that the alliance of business and politics has exercised in Japan.
This change in political control in Japan, for the first time in 54 years, has potentially significant implications for the US dollar as a reserve currency.
Change will be slow and deliberate. The new ruling party will not wish to upset the balance of things. But change will occur, and what has been will not, and will no longer be.
Associated Press
Japanese election upends long-ruling party
By Eric Talmadge
Associated Press Writer
August 30, 2009
TOKYO – Japan's ruling party conceded a crushing defeat Sunday after 54 years of nearly unbroken rule as voters were poised to hand the opposition a landslide victory in nationwide elections, driven by economic anxiety and a powerful desire for change.
The left-of-center Democratic Party of Japan was set to win 300 or more of the 480 seats in the lower house of parliament, ousting the Liberal Democrats, who have governed Japan for all but 11 months since 1955, according to exit polls by all major Japanese TV networks.
"These results are very severe," Prime Minister Taro Aso said in a news conference at party headquarters, conceding his party was headed for a big loss. "There has been a deep dissatisfaction with our party."
Aso said he would have to accept responsibility for the results, suggesting that he would resign as party president. Other LDP leaders also said they would step down, though official results were not to be released until early Monday morning.
The loss by the Liberal Democrats — traditionally a pro-business, conservative party — would open the way for the Democratic Party, headed by Yukio Hatoyama, to replace Aso and establish a new Cabinet, possibly within the next few weeks.
The vote was seen as a barometer of frustrations over Japan's worst economic slump since World War II and a loss of confidence in the ruling Liberal Democrats' ability to tackle tough problems such as the rising national debt and rapidly aging population.
The Democrats have embraced a more populist platform, promising handouts for families with children and farmers, a higher minimum wage, and to rebuild the economy.
"The nation is very angry with the ruling party, and we are grateful for their deep support," Hatoyama said after the polls closed. "We will not be arrogant and we will listen to the people."
The Democrats have also said they will seek a more independent relationship with Washington, while forging closer ties with Japan's Asian neighbors, including China. But Hatoyama, who holds a doctorate in engineering from Stanford University, insists he will not seek dramatic change in Japan's foreign policy, saying the U.S.-Japan alliance would "continue to be the cornerstone of Japanese diplomatic policy."
National broadcaster NHK, using projections based on exit polls of roughly 400,000 voters, said the Democratic Party was set to win 300 seats and the Liberal Democrats only about 100 — a third of its strength before the vote.
