Japan Global Marketing Database

Politics

Japan's political structure is that of a constitutional monarchy, where the Emperor acts only as a symbol of the state. It has a parliamentary democratic government headed by a Prime Minister and his ministers of state. This Parliament (Diet) holds all the political power and consists of a 480-member House of Representatives and a 247-member House of Councillors.

There are three major political parties represented in Japan. They are the:

1) Liberal Democratic Party (LDP)

The LDP has been the ruling party in the Japanese government since 1955. It currently holds 83 seats in the upper house (House of Councillors) and 296 in the lower house (House of Representatives).

2) Democratic Party of Japan (DPJ)

The DPJ is the main opposition of the LDP. It holds 109 seats in the upper house and 114 seats in the lower house, making it the second biggest political party in Japan.

3) New Clean Government Party (Komeito)

The New Komeito is LDP's coalition partner. It is the third biggest political party with a total of 20 seats in the upper house and 31 seats in the lower house.

The other seats in the Parliament are held by other smaller parties like the Japan Communist Party (JCP) and the Social Democratic Party (SDP).


Political Stability

Japan is in the middle of a political transition from a one-party rule to a two-party democracy. While the LDP used to be the main ruling party in the Parliament, the DPJ is quickly rising in influence, especially after 2007, when the LDP lost control of the upper house and its Prime Minister resigned soon after. The DPJ now controls the upper house while the LDP controls the lower house. This transition might create instability within the government, especially since LDP and DPJ have been opposing each other for a long time.

An indication of the political instability within the Parliament would be ex-Prime Minister Yasuo Fukuda's, resignation from his post on the 1st of September, 2008, after only a year in the position. Among his reasons stated for his resignation was the obstructive tactics of the DPJ that made it hard for the LDP to introduce any major initiatives to improve the country and its economy.

24 September 2008 saw Taro Aso stepping up to take over Fukuda's position as the president of LDP and the Prime Minister of Japan. Amidst the domestic and foreign issues that are plaguing Japan, PM Aso has identified political stabilty as a crucial factor to achieve and has begun his efforts in doing so.