Shinzo Abe, the new president of the Liberal Democratic Party, needs to have a correct understanding of Japan's position today. That is the first thing I expect of the next prime minister.</PARAGRAPH> <PHOTO> <TABLE WIDTH='250' ALIGN='RIGHT' BORDER='0'> <TR> <TD><IMG ALT='News photo' BORDER='0' SRC='../images/photos2006/nn20060921f1a.jpg' WIDTH='250' HEIGHT='381'/></TD> </TR> <TR> <TD><FONT SIZE='1'><B>Yasuhiro Nakasone </B> SATOKO KAWASAKI PHOTO</FONT></TD> </TR> <TABLE> </PHOTO> <PARAGRAPH>Japan stands at the junction of a vertical axis, characterized by developments in its domestic politics from the end of World War II to the present day, and a horizontal axis, marked by changes in the international environment, particularly in Asia. Japan's next leader must present a broad vision, underscored by realistic policies, that puts the nation's past, present and future into perspective.</PARAGRAPH> <PARAGRAPH>In the 'lost decade' of the 1990s, the economy stagnated, collapsed, crime increased, the LDP disintegrated and the government changed frequently. For the past five years, Prime Minister Junichiro Koizumi maintained a stable and vigorous administration, eliminating the image of Japan as a 'nation adrift.'</PARAGRAPH> <PARAGRAPH>Koizumi took office pledging to 'smash' the LDP, which was showing increasing signs of fatigue. He succeeded somewhat in destroying vested interests but did almost nothing to build a new nation. In other words, he largely failed to develop a new vision of Japan and chart a new course for it to follow. The challenge for the incoming Abe administration is to pick up where Koizumi left off: tackle the work of reconstruction.</PARAGRAPH> <PARAGRAPH>The Koizumi administration devoted a great deal of energy to specific projects such as the privatization of the postal service and highway corporations. In the process it neglected to address the central challenge of governance: re-establishing Japan's identity by overcoming the 'aftereffects' of the postwar Occupation. The nation's leader must explain to the people in clear-cut language what kind of country Japan should become in the 21st century.</PARAGRAPH> <PARAGRAPH>Specifically, that challenge may be summarized as follows:</PARAGRAPH> <PARAGRAPH> –

Revision of the Constitution and establishment of a national voting system for that purpose, and revision of the Fundamental Law of Education.

(2) Formulation of fiscal reform guidelines that leave the door open to tax increases, including a rise in the consumption tax.

(3) Reorientation of foreign policy toward Asian neighbors, which is in a state of paralysis.

Beyond that, Japan needs to transform itself from an economy-centered nation to one that places greater emphasis on education and culture.