Prime Minister Junichiro Koizumi's economic policy is coming under increasing criticism from the opposition parties. They have mainly condemned him for failing to produce either reform or growth, and have pointed out that his battle against deflation is reaching deadlock. That criticism -- which is not far off the mark -- escalated during the plenary debates held this week in both chambers of the Diet following the prime minister's policy speech last Friday.
As expected, Mr. Koizumi found himself largely on the defensive. While stressing that his commitment to reform "remains unshaken," his answers to questions mostly followed the lines of his lackluster policy speech. As opposition leaders pointed out, he has yet to provide workable prescriptions for the ailing economy. There is a pervasive sense of paralysis, and not only in the political world.
Recent economic statistics paint a gloomy picture. The unemployment rate, for example, averaged a record 5.4 percent in 2002. In the same year, monthly wages dropped by an average 2.3 percent from the year before. It was the deepest year-on-year decline since the government began taking relevant surveys.