Japan is at a historic turning point, both domestically and internationally. Symbolic of this are pension reform, highway system privatization and the troop dispatch to Iraq. But Prime Minister Junichiro Koizumi's "structural reform" initiative appears to have lost momentum since he took office in April 2001. Koizumi is no longer as popular as he once was. His pledge to "smash" the old guard of his Liberal Democratic Party now rings hollow.
At his New Year's press conference last Monday, Koizumi said his "no reform, no growth" policy is "getting under way." How many people now really take this statement at face value?
Koizumi relies on the old guard to keep his grip on power. In September's LDP presidential election and in November's general election, he shook hands with Mikio Aoki, a leading "antireformer." He also sought help from New Komeito, the coalition partner, in the general election.