Prime Minister Junichiro Koizumi's postal privatization bills cleared the Lower House on July 5 by only five votes, demonstrating the strength of anti-Koizumi forces in the governing Liberal Democratic Party. The narrow margin reflected severe criticism of not only the legislation but also Koizumi's political style.

In the four years since Koizumi took office, the government's policymaking process has undergone a sea change. In the pre-Koizumi years, the LDP used to play a leading role in policymaking by requiring advance reviews of draft legislations.

The Koizumi administration established a new system in which the prime minister and his Cabinet take the initiative in policymaking. At the center is the Cabinet Office's advisory council on economic and fiscal affairs. This top-down, presidential-style system has created friction with LDP members, casting a shadow over post-Koizumi politics.