SINGAPORE -- Prime Minister Junichiro Koizumi's landslide election victory, which saw his ruling coalition gain control of more than two-thirds of the Lower House, could open a new era for Japan as the country faces the future with greater confidence and seeks to redefine its role in East Asia.
Although the new Diet session just opened, the effects of Koizumi's victory on regional economics and security are already beginning to emerge. Three concrete trends can be discerned, with significant economic, financial and political implications for both Japan and the region.
In domestic politics, Koizumi's electoral victory has established the supremacy of politicians over bureaucrats. The postal-services reform bill was in large part a tussle between the bureaucrats -- who have effectively ruled Japan in the postwar period -- and the politicians, who want greater control over the state budget. The decline of bureaucratic power and the reinstated rule of politicians could facilitate Japan's return to "normalcy."