Prime Minister Junichiro Koizumi's structural reform initiative for a "small and efficient government" enters a crucial stage this year, since his term as president of the Liberal Democratic Party (and hence as prime minister) will expire in September.
In his New Year's press conference, Koizumi proudly declared: "Finally, Japan's economy is beginning to recover. The past four years have confirmed my belief that there is no growth without reform."
Although Koizumi has produced some tangible results, the goal remains distant. Will his successor follow his reform plan? The scenario could go awry in the face of renewed resistance from the LDP and bureaucrats.