In a pivotal moment for Japan’s political landscape, veteran lawmaker Sanae Takaichi announced her candidacy for the ruling Liberal Democratic Party’s (LDP) leadership election on October 4, 2024. Takaichi, a fiscal conservative and vocal opponent of the Bank of Japan’s (BOJ) interest rate hikes, aims to become Japan’s first female prime minister. She is set to outline her policies in a press conference on Friday, emphasizing increased government spending to revitalize the nation’s fragile economy.
Takaichi’s announcement comes as outgoing Prime Minister Shigeru Ishiba steps down following a series of electoral defeats during his brief tenure. The leadership race has drawn a diverse field of candidates, including Agriculture, Forestry, and Fisheries Minister Shinjiro Koizumi, who leads recent polls with 23.8% support. Takaichi follows closely at 21.0%, while Chief Cabinet Secretary Yoshimasa Hayashi and former foreign minister Toshimitsu Motegi trail at 5.9% each.
Hayashi, in his policy announcement, pledged to continue Ishiba’s initiatives, particularly efforts to boost wages in smaller companies to alleviate the burden of rising living costs. However, he distanced himself from the ‘Abenomics’ policies of the late Shinzo Abe, arguing that the economy has moved beyond the need for such aggressive stimulus measures. Meanwhile, Motegi expressed his intention to negotiate further tariff reductions with the United States, contingent on favorable circumstances.
The election outcome will shape Japan’s economic and fiscal policies at a critical juncture, as the nation grapples with an aging population, inflationary pressures, and global economic uncertainties. With Takaichi and Koizumi emerging as frontrunners, the race underscores a potential shift in Japan’s political and economic direction.