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Writer's pictureAdam German

Liberal Democratic Party leadership crisis ahead of Japan elections

The Liberal Democratic Party (LDP) has dominated Japanese politics since post-World War II, but its grip on power faces a critical test in the upcoming elections for both the Upper and Lower Houses.  

 

Plagued by scandals, the LDP’s current prime minister Fumio Kishida has opted not to run for re-election, hoping to divert public anger toward himself and shield the party from backlash. 

 

This strategy, historically used by the LDP, aims to present new leadership as a clean slate to maintain voter support.  


Kotaro Tamura, adjunct professor at the Lee Kuan Yew School of Public Policy, shared his thoughts on CNBC’s Squawk Box, highlighting the type of candidate the LDP needs to regain public confidence. 

 

The relevance to Japan’s real estate sector is large as the industry is taxed and regulated by whomever is in power. 

 

At present, LDP candidates across the nation are, according to some commentator's opinions, willing to make promises that possibly cannot be kept in order to win voters. 

 

Keeping track of the front runners is in every property owner’s best interest. 

 


 

Kotaro Tamura Key Takeaways:


  • The upcoming LDP leadership election is critical due to the proximity of Japan's general election, influencing politicians' motivations for survival in the lower house. 


  • Tamura believes the LDP needs a campaign leader who is either young and fresh or an experienced woman, with Shinjiro Koizumi and Takaichi Sanae emerging as potential candidates. 


  • This election is described by Tamura as a "super emergency" for the LDP, signaling the party's need for a strong and appealing candidate. 


  • There is uncertainty about the LDP retaining its majority, even with a coalition with the New Komeito Party, which might require forming new political coalitions with other opposition parties. 


  • Tamura says restoring public confidence is essential following recent corruption scandals, with the LDP needing to take dramatic action to regain integrity.


  • Failure to address corruption scandals could lead to losing majorities in both the lower and upper houses, which could have destructive consequences for the LDP in future elections. 


 

Who is Kotaro Tamura? 


Kotaro Tamura in 2015

Kotaro Tamura in 2015, courtesy of Wikipedia. 


Kotaro Tamura is a graduate of Waseda University, holding advanced degrees in business, law, and economics from Keio University, Duke University, Yale, Oxford, and the University of Tokyo.  


His career began in M&A at Yamaichi Securities, followed by leadership roles in journalism as president of Osaka Daily News. In 2002, he was elected to Japan's House of Councilors, where he served until 2010 and held key positions under Prime Minister Shinzo Abe, including Parliamentary Secretary for Economy and Finance. 


Tamura later became a fellow at Yale and a researcher at Harvard, while also joining the RAND Corporation, a leading global think tank.  


In 2012, he became the first Japanese politician featured in a Harvard Business School case study. 


Tamura has been involved in venture capital investments worldwide, focusing on tech, climate, and education. He is currently an adjunct professor at the Lee Kuan Yew School of Public Policy, a CNBC commentator, and an advisor to multiple international organizations.  


Additionally, he is the bestselling author of "Don't Fight Idiots When You're Mad" with over 800,000 copies sold. 

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