Koizumi begins Japan's political shake-up

In this story: Political revolution Reformist platform RELATED SITES

By staff and wire reports

TOKYO, Japan -- Prime minister-in-waiting Junichiro Koizumi has started his hotly anticipated shake-up of Japan's ruling Liberal Democratic Party.

A day before he is due to be sworn in as Japan's 11th prime minister in 13 years, Koizumi began Wednesday to replace the old guard of LDP lawmakers with allies more likely to help him make good on promises for reform.

Local media reports say Koizumi, who executed a shock win in LDP leadership elections on Tuesday to replace hugely unpopular Prime Minister Yoshiro Mori, was expected to name former Defense Minister Taku Yamasaki as his second-in-command in the LDP.

VIDEO CNN's Marina Kamimura talks about change that could occur with Koizumi as prime minister Play video (QuickTime, Real or Windows Media)   AUDIO Junichiro Koizumi at his first press conference as President of Japan's governing party. 2.99Mb/4:44 min. AIFF or WAV sound CNN's Marina Kamimura discusses the change in leadership of Japan's Liberal Democratic Party 1.14Mb/1:41 min. AIFF or WAV sound   ALSO New leader Koizumi courts controversy Koizumi has uphill battle for reform Business welcomes change to Koizumi TIMEasia.com: -- 'People Believe I Can Change Japan'     MESSAGE BOARD Japan

Taro Aso, who ran against Koizumi in the leadership election but came a distant third, was heavily tipped to be asked to serve as party policy chief, while and Mitsuo Horiuchi, a party powerbroker, is likely to head the party's General Council.

Koizumi was to meet with the three and formally announce his decision later Wednesday. Before that meeting, however, he stressed that in keeping with a campaign promise he would not make the choices based on the balance of factional power within the party.

"I have not gone along factional lines, and I think the people will see this," Koizumi said.

Political revolution

Koizumi has not yet outlined his policies on the economy, foreign policy or national security, but Merrill Lynch economist Jesper Koll in Tokyo said such issues were not a priority.

"This is not about economics, this is about a change of leadership, a change of generational styles in the LDP," Koll told CNN.

"The key factor is for Koizumi to win the upper house election in 99 days. Before then he's not going to issue some supplementary budget or anything old-fashioned like that. The focus is on the politics and the first thing Koizumi has done is replace the top three positions in the LDP, which is a fantastic thing."

None of the three choices are members of the LDP's largest faction, which is headed by former Prime Minister Ryutaro Hashimoto. Hashimoto was favorite to have succeeded Mori up until the weekend, when Koizumi won several regional primaries in the leadership vote.

"I don't think people understand what is going on here. This is much, much more far-reaching; this is the beginning of something very, very important for Japan. There's a massive generational change going on, a political revolution," says Koll.

He highlighted Koizumi's declaration that he was willing to accept a temporary recession as the cost of implementing pro-market reforms.

Koizumi told Tuesday's press conference: "If we do the reforms that are needed [to make Japan competitive], and the economy contracts, we just have to accept that."

Koizumi has vowed to ignore factional politics and backroom dealing -- often a feature in previous governments -- and rely instead on merit alone to choose his new cabinet.

A key test of that attitude will be in deciding whether Koizumi decides to give a cabinet position to Shizuka Kamei, who dropped out of the LDP leadership race and threw his support behind Koizumi.

Some observers believe Kamei may have opted to back Koizumi in order to gain a seat in the new cabinet.

Reformist platform

Yamasaki, meanwhile, emphasized the importance of supporting Koizumi's reformist platform, which along with weakening the factionalism within the party includes a sweeping reform of Japan's huge postal savings system.

"Koizumi is a reformer, and we must support his reforms," Yamasaki said.

Koizumi stunned Japan's political elite by taking the Liberal Democratic Party leadership election on Tuesday, a job that guarantees he will replace Mori, who is stepping down amid plunging support ratings.

Koizumi will name his cabinet after being formally elected Japan's prime minister on Thursday.

The 59-year-old, mop-haired politician swept to power in the LDP on a wave of support for his reformist rhetoric.

His election comes at a crucial time for Japan, which suffered a decade-long economic decline on the back of factors including falling stock prices, bad bank debts and a long-term slump in consumer demand.

Part of Koizumi's agenda is to reduce bank bad debts and privatize the postal system, although he is yet to fully outline his economic revival plans.

Koizumi's ascension heralds a jarring change in direction for the LDP, which rules through a coalition with two other junior parties and faces a crucial set of parliamentary elections this summer.

The Associated Press & Reuters contributed to this report.

Japan hopes new leader can deliver
April 24, 2001
Japan's PM race goes down to the wire
April 23, 2001
Maverick Koizumi leading race for Japan PM
April 21, 2001

Liberal Democratic Party of Japan
Japanese Prime Minister

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.