The Last in the Line?

Such moves risk alienating young urban voters who are demanding less old-boy networking and the modernization of the country's sclerotic political establishment. They also risk undermining the revival ignited by Koizumi-era reforms, and at a precarious moment. Public debt has continued to grow, and tax revenues—which remained buoyant under Abe—are beginning to drop, a serious problem with social spending rising as the country ages. One sharp shock—such as a drop in demand from the United States caused by a recession there—could undercut Japan's recovery and send it into a tailspin. And that would make the end of LDP rule even more likely.

© 2007