24 June 2004, 09:42  Japan's Takenaka makes election debut, vows reform

Japanese Economics and Financial Services Minister Heizo Takenaka debuted on Thursday as a ruling party candidate for upcoming national polls and vowed to press on with reforms no matter how much he was criticised for it. Takenaka, a champion of hardline financial reforms who has never before stood in an election, has been slammed by many in the ruling Liberal Democratic Party (LDP) for his harsh policies. But with Japan's economy growing at its fastest pace in a decade, the party is now eager to cash in on his image in the July 11 Upper House election. "Reforms will go on, no matter how much bashing there is," Takenaka told voters in Shibuya, a trendy youth mecca. "Over the last three years there has been nothing but criticism, but I have done the right thing," he added. During the first two years of Koizumi's administration, there was hardly a day when television news programmes or tabloid newspapers did not carry scathing criticism by hardline LDP politicians or economic commentators complaining about Takenaka's reluctance to increase government spending to shore up growth.
Now, with Japan gaining confidence about an economic recovery after more than a decade of on-and-off recession and the banking sector looking much healthier than two years ago, when Takenaka also became the financial services minister, he has become a marketable commodity. Any boost from the boyish-faced Takenaka, 53, would be welcomed by the LDP, particularly after a survey published on Tuesday showed that support for Prime Minister Junichiro Koizumi had fallen sharply. On Thursday, Takenaka took a swipe at the LDP hardliners who slammed many of his reform policies, saying they had joined with the "irresponsible" opposition forces to criticise him over the last three years. "Even so, Koizumi did not abandon reform. And look what's happened -- the bad loans that have burdened Japan for the last decade have decreased decisively," he added. "The economy is recovering."
Analysts say having the former economics professor stand for election could prove a double-edged sword. A strong performance by Takenaka could bring other reformers to the foreground, but a poor showing might give LDP hardliners a reason to have him removed from the cabinet in a reshuffle widely expected to take place in September. "If Takenaka successfully increases the total number of LDP votes and successful candidates, those successful candidates will be rather old-type candidates," said Rei Shiratori, president of the Institute for Political Studies in Japan. "So if Takenaka increases the LDP votes and seats, he will face more enemies inside the LDP." Takenaka, who was drawn from academia by Koizumi to lead his reform agenda, said several times in the past that he had no intention of entering politics, but finally agreed last week when the party apparently wore down his resistance -- a reluctance bolstered partly by personal reasons. "The LDP has drafted Takenaka through Koizumi's efforts and despite opposition from Takenaka's wife," said Ichiro Maeda, a political commentator.///

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