Description: Sanae Takaichi was confirmed as Japan’s new Prime Minister in a vote of the lower house of Parliament, solidifying a historic decision in Japanese state politics. Takaichi faced uncertainty when LDP’s closest coalition partner, Komeito, left the 26 – year old political alliance which plunged her bid for the premiership into immediate danger. LDP was quick to form a partnership of convenience with Japan’s Innovation party or Ishin which subsequently drew parliamentary voters on Takaichi side and made her nomination more likely. She is expected to tackle Japan’s economy and defense problems immediately, however, even despite forming a coalition with Ishin, Takaichi would have to broaden her coalition in order to pass legislation or other bills in Parliament, considering that the current coalition might rule from minority if they don’t secure another coalition partner. Her first major tests would be on the foreign policy fronts as she is expected to meet US President Donald Trump and participate in the APEC summit in South Korea next week.
Impact: Considering the turbulent political crisis in Japan, Sanae Takaichi, as the country’s new Prime Minister, would have to carefully navigate and balance domestic and foreign decisions in correlation with her pre – election pledges. In regard to the economy, her reformist spending initiatives would most probably be protracted, despite the positive reaction from the global markets, which expected sudden spending and rising investment rates. She would also have to combat the raising inflation, the high cost of living crisis and Japan’s aging population as a contributor to the struggling economy. In terms of foreign policy, she is expected to strengthen ties with the US and reassert Japan as the dominant force in its partnership with South Korea while also taking a tougher stance on China. Domestically she would have to maneuver the fine balance between her conservative allies and the resurgent far – right Sanseito while also appeasing far – left parties such as the Japan Communist Party. Takaichi becomes Japan’s Prime Minister under extremely difficult times of geopolitical duress where no sudden or significant changes would happen early as she is facing a multi – layered battle that ranges from domestic policies to macro – economic decisions and transforming global strategic alliances.