Description: Japan’s Liberal Democratic Party has elected its next leader in the 64 – year old conservative Sanae Takaichi. Takaichi won the inner party election over her rival Shinjiro Koizumi, and she is expected to become Japan’s first female Prime Minister. The vote on the country’s new Prime Minister is expected to take place on 15 Oct when no significant opposition is expected from the other political parties. Takaichi would immediately face mounting issues such as reigniting LDP’s popularity and appeal to young voters, addressing stagnant economic conditions and challenging migration issues which have been the sticking points in Japanese politics in recent months. She would also have to navigate a fragile geopolitical state of affairs in the region, facing growing Chinese influence, fragile alliance with South Korea and the conditioned US military presence in the region.
Impact: Takaichi’s election as LDP’s new leader and most probably Japan’s new Prime Minister, arrives on an enhanced right – wing political climate in the country, where the LDP has to subvert the rise of the populist Sanseito. Despite projections that Koizumi had the more voting appeal before the inner party elections, Takaichi’s combination of disruptive and nationalistic postures covers all potential political risks for the LDP in the long – term. She is expected to consolidate LDP as the ruling party and also reduce the growing influence from far – right parties such as Sanseito by addressing landmark issues in the country such as migration. On the foreign policy front, Takaichi is expected to continue devising strategic ties with South Korea, while also warming up to Taiwan which could potentially position Japan high on the Chinese regional priorities list. Domestically, besides tackling migration and LDP’s popularity, she is expected to implement aggressive fiscal policies such as increased spending which could make the Japanese investor market more unreliable while stimulating and incentivizing domestic businesses and products.