Minister Quits at Bad Time for Japan’s Economy

Posted by Justin Bresolin

Financial minister of Japan, Shoichi Nakagawa, has resigned in the face of criticism of his unusual behavior at a recent news conference in Rome, giving slurred answers and displaying sluggish behavior in front of reporters. Though he denies it, many suspect drunkenness to be the reason behind the minister’s performance.
In spite of his desire to remain in office until remain in office until Parliament passed a number of measures designed to aid Japan’s budget, minister Nakagawa’s Tuesday resignation represents a major setback for Prime Minister Taro Aso, having held the position for less than a year at this point. Nakagawa’s perceived poor management of Japan’s economy, combined with his own social mishaps, have plummeted his approval rating to an estimated 10%, and recent figures show the Japanese economy contracting at a rate unmatched since 1974.
With 2009 featuring new parliamentary elections, the recent damage of the Aso administration’s image could mean the long-dominant Liberal Democratic Party is voted out of office, an event that can trigger far-reaching changes in the country’s political landscape. Economic/fiscal minister Kaoru Yosano, a known fiscal conservative, will double as the finance minister for the time being, and it is unclear how he may change Japan’s economic policy. Yosano has previously called for higher taxation to combat rising national debt.
A jumbled political system combined with a crashing economy means that the country is entering a period of considerable national crisis, and many wonder if the current government is capable of handling the increased stress.