Digest

In most developing nations today, a smaller and more cost-efficient form of government is often seen as the best alternative for improving the unstable condition of a national economy. Within these past few years, most political parties in Japan have changed the political insistence on the reformation of its central government to a more cost-efficient model.

The government proposed the reformation plan of ministries on September 3. However, due to the strong opposition of the Liberal Democratic party from "Zokugiin" ---the Diet members protecting interests of a ministry and specific industry ---it would be very difficult to enforce all of the propositions within the reformation plan.

In order to establish a more cost-efficient government, balancing the budget is essential. It is also necessary to reduce the number of employees in local governments; however, this is not clearly presented within the reformation plan because of fierce opposition from the labor unions.

Although Liberal Democratic Party have a hard time winning the public's favor, most Japanese people place their hopes on the leadership of Prime Minister, Ryutaro Hashimoto. The success of the government reformation will rely heavily on the political tactics and strategies of Prime Minister Hashimoto.

Prime Minister Hashimoto has six major national reformation plans that focus on the reduction of the national deficit. Financial reform is the top priority, along with finance market, industrial, administrative, social welfare, and educational reforms.