The elections for the House of Representatives were scheduled for autumn 2012. The Liberal Democratic Party (LDP) hoped to win and return to power. However, Party President Sadakazu Tanigaki announced that he would not be running in the upcoming presidential election. Five candidates announced that they would run in the election: Secretary-General Nobuteru Ishihara; former Minister of Defense Shigeru Ishiba; former Chief Cabinet Secretary Nobutaka Machimura; Acting Chairman of the Policy Research Council Yoshimasa Hayashi; and former Prime Minister Shinzo Abe, who had recovered from illness.
In the first round of voting on September 26, Abe received 141 votes (54 from Diet members and 87 from party members); Ishiba received 199 votes (34 from Diet members and 165 from party members); Machimura received 34 votes (27 from Diet members and seven from party members); Ishihara received 96 votes (58 from Diet members and 38 from party members); and Hayashi received 27 votes (24 from Diet members and three from party members). This led to a runoff election (by Diet members only) between the top two candidates, Abe and Ishiba. Abe received 108 votes and Ishiba received 89, making Abe the 25th president of the LDP.
Abe is the first in the LDP's long history to return to the presidency after resigning. Many citizens welcomed his return, viewing him as experienced and hardworking during his time out of power.
During the party leaders' debate in the Lower House (the House of Representatives) on November 14, 2012, LDP President Abe challenged Prime Minister Yoshihiko Noda to dissolve the Diet as soon as possible in order to break through the chaotic social situation in Japan. PM Noda clearly stated in response that he would dissolve the Diet. The Diet was dissolved accordingly, and voting and ballot counting were held on December 16, close to the end of the year. The Liberal Democratic Party won by a landslide, gaining 294 seats, while the ruling Democratic Party gained only 57. Thus, the LDP returned to power for the first time in three years and three months.
However, there was no time to revel in victory. "Our mission is to overcome the crisis. We need people with the ability to break through economic deflation, correct the strong yen, and overcome security and diplomatic crises," said President Abe, who was nominated as prime minister at the special Diet session convened on December 26. Prime Minister Abe established the Second Abe Cabinet, also known as the 'Crisis Relief Cabinet.' He appointed former Prime Minister Taro Aso as Deputy Prime Minister and Minister of Finance and former Party President Sadakazu Tanigaki as Minister of Justice. Furthermore, he appointed Akihiro Ota, former leader of the coalition party Komeito, as Minister of Land, Infrastructure, Transport, and Tourism. Thus, he formed a solid cabinet lineup.
The Second Abe Cabinet gave up their New Year holidays to focus on national politics. Urgent issues piled up, including the delayed recovery and reconstruction efforts following the Great East Japan Earthquake, as well as the need to rebuild the damaged U.S.-Japan relationship caused by the previous Democratic Party administration under Noda. Above all, Prime Minister Abe implemented an economic vision called 'Abenomics,' primarily targeting the rebuilding of the impoverished Japanese economy. He employed the 'three arrows strategy,' which comprises aggressive monetary easing, flexible fiscal policies, and a growth strategy to boost private-sector investment. He told citizens that if we boldly implemented this strategy, the Japanese economy would surely revive.
In February 2013, the government and the Bank of Japan (BOJ) announced the "Joint Statement of the Government and the Bank of Japan on Overcoming Deflation and Achieving Sustainable Economic Growth," in which the BOJ committed to setting a price stability target of 2 percent in the consumer price index for the first time. The statement read: "The Bank of Japan will pursue monetary easing and aim to achieve this target at the earliest possible time." The following month, Haruhiko Kuroda became governor of the Bank of Japan. Upon assuming office, Governor Kuroda immediately implemented significant monetary easing.
Following Prime Minister Noda's declaration of the dissolution of the Diet, the likelihood of a change in administration increased. This raised expectations for the Liberal Democratic Party (LDP) and caused the stock price to rise. It also brought about a substantial shift from the yen's excessive appreciation to its depreciation. The substantial monetary easing conducted by the BOJ further stimulated the Japanese economy, giving Abenomics a big boost.
Consequently, Japan's economy, which had been mired in deflation for a quarter century since the collapse of the bubble economy, experienced substantial growth. Stock prices recovered from an average of eight thousand yen at the inauguration of the Second Abe Cabinet to over twenty thousand yen by 2015. Additionally, corporate taxes were reduced and tax revenues increased, thanks to Prime Minister Abe's aggressive leadership, which continues to benefit the Japanese economy to this day.
While emphasizing economic revival, Prime Minister Abe also demonstrated his strength in diplomacy and security. Abe diplomacy began in January 2013, immediately after the Second Abe Cabinet was inaugurated. He chose Vietnam, Thailand, and Indonesia for his first official visit. PM Abe is said to have modeled this after his grandfather, former Prime Minister Nobusuke Kishi, who visited six Southeast Asian countries on his first official visit half a century ago. At that time, the legacies of World War II were still evident, and Kishi tried to rebuild trust with regions that had previously enjoyed close relations with Japan.
During his time in office, Prime Minister Abe visited all Association of Southeast Asian Nations (ASEAN) member countries, doing his utmost to foster personal relationships of trust with each country's leaders.
The key concept of 'Abe diplomacy' is 'diplomacy that takes a panoramic perspective of the world map,' or, in other words 'not only looking at bilateral relations with neighboring countries but also developing strategic diplomacy and sharing fundamental values such as freedom, democracy, the rule of law, and human rights.' PM Abe later deployed this approach throughout the world, visiting not only Southeast Asia but also other regions. He visited the Middle East, Europe, Africa, and South America, traveling abroad on average once a month. Above all, his visits were not just about top-level talks; they also promoted Japan's excellent infrastructure technologies, food culture, and pop culture through Abenomics, thereby enhancing his influence.
Meanwhile, PM Abe tried to rebuild Japan-U.S. relations, which had deteriorated under the Democratic administration of Noda. In late February 2013, he visited the United States for the first time since the inauguration of his second cabinet. During his meeting with President Barack Obama, he discussed participating in the Trans-Pacific Partnership (TPP) negotiations and security issues in the tense Asia-Pacific region. In this manner, he confirmed the strengthening of cooperation between Japan and the US in a wide range of fields.
In late April, Prime Minister Abe visited Russia, where the issue of the Northern Territories remained unresolved. During his meeting with Russian President Vladimir Putin, he discussed ways to promote economic cooperation, as well as cultural and personal exchanges. They also agreed to establish a '2 plus 2' meeting, which is a meeting between the foreign and defense ministers of the two countries, in the security field. Until then, Japan has only held '2 plus 2' meetings with two countries: the United States and Australia. However, it is exceptional to have such a meeting with a country with which a peace agreement has not yet been established.
The House of Councillors election, the first national election since the launch of the Second Abe administration, took place on July 21, 2013. The LDP gained a total of 65 seats, including both district and proportional representation seats. This resulted in the LDP and its coalition party, Komeito, securing a majority in the Upper House, or the House of Councillors. Previously, the number of seats held by the ruling parties in the Upper House was smaller than that held by the opposition parties. This situation was finally resolved.
A couple of months after the Upper House election, in September, Japan erupted with joy. Japan's bid to host the 2020 Summer Olympics and Paralympics in Tokyo was successful. It will be the first time the Tokyo Olympic Games have been held since 1964. The race was expected to be very close, so Japan's landslide victory over Istanbul, Turkey, and Madrid, Spain, can be attributed to the overwhelming support from the Japanese people, including that from Prime Minister Abe, the government, and the private sector.
At the International Olympic Committee (IOC) General Assembly in Buenos Aires, Argentina, the word 'omotenashi' (hospitality), which was used during Japan's final presentation, became a worldwide term describing Japanese hospitality towards guests. Additionally, among the generation that experienced the Tokyo Olympics in 1964, a social phenomenon emerged in which people sought to watch the Olympics once more, finding a sense of purpose in it.
Moreover, the number of foreign visitors has risen dramatically, and the target of attracting 20 million visitors annually by 2020 is on track to being realized. It is evident that the successful bid to host the Olympic and Paralympic Games has functioned as a major catalyst in propelling Abenomics forward.
Although Prime Minister Abe focused heavily on economic policy, he also achieved remarkable results in the field of security. In December 2013, the government revised the Act for the Establishment of the Security Council of Japan, reorganizing the previous Security Council to form the Security Council of Japan (NSC of Japan). The NSC of Japan acts as a control tower for foreign policy and security.
This issue has been under discussion since the first Abe cabinet. The NSC is not a vertical structure of ministries and agencies; rather, it centralizes, analyzes, verifies, and responds to information on foreign policy and security. The NSC has a four-minister meeting, including the prime minister, chief cabinet secretary, foreign minister, and defense minister. This meeting acts as the NSC's control tower. The National Security Bureau, the secretariat of the NSC, was established the following January. Shotaro Yanai, a former vice minister of the Ministry of Foreign Affairs and Prime Minister (PM) Abe's foreign policy advisor, was appointed as its first secretary general.
In Japan, it has long been interpreted that the country has the right to collective self-defense under international law, though it is not permitted to exercise this right under its Constitution. On July 1, 2014, the Second Abe Cabinet revised the conventional interpretation of the Constitution, making a cabinet decision that permits the partial exercise of the right to collective self-defense. This could be considered an epoch-making event and a historical turning point for Japan's security policy.
To embody and underpin the cabinet's decision, Prime Minister Abe submitted a bill to the Diet, which passed during the 2015 ordinary Diet session. The Legislation for Peace and Security was enacted. With this new legislation, Japan's security environment changed drastically. By cooperating with the United States and other like-minded countries, Japan can secure not only its own peace and safety, but also that of the international community.
In September 2014, Prime Minister Abe began reshuffling his cabinet for the first time since the inauguration of the Second Abe Cabinet. At 617 days, the Second Abe Cabinet was the longest cabinet without any reshuffles since the end of the war. The reshuffled cabinet included several key figures from the previous cabinet: Chief Cabinet Secretary Yoshihide Suga; Deputy Prime Minister and Finance Minister Taro Aso; Foreign Minister Fumio Kishida; Minister for Economic Revitalization Akira Amari; Education Minister Hakubun Shimomura; and Minister for Land, Infrastructure, Transport and Tourism Akihiro Ota. PM Abe formed a pragmatic cabinet.
Furthermore, Prime Minister Abe pledged to increase the proportion of women in leadership positions to 30 percent by 2020. In line with his motto of 'leading by example,' he appointed a record five women ministers to his reshuffled cabinet. To embody the "comprehensive strategy for revitalizing towns, citizens, and jobs," which aimed to revitalize regional areas and ease population decline caused by a declining birthrate and an aging population, Abe appointed former Secretary-General Shigeru Ishiba as Minister of State for Overcoming Population Decline and Vitalizing the Local Economy.
However, raising the consumption tax from 5 percent to 8 percent in April 2014 had a considerable impact on Japan's economy. PM Abe realized that raising the consumption tax from 8 to 10 percent in October 2015, as scheduled, might damage the current booming economy. He announced he would postpone the increase by one and a half years, implementing it in April 2017 instead. To ask the public about the pros and cons of his tax postponement decisions and whether to continue with Abenomics, Prime Minister Abe dissolved the House of Representatives on November 21. He stated, "I call this dissolution of the Diet the dissolution for the sake of Abenomics. I am asking you whether I should continue or stop Abenomics. This election is asking you that question. Opposition parties have criticized Abenomics for failing every day. Through this election, I would like to ask for your opinion on whether our economic policy was right or wrong and if there are any other viable options."
According to the reapportionment of seats in the Lower House, the number of seats decreased from 480 to 475 in 2013. Nevertheless, in the December 14 vote, the LDP gained 291 seats, and the coalition party Komeito gained 35 seats. Together, the two governing parties occupied more than two-thirds of the Lower House (317 seats), resulting in a landslide victory for the administration. Believing that his policies of postponing the consumption tax increase and Abenomics had received support from citizens, Prime Minister Abe inaugurated the Third Abe Cabinet on December 24 as the end of the year approached.
During Japan's long Golden Week holiday in 2015, which started at the end of April, Prime Minister Abe visited the United States. His visit coincided with the 70th anniversary of the end of World War II. During this visit, he and President Obama announced the 'U.S.-Japan Joint Vision Statement.' The statement read: "In this year marking 70 years since the end of World War II, the relationship between our two countries stands as a model of the power of reconciliation. Former adversaries have become steadfast allies, working together to advance common interests and universal values in Asia and around the world." This indicates that Japan and the United States will continue to strengthen their global cooperation.
Furthermore, during his visit, Prime Minister Abe delivered a 45-minute speech in English at a Joint Meeting of the U.S. Congress --the first time a Japanese prime minister had done so. The last Japanese prime minister to speak at the U.S. Congress was Hayato Ikeda, 54 years ago.
In his speech, Prime Minister Abe stated that Japan had made progress in the postwar period by bearing in mind deep remorse for the war. He also said that peace and security in the postwar world would not have been possible without American leadership. In conclusion, he said, "Let us call the U.S.-Japan alliance an 'Alliance of Hope.' Let the two of us --America and Japan--join hands and do our best to make the world a much better place to live." The speech was met with resounding applause. The visit had great historical significance.
The summer of 2015 marked the 70th anniversary of the end of the war. The day before the anniversary, on August 14, Prime Minister Abe approved the 'Statement on the 70th Anniversary of the End of the War' at a cabinet meeting. He then announced the statement at a press conference. At 3,400 characters long, the statement was three times longer than the Murayama and Koizumi statements issued on the 50th and 60th anniversaries of the end of the war, respectively.
During the press conference, Prime Minister Abe slowly and calmly read the statement, which made the evolution of Japanese politics since the Meiji era easier to understand. PM Abe included all the keywords related to the war--aggression, reflection, remorse, and apology--in the statement but above all, he wanted to express his gratitude to the nations and citizens who understand and support Japan as well as highlight Japan's progress since the end of the war and its outlook for the future.
Regarding the future in particular, Prime Minister Abe stated, "We must not let our children be predestined to apologize," which expresses his determination to shoulder full political responsibility for the war. "I will humbly continue to listen to the voice of history and learn wisdom for the future." These remarks during the press conference were particularly noteworthy.
On September 8, 2015, the Party announced the presidential election, which marked the end of the first three-year presidential term. However, PM Shinzo Abe was the only candidate. The result was: Prime Minister Abe was re-elected as president of the LDP unopposed.
Over the past three years, PM Abe has achieved remarkable results, including securing the Tokyo Olympics bid, enacting the Legislation for Peace and Security, and leading the Party to victory in the House of Councillors election and two House of Representatives general elections. He now has another three-year term as president. If he completes this term, he will have served a total of six years and nine months as LDP president, including his first term. He is now approaching the second-longest LDP administration in history after Prime Minister Eisaku Sato's.
Regarding his policy goals for the next three years, Prime Minister Abe said, "We are about to overcome deflation. Abenomics will move onto the second stage. Our goal is to create a society where all citizens are actively engaged." He emphasized that the economy is the top priority, stating, " Our goal is to have the largest economy since the war ended. Our aim is to achieve the greatest prosperity in national life since then. I would like to set the clear goal of achieving a GDP of 600 trillion yen."
On November 15, 2015, the Liberal Democratic Party will celebrate its 60th anniversary under President Abe. Guided by the founding principle that 'politics must serve the public interest,' the LDP continues to face challenges.
(This chapter was written in October, 2015)
