The current LDP/Komeito government is trying to walk over a narrowing tightrope of political and policy machinations. With Prime Minister Ishiba stating that there needs to be “broad consensus building” during his policy overture at the beginning of the extraordinary session, and the CDP and DPP agreeing to collaborate on certain policy initiatives, the power of minority parties has never been stronger, nor evident, in the Japanese House of Representatives. In this edition of ‘Policy Under Pressure,’ where we explore the dynamics of the various policy positions the opposition parties (the CDP, DPP, and Nippon Ishin), we will be focusing on what literally, and figuratively, powers Japan: the nation’s energy policy and its GX, or Green Transformation. The Japanese government is looking to unveil its triennial Basic Energy Strategy, the seventh of its incarnation, which will set the tone for years to come. A draft of the Seventh Basic Energy Strategy has been made public, and the general thrust of increasing the composition of renewable energies, especially nuclear, are key stratagems for Japan’s energy needs. One crucial element in this development, however, is novel: that of the minority government composition and the rise in importance of seeking agreement with opposition parties. The major opposition parties share common goals around meeting carbon neutrality targets and expanding the share of renewables that comprise Japan’s energy stew, but one ingredient in this resource goulash may be unpalatable to Japan’s main opposition party, the CDP: the proliferation of nuclear energy as seen in the draft Seventh Basic Energy Strategy.

Welcome to Policy Under Pressure, a new blog series diving into the evolving dynamics of Japan’s political landscape and their impact on key policy areas. With the unprecedented emergence of a minority government, Japan’s opposition parties now hold significant sway in the National Diet. Minority party stances can now shape—and sometimes redefine—policy decisions across various sectors.

In this series, we aim to explore the positions and priorities of Japan’s minority parties on critical issues; shedding light on how their perspectives may influence national policy. Each post will focus on a specific sector offering insights into the debates and potential collaborations between the ruling coalition and opposition forces.

The House of Representatives has its work cut out for them during the extraordinary session of the Diet starting from November 28th to December 21st. The LDP/Komeito coalition, with their dancing partners the Democratic Party for the People (DPP), are seeking to pass a supplementary 2024 budget to implement counter-inflation policies and spur growth in key sectors. Estimated to be a whopping 13.9 trillion yen, with the total project scale including private sector spending to be about 39 trillion yen, this supplementary budget is even larger than FY2023’s supplementary budget (clocking in at 13.2 trillion yen/total project scale of 37.4 trillion yen).

The Japanese government aims to tackle the logistics challenges posed by the country’s declining population with the "auto flow road,": a dedicated, autonomous cargo transport corridor. The plan, which will install a shipping route between the two urban hubs of Tokyo and Osaka, could revolutionize how goods move across the country. Driven by a need to address labor shortages, accommodate new regulations, and reduce carbon emissions, the auto flow road is set to create infrastructure that could redefine logistics in Japan and potentially influence similar developments globally.

Every three years, the Japanese government drafts and revises its energy strategy to ensure the nation is adapting to an ever-changing world. With the new version of Japan’s Basic Energy Plan, the Seventh Basic Energy Plan, coming together, the country is setting a course aimed at energy security and economic prosperity.

In Japan’s Oct. 27 general election, the ruling coalition, the Liberal Democratic Party (LDP) and Kōmeitō, fell short of securing a majority—a pivotal event that could redefine how Japan’s prime minister is chosen. For decades, Japan’s prime minister has typically been the leader of the LDP (with a minor deviation due to the 1993-1994 coalition government and when the Democratic Party of Japan, or the DPJ, was the leading party between 2009 to 2012), with the party’s strong majority allowing this selection to happen smoothly and internally. But as Japan enters a phase of coalition-building and negotiation, the process of determining leadership may soon be less straightforward and require greater compromise.

Labor market reforms in Japan are once again taking center stage in public discussion. With upcoming leadership elections in both the ruling Liberal Democratic Party (LDP) and the opposition Constitutional Democratic Party (CDP), potential premiers are racing to stake out positions on the issue.

In the fast-paced world of Artificial Intelligence (AI), Japan stands at the cusp of a transformative era dubbed "Stage II." This 2024 AI White Paper outlines Japan's comprehensive strategy to become the most AI-friendly country globally, a vision driven by both the potential benefits and the challenges posed by AI technologies. Here's a summary of the key insights and recommendations from the document.

Japan's regulatory sandbox framework, introduced as part of the government's strategy to foster innovation and economic growth, has become a pivotal element in the country’s regulatory landscape. This system allows businesses to test new technologies and business models in a controlled environment with temporary regulatory exemptions. This blog post delves into how the regulatory sandbox operates in Japan, providing insights through case studies that illustrate its impact on fostering innovation across various sectors.

Japan's industry associations wield considerable influence in shaping public policy and the business environment, a fact that becomes particularly evident in the context of new market entrants like Uber and Airbnb. These associations, representing a wide range of sectors from automotive to tourism, play a pivotal role in advocating for the interests of their members, often impacting regulatory frameworks and legislative actions. This blog post explores the power dynamics between industry associations and public policy in Japan, using the challenges faced by Uber and Airbnb as prime examples.

Japan's Pharmaceuticals and Medical Devices Agency (PMDA) is a pivotal institution within the nation's healthcare landscape, ensuring the safety, efficacy, and quality of pharmaceuticals and medical devices. Established in 2004, the PMDA operates under the Ministry of Health, Labour and Welfare (MHLW), serving as the regulatory body responsible for the oversight of medical products. This article offers a deep dive into the PMDA, exploring its roles, achievements, and the challenges it navigates in safeguarding public health.

In a crucial step toward bolstering national security and expanding economic growth, the Government of Japan has made a decisive move to implement a security clearance system that includes the country’s confidential economic information. This initiative places Japan on par with other G7 nations, fulfilling a long-standing need within its framework for protecting sensitive information.

The landscape of lobbying regulations in Japan is marked by a notable absence of specific laws that define or govern lobbying activities. There is no mandatory registration system for lobbyists, nor are there explicit disclosure requirements tailored to lobbying. However, various laws and guidelines indirectly impact how lobbying can be conducted, focusing on transparency, political funding, and anti-corruption measures.

Japan's unique blend of tradition, modernity, and complex regulatory landscape presents a fascinating challenge for businesses engaging in public affairs. To effectively influence policy, manage stakeholder relationships, and navigate the socio-political environment, understanding and adopting best practices in public affairs is crucial. Here are key strategies for success in Japan.

In 2017, Japan made a significant stride in the application of behavioral science to public policy by establishing the Nudge Unit of Japan under the Ministry of Environment. This pioneering initiative, rooted in the principles of nudge theory, aims to subtly influence public behavior towards more socially and environmentally beneficial actions without resorting to direct enforcement or coercion. Through a series of innovative interventions, the Nudge Unit has demonstrated the potent impact of well-designed nudges in addressing various societal challenges. Here, we explore two compelling case studies that underscore the effectiveness of this approach.

The Acquisition, Technology & Logistics Agency (ATLA) is a pivotal component of Japan's Ministry of Defense, established in 2015. ATLA's creation marked a significant strategic shift in Japan's approach to defense procurement, technology development, and logistics support, aiming to enhance the nation's defense capabilities in an increasingly complex global security environment. This article provides an in-depth look at ATLA, exploring its mission, core functions, and the role it plays in strengthening Japan's defense posture.

Established in September 2021, Japan's Digital Agency represents a significant stride towards transforming the nation's approach to digital governance. This move underscores Japan's commitment to embracing digital innovation across government services and societal functions. As a central body tasked with orchestrating the digital transformation in Japan, the Digital Agency aims to streamline bureaucratic processes, enhance public services, and foster a digital-friendly environment that supports economic growth and enhances the quality of life for its citizens.

In Japan's business environment, and particularly for big businesses and innovative startups, cultivating strong government relations is not just beneficial; it's crucial for success. The country's unique blend of tradition, protocol, and regulatory frameworks demands a tailored approach to government relations. Here are some best practices for companies looking to navigate this landscape effectively.

The Japan External Trade Organization (JETRO) is a government-affiliated entity that plays a pivotal role in fostering Japan's external trade and investment. Established in 1958, JETRO's mission has evolved over the decades to address the changing needs of Japan's economy, focusing on promoting mutual trade and investment between Japan and the rest of the world. As global trade dynamics continue to shift, JETRO's efforts in facilitating international business relationships, providing valuable market insights, and supporting foreign direct investment into Japan have become increasingly vital. This article provides an overview of JETRO's mission, strategic functions, and contributions to Japan's global economic engagement.

In an innovative move to tackle Japan's declining birthrate, the Tokyo Metropolitan Government is set to launch an official dating app, aimed at sparking connections among singles aged 18 and above who are living, working, or studying in Tokyo.