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Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Business world working closely with Koizumi government

Okuda Hiroshi, the chairman of Toyota Motor Co., will step down as the first chairman of the Japan Business Federation (Nippon Keidanren), passing the torch to Mitarai Fujio, the chairman of Canon Inc.

The belief that "money moves politics" characterizes the Okuda-led Nippon Keidanren.

In January 2003, Nippon Keidanren in the so-called "Okuda Vision" stated that "it is essential for politics and the economy to become like two wheels of a car to realize reform and yield results," and that it will "establish new cooperative ties with politics."

This policy came into effect in the form of the resumption of political donations.

Based on evaluations of political parties' policies made by Nippon Keidanren, the member companies have given donations to those parties. This new system blatantly showed Nippon Keidanren's belief that cash power is necessary to realize demands of business circles.

The Okuda-led Nippon Keidanren and Prime Minister Koizumi Jun'ichiro's Liberal Democratic (LDP) and Komei government together have promoted the "structural reform" policy with their arms around each other.

In the last general election, Toyota Motor executives undertook initiatives in vote-getting campaigns to boost the LDP's landslide victory.

The reason Okuda gave for Nippon Keidanren's support for the LDP was that Koizumi is "in favor of reform." His remark clearly displays that what Koizumi calls "reform" is action to serve large corporations.

Nippon Keidanren is the standardbearer calling for revision of the Constitution. In its proposal published in January 2005 Nippon Keidanren called for replacing the war-renouncing Article 9 of the Constitution with the right to collective self-defense.

Close ties between Okuda and Koizumi had sometimes undesirable effects even on business circles such as Prime Minister Koizumi's visits to the war-glorifying Yasukuni Shrine.

For business circles that seek deeper economic relations with China, the Yasukuni question is a matter of serious concern with an eye to the next LDP presidential election.

Political and business circles will inevitably warm to the LDP presidential race.

Mitarai, who will receive the baton from Okuda, is the chairman and CEO of Canon Inc., a manufacturer of copy machines and cameras. As the majority of its outstanding stock is held by foreigners, the company cannot give political donations under the current law that prohibits foreign-owned companies from making donations.

Both business circles and the LDP are now seeking to lift the restrictions.
- Akahata, May 23, 2006