2010 March 3 - 9 TOP3 [
POLITICS]
Keidanren stops grading LDP and DPJ policies
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March 3, 2010
The Japan Business Federation (Nippon Keidanren) has decided that it will stop grading the policies of the previous ruling Liberal Democratic Party and the present ruling Democratic Party of Japan to help major corporations decide on how much and to which party they make political donations.
Nippon Keidanren has issued a “report card” since 2004 to have the two parties compete with each other to propose and initiate pro-business policies. The decision of Nippon Keidanren, however, does not mean that it will give up buying policies. The tactic appears to be an attempt to hide the extent of business dominance over politics behind the curtain.
In the general election last summer, voters delivered a severe verdict against the then ruling LDP. The result has prevented Nippon Keidanren from taking its traditional approach of buying policies in favor of the business world.
When the present Nippon Keidanren was established in 2002 after the former Japan Federation of Economic Organizations merged with the former Japan Economic Federation, Nippon Keidanren Chair at that time Okuda Hiroshi (ex-Toyota Motor Corps. chairman) told reporters that he would adopt the approach by arrogantly pronouncing, “We pay, we have a say.”
On a 5-point scale
As stated by Okuda, Nippon Keidanren annually assessed the policies of the LDP and the DPJ on a scale of A to E and encouraged its member corporations to make political donations ostensibly with the aim of having the two parties support pro-corporate policies.
Even after the LDP stepped down from its position as a ruling party, Nippon Keidanren still wanted to use the “report card” as a leverage to promote a “two-party system” in order to more effectively control politics.
However, as a result of the general election, it can no longer adopt the same method.
During the election campaign, the LDP called for pro-business policies on the pretext of encouraging economic recovery. Thus, Nippon Keidanren gave the LDP higher marks than the DPJ. However, it was the DPJ that came to power. Accordingly, many corporations have increased the amount of political donations to this new ruling party even though it received lower marks than the LDP.
In other words, the “report card” itself became an obstacle to making sound corporate donations.
Nippon Keidanren intends to establish a new system of evaluating the policies of the two parties as a replacement for the “report card” by this summer.
Keidanren’s intention
Yonekura Hiromasa, chairman of Sumitomo Chemical Co. who will be officially appointed to Keidanren’s chair at its general meeting in May, expressed at a recent press conference his intention to cooperate with the government to set conditions for private sectors to perform up to their potential and achieve sustainable development.
The Hatoyama Cabinet is currently in the process of fleshing out the details of the “new development strategy” it published last year. The Ministry of Economy, Trade, and Industry installed an industrial competitiveness group in its Industrial Structure Council. Members of the group include Watanabe Katsuaki, Keidanren’s vice chairman as well as the vice chair of Toyota Motors, which is facing strong criticism over its massive recall.
Major corporations are not giving up on political donations while financial circles are busy selling their policies to the government.
- Akahata, March 3, 2010
