Its was a historic moment in Japan's history. Yukio Hatayoma ended five decades of Liberal Democratic Party rule in Japan. The Democratic Party of Japan(DPJ) headed by its leader Yukio Hatayoma cruised through in the national elections to hand otgoing PM Taro Aso and leader of LDP its worst ever defeat in fifty years. Democratic Party of Japan seized 308 seats in Lower House election, bouncing the Liberal Democratic Party from power. The DPJ's tally far exceeded the 241 seats needed for a single majority and surpassed the 296 seats the LDP won in its landslide victory in the previous Lower House election in 2005.
The Liberal Democrats have governed Japan for virtually all of the past 54 years.Japan's electorate wanted a significant change in old school policies of the LDP, which includes a more equivocal diplomatic relations with the USA rather than a more submissive approach all these decades. At the same time, the Democrats want to improve relations with other Asian countries, like China, Taiwan, S.Korea and India.
Hatoyamo has pledged to foster a family-friendly state by abolishing high education fees, increasing child support to £170 a month and introducing a minimum income for farmers. Tax breaks for small and medium-sized businesses, minimum pensions and the abolition of road tolls are among other promises. The child support plan is one which is aimed at increasing the fertility rates in Japan which is shockingly in the nagative. This would lead to an population degrowth by 2030. So, the increase in child support plan is one way of encouraging couples to have more child.
Japan managed to climb out of a yearlong recession in the second quarter, but its economy remains weak. Unemployment and anxiety over falling wages threatens to undermine any recovery. The jobless rate has risen to a record 5.7 percent.But with Japan's public debt heading toward 200 percent of gross domestic product the largets for any wealthy nation, it will be very difficult for export-driven-country like Japan to pull out of this recession and lead a path to high-end recovery.As China threatens to overtake Japan as the world’s second largest economy as early as next year, the pressure is on for Mr Hatoyama to reinvent the nation’s trade and industry Japan's people are hoping the new government with new ideas will lead the country towards the glory days of 80's and 90's.
