Japan - December 2023

In December 2023, Japan’s ruling Liberal Democratic Party (LDP) became embroiled in what analysts describe is the worst Japanese fundraising scandal in decades. Prosecutors are investigating allegations that LDP faction members failed to report hundreds of millions of yen in political funds raised at fundraising parties over the past five years, and that the extra revenue may have been pocketed by lawmakers. The scandal casts a shadow over Japan’s entrenched political faction system, characterized by institutionalized parties within parties with formal membership structures. Prosecutors raided the headquarters of two LDP factions associated with the late Prime Minister Shinzo Abe and former Secretary-General Toshihiro Nikai on 19 December. In response, four cabinet ministers from LDP have resigned, with Prime Minister Fumio Kishida stepping down as head of his faction in a bid to restore public trust. The failure to record these funds in official statements is said to violate the country’s political funding laws.

Sources: Japan Times (1), Japan Times (2), Reuters, East Asia Forum, NPR, The Economist

On 22 December, the Japanese cabinet approved a JPY 3.6 trillion (approximately USD 25 billion) package dubbed the “Children’s Future Strategy,” a policy aimed at tackling Japan’s declining birth rate. The package includes support measures for families raising children, including a new system allowing the children of non-working parents access to day care centres and free university education for families with three or more children, among other policy measures. The policy aims to be implemented by fiscal year 2025. Furthermore, the initiative places significant emphasis on increasing men’s uptake of parental leave from 17 per cent to 85 per cent by 2030. By enhancing leave benefits and allowances, the objective is to alleviate the disproportionate childcare burden on women.

Sources: Japan Times (1), The Asahi Shimbun,  Japan Times (2), The Japan News