- Views on Closer Cooperation with the Political Establishment; Policy Evaluation of the Major Political Parties
- The Ishiba Administration
- The Situation in the Middle East
Views on Closer Cooperation with the Political Establishment; Policy Evaluation of the Major Political Parties
Keidanren has compiled the 2024 editions of its views on closer cooperation with the political establishment and its policy evaluation of the major political parties, a reference for member companies preparing to make political donations.
Noting the recent string of scandals over political funds, we have hammered out a message this year calling for improved transparency in funding, stronger party governance, and other measures aimed at restoring public trust in the political system. Additionally, on the topic of political donations, this year we are continuing to encourage member companies to use their own discretion as a basis for decisions regarding the donations they make to political parties as a measure toward fulfilling their societal roles.
Our policy evaluation of the major political parties comprises an evaluation and validation of the policies of the major political parties in the context of Keidanren's own business policies. Specifically, we have rated highly the policies of the LDP-led coalition government, as they have been implemented in a manner aimed at achieving steady results across a wide range of domestic and foreign issues.
(In response to a question on corporate relations with the political establishment) Keidanren's position on corporate relations with the political establishment has not changed. Properly sustaining a democracy is a task that comes with considerable costs. Also, given that democracy is a system of participation and accountability, we feel that as entities with an actual societal presence, corporations naturally should be expected to assume a role as leading sources of funding donated from the private sector. On that understanding, Keidanren has called on its member companies and organizations to make political donations to the political parties that, in line with their own assessments, are pursuing policies that will promote the healthy development of the corporate sector in a free market economy, usher the Japanese economy into its next stage of growth and contribute to improved standards of living for the Japanese public at large.
However, when it comes to political funding, assuring transparency and complying with the rules are a must. Hence, from the perspective of transparency in political funding and the adequacy of party governance, the recent series of scandals over political funding are extremely regrettable. I strongly urge all parties to continue working to restore the public's trust in our government.
(In response to a question about the necessity of political donations from companies and business organizations) Fundamentally, our political parties should be putting emphasis on membership fees from party members that share their ideals and principles, as well as income from the publication of their party bulletins and other business activities. We feel that voluntary donations from the private sector are within that scope, and that corporations and business organizations also have a leading role to play in making political donations. The notion that political parties can and should meet their funding needs solely through public subsidies is not a sound strategy, and Keidanren does not subscribe to that idea. However, political funds donated from the private sector do need to be clean, and the political establishment needs to ensure transparency and follow the relevant rules.
(In response to a question regarding the amended Political Funds Control Act [passed in June 2024]) Revisions to the Political Funds Control Act included lowering the threshold amount mandating the disclosure of the names of fundraising party ticket purchasers and creating new rules that essentially establish guilt by association. Although it will be acceptable going forward if the political parties themselves debate whether these measures are enough, it is above all imperative that they fully comply with the rules established by the Diet.
The Ishiba Administration
(In response to a question regarding the decision by Prime Minister Shigeru Ishiba not to endorse, as candidates in the upcoming Lower House election, lawmakers mainly who were stripped of their party duties or otherwise severely disciplined for their involvement in a recent slush fund scandal involving factions, and not to allow lawmakers, who failed to report political funds, to file double candidacies in the single-seat constituency and the proportional representation category) While opinions many differ on this matter, I recognize that the Prime Minister acted within the scope of his responsibility to authorize endorsements, in the interest of regaining the public's trust. Although the Prime Minister's decisions in this case may have been difficult, I want him to carry through with his resolve in calling an election that places his policies on the line for the public to decide.
(In response to a request seeking the Chairman's appraisal of the Ishiba administration's policies) The policies of the Ishiba administration, and its economic policies in particular, can be expected to follow those of the Kishida administration. We have arrived at a decisive juncture that may finally free the Japanese economy from deflationary pressures and bring a favorable cycle of renewed growth with a more balanced distribution of wealth. I hope the Ishiba administration will follow through and steadily implement the economic policies of its predecessor.
(In response to a question regarding Prime Minister Ishiba's meeting with leaders of Japan's three major business lobbies [on October 4]) Prime Minister Ishiba made it clear that fully freeing the economy from deflationary pressures was a top priority and underlined the importance of energy policy. Additionally, he expressed exceptionally strong support for regional revitalization.
I brought up the subject of wage growth. Considering 2023 the "launch" phase, followed by the "acceleration" phase in 2024, we want to make 2025 the "establishment" phase for this trend in wage increases. Our hope is the government and the Bank of Japan will achieve their price inflation target of around 2 percent, setting a stage for gains in corporate productivity that lead to constructive wage hikes.
I also urged the Prime Minister to implement initiatives that will help foster the Green Transformation (GX) and promote domestic investments in semiconductors and other growth sectors.
The Situation in the Middle East
(In response to a query seeking the Chairman's take on the increasingly tense situation in the Middle East and the impact it could have on the Japanese economy) I am deeply alarmed by the situation in the region and intend to closely follow developments there with keen interest. I sincerely hope that any further escalation of hostilities can be avoided.
Also, I want the Japanese government to do everything in its power to ensure the safety of Japanese nationals currently in the region.
Japan is heavily dependent on the Middle East for its supplies of oil, natural gas, and other energy resources, and in that sense as well, the stability of this region is critically important to us. I fear that a continuation of the crisis situation there could trigger a sharp uptrend in oil prices, in turn dealing Japan a heavy blow.