Japan’s Sanae Takaichi Poised to Become First Female Prime Minister

Japan’s ruling Liberal Democratic Party (LDP) has elected conservative nationalist Sanae Takaichi as its new leader, positioning her to become the country’s first female prime minister. Takaichi, 64, secured the leadership on Saturday, following a significant vote aimed at restoring public trust amid rising prices and growing discontent with the government’s handling of the economy. A parliamentary vote to officially appoint her as prime minister is scheduled for October 15, 2023.

Takaichi emerged victorious in a competitive race, defeating moderate candidate Shinjiro Koizumi, 44, who had aimed to become the youngest leader in Japan’s modern history. As a former minister for economic security and internal affairs, Takaichi inherits a party that has lost its majority in both houses under the outgoing leadership of Shigeru Ishiba. The LDP faces increasing challenges from opposition parties, including the Democratic Party for the People and the anti-immigration Sanseito, both of which have attracted younger voters disillusioned with the LDP’s policies.

In her remarks before the second-round vote, Takaichi acknowledged the public’s frustration, stating, “Recently, I have heard harsh voices from across the country saying we don’t know what the LDP stands for anymore. That sense of urgency drove me. I wanted to turn people’s anxieties about their daily lives and the future into hope.”

Takaichi’s leadership style may mark a departure from her predecessors. She aligns herself with the economic strategies of former Prime Minister Shinzo Abe, advocating for aggressive fiscal policies to stimulate the economy. Her commitment to these policies has raised concerns among investors, particularly regarding the potential implications for the Bank of Japan’s (BOJ) monetary policy. Naoya Hasegawa, chief bond strategist at Okasan Securities in Tokyo, noted that Takaichi’s election diminishes the likelihood of the BOJ raising interest rates, which markets previously anticipated at a 60% chance.

In addition to her economic agenda, Takaichi has indicated a willingness to revisit the investment deal negotiated with former U.S. President Donald Trump, which altered tariffs in exchange for Japanese investment. Following her election, George Glass, the U.S. ambassador to Japan, expressed his support for Takaichi, emphasizing the importance of strengthening the Japan-U.S. partnership “on every front.”

Her nationalistic stance, including regular visits to the Yasukuni shrine—a site viewed by some Asian nations as a symbol of Japan’s militaristic past—could further strain diplomatic relations with neighbors such as South Korea and China. Takaichi has also proposed revising Japan’s pacifist postwar constitution and suggested the possibility of forming a “quasi-security alliance” with Taiwan, which is claimed by China. The President of Taiwan, Lai Ching-te, welcomed her election, expressing hope for deeper cooperation between the two countries.

If confirmed as prime minister, Takaichi has pledged to enhance Japan’s international presence, stating her intention to travel abroad regularly to communicate that “Japan is Back!” In her victory speech, she emphasized her dedication, saying, “I have thrown away my own work-life balance and I will work, work, work.”

With Takaichi at the helm, Japan may be on the verge of a significant political shift, as her leadership could both invigorate the LDP’s base and challenge existing norms in Japanese politics. The upcoming parliamentary vote will be a crucial moment for Takaichi as she sets her agenda for the future of Japan.