Japan’s First Female Prime Minister Faces a Steep Road Ahead
It is November, and another year is quietly slipping away. Astemperatures fall abruptly across Japan, many people are beginningto feel the toll of the season’s first real chill. It is time,once again, to keep both body and spirit warm as winter approaches.
This past month brought extraordinary change to Japan’s politicallandscape. The country witnessed the election of the first womanto lead the Liberal Democratic Party⾃⺠党, the withdrawal of theKomeito Party公明党 from the ruling coalition, the entry of theJapan Innovation Party⽇本維新の会—and, most strikingly, the riseof Prime Minister Sanae Takaichi.
For decades, Japan has lagged behind the rest of the world inpolitical gender equality. In the World Economic Forum’s GlobalGender Gap Report, Japan ranks 118th out of 148 countries—belowThailand, Vietnam, South Korea and China. In such a deeply maledominatedsociety, Takaichi’s ascent is a remarkable personalachievement. Her composure and confidence during former PresidentDonald Trump’s recent visit to Tokyo underscored the significanceof that moment.
Her policy agenda will undoubtedly face scrutiny, and few expectan easy road ahead. Many observers note the continued influenceof old power brokers, including Taro Aso, whose presence loomsbehind the scenes. Still, for Ehime Prefecture—my home region,which has never produced a prime minister—her rise brings a senseof connection and cautious optimism.
Yet a change in leadership alone will not solve Japan’s underlyingeconomic challenges. Since Takaichi’s victory, the yen has fallenrapidly—from around 145 to roughly 154 against the U.S. dollar, a6-percent drop. For an import-dependent economy, that means higherprices for everything from energy to food. Accepting a weaker yenruns counter to efforts to curb inflation.
The late Shinzo Abe, whom Takaichi often cites as a mentor,embraced a weak-yen policy as part of his Abenomics strategy toboost exports during Japan’s deflationary years. Back then, pricesremained flat even as the yen slid—proof of how cold the domesticeconomy had become. But in today’s inflationary climate, that samepolicy tool is far riskier. Takaichi now faces the delicate taskof defining her own path in an environment far less forgiving.
Japan’s deeper structural issues have not gone away either. Thepopulation continues to age and shrink, eroding the foundationsof its labor force and social security system. Tax cuts may bepolitically popular, but a functioning state cannot survive onpopularity alone. At a time like this, Japan’s leaders must askcitizens for understanding and cooperation—building a tax andbudget framework not just for the present, but for the generationsto come.
