FOCUS: Momentum for Political Reform Wanes in Japan

Tokyo, Sept. 30 (Jiji Press)–Momentum for political reform in Japan, sparked by the slush funds scandal involving fundraising events of ruling Liberal Democratic Party factions, has waned. The previous ordinary session of the Diet, Japan’s parliament, ended without resolution on such reform, as advocates of stricter disclosure of political donations from corporations and other organizations could not reach agreement with proponents of a “ban in principle.” A conclusion was deferred as a result. In the July election for the House of Councillors, the upper chamber of the Diet, measures to address rising prices were the dominant campaign issue, leaving no room for in-depth debate on the issue of politics and money. The discussion will now be carried over to the extraordinary Diet session in the autumn, after the LDP leadership election. Enhanced Disclosure or Ban? At the ordinary session through June, the LDP submitted to the House of Representatives, the powerful lower chamber, a bill to strengthen disclosure of corporate and organizational donations while insisting that such contributions be maintained. In response, the main opposition Constitutional Democratic Party of Japan worked with other opposition forces–Nippon Ishin no Kai (the Japan Innovation Party), Sanseito, the Social Democratic Party, and Lower House caucus Yushi no Kai–to submit a joint bill to ban such donations in principle. The Japanese Communist Party and Reiwa Shinsengumi also pressed for a ban. Komeito, the junior coalition partner of the LDP, and the Democratic Party for the People compiled their own proposals for “tougher regulations.” Earlier, in late March, the LDP, Komeito and the DPFP agreed to prohibit political party branches from receiving corporate and organizational donations unless they submit political funds income and expenditure reports online. They also decided that the donation amount threshold for disclosing corporate and organizational donors’ names should be lowered substantially from over 10 million yen to over 50,000 yen. Still, even among the three parties, which agree that donations from corporations and other organizations should be maintained, there are differences in position. Komeito and the DPFP have proposed limiting the annual cap on such donations to the same organization to 20 million yen, but the LDP refused it. On June 12, the officials responsible for political reform from the ruling and opposition parties agreed to postpone a conclusion on the review of corporate and organizational donations until an extraordinary Diet session anticipated for autumn. On June 20, near the end of the ordinary session, the CDP requested a written confirmation that an agreement would be reached by Jan. 1, 2027, but the LDP did not meet the call before the ordinary Diet session came to a close. During last year’s extraordinary Diet session, the ruling and opposition parties decided to reach a conclusion by the end of March this year on how to handle corporate and organizational donations. But partly because the ruling coalition lost its Lower House majority in the October 2024 election, none of the reform proposals had prospects for approval and there were no signs of compromise. Some have proposed that a third-party body should be created to deliberate the issue and put forward recommendations, so that political parties would seek a path toward consensus. Initial Impetus It is also true, however, that earlier debates on political reform did produce some results. The political funds control law was amended last year, making it mandatory for lawmakers to vouch in writing for political funds income and expenditure reports. If their checks of the reports are found inadequate, lawmakers will have their civil rights suspended and lose the right to hold office in the meantime. The contribution threshold for disclosing the names of purchasers of political fundraising party tickets has been lowered from over 200,000 yen to over 50,000 yen. It has also been decided to abolish the so-called policy activity funds that political parties provide to member lawmakers. Japanese voters have continued to show strong interest in the issue of politics and money, as shown in the LDP’s crushing defeat in the Tokyo metropolitan assembly election in June, chiefly due to public anger over the slush fund scandal involving party factions. The trend did not change in the Upper House election either, with five out of the 15 candidates named in the LDP faction slush fund scandal defeated. In the extraordinary Diet session expected in the autumn, active discussions are expected on measures to counter rising prices and on domestic responses following the agreement in Japan-U.S. tariff negotiations. Responses to the key unresolved issue of political donations from corporations and other organizations will test all political parties’ commitment to reform. END [Copyright The Jiji Press, Ltd.]