The “third arrow” or friendly fire? The LDP government’s reform plan for the Japan agricultural cooperatives

Hironori Sasada

Japanese Economy, 2015, vol. 41, issue 1-2, 14-35

Abstract: Upon its triumphant return to power in 2012, the Liberal Democratic Party (LDP), under the leadership of Prime Minister Shinzō Abe, introduced a set of new economic policies popularly called “Abenomics.” One of the main components of the new policy was a drastic reform plan for the Japan Agricultural Cooperatives (JA), the party’s longtime loyal supporter. The announcement of the reform plan invited fierce opposition from the JA, which threatened to end its support of LDP in future elections. Why did Abe introduce the JA reform plan, even though it could lead to loss of electoral support for his party? Is he serious about carrying out the proposed reform plan, or is it just for show? This article analyzes the context of the JA reform plan from the standpoint of constructivist institutionalism focusing on policymakers’ ideas regarding party management. It claims that the LDP’s shift away from clientelism is not simply a product of electoral reform; its cause is deeply rooted in the history of the ruling party.

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:mes:jpneco:v:41:y:2015:i:1-2:p:14-35

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DOI: 10.1080/2329194X.2015.1085320

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