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16th August 2024 (9 Topics)

Japan's Prime Minister Fumio Kishida announces Resignation

Context

Japan's Prime Minister Fumio Kishida announced his resignation effective next month amid a series of scandals and a significant drop in public support. Kishida’s government has been marred by issues such as corruption allegations related to illegal slush funds, controversies involving the Unification Church, and ineffective economic policies amid rising living costs. His resignation is intended to address the erosion of public trust and to signal a potential shift within the ruling Liberal Democratic Party (LDP).

Impact on Japan’s Domestic and Foreign Policy

  • Political Reforms: Kishida’s departure may prompt the LDP to reassess and potentially reform its internal policies and leadership approaches to restore public confidence.
  • Economic Strategies: The incoming leader may need to address ongoing economic issues such as the weak yen, inflation, and income inequality, and implement more effective policies to stimulate growth and address demographic challenges like the declining birth rate.
  • Continuity vs. Change: While Japan’s foreign policy is likely to remain stable given the LDP’s long-standing dominance, a new leader may bring subtle shifts in Japan’s international stance or diplomatic priorities, particularly in dealing with major powers like the US and China.

Implications for Regional Stability in East Asia

  • Regional Relations
    • China and North Korea: Japan’s strategic posture towards China and North Korea may be influenced by the new leadership. The incoming Prime Minister might adjust Japan's defense and diplomatic strategies in response to regional security dynamics.
    • US-Japan Alliance: The strong alliance with the US is expected to continue, but there may be adjustments in trade policies or defense cooperation based on the new leader’s approach.
  • Regional Influence
    • Economic Integration: Japan’s role in regional economic partnerships, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), may see a new emphasis or strategic direction under the new leadership.

India-Japan Relations

  • Special Strategic and Global Partnership: India and Japan’s relationship has evolved into a “Special Strategic and Global Partnership,” driven by personal diplomacy, shared values, and strategic alignment.
  • Increased Investments: Japan has significantly increased its investments in India, with pledges rising from 3.5 trillion yen in 2014 under Abe to 5 trillion yen ($42 billion) by Kishida in 2023.
  • Japan is the fifth-largest investor and source of Foreign Direct Investment (FDI) in India, with Japanese businesses making significant investments and looking to invest about USD $42 billion by 2027.
  •  India is also the highest recipient of Japanese Official Development Assistance (ODA) loans over the past decade. 
  • Minilateral and Multilateral Cooperation: The Quadrilateral Security Dialogue (Quad), involving India, Japan, Australia, and the US, exemplifies their joint strategic efforts to address security concerns related to China. Their collaboration extends to third countries and involves emerging trilateral partnerships to counter China's regional influence.
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