Hatoyama delivers an impressive cabinet

The votes are being counted in the House of Representatives, after which the House of Councillors will vote for the new prime minister. Hatoyama Yukio's election as the next prime minister is assured.

On the eve of his election by the Diet, Hatoyama decided the presumptive lineup of his cabinet — but he did not share it with the press Tuesday, warning that if appointments "are leaked, they will be changed." (Hatoyama actually deserves credit for his handling of the press regarding cabinet appointments during the past two weeks: he said he would hold off on making announcements, and he has stuck to it, offering little to the press when questioned. Undoubtedly he has made few friends among the media as a result.)

But the list itself, now public, is impressive. In addition to already-known appointments of Kan Naoto (deputy prime minister and head of the national strategy bureau), Okada Katsuya (foreign minister), Fujii Hirohisa (finance minister), and Hirano Hirofumi (chief cabinet secretary), the Hatoyama cabinet includes as host of senior DPJ politicians balanced among the party's different groups. The balance led Yomiuri to refer to it as a "safe driving" cabinet, as if safe driving is a bad thing after Aso Taro's reckless driving (how else to refer to his appointment of Nakagawa Shoichi as finance minister during a severe global financial crisis, after all?). Appointing ministers from across the party is a good way of ensuring that there will be lively debates in the cabinet and that there will be few senior politicians left in the party to cause trouble for Ozawa Ichiro and the cabinet. (Noda Yoshihiko, an "anti-mainstream" leader, was denied a cabinet post and has reportedly complained about it, but he has relatively little company.)

In addition to the aforementioned names, the cabinet will tentatively include the following:

Haraguchi Kazuhiro, a five-term member from Saga prefecture, will serve as minister of internal affairs and communications. Haraguchi is exceptional in that he actually held the same portfolio in the DPJ's shadow cabinet. In fact, he has held the postal reform portfolio in previous shadow cabinets, suggesting not inconsiderable familiarity with his brief. At fifty years old, he will be the third youngest member of the cabinet.

The justice minister will be Chiba Keiko, an upper-house member from Kanagawa who is unusual in that she is one of a tiny number of DPJ members who did not leave the Social Democratic Party of Japan (SDPJ) until well after the party's ill-fated coalition with the LDP. Chiba is liberal on history and social issues, and has served as the shadow justice minister and the shadow minister for gender equality and human rights under various party leaders (including Maehara).

Kawabata Tatsuo, one of the party's vice presidents and an eight-term Diet member (first elected from the Democratic Socialist Party), will take the lengthy title of minister of education, culture, sports, science, and technology. Befitting his long service, Kawabata has held a number of party leadership positions, including chairman of the party's board of governors.

In a somewhat surprising move, Nagatsuma Akira, "Mister Nenkin," scourge of the Social Insurance Agency, will be Masuzoe Yoichi's successor as minister of health, labor, and welfare. At forty-nine he will be the second-youngest cabinet member. I think giving Nagatsuma a proper ministry is a brilliant stroke, ensuring that a problematic ministry will get an energetic minister strongly committed to the party's administrative reform program (and reforming social security) at its head, and giving Nagatsuma experience that will raise his national profile further. His popularity will no doubt be a boost for the cabinet.

The ministry of agriculture, forestry, and fisheries — perhaps the most problematic ministry — will go to Akamatsu Hirotaka, a seven-term Diet member who began his career in the Socialist Party and has been in the DPJ since its first iteration. He will have his work cut out for him.

Naoshima Masayuki and Maehara Seiji (at forty-seven the youngest cabinet member) received the economy, trade, and industry, and land, infrastructure, transport, and tourism portfolios respectively. Maehara will also hold portfolios for disaster relief, and Okinawan and Northern Territories affairs. (Perhaps the latter briefs are a way to give Maehara a voice in foreign policy discussions through the back door? Presumably any cabinet committee discussion of either issue will include Maehara.)

The environment ministry goes to Ozawa Sakihito, along with Hirano Hirofumi a close ally of Hatoyama's. A member of Sakigake and an original member of the DPJ, Ozawa's appointment may reflect the prime minister's interest in emissions controls.

After worries that the defense ministry would go to the PNP's Kamei Shizuka, the post will go to Kitazawa Toshimi, along with Maehara and Kawabata a party vice president. Kitazawa is also one of four upper house members in the cabinet. Coming from Nagano, it is not surprising that Kitazawa has long been close to former Prime Minister Hata Tsutomu, once Ozawa's co-conspirator in splitting from the LDP in 1993 and one of the participants in the creation of the new DPJ in 1998. He recently served as chair of the upper house foreign and defense policy committee.

Nakai Hitoshi, who first joined the DPJ in 2003 in the merger with the Liberal Party, will serve as head of the Public Safety Commission, and Ozawa critic Sengoku Yoshito will head the new Administrative Renovation council.

Also joining the cabinet will be SDPJ head Fukushima Mizuho, whose portfolio will include consumer affairs and the aging society problem, and PNP head Kamei Shizuka, whose portfolio will include the Financial Services Agency (FSA) and the postal issue. Kamei is pleased to have received this post, describing the appointment as "perfect." It is not clear, however, what role Kamei will play in dealing with Japan Post, as the ministry of internal affairs will continue to take the lead in managing postal affairs. The portfolio may simply assure Kamei a seat at the table without any attendant administrative responsibilities. Mainichi reports some unease from investors regarding Kamei's position as head of the FSA due to his opposition to "structural reform," although Kamei will likely have little independence regarding finance and investment. (And, incidentally, it was Kamei who reassured the Obama administration that Nakagawa Masaharu's remarks about Japan's buying only Samurai bonds under the DPJ was not an official statement.)

Ikeda Nobuo sees Kamei's participation in the cabinet as an ill omen for the Hatoyama government, citing shady dealings of Kamei's from the 1980s. I cannot speak to these rumors, but Ikeda makes one claim regarding Kamei's participation in the cabinet that I disagree with: Ikeda argues that Hatoyama will have a difficult time controlling Kamei and suggests that he could become a "bomb that destroys Japan's economy." I think that both Kamei and Fukushima will end up being marginal figures in the new government. Neither has an important portfolio, and with the DPJ aiming to move away from unanimous decision making in the cabinet, they will have little power to stop cabinet decisions. Their parties obviously have the ability to stop legislation in the upper house, but if they are included in the decision-making process from the beginning it should simplify management of the upper house. As MTC argues, the DPJ may need the two small parties beyond July 2010, and it makes good sense to include both leaders in the cabinet to streamline the policymaking process. Undoubtedly Kamei and Fukushima are simply happy to be in the cabinet. The DPJ has given up very little to secure their participation. I think worries about the two are, for now, overblown.

I think that Hatoyama did an extraordinary job picking his cabinet, for which he deserves credit. He has shown that he has no problem delegating authority to politicians who may have more policy expertise than him or independent standing within the DPJ. Few politicians in the cabinet are dependent on Hatoyama for his patronage. He will be surrounded by ministers who will have no problem disagreeing with the prime minister. But he also chosen talented ministers who by and large have been in the DPJ for most if not all of its existence, are committed to its policy programs (especially administrative reform), and are independent from Ozawa Ichiro. As I told Yuka Hayashi of the Wall Street Journal, Hatoyama as prime minister will be "more of a committee chairman than a president." He will have to manage debates among his ministers, intervening when appropriate, closing debates, and setting the policy agenda. But he will not be in a position to dictate policies to his cabinet and demand that the ministers follow along.

When it comes to cabinet personnel, Hatoyama has put his government in a position to succeed.

The Hatoyama system takes shape

The coalition with the SDPJ and the PNP cemented, the DPJ is getting to work filling in the rest of the cabinet.

One question is what posts the SDPJ's Fukushima Mizuho and PNP's Kamei Shizuka will fill. The SDPJ has requested either the ministry of health, labor, and welfare or, it seems, the environment portfolio. Despite an earlier report that suggested Kamei would enter the cabinet as a minister without portfolio, it seems that the PNP now wants the ministry of internal affairs and communications, not surprisingly given that the PNP's issue is reversing postal privatization. It is unlikely that the DPJ will give the post to Kamei.

Hatoyama Yukio has set 15 September, the day before the Diet will elect the new prime minister, as the target for finalizing cabinet appointments. Nothing, it seems, will be decided before then.

But the names of likely cabinet ministers are emerging. In addition to Fukushima and Kamei — and before them Okada Katsuya, Hirano Hirofumi, Fujii Hirohisa, and Kan Naoto — DPJ members under consideration are Nagatsuma Akira ("Mr. Nenkin"), Maehara Seiji, Sengoku Yoshito, and Naoshima Masayuki. Maehara, despite (or because of) his reputation as a hawkish defense specialist, is rumored to be under consideration for the ministry of land, infrastructure, transport, and tourism. Sengoku is being considered for the justice and health, labor, and welfare, while Naoshima, currently the DPJ's policy affairs research council chairman, may end up as the METI minister.

That leaves at least seven more names to be included in the new cabinet, which could be more depending on how many "special mission" posts the Hatoyama cabinet decides to create.

What seems clear, however, is that with Maehara and Sengoku likely to receive important posts in the cabinet, it will be difficult to speak of the Hatoyama cabinet as an "Ohato" cabinet. It is possible that Ozawa's favorites could fill out the remainder of the cabinet, but with Sengoku and Maehara — Sengoku was close to running against Ozawa last year, and both were against Ozawa's continuing as party leader as the Nishimatsu scandal unfolded — in the cabinet, the idea that Hatoyama's cabinet will simply be under Ozawa's thumb is unlikely.

Indeed, it is possible that the DPJ has solved its Ozawa dilemma. Ozawa will still wield tremendous power, but his power will be more directed at the party's now numerous backbenchers. He could use those backbenchers against the cabinet, but that assumes that their loyalty to Ozawa is so strong as to lead them to rebel against their party's leadership in cabinet. I will believe in the existence of an Ozawa faction when I see some evidence for it beyond speculation rooted in Ozawa's past as a lieutenant of Tanaka Kakuei linked to his work on behalf of DPJ candidates across Japan.

Walter Bagehot provides an appropriate metaphor for thinking about Ozawa's role in the new government: "A cabinet is a combining committee, — a hyphen which joins, a buckle which fastens, the legislative part of the state to the executive part of the state. In its origin it belongs to the one, in its functions it belongs to the other." In the case of the Hatoyama government, Ozawa will be the hyphen that joins the DPJ-led cabinet to the DPJ's parliamentary majority. His voice will carry weight — I have a hard time seeing him stay completely quiet on policy affairs — but his influence on policymaking may be less than feared.

Indeed, in this role Ozawa could be indispensable to moving Japan away from LDP's cumbersome policymaking process into an era in which politicians in cabinet are capable of making decisions, enacting policies, and leading. Ozawa has long lamented the role that bureaucrats (and the United States) have played in limiting the ability of Japan's political leaders to direct the country. The question now is whether Ozawa can accept other political leaders' directing the country. With enough Ozawa skeptics in the cabinet, he may have no choice but to accept their lead.

Aso stumbles out of the gate

In Asahi's latest opinion poll, the Aso cabinet's approval rating fell seven points to 41%, and its disapproval rating rose six points to 42%. The skepticism of nonaligned voters about Aso Taro continues to grow, at least in this poll: the approval rating among nonaligned voters fell seven points to 24% and rose seven points to 48%. The DPJ also edged ahead in polling for lower house proportional representation voting.

Nakagawa Hidenao looked at this poll and concluded, "Stopping the trend of 'It's good to trust the DPJ with government one time' thinking among independents ought to be placed at the center of the LDP's strategy."

I'm not quite clear why Mr. Nakagawa thinks that this is a viable strategy — this was the closing line to his post, so until he elaborates, it's hard to know what he's thinking — but I doubt that this strategy will work. How does the LDP intend to demonstrate that the DPJ doesn't deserve even a single chance at governing, when the public is increasingly realizing that perhaps the LDP has had one too many chances at governing. Does Mr. Nakagawa really believe that the DPJ is so bad that it can't possibly be trusted with power? Really? Worse than the worst elements of the LDP, against whom the structural reformers have struggled and continue to struggle? If so, it's little wonder that there are few signs that the structural reformers are prepared to cut their ties with the LDP.

But given Mr. Aso's inability to crack the fifty percent ceiling, it is no surprise that the prospect of a snap election is receding into the distance. Mr. Aso emphasized in budget committee proceedings Monday that he is not thinking about an election at all, that economic stimulus takes precedence. The possibility of a dissolution and general election before the end of October appears nil. The Aso government, it seems, is fishing for an issue that it can use to rally the public to its standard. The DPJ has wisely decided that it will not block the government's supplementary budget containing its economic stimulus package. The bill will pass the lower house on Wednesday or Thursday before moving to the upper house, which may pass the bill by the end of next week. In doing so, the DPJ has deprived the LDP of the one issue that might have put the DPJ on the defensive. Based on opinion polls that showed considerable public interest in the economic stimulus plan, the DPJ would likely have been punished if it opposed the government's plan. At the same time, however, the government will not get all that much credit for doing what the public expects it to do.

In the meantime, the LDP still has to find an issue that will give it some momentum in an election campaign. What's left for the government? A unified consumer affairs agency? Not something that voters would oppose, but not exactly something they'll be excited about either. The MSDF refueling mission? Foreign policy will not win turn the tide for the LDP, not when the DPJ can criticize the LDP for its mishandling of pensions and health care. Expect to see more of Nagatsuma Akira, the DPJ's "Mr. Pensions," in the coming weeks and months. On Monday, Mr. Nagatsuma questioned Mr. Aso and Masuzoe Yoichi for seventy-five minutes, asking questions on the pensions problem for more than half the time. The 2007 pensions problem may be the gift that keeps on giving for the DPJ. The LDP can promise pro-growth policies, but it has little control over whether the economy will turn around before the next election (other than delaying the election as long as possible in the hope that growth returns before September 2009). While it is unclear what impact the deepening global financial crisis will have on the Japanese economy, it will likely have a psychological impact on the Japanese public, heightening feelings of economic insecurity. This can only help the DPJ.

Little wonder that Mr. Aso's numbers are trending downward. He is wholly unable to take control of the situation.