Former Defense Minister Shigeru Ishiba won the ruling Liberal Democratic Party (LDP) presidential election on Sept. 27, and is expected to be named Japan’s new prime minister on Oct. 1 at an extraordinary Diet session. As the new leader, he must dispel public distrust in politics, bellows by the slush fund scandal LDP factions, and win involving back people’s confidence. His ability to execute plans will be tested by whether he will be able to rebuild the party.

With five LDP factions, excluding the one led by party Vice-President Taro Aso, dissolving and weakening their influence, a record nine candidates entered the leadership contest. In the runoff, Ishiba significantly boosted his share of votes from Diet members to defeat economic security minister Sanae Takaichi, who in the first round had closely contested him over votes from party members and affiliates.

Many members of what used to be the largest Abe faction, led by late former Prime Minister Shinzo Abe, which was at the center of the slush fund scandal, supported Takaichi, but she fell ultimately short. In contrast to Takaichi’s conservative stance and hardline approach toward China, LDP voters chose Ishiba for his experience and stability. The decisive factor seemed to be who would be the most suitable “face of the party for the election.”

Addressing the slush fund scandal

Ishiba’s victory, after years as a nonmainstream figure in the LDP, signals a shift away from the “Abe line” that was continued by the succeeding administrations of former Prime Minister Yoshihide Suga and Prime Minister Fumio Kishida. However, his base within the party is fragile, and building a structure able to manage a stable government is an urgent task to implement his reform and policy aspirations.

The most immediate issue that needs addressing is “money in politics.” The details of how the faction slush funds were created and spent remain unclear. New suspicions have even emerged about the Aso faction, which avoided prosecution. Ishiba must demonstrate leadership and conduct a thorough reinvestigation to uncover the truth.

Those involved in the scandal must also be held accountable. Asked whether the party would endorse members involved in it for the next House of Representatives election, Ishiba initially stated that the matter would be “thoroughly debated,” causing backlash from within the party. Ishiba has since said he will personally interview the relevant individuals and demand explanations about how the funds were spent and other details. He must handle the matter strictly based on the facts that emerge.

The party stopped short of abolishing policy activity funds, which were not subject to spending disclosures. The revised Political Funds Control Act, passed during this year’s regular Diet session, mandates disclosure after 10 years, but if the goal is complete transparency in political funding, abolishing these funds is the only solution.

The LDP’s reliance on money politics was further exposed during the leadership race. Takaichi was found to have mailed policy leaflets to over 300,000 party members across Japan just before the official announcement of the race, prompting the party’s presidential election committee, which had called for a “cost-free election,” to issue her a warning.

Amid Japan’s ongoing population decline and aging society, what is required of politics is to present a vision that gives people hope for the future. First and foremost, it is crucial to alleviate livelihood concerns, such as rising prices.

First thing on the list: Policy debate in the Diet

While Ishiba expressed his intention to continue the Kishida administration’s economic policies, which aim for growth through wage increases and investment, he also mentioned the possibility of strengthening taxation on investment income and increasing corporate taxes. Though he stresses the need for fiscal soundness, the financial market is wary of his ambitions, and careful explanation will be necessary.

His regional revitalization flagship policy should focus on addressing the overconcentration of resources in Tokyo and formulating concrete measures to combat population decline.

In addition, there is an urgent need to improve disaster response systems in light of intensifying natural disasters. Ishiba has proposed the creation of a “disaster prevention ministry,” but it must be made into an effective institution.

As the international situation grows increasingly severe, his foreign policy strategy will also be put to the test. Ishiba has advocated for the creation of an “Asian NATO” as a counter to China. However, there are differences in enthusiasm levels among countries in the region, and it is not seen as a realistic proposal. It could also cause friction with other governments.

With an aim to build an equal Japan-US relationship, Ishiba has called for a review of the Japan-US Status of Forces Agreement, which governs the activities of US military forces in Japan. To reduce the burden on Okinawa, where US bases are concentrated, efforts to gain the US’s understanding are essential.

In his first press conference after becoming LDP president, Ishiba said regarding the timing of a dissolution of the lower house and a general election, “We must seek the people’s judgment as soon as possible.”

Before that, however, Ishiba must first clearly present the government’s basic policies to the public. In Diet budget committee and party leader debates, where direct exchanges between ruling and opposition legislators take place, we hope that he will engage in policy discussions that will help voters make informed decisions.

Most importantly, the issue of “money in politics” must be resolved. Rather than following intra-party logic, Ishiba has a responsibility to listen to the broader voice of the people and advance reform.