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In order for Japan to remain wealthy, vital and a trusted nation, it is essential for politics and business to work together as a pair of wheels in tackling various issues. Therefore, Keidanren proposes the following political reforms as well as action plans for the business community.

1. Current Situation

Strong political leadership is in demand as Japan faces a number of crucial domestic and external issues — recovery from 3.11 disaster, departure from deflation, reinforcement of growth capability, fiscal and social security reforms, restructuring energy policies, and participation of TPP (Trans-Pacific Partnership) — those require immediate actions.

2. Problems of Japanese Politics

Japanese politics' ability of problem-solving has significantly deteriorated due to populism in the political world and the stalled implementation of policies caused by the "twisted Diet."

3. Ideal Form of Politics

Drastic political reforms are urgently needed for enhancing policy making ability, persuasion skills to gain the support of people, sound judgment for executing policies, and establishing a control tower for decision making and policy implementation.

4. Political Reforms

1. (1) Fundamental reforms of the electoral system
   • The House of Representatives: Study electoral system including the re-evaluation of the merits of the multiple-seat constituency system
   • The House of Councillors: Study the options of adopting the regional block system in consideration of introduction of the regional government system, "Doshu-sei."
   • Correct disparity in the weight of votes, reduce the number of Diet seats, and lift ban on online election campaigns, etc.
2. (2) Reforms of the legislative body
   • As a fundamental reform, ease the requirement for the House of Representatives to override bills rejected by the House of Councillors (from the two-thirds majority vote to 50% vote) and study possibility of a unicameral parliament
   • Actively modify bills through consultation among ruling and opposition parties, abolish the principle of noncontinuous deliberation on bills over separate Diet sessions, and introduce a system which allows the Diet to sit in session throughout the year
3. (3) Enhancement of governance of political parties
   • Enhancement of policy-oriented activities: Establish a general platform and basic policies of political parties, strengthen policymaking ability, and clarify decision-making process, etc.
   • Explore the possibility of enshrining the requirements for establishing a political party into law
4. (4) Recruitment and development of political leaders
   • Establish a system to recruit competent persons from various fields into the political field
   • Intensify training for new Diet members and human resources development of political parties
5. (5) Issue of political funds
   • Establish a balanced political funding structure, including optimal ways of subsidies to political parties
   • Improve the transparency of political funds
   • Promote private donation

5. Actions by Business Community

The business community will be actively involved in the following activities — enhancing policy proposing activities, comparison and evaluation of major political parties' policies and activities in line with opinions of Keidanren, and promotion of dialogue between business leaders and politicians — among other things.