Japan: Pest Analysis

PEST Analysis

Political Analysis

• Political System

A parliamentary government with a constitutional monarchy where the power of the Emperor is limited. (Constitutional Monarchy (Limited Monarchy) is a form of government in which a monarch acts as head of state within the parameters of a constitution, whether it be a written, unmodified or blended constitution. This form of government differs from absolute monarchy in which an absolute monarch serves as the sole source of political power in the state and is not legally bound by any constitution.). As a ceremonial figurehead, he is defines by the constitution as “the symbol of the state and of the unity of the people. Power is held by the prime Minister of Japan and other elected members of the Diet, while sovereignty is vested in the Japanese people. Akihito is the current Emperor of Japan: Naruhito, Crown Prince of Japan, stands as next in line to the throne: Naoto Kan is the 94th Prime Minister of Japan, appointed June 8, 2010 and resigned August 26, 2011; Yoshiniko Noda is the 95th Prime Minister of Japan, appointed September 2, 2011, Japan’s 6th Prime Minister in 5 years.

• Legislation

The legislative power is vested in the Diet (KOKKAI), which consists of two houses, the House of Councillors (Sangiin) with 242 seats, whose popularly-elected members serve six-year terms, and the House of Representatives (Shugiin) with 480 seats, elected by popular vote every four years or can be dissolved anytime by the Prime Minister. The lower house holds most of the decision power. As a general rule, a bill becomes a law merely by passing both houses. If a bill has passed the House of Representatives but is defeated in the House of Councillors, it can become law if passed a second time in the House of Representatives with two-thirds of all members present.

The executive power is vested in a cabinet, headed by a Prime Minister and appoints and dismisses the Minister of State, all whom must be civilians. The...