Abenomics Increased Donation

Ministry of Internal Affairs and Communications released the amount of political donation by companies, labor unions or industrial groups in 2013. Big names in Japanese business scene occupied top 10 of donation to an organization for Liberal Democratic Party, revealing close relations between economic policy by Prime Minister, Shinzo Abe, and major industries. This is an evidence that Abenomics has not been for small and middle businesses, but reward for top business leaders with political contribution.

National Political Association, an organization managing donation to LDP, received ¥1.95 billion in 2013, which marked 43% increase from the previous year. Although the amount was lower than in pre-Lehman Shock era, which had been around ¥3 billion, it showed significant increase from the time of the opposite status in 2010 to 2012.

Top corporation in donation amount was Toyota Automobile Corporation with ¥64 million. Canon, Sumitomo Chemical, Nippon Steel & Sumitomo Metal, followed Toyota. Heavy industries including carmakers or steel producers positively donated to LDP. Mitsubishi Heavy Industries increased the donation four times more than the previous year. Among security companies, which enjoyed large profit from vigorous activities in the market, Nomura Holdings increased its donation from ¥5 million in 2012 to ¥28 million in 2013.

Those companies have been leading Japanese economy for a long time. A big company club, or Keidanren, restarted recommendation for donation to LDP to encourage further favor for big companies from the party, which would in other words be corporate tax cut. If Abe decides it, instead permanent suspension of consumption tax hike, his economic policy will be proved as nothing but a support to big companies with sacrifice of smaller businesses and ordinary families.

Moral discussion over banning political donation from corporations or organizations is shrinking. With endless revelation of scandals, regulation on political money has became stricter than ever. Politics was recognized as being handled without power of money. With that notion, politics was thought to be better relying on tax money than on corporation or organization. However, Abe administration has not shown serious perspectives for getting rid of people’s apathy on politics.

It is obvious for everyone that this tendency will lead to significant corruption. Dependent on money from labor unions, Democratic Party of Japan also became negative on the regulation of donations. Next administration of Abe must be more active in collecting money from corporations or organizations. Democracy in Japan will represent only a part of its society.