Elections and finance

This week, we look at comment on elections in Japan, the growth of corporations and Britain’s financial sector.

Japanese elections

One of the democratic world's longest-serving governments has been voted out of office. Japan’s future is uncertain, writes The Daily Telegraph.

... After more than half a century ... Japan's conservative Liberal Democratic Party (LDP) was swept from office ... In view of Japan's 15-year economic torpor, it is surprising that the LDP had lasted this long in office. The party's reputation for economic competence rested on the spectacular post-war reconstruction that turned Japan into the powerhouse of Asia. That reputation has long since evaporated and the LDP's longevity in recent years has owed more to the failure of the opposition to offer a credible alternative than to any great loyalty among voters. ...

Big companies

Large corporations were on the defensive for decades. Now they have the advantage again, writes The Economist.

In 1996 ... Bill Clinton declared that “the era of big government is over”. He might have added that the era of big companies was over, too. The organisation that defined capitalism for much of the 20th century was then in retreat, attacked by corporate raiders, harassed by shareholders and outfoxed by entrepreneurs. ... Policymakers should both resist an instinctive suspicion of big companies and avoid the old error of embracing national champions. ... The best use of their energies is to remove the burdens and barriers which prevent entrepreneurs from starting businesses and turning small companies into big ones.

Big money

The City of London is the world’s most successful financial centre. But the recent financial crisis has shown that reforms are necessary, writes the Financial Times.

... [T]he view expressed by Lord Turner, chairman of the Financial Services Authority ... that parts of the British financial sector might be larger than is “socially optimal” is uncomfortable. He is, however, right, and his intervention is symbolic of the welcome change in attitude at the FSA since he took charge at the supervisor. ... London cannot stake its survival as a financial centre on the continued willingness of UK taxpayers to bail out its banks. Britons are used to hosting a nest of geese that lay golden eggs. They will not put up with an albatross.