Japan needs political will

Although mired in economic and financial difficulties for well over a decade, Japan remains by most measurements as one of the top three economies in the world. It is a key player in the global financial and trade system, which is still making a fragile recovery from the international economic crisis.

So, it is worrying that political deadlock in Japan may prevent the country from making hard decisions necessary to tackle its economic woes.

The Democratic Party of Japan (DPJ), which heads the ruling coalition, has lost control of the country's upper house in recent polls, meaning its economic reform legislation can be blocked or delayed by opposition parties. The DPJ had campaigned on a pledge to cut government debt and raise taxes to help reduce deficits. Now it appears that efforts to put the Japanese economy on a sounder footing, will stumble. But, by some accounts, Japanese voters are not opposed to more taxes to get their country's finances in order, they simply did not like the way the DPJ presented its proposals.

Whatever the reasons, the Japanese government needs to show the political will to sort out the country's economy. If they cannot, the rest of the world will have reason to worry.