Deliberation at the CPD
In an attempt to preempt powerful intervention behind the scenes, the commission assumed a
mantle of openness and deliberations were made public soon after each meeting. However,
Murayama resigned in 1996, in the wake of difficulties encountered in connection with policy
issues ranging from matters relating to the Great Hanshin-Awaji Earthquake of January 1995
to antirecession measures following the bursting of the economic bubble. Speculation was that
the new coalition administration of Hashimoto Ryutaro, LDP president, would not be as
enthusiastic about decentralization as had been the predecessor.
But reform-related deliberation proceeded, albeit characterized by traditional,
compartmentalized, interdepartmental rivalries and time-consuming negotiations with the
CPD, since the new administration’s resolve concerning decentralization was somewhat less
focused. It should be remembered that the CPD, an advisory organ, was acting in the capacity
of bureaucratic member organization of the cabinet, as a result of which its zeal for
decentralized administration met opposition from central government organizations that
feared the decentralization scheme would merely serve to enhance the power of the Ministry
of Home Affairs, which was in charge of intergovernmental relations. Ministries thus
mobilized politicians who favored centralized administration for the political influence it
allowed over resource allocation. For the CDP and these ministries to reach an agreement
necessitated compromise.
Prime Minister Hashimoto (1996–1998) was more inclined to tackle the administrative
reforms pertaining to the reorganization of the central government. Scandals involving highranking
bureaucrats in major ministries plagued his administration, and failures of public
policy, particularly as regards banking, created distrust of the once-respected bureaucracy. On
November 21, 1996, amid calls for accountability, the Hashimoto cabinet established the
Administrative Reform Council, the remit of which was the reorganization of the central
government