Hashimoto emerges as front-runner

Ryutaro Hashimoto: Favourite to succeed Yoshiro Mori

Former Japanese Prime Minister Ryutaro Hashimoto has emerged as the front-runner in the race to succeed current premier Yoshiro Mori as party president, and prime minister.

Mr Hashimoto, who heads the Liberal Democratic Party's (LDP) largest faction, is the highest profile contender for the leadership, which will be decided in an election by party members in two weeks.

I hope I will be able to win the people's understanding

Ryutaro Hashimoto

Observers say he faces a strong challenge from the former Health Minister, Junichiro Koizumi, who has promised decisive change for the party which has dominated politics in Japan for more than four decades.

Analysts expect the contest to become a two-horse race between Mr Hashimoto and Mr Koizumi, with the spotlight on each man's proposals for rescuing Japan's teetering economy.

The other two candidates are the Economics Minister, Taro Aso, and the party's policy chief Shizuka Kamei.

Last Friday, current Prime Minister Yoshiro Mori confirmed his decision to leave office, after mounting criticism of his economic policies and a series of verbal gaffes and mishaps.

Comeback

The move marks quite a comeback for Mr Hashimoto, or Hashiryu as he is popularly known, after he resigned in 1998 following Japan's plunge into recession.

His term in office was distinguished by his "Big Bang" reforms to open the financial sector, but his attempts to rein in the huge public debt by cutting spending proved disastrous.

He was forced to step down after the LDP was trounced in an Upper House election in July 1998.

With his slicked-back hair, rakish suits and ever-present cigarette, Mr Hashimoto is well known for his media-friendly attitude.

If elected, he would become only Japan's second post-war prime minister to leave and return to office.