HKUST PPOL Fall 2025

FOCUS OF STUDY The article analyzes the political and economic challenges facing Japanese Prime Minister Shigeru Ishiba after his ruling coalition’s defeat in the upper house elections. Central to the analysis is the declining public confidence in the government’s economic policies, particularly amid rising consumer prices, tariff tensions with the United States, and debates over a proposed sales tax cut. A key focus is placed on expert commentary from Masaru Yarime, Associate Professor at the Division of Public Policy at the University of Science and Technology, who identifies economic policy dissatisfaction and political instability as core concerns shaping Japan’s current governance crisis. Yarime emphasizes that the election results signal widespread public discontent, especially among younger voters, and reflect growing doubts about the government’s ability to manage inflation, social welfare burdens, and external trade pressures. The ruling Liberal Democratic Party (LDP) and its partner Komeito now lack a majority in both chambers, complicating policymaking in what Yarime describes as a “very uncertain political landscape.” POLICY RECOMMENDATION To restore political stability and public trust, the Japanese government should prioritize inclusive policy dialogue, particularly on economic reforms, and address intergenerational concerns by engaging younger voters. Transparent and responsive governance—especially in managing inflation, trade relations, and fiscal sustainability—will be essential in navigating Japan through a volatile political and economic period. Masaru Yarime. “Ishiba cites tariffs, inflation fight for staying on.” RTHK’s news programme, Hong Kong Today, 21 July 2025. FOCUS OF STUDY This paper examines China’s Great Western Development Program, aimed at fostering economic growth in underdeveloped western provinces. Using a regression discontinuity design and night-light data, the study finds that the Program resulted in a 1.3–1.7% increase in annual output growth in the western region. However, the benefits were primarily observed in areas with better initial endowments, leading to increased inequality within the treatment group. The research highlights the need to assess both the intended and unintended effects of such policies on regional inequality. POLICY RECOMMENDATION To enhance the effectiveness of development programs, policymakers should target investments more strategically, focusing on regions with weaker initial endowments to ensure equitable growth and reduce regional disparities. Zhu, Pengyu, Yulin Wang, and Yatang Lin. “Unravelling regional inequality: the heterogeneous impact of China’s Great Western Development Program.” Regional Studies 59.1 (2025): 2438319. 32 Scholarly Showcase

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