Fukuda Doctrine
Takeo Fukuda was an expert in economics. He took on the role of an ‘economic prime minister’ under Miki's administration from 1974 to 1976. During this time, he established the Ministerial Conference on Economic Measures, enabling cross-ministry and agency talks on finance, wage and labor issues.
Fukuda subsequently became the 67th prime minister of Japan, lasting for only one term from 1976 to 1978. However, he was not forced out of office before he had gotten two major diplomatic reforms executed. Under Fukuda cabinet, Japan conducted an omnidirectional peace diplomacy, and signed Japan-China Treaty of Peace and Friendship in 1978. He pushed forward Japan's pacifistic position while making an effort to strengthen relations with Asian countries.
Yasuo Fukuda
The resignation led to another leadership election within the LDP. Tarō Asō was viewed as the likely front-runner to replace Fukuda, and was elected a week later. His popularity was hit by a controversial medical plan for elderly people, falling below 30% at one stage. He said:Today, I have decided to resign. We need a new line-up to cope with a new session of parliament. My decision is based on what I thought the future political situation ought to be. The Democratic Party has tried to stall every bill so it has taken a long time to implement any policies. For the sake of the Japanese people, this should not be repeated. If we are to prioritize the people's livelihoods, there cannot be a political vacuum from political bargaining, or a lapse in policies. We need a new team to carry out policies.