Richard Katz

Shinzo Abe has had a tough act to follow since succeeding the charismatic Junichiro Koizumi as Japan's prime minister. Abe has already shown himself to be adept in the field of foreign affairs, and Tokyo's influence is likely to increase with him at the helm. But it remains uncertain whether he can keep the momentum going on the reforms needed to stave off economic stagnation.

It is hard to be optimistic about Japan's economy, given that Tokyo has already frittered away a decade. But a corner has been turned. The Japanese people increasingly realize that without reform the situation will only get worse. This new awareness was the force behind Prime Minister Junichiro Koizumi's election in 2001. The bad news is that it may take another decade to get the economy back on track.