Japanese Finance Minister Set to Become Country's New PM

TOKYO Aug. 29, 2011— -- Japan's ruling party elected Finance Minister Yoshihiko Noda its new leader, paving the way for him to become the country's sixth prime minister in the last five years.

Noda replaces outgoing premier Naoto Kan, who announced his resignation Friday after just 14 months in office amid mounting criticism over his government's handling of the triple disasters of the earthquake, tsunami and nuclear crisis.

Noda defeated Trade Minister Banri Kaieda by 215 votes to 177, in a runoff election held after the original five candidates failed to secure the 50 percent support necessary.

Known as a fiscal hawk, Noda inherits a host of economic problems, including a massive debt that is now more than twice the country's $5 trillion economy, the highest in the industrial world. He must also tackle a multi-billion dollar effort to rebuild the tsunami-ravaged coast, while dealing with the nuclear accident at the Fukushima Daichi Power Plant. Add to that, a divided party, and divided parliament, where the opposition Liberal Democratic Party controls the upper house.

Japan's Finance Minister Tapped to Become Latest Prime Minister"Let us sweat together for the sake of the people," Noda said, calling for unity among party members. "We face turbulent times, but I am ready to shoulder the burden."

Unlike most Japanese lawmakers, Noda does not come from a political family. The son of a Japanese Self Defense Force member, he is a career politician, elected to the lower house of parliament five times before becoming Finance Minister in June 2010.

As premier, Noda's most pressing concern will be the massive reconstruction effort stemming from the March 11 tsunami and earthquake. The disasters killed more than 20,000 people, and 100,000 people remain displaced nearly half a year later because of radiation concerns.

Noda has hinted at a consumption tax increase to help pay for the rebuilding effort, an unpopular solution at a time when the country is struggling economically. Just last week, Moody's credit rating agency downgraded Japan's credit rating, citing the country's debt, and the lack of a plan to revive the economy.