Mr. Shinzo Abe is going to be Japan's prime minister at the worst time, as most of the world economic indexes have already hit their peaks and started to decline. That includes the business cycle of the Japanese economy, which has enjoyed the longest expansion, surpassing the Izanagi boom, in the postwar period, and will inevitably decline in the near future. Abe will also have to face a series of tough local elections against the DPJ led by Ichiro Ozawa, before the Upper House elections next summer. In those elections, Abe can not depend on his past accomplishment, because there is none, and it would be risky to refer to the Koizumi reform for his past contributions, because there is now much resentment or criticism regarding Koizumi's policies favoring rich people and big business in large cities and thus creating socio-economic disparity, as perceived by the general public. No one knows how Abe can handle such difficult issues as social security reform, education reform and fiscal reform in addition to Asian diplomacy, especially dealing with North Korea. All these problems are left over by Junichiro Koizumi, who wisely focused on what he could handle strategically from his standpoint, most notably, postal reform. It remains to be seen if Abe is wise enough to learn from Koizumi's strategy in this respect.