Liberal Democratic Party Masuzoe ran for Governor of Tokyo in the
1999 election, placing third among nineteen candidates (behind
Shintaro Ishihara and
Kunio Hatoyama). He won his first
National Diet seat in the
Upper House in 2001 with the largest number of ballots in the national proportional representation section of the House of Councilors. His main election promise was to change the Bank of Japan's policies by reforming the Bank of Japan Law. However, in May 2001 the book
Princes of the Yen () on the Bank of Japan, by
Richard Werner, became a number one general bestseller, and Masuzoe agreed with its conclusion that to end the recession and avoid future banking disasters and credit-driven boom-bust cycles, the
Bank of Japan Law had to change to make the central bank more accountable for its policies. Masuzoe won with a
landslide victory – presaging the same platform, policy recommendation and landslide victory enjoyed by
Shinzō Abe in the election that was to make him prime minister in late 2012. After his victory in 2001, Masuzoe duly formed the LDP BoJ Law Reform Group and appointed Professor Werner as its advisor. It included the members of the Lower House
Yoshimi Watanabe and
Kozo Yamamoto, among others. In 2006, he was named deputy director general of an LDP committee charged with redrafting the
Constitution of Japan. In this role, he argued that
Article 9 of the Constitution of Japan, which prohibits Japan from maintaining warmaking potential, was increasingly disjoined from the reality of Japan's defense arrangements, and should be revised to allow the
Japan Self-Defense Forces to have the status of a military. In August 2007, Masuzoe was appointed as
Minister of Health, Labour and Welfare. He served in this position until 2009 under three consecutive prime ministers (Shinzō Abe,
Yasuo Fukuda and
Tarō Asō). As MHLW minister, Masuzoe was the first Japanese government official to set forth a timetable for the settlement of lawsuits against the state for
hepatitis C infections caused by tainted blood transfusions, and started an internal investigation regarding the ministry's previous responses to the issue. The plaintiffs rejected his settlement proposal in December 2007, which placed strain on the Fukuda government's approval ratings. Masuzoe set up a study group within the LDP in early 2010 to study economic reforms similar to those begun by Prime Minister
Junichirō Koizumi.
New Renaissance Party By early 2010, Masuzoe had become an extremely popular political figure, with opinion polls suggesting that he was the public's most favored prime ministerial candidate by a wide margin. In a Kyodo News poll in March 2010, 23.7% of respondents named him as the best candidate for prime minister, compared to only 8.3% who chose second-ranked incumbent prime minister
Yukio Hatoyama. The Liberal Democratic Party at the same time had incurred a massive
general election defeat in August 2009, and its approval ratings continued to plummet following the election of
Sadakazu Tanigaki as party president in September 2009. In April 2010, Masuzoe left the LDP and formed a splinter group called
New Renaissance Party (). The party's platform included a call for
decentralization, deregulation, and a halving of the number of Diet members. At the time,
The Economist's Banyan column dubbed Masuzoe "Japan's most popular politician". Both the NRP and
Your Party, led by ex-LDP lawmaker
Yoshimi Watanabe, were viewed at the time as potentially effective center-right counterweights to the
Democratic Party of Japan, and possibly even successors to the LDP itself. LDP secretary-general
Nobuteru Ishihara indicated in October 2010 that Masuzoe would run as a candidate in the
2011 Tokyo gubernatorial election, which Masuzoe emphatically denied, stating that he would serve out the remainder of his term in the House of Councillors. In December 2010, he met with Ichirō Ozawa,
Yukio Hatoyama and
Kunio Hatoyama, reportedly to discuss a potential political realignment within the ruling
Democratic Party of Japan following the resignation of Chief Cabinet Secretary
Yoshito Sengoku. He continued to be critical of the DPJ administration under
Naoto Kan in the wake of the 2011
Fukushima Daiichi nuclear disaster, saying that "the government has failed to disclose information thoroughly and, secondly, it has created a confusing array of committees and organizations". Masuzoe made efforts in foreign relations as head of the NRP. He met with Chinese state councilor
Dai Bingguo in March 2011 following the resignation of Foreign Minister
Seiji Maehara to reassure the Chinese government about Japan's stability. He traveled to Taiwan in October 2011 as part of a trilateral security dialogue between Taiwan, Japan and the United States, and met with
Tang Jiaxuan in Beijing in April 2013 as part of an effort to improve strained
Sino-Japanese relations following the nationalization of the
Senkaku Islands. Masuzoe was reportedly considered for a cabinet position under Prime Minister
Yoshihiko Noda in January 2012, but was passed over. On 18 January, he dissolved his alliance with the
Sunrise Party of Japan led by
Takeo Hiranuma. Later that month, the
Asahi Shimbun proclaimed that he had "dropped off the political radar". He held out hope that dissatisfaction with the DPJ and LDP would boost third parties in the
2012 general election, writing that "the dysfunction within the DPJ, and the lack of any impetus for internal reform in the LDP, is forcing the electorate to seriously consider supporting political forces outside the traditional two-party structure". During the 2012 election race, Masuzoe expressed opposition to the consumption tax increase implemented by the DPJ, and argued in favor of deregulation and reducing corporate taxes, as well as implementation of a
dōshūsei federal system. He openly considered leaving the House of Councillors to run for governor of Tokyo in the
2012 gubernatorial election at the behest of DPJ legislators in the metropolitan assembly, and also considered running for the House of Representatives in the general election. Following the resounding victory of Abe and the LDP in the general election, Masuzoe announced in June 2013 that he would not stand for re-election in the
July 2013 House of Councillors election, stating, "I have done the best I could for nearly three years, but I was unable to boost [the party's] strength." ==Governor of Tokyo==