Reward and competition -- those may be the key words to describe Monday's Cabinet reshuffle by Prime Minister Junichiro Koizumi.</PARAGRAPH> <PARAGRAPH>The prime minister has carefully handpicked loyal aides who have made considerable contributions to his administration so far, while also placing future prime minister hopefuls under his Cabinet's wing to exert tighter control over them, according to many observers.</PARAGRAPH> <PARAGRAPH>'This –

is a set of personnel appointments based on merit and reward," said Norihiko Narita, a professor of political science at Surugadai University. "The criteria (for being selected) was loyalty."

For example, Seiken Sugiura, who was deputy Chief Cabinet Secretary in the previous Cabinet, was given the post of justice minister. Sugiura has long helped Koizumi, serving as a close aide at the Prime Minister's Official Residence.

Toshihiro Nikai, who headed the Liberal Democratic Party's Election Bureau and was a key figure in orchestrating the party's landslide victory in the Sept. 11 general election, landed the prestigious post of minister of economy, trade and industry.

The new financial services minister, Kaoru Yosano, worked tirelessly as LDP policy affairs chief to achieve Koizumi's postal privatization reform amid strong party resistance.