Political Developments Since 1990
LDP domination lasted until the Diet Lower House elections on 18 July 1993, in which the LDP failed to win a majority. A coalition of new parties and existing opposition parties formed a governing majority and elected a new prime minister, Morihiro Hosokawa, in August 1993. His government's major legislative objective was political reform, consisting of a package of new political financing restrictions and major changes in the electoral system. The coalition succeeded in passing landmark political reform legislation in January 1994.
In April 1994, Prime Minister Hosokawa resigned. Prime Minister Tsutomu Hata formed the successor coalition government, Japan's first minority government in almost 40 years. Prime Minister Hata resigned less than two months later. Prime Minister Tomiichi Murayama formed the next government in June 1994 with the coalition of Japan Socialist Party (JSP), the LDP, and the small New Party Sakigake. The advent of a coalition containing the JSP and LDP shocked many observers because of their previously fierce rivalry.
Prime Minister Murayama served from June 1994 to January 1996. He was succeeded by Prime Minister Ryutaro Hashimoto, who served from January 1996 to July 1998. Prime Minister Hashimoto headed a loose coalition of three parties until the July 1998 Upper House election, when the two smaller parties cut ties with the LDP. Hashimoto resigned due to a poor electoral showing by the LDP in those Upper House elections. He was succeeded as party president of the LDP and prime minister by Keizo Obuchi, who took office on 30 July 1998.
The LDP formed a governing coalition with the Liberal Party in January 1999, and Keizo Obuchi remained prime minister. The LDP-Liberal coalition expanded to include the New Komeito Party in October 1999.
Prime Minister Obuchi suffered a stroke in April 2000 and was replaced by Yoshiro Mori. After the Liberal Party left the coalition in April 2000, Prime Minister Mori welcomed a Liberal Party splinter group, the New Conservative Party, into the ruling coalition. The three-party coalition made up of the LDP, New Komeito, and the New Conservative Party maintained its majority in the Diet following the June 2000 Lower House elections.
After a turbulent year in office in which he saw his approval ratings plummet to the single digits, Prime Minister Mori agreed to hold early elections for the LDP presidency in order to improve his party's chances in crucial July 2001 Upper House elections. On 24 April 2001, riding a wave of grassroots desire for change, maverick politician Junichiro Koizumi defeated former Prime Minister Hashimoto and other party stalwarts on a platform of economic and political reform. Koizumi was elected as Japan's 87th Prime Minister on 26 April 2001.
On 11 October 2003, the Prime Minister Koizumi dissolved the lower house after he was re-elected as the president of the LDP. (See Japan general election, 2003) Likewise, that year, the LDP won the election, even though it suffered setbacks from the new opposition party, the liberal and social-democratic Democratic Party (DPJ). A similar event occurred during the 2004 Upper House Elections.
In a strong move, on 8 August 2005, Prime Minister Junichiro Koizumi called for a snap election to the lower house, as threatened, after LDP stalwarts and opposition DPJ parliamentarians defeated his proposal for a large-scale reform and privatisation of Japan Post, which besides being Japan's state-owned postal monopoly is arguably the world's largest financial institution, with nearly 331 trillion yen of assets. The election was scheduled for 11 September 2005, LDP managed landslide victory by under the leadership of Junichiro Koizumi's.
The ruling LDP started losing hold since 2006. No prime minister except Koizumi had good public support. On 26 September 2006, new LDP President Shinzo Abe was elected by a special session of the Diet to succeed Junichiro Koizumi as Prime Minister. He was the Japan's youngest post-World War II prime minister and the first born after the war. On 12 September 2007, Prime Minister Shinzo Abe surprised Japan by announcing his resignation from office. He was eventually replaced by Yasuo Fukuda, a veteran of LDP.
On 4 November 2007, leader of the main opposition party, Ichiro Ozawa announced his resignation from the post of party president, after controversy over an offer to the DPJ to join the ruling coalition in a grand coalition, but has since, with some embarrassment, rescinded his resignation.
On 11 January 2008, Prime Minister Yasuo Fukuda forced a bill allowing ships to continue a refueling mission in the Indian Ocean in support of US-led operations in Afghanistan. To do so, PM Fukuda used the LDP's overwhelming majority in the Lower House to ignore a previous 'no-vote' of the opposition-controlled Upper House. This was the first time in 50 years that the Lower House voted to ignore the opinion of the Upper House. Fukuda resigned suddenly on 1 September 2008, just a few weeks after reshuffling his cabinet. And, on 1 September 2008, Fukuda's resignation was designed so that the LDP did not suffer a “power vacuum.” It thus caused a leadership election within the LDP, and the winner, Taro Aso was chosen as the new party President and on 24 September 2008, he was appointed the 92nd Prime Minister after the House of Representatives voted in his favor in the extraordinary session of the Diet. Later, on 21 July 2009, Prime Minister Aso dissolved the House of Representatives and elections were held on 30 August.
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