The 1994 electoral reform in Japan was a change from the previous single non-transferable vote (SNTV) system of multi-member districts (MMD) to a mixed electoral system of single-member districts (SMD) with plurality voting and a party list system with proportional representation. The reform had three main objectives: change the one-party dominance of the Liberal Democratic Party (LDP) from the previous 1955 system to a two-party system with alternation in power, reduce the cost of elections and campaigns, and change campaign focus from individual-centered to party-centered.

Criticisms of the previous system

LDP dominance The 1955 system saw the emergence of two main parties, the LDP and the Japanese Socialist Party (JSP). The LDP was created in November 1955 by the combination of two conservative parties, Japan Democratic Party and Liberal Party. This, plus the reformation of the JSP, created a "one and a half party system", as oftentimes the LDP had twice as many seats as the opposition within the legislature. Following this, the LDP remained in power for the next 38 years until 1993. The LDP was made up of many powerful factions within the party which acted as "parties within a party". These factions generally conducted deals with each other behind closed doors to choose the next prime minister, and in return, the prime minister made sure to allocate Cabinet positions across all factions. These factions played a major role in influencing the LDP's policies and agendas.

Although the previous system began as a "one and a half party system", over time, the opposition splintered. Meanwhile, the LDP came to dominate the government by winning reelection after reelection through a pragmatic approach to gain voters. The party also used their incumbency to create strong connections with the bureaucracy and with businesses. This relationship was called the Iron Triangle and helped the LDP maintain their power and influence. An example of this, called amakudari, is when the LDP would give high-ranking, high-paying corporation jobs to retired bureaucrats in return for government approval for projects (such as public works) that employed companies (such as construction) that supported the LDP. This concept was most apparent during Tanaka Kakuei's time as prime minister in the 1970s.

However, as globalization increased, the isolationist party was forced to open up to foreign companies and investment. Increased affluence in the citizens and urbanization also impacted the rural-based LDP's power. With urbanization also came liberalization, and citizens' interests and the media started to diversify. In addition, the changing demographics to an aging society forced the LDP to start new welfare programs, and introduced the 3% sales tax in 1989 to increase funding, much to the dismay of the voters. The economic bubble also collapsed in 1991, bringing a shock to the legitimacy of the LDP. Money politics, including business deals between companies and the party, along with pork barrel spending and patronage systems led to finance scandals and corruption, as mentioned below.

Money politics Due to several economic changes in the later half of the 20th century, LDP members grew increasingly wealthy. Especially in the 1970s and 1980s, many used their position of power to take advantage of opportunities in real estate and the stock market. As this happened, the number of scandals and corruption increased. Consequently, confidence in the LDP decreased as money scandals continued to plague the Diet.

Pork barrel politics Another major characteristic of Japanese politics prior to reformation was pork barrel politics: spending from the national budget on a certain district in return for votes and other supporting contributions. One important factor within pork barrel politics is the concept of the koenkai. This is a group of a politician's followers and serves as a middle ground for providing voter and financial support to politicians and granting favors to constituents. The stronger the politician's influence and power, the stronger his or her koenkai will be. If the politician can engage in pork barrel politics and provide national spending on local projects, the more influence and power the politician can gain in his/her constituency.

Corruption Many money-related scandals occurred between LDP politicians and businesses during the 1955 system. Some businesses with close relationships with the LDP thrived because of favors granted to them via state intervention. Some ways this happened was through tax breaks, grants, or permits that eliminated other business competition. Listed below is an example of a scandal that occurred during the Tanaka Cabinet.

Tanaka Cabinet (1972–1974)

The Tanaka Kakuei I Cabinet lasted from April 26, 1972, to January 24, 1974.

One of the primary concerns regarding Tanaka's presence in Japanese politics was the structural corruption (kōzō oshoku) based on his frequent use of money to influence politics. Tanaka was arrested for accepting a bribe for the first time shortly after he entered the National Diet. Interest mining groups in Fukuoka paid him approximately ¥1 million to vote against the nationalization of coal mines.

In 1974, Tanaka approved a request by Osano Kenji, a prominent Japanese businessman and hotel owner, to purchase the Princess Kaiulani Hotel in Hawaii with exported funds, despite high restriction on the export of capital. In return, Osano bought one of Tanaka's near bankrupt construction companies.

Tanaka often used the custom of gift giving in Japanese culture to hand out funds to his party members. The press claimed in that in 1974, ¥3 to ¥5 million was given to every member of the Diet as well as chiefs and ministries of the bureau all under the cover of summer gifts (o-chūgen).

The Lockheed bribery scandals in the 1970s refer to several bribes accepted during Tanaka's time as prime minister. After accepting a bribe of ¥3 million from Lockheed, Tanaka influenced the Ministry of Transportation and All Nippon Airways to create a contract with Lockheed Aircraft.

Even after Tanaka's arrest and forced resignation as an LDP member in 1976, the faction which he led within the party continued to have a significant influence in Japanese politics. They had enough power to be able control who would be elected the next prime minister as well as creating public policies.

Candidate vs party strength imbalance The focus on candidates rather than issues and policies strengthened the candidate disproportionately against the party they represented. This was caused by the combination of SNTV and multi-member districts (MMD). Under an SNTV system, voters cast one vote for one candidate. An MMD system indicates that multiple winners from each district get sent to the national legislature. Normally, MMD win seat numbers based on the number of votes the party receives. The SNTV system, however, allowed parties to run multiple candidates at once and voters would choose among candidates. Because of this, candidates needed to differentiate themselves to voters, creating an environment where the personality of the candidate became more important than the party they represented. Candidates relied on pork barrel politics, patronage, and other favors to their constituents for votes in return. Reformers hoped that the change would encourage party centered, issue and policy based campaigns, so voters would know what the entire party stands for and push for at the national scale, as opposed to a candidate centered campaign where voting was simply based on candidate charisma or the candidate's promises to bring local benefits from national funds.

Discussion leading up to reform

LDP reformers Some members within the LDP were frustrated with the internal structure of the party itself. Besides already mentioned issues of corruption, another problem was the need for consensus from faction leaders before any significant initiatives could be put into action. Subsidies for farmers, banks, retailers, and zombie companies were also frequent complaints.

Hata Tsutomu From 1990 to 1991, Finance Minister Hata Tsutomu proposed several reform ideas. These included replacing the previous SNTV system with a mixed system of single-member districts and proportional representation. This, however, was argued against and turned down on the basis that current struggles would soon pass and the Diet should not so quickly abandon their original system.

Ozawa Ichirō

Another one of the most significant figures among LDP defectors was Ozawa Ichirō, a significant member of one of the LDP's many factions. This faction was led by former Prime Minister Takeshita Noboru. Takeshita was a supporter of Prime Minister Miyazawa Kiichi. Miyazawa had once promised to introduce reforms that were aimed to deal with effects of the scandals and economic collapse prior to 1993. Reforms included a system of 500 single member districts, elected by plurality voting. Pressure from other factions, however, eventually made Miyazawa back away from any promise of reform, and no agreement was made.

Ozawa and Hata split from the LDP and formed the Renewal Party along with 44 of their supporters, which eventually grew into an eight-party coalition led by Hosokawa Morihiro, leader of the Japan New Party, and Miyazawa's previous government was replaced in the 1993 election. For the first time since the 1955 system, the LDP lost its majority in the House of Representatives and became the opposition. The Japan Socialist Party (JSP) became the new party in power under the Hosokawa Cabinet.

Hosokawa Cabinet (1993–1994)

The Hosokawa Cabinet lasted from August 9, 1993, to April 28, 1994, and was led by Hosokawa Morihiro. This was largely influenced by Ozawa, who advocated for Hosokawa to lead the coalition of parties that banded together against the LDP.

At first, reception of the cabinet was positive. In public opinion polls, Hosokawa received an approximate 70% level of support. Ozawa, a key influence during this time, publicized his goals of this new cabinet that included a change in the electoral system of the lower house, anti-corruption legislation, election of politicians who had responsibility to the electorate over the bureaucracy, a system of competitive parties instead of a single party dominate system, and a shift in focus away from personal voting and towards policies and issues.

The Hosokawa coalition first proposed reform in August 1993 which proposed 500 seats, 250 seats allocated to SMD with plurality voting, while the other 250 seats voted in by proportional representation. However, although the JSP favored maximization of proportional representation, the LDP desired the most SMD seats possible. As for the anti-corruption issues, the LDP advocated a more relaxed regime, while the JSP wanted to ensure legislation against money-related corruption.

By November 1993, Hosokawa and the new LDP President Kono Yohei put forth a compromise proposal with 274 SMD seats and 226 proportional representation seats. Although this proposal passed in the lower house, in January 1994, members from both the JSP and the LDP voted against this proposal in the lower house.

Electoral reform Finally, on January 29, 1994, the parties agreed upon and passed the electoral reform law. This law changed the electoral system from having 130 MMD and 511 seats to the new system of 300 SMD seats elected through plurality voting, and 200 proportional representation seats elected from eleven regional blocs.

The three main objectives of the election reform was to create a two party system with alternation in power, reduce cost of elections and levels of corruption, and create more party-centered campaigns rather than individual candidate-centered campaigns.

After reform

Two-party system