1994 Japanese electoral reform

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.

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.

[4] 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.

[4] 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.

[5] Due to several economic changes in the later half of the 20th century, LDP members grew increasingly wealthy.

[8] Tanaka was arrested for accepting a bribe for the first time shortly after he entered the National Diet.

[8] 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).

[8] The Lockheed bribery scandals in the 1970s refer to several bribes accepted during Tanaka's time as prime minister.

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.

[6] Candidates relied on pork barrel politics, patronage, and other favors to their constituents for votes in return.

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.

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.

Miyazawa had once promised to introduce reforms that were aimed to deal with effects of the scandals and economic collapse prior to 1993.

[6] Reforms included a system of 500 single member districts, elected by plurality voting.

This was largely influenced by Ozawa, who advocated for Hosokawa to lead the coalition of parties that banded together against the LDP.

As for the anti-corruption issues, the LDP advocated a more relaxed regime, while the JSP wanted to ensure legislation against money-related corruption.

a slight consolidation of the number of political parties, moving one step towards the objective of having a two-party system.

The bipolar competition at the district level left two viable candidates, one from the incumbency and one from the opposition.

[13] The reduced size of the electoral districts decreased the total political funds required for each campaign.

However, even with the revision, there are loopholes that still exist, such as through vague wording, utilizing koenkai or the culture of Japanese gift-giving.

Later, it became clear that the ratio of voters who put a higher priority on the individual candidate decreased under the new single-member district system.

The reforms made sure that all public financing for campaigns and all private contributions went to the party rather than specific individuals.

[11] Other non-reform influences aimed at a more party centered campaign include demographic shifts, urbanization, and the LDP's reduced ability to spend government resources.

[15] Demographic shifts demanded a greater amount of funds used for national social welfare spending.

Politicians could no longer only focus on their small constituency and thus pork barrel projects decreased.

The "best loser" system (Sekihairitsu) in the party list side is a Japanese idiosyncratic rule.

[14] Despite the electoral and campaign reforms to minimize or eradicate koenkai, a financial support network for politicians, they still exist post-reform.

Although the campaign reform only allows funding to go to the party, loopholes still exist to contribute directly or indirectly to a specific candidate.