Formed in the aftermath of the 1993 general election, this cabinet was a broad based coalition of parties of both left (the JSP, SDF and DSP), right (JRP, JNP and NPS) and religious politics (Komeito).

A series of defections had cost the LDP its majority before the 1993 election, after which all non-Communist opposition parties coalesced with the aim of creating the first non-LDP government in 38 years and achieving electoral reform.

Hosokawa was elected by the Diet on August 6, and took office as the first non-LDP Prime Minister for four decades.

[1] The coalition achieved Hosokawa's goal of electoral reform, replacing the previous system of multi-member districts with a combined system of single-member districts, elected by first past the post, and blocs of proportional representation candidates.

But having achieved this, and replaced the LDP, the unifying purpose of the coalition was lost and ideological differences between the parties, especially over tax and defence policy, began to split the cabinet.