The cabinet was formed after the LDP-NKP-NCP coalition was returned to office with a substantially reduced majority in the June 25 general election, and inaugurated after Mori's re-election by the National Diet on July 4.

[2] Administrative reforms begun under Prime Minister Hashimoto came into effect during the Mori government's second term, resulting in the merger, renaming or creation of several ministries and cabinet posts.

[3][4] Two reshuffles of the second Mori Cabinet took place, the first in December 2000 in which a large number of ministers were replaced and ministerial portfolios were allocated in anticipation of the planned overhaul in government structures.

[6] Mori was a deeply unpopular leader throughout his year-long term, with several gaffes, scandals and resignations of government and party figures causing his approval ratings to fall below 10 percent.

[7][8] At the end of 2000, several LDP members launched an abortive effort to remove Mori through a vote of no-confidence, this failed, though it further damaged his government's standing.