Recent Developments

In 1997, the New Frontier Party disbanded. During 1998, Japan's opposition parties regrouped, and two major opposition parties emerged, the Democratic Party of Japan and the Liberal Party. Japan's economic troubles continued into the early 2000's.

In April 2001, Junichiro Koizumi became Japan's prime minister after the ruling LDP chose him as its leader. Koizumi projected a more dynamic image than most Japanese politicians and promised to reform the government and revive the economy. In 2003, the Democratic Party of Japan and the Liberal Party merged under the name Democratic Party of Japan. In elections that same year, the LDP won a majority of seats in the Diet, and Koizumi remained prime minister.