The second Cabinet of Prime Minister Shigeru Ishiba begins its journey as a minority government, an exceptional situation that requires the ruling Liberal Democratic Party (LDP) to be attentive to diverse perspectives in the Diet and take a humble approach to governing.

In the recent House of Representatives election, the LDP and its coalition partner, Komeito, fell short of a majority, resulting in a "hung Diet." This has left the Ishiba administration's foundations extremely fragile.

The special Diet session for choosing the prime minister underscored this. For the first time in 30 years, the process extended to a runoff vote. Ishiba was reelected prime minister only because other opposition parties did not rally behind Constitutional Democratic Party of Japan (CDP) leader Yoshihiko Noda. It was, in effect, a victory won on very thin ice.

With numerous challenges facing both Japan and the world, the Diet is expected to face significant difficulties. Without agreements with the opposition, the ruling parties will find it hard to pass budgets and bills.

Fragility of a minority government exposed

The power balance between ruling and opposition parties is clearly reflected in the lower house committees. The CDP controls the Budget Committee chair, preventing the government from advancing deliberations as it wishes.

A prolonged gridlock between the ruling and opposition parties may impede policy implementation. In 1994, the Tsutomu Hata Cabinet, also a minority government, was forced to resign in just 64 days due to its inability to overcome this situation.

The LDP and Komeito aim to navigate this by forming a partial alliance with the Democratic Party for the People (DPFP), which shares a similar policy direction. As a concession for the DPFP's support on the upcoming budget bill, the coalition has agreed to address the "1.03-million yen earnings cap" issue -- workers attempting to stay under the annual 1.03-million yen (about $6,700) threshold for paying income tax -- a key DPFP demand.

Representatives from the three parties are accelerating discussions. This approach merely adds the DPFP into the usual pre-decision policy process that the government and ruling parties carry out. Prioritizing numerical support over a thorough examination of policy soundness risks hollowing out Diet deliberations. This could lead to a resurgence of outdated LDP politics.

Since the second Cabinet of late former Prime Minister Shinzo Abe, there has been a noticeable reliance on numerical dominance in the Diet, making light of parliament discussions and rejecting dissenting views. The LDP's unchecked power led to complacency, and consequently, a series of scandals.

The decisions made by the public in the recent lower house election have created a more balanced ruling-opposition dynamic. This should be seen as an opportunity to transform how the government is operated to restore a parliamentary system driven by constructive tension and debate.

In a meeting with the CDP's Noda, Prime Minister Ishiba emphasized his commitment to "listening to opposition voices and making decisions in a transparent manner for the public." The LDP should hold open discussions with the CDP and other opposition groups, carefully adjusting bills as necessary to build consensus -- as the ruling party normally ought to.

Reform to respond to public opinion is key

The most urgent issue is addressing the "money in politics" problem exposed by the slush fund scandal among the LDP's factions.

The prime minister has announced his intention to abolish political activity funds, which have been exempt from disclosure requirements, and is considering amending the Political Funds Control Act by year's end.

It is essential to close loopholes that foster opaque financial practices and establish a highly transparent system. Superficial reforms will not restore public trust. The government should leverage cooperation with the CDP and other parties to push forward on banning corporate and organizational donations, and promptly establish an independent body to monitor political funds. The Diet's ethics committees should also convene swiftly to fully investigate the factional slush fund scandal.

Addressing rising prices directly impacting the public cannot be delayed. Beyond one-time cash handouts, efforts to improve productivity and establish sustainable wage increases are essential.

With Japan's population rapidly aging and the birthrate declining, enhancing the sustainability of the social security system is an urgent priority.

Following Donald Trump's victory in the U.S. presidential election, the international situation is becoming increasingly uncertain. Rising U.S.-China tensions call for Japan to reassess its diplomatic strategy to prepare for global economic turmoil.

Ishiba faces the difficult challenge of balancing in-depth Diet discussions with efficient governance processes.

His support base within the LDP is also weak, with some calling for a change before next summer's House of Councillors election. However, now is not the time to play a blame game using internal party logic.

What Prime Minister Ishiba should focus on is addressing issues in a balanced Diet and advancing citizen-centered policies. Only by dispelling distrust in politics and addressing the people's anxieties about their livelihoods can he navigate these challenging times.