Japanese politics is in a state of dysfunction. Symbolic of the problem is the fact that even though Prime Minister Yoshiro Mori's Cabinet survived an opposition-sponsored no-confidence motion, there are moves in the governing Liberal Democratic Party to unseat him.

The indications are that Mori's successor will be chosen on the basis of the factional balance of power in the LDP, as was Mori last April. The LDP is making little effort to reform itself and is inviting increasing public distrust, after a payoff scandal involving the mutual-aid organization KSD exposed once again the long-standing collusion among politicians, bureaucrats and business executives.

There are signs that the economy is shrinking, contrary to the government's announcement that it was expanding. Unemployment has hit a record high, and the Tokyo stock market plunged to a 15-year low. Under the Mori Cabinet, Japanese diplomacy is making little progress.