At present, there are eight "policy groups" in the LDP. The principal reason for the development of these groups is the Party's selection of its Party President (and Japan's prime minister) through an election decided by the votes of Party Members. The primary objective of each policy group (faction) is to support the candidacy of its leader in this contest. 　　　The previous electoral system for the Lower House provided for medium-sized, multi-member districts. In an effort to form a majority within the Party, different factions supported different candidates in these districts. This forced multiple LDP candidates to compete against each other for seats in the same district. The existence of factions created an "opposition groups/ruling groups" system within the LDP that has helped to ensure the smooth transition of power and authority between successive generations and facilitated policy change in ways that have periodically reinvigorated the Party. 　　　At the same time, however, factions have often been the target of criticism that they are breeding grounds for "money politics" and corruption and have caused the LDP to lose its identity as a party and become simply a collection of competing groups. In response to these concerns, the Party introduced a new electoral system of single-member districts and proportional-representation districts for the Lower House in January, 1994. In addition, the LDP's Party Reform Headquarters, chaired by Horiuchi Mitsuo, proposed in August of the same year that factions be abolished. Following this recommendation, faction offices were closed in December, 1994. However, in light of (1) the important role that factions have played in unifying the will of a large political party containing almost 400 Diet members and fostering communication within it, and (2) the inevitability of their existence due to the nature of the election process for the Party President, they were recognized as "groups formed by like-minded individuals for the purpose of policymaking" by the same Party Reform Headquarters in 1999 (this time chaired by Aichi Kazuo). 　　　These policy groups hold meetings on a regular basis and provide important lines of communication and opportunities for exchanges of opinions within the Party. Policy Groups in the LDP - Heisei Kenkyukai (Hashimoto Faction) - Kochi-kai (Ozato Faction) - Kochi-kai (Horiuchi Faction) - Seiwa Seisaku Kenkyukai (Mori Faction) - Shisui-kai (Eto - Kamei Faction) - Kinmirai Kenkyukai (Yamasaki Faction) - Bancho Seisaku Kenkyukai (Komura Faction) - Taiyu-kai (Kono Group) (Note - Some members of the LDP are "independent" and have chosen to remain unaffiliated with any of these groups.)

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