TOKYO, Japan (CBS) -- Japan dissolved its lower house on Friday (November 16) setting the course for general elections that is likely to return the long-dominant Liberal Democratic Party (LDP) to power with a conservative former prime minister at the helm.
"The Lower House is hereby dissolved," Speaker of the Lower House Takahiro Yokomichi said triggering deafening shouts of 'banzai' before parliament members.
"It looks very likely the LDP will win the election but it won't be enough to form a government on their own so they will have to look for coalition partners. There are new parties forming, there will probably come new parties out of the failed Democrat government as well and this will be probably the situation of the next one or two months until there is a new coalition," said Dr. Martin Schulz, a senior economist at the Fujitsu Research Institute.
The prospects of a return by the LDP has prompted concerns that former Prime Minister Shinzo Abe, who polls suggest is looks likely to be the next premier, will further fray ties with China, already chilled by a territorial row over a group of islands.
"There is a policy row going of course, in particular between China and Japan in the current situation. On the other the economies are already suffering from that, both economies in China and in particular Japan need more growth. Companies are absolutely not happy with the current situation so they are pushing very hard for a solution and moving forward," Shulz said.
Policies in the spotlight include the role of the future of nuclear power after last year's Fukushima disaster, and whether Japan should take part in the Trans-Pacific Partnership, a U.S.-led trade pact that Noda favors joining and how to boost Asia's second-largest economy from a long-term lackluster period.
Those issues, analysts say, are however unlikely to be resolved with the government that comes out of this next general election.
"In Japan we need long term goals, long term structural reform, fiscal reform, we need long term growth policies and this is what hasn't been implemented because leadership was not focusing on the longer term and it is very unlikely we will see this in the near future," Schulz said.
There is a growing feeling among Japanese that neither party, with its array of elderly politicians, has the answer to Japan's current woes.
"I mean, isn't it about time for those older conservative gentlemen to allow for a transition of power between generations. Myself, I am of that 'next generation' and soon I think we need for even those that don't typically vote to feel like they have to get out there and force these old men into retirement," said 30 year-old Moyuko Miyuki.
"Half of the things promised were not delivered upon and that has really stayed with me. I'd like for the next administration to be a group of honest people that will keep their promises and get things moving forward with our government," said 30-year-old Kazuhiro Kobayashi.