Japanese democracy failed in the early 20th century due to a combination of internal and external factors. Internally, the Diet had limited power, corruption was rampant, and economic problems grew during the Great Depression. This led to the rise of fascism through nationalist groups and a stronger military influence. Externally, worsening relations with Western powers and the rise of Chinese nationalism weakened civilian rule and strengthened the military's role in government. By the mid-1930s, Japan had become a military-controlled state rather than a democracy.