OK, there are a number of things wrong with this game, I will try to go through them one by one.
First of all, your cities are too far apart. The ones near your capital are very poorly placed, with lots of unused tiles between them. I recommend going into the Succession Games Forum and looking for a good "dot map", a planned layout of where cities will go to avoid wastage. You have an enormous empty space around Kyoto; NOT a good thing! To help you out, I'm going to post a picture of where cities SHOULD have gone, which would have helped you out from the beginning.
Comments on the dotmap: The red dot is your capital, which I based the rest of the plan around. Yellow dot is a strong second city site, on a river next to cattle. It also locks up the gems in your territory. Green dot is another great early site, on a river with floodplains nearby for quick growth. It overlaps a wheat with the capital, which allows for some micromanagement possibilities. Light blue dot has terrible land, but it locks down all of the incense luxuries. Dark blue dot has no remarkable territory, but is close enough to the capital to be a useful city. The two purple dots are essentially fishing towns, but they have enough land to be a bit productive too. Light purple secures another gems luxury while dark purple locks down an iron resource. Brown dot up at the top locks down 2 more incenses and black dot is a fishing town that claims tundra in the hopes of a resource appearing there later. The key thing is that almost all of the tiles near the starting position are used; I put 9 cities (without significant overlap) in an area where you had 5. You should be able to see the idea by now and continue it to the south, if desired.
You need some more work with the three sliders too. First of all, there's no need to put 30% into luxuries; I turned it down to 20% with no cities going into disorder. You can go lower still if you HOOK UP THE GEMS in your territory! How could you have left a luxury unused in your territory? Silly, silly, silly. It's also pointless to put 10% into science. Are you going to buy your techs from the Persians? Then go 0% science and concentrate on building money. Are you going to research it yourself? Better put more than 10% into the tech! Going 6/1/3 is very much a bad move.
You have only 7 workers for your cities! WAAAY too few. That's why your cities are sitting with unimproved tiles all over the place. Get some more out immediately! You should never have unimproved tiles in your core cities.
As for production... why is Kyoto on wealth? If there are no city improvements left to construct, build military units! Upgradeable ones, so they will be good in the future. But putting your cities on wealth is a waste of them. For that matter, with only 10% of your income going to science, why are all of your cities building libraries? If you are going to put most of your income into wealth, build marketplaces, for goodness sakes! THINK about what you are building; don't just pick something for no reason.
You need to get into a better government ASAP as well. With your current situation, I'd recommend Monarchy since you don't really have the infrastructure for Republic yet. But by all means get out of despotism!
I hope this gives you some things to think over. You need to do some more managing and better placement of your cities to succeed and thrive on Monarch difficulty. Best of luck to you in this endeavor!
