Traction control relies on sensors at the wheels and a computer.
If the sensors sense that one or both drive wheels are spinning faster than the rest of the wheels, the computer intervenes.
On some systems, the computer will just cut the engine's power to try to reduce the spinning.
On other, more advanced systems, the computer will cut the engine's power while at the same time applying the brake to the spinning wheel.
I suppose that if the system failed, you would have to replace the sensors at the wheels. I believe that the computer is a part of the engine's ECU, so if that went, your motor probably wouldn't run at all.
If the traction control system fails though, you can still drive the car. It will simply be like driving a vehicle that doesn't have traction control - in other words, like most other 1998 vehicles.