THE V C

The Decentralization Reform

and the Local Government System in Japan

Tatsuro iikawa, Doshisha University

Paper for the Wo r kshop Lo cal Governance in a G l obal Era In Se arch of

Concrete V i sions for a Multi-Level Governance ,

7-8 December 2001

N o n e o f t h e se pa pe r s s h o u l d b e c ite d w it h out the au thor s per mis sio n.

The decentralization reform and the local government system in Japan

Tatsu ro Nii k awa

Graduate School of Po licy and M anagemen t
Dosh isha Universit y

Con ten t:
Intro duction: the po int at issue of the de centr a li z a tio n re fo r m an d lo c al go ve rn a nce
1. The Ti de of Decentralizatio n
2. Back gr ound o f de centr a lizatio n re for m
3. T he De ce ntr a li z a tio n pro po sa l: the Way to the Decen tr a l iz a tio n Promoting Law of
1 99 5
4. From the Com mittee fo r the Promotio n o f Decen tr alization coun sels to the
dece ntr a li za t io n p ac ka ge d l a w
5. T he Re su lt o f De centr a li z a tio n Refo r m an d rel ate d probl e ms
6. Gover n ance ch an ge i n Ja pa n
Note

Intro duction: the po int at issue of the de centr a li z a tio n re fo r m an d lo c al go ve rn a nce

In the end of 20 t h century, the de centralization reform se ems to be one of the
three maj o r revo lutio nary r e form s in Mo der n Japan. T he fir st o ne is the Me iji
resto ratio n, and the second is the re fo rm after the Wo rld War 2. These re form have
had

achieved

the

fruitful

result

on

t he

lo cal

gover nmen t

m o der ni z at i o n

an d

de mocratization.
On the ot her si de, the refo r m after t he War w as cr it ic iz ed to be i nsu fficie n t.
F o r t h e S h ar p Re c o m m e n da t i o n o f 1 9 4 9 a n d t h e K a n be Re c o m m e n d a t i o n o f 1 9 5 0
werent fu ll y im ple mente d. T hose reco mmen dat ions seeme d to try to realize the ide a l
of the lo cal government system. They ad dre s sed the devo lu t io n of t he centr a l
fu n c t io n s to t h e lo c al go ve r n m e n t w it h be ing b a s e d o n t h e Sh ar p do c tr i n e .

As for the recomm endatio n of the Shar p Mi s sio n, to carr y for war d t h e
redis tr i bu tio n of th e gover n ment fu n ctio ns be t ween the centr a l an d the l o cal, i t
dec l are d t hree pr inc i ple s.
Fir st p ri n ci ple loo k s for m ak i ng the re s po n s ib i li t y o f e ach fu nct ion c lea r an d
al loc a tes

e ac h

fu nct io n

i n to

the

state,

the

pre fectu re

and

t he

mu nic i pa l it y

gover nme nt se parat ely.

The 2nd is that when do ing the re distri bu tio n o f t he fun ctio ns i t mus t be
al loc a te d to the mun ici pal it y pr im aril y. An d the n, as the mu nic i pal it y canno t
im pleme n t some fu nct ion o r it s im ple ment at io n is i neffic ien t, it i s redi str i bute d to
the pre fec ture gove r nmen t or centr a l go vernme nt.
The 3r d is th a t t he redis tr i bu tio n h a s t o be done accor d in g to t he ab i li ty a n d
the scale of the m u nicipal it y bec au se o f the v arie ty o f lo c al co mmun i t y.
If th is re dis tr ibut i on o f fu nc tio ns we r e re alize d , there should be the pe rfect
loc al gove rnmen t s ys tem. In dee d, it i s s ai d th at the re was o p po rtu ni ty t hat t he
qualitative conversion of the local system in Japan has had been attempted 50 year s
be fore al r e a dy.
Whi le t he loc al go vernme nt sys tem ha s been expe rie n cing the relative ly
stable er a afte r the refor m unde r the occupat io n a rmy, t he h a lf -ce ntu ry e l a pse d . In
the se de cade s, the reform proble m abo ut the b a s e s o f l o c a l s y s t e m h as n o t be e n dea l t
wi th radic al ly.
It is po ss i ble to s a y th at the r e form tr ie d in t h is hal f cen tu ry i s ch ar ac teri ze d
as a nt i lo c a l go ver nm e n t. It h as bee n in c r e m e n ta l b ut gr a du a ll y m ak in g the loc a l
gover nme nt sy ste m more ce n tr al i zed . The ce ntr al pro ble m o f the pre se n t r eform I
th ink is to set t le the past accou nt an d to est a bl i sh an i de a l sys tem of loc a l
gover nme nt. It me an s not s im ply the de velopm ent o f t he loc a l gov e rnmen t. It h as
been i n fl u e nce d thr o ugh the i dea th at the basi c uni t of th e loc a l go vernme nt is t he
municipality. In ge neral, it is a commo n co nse nt that the o ne of the main purpose o f
dece ntralization is the establishme nt of the m unicipality base d local go ve rnment
sy stem

(1).

From the standpo int of macro sco pic perspe ct ive , t he orie nt atio n o f t hi s re for m
is c o n di t i o ned b y t he ser ie s o f Ja p a ne se s tr uc tu r a l r e for m c o nce r n in g to the m an y

issue s of the politics, the administration, the e c onomics, and the society. Then, i t
make s the loc a l sy st em re form more foc u sed on the centr al-lo cal r e l at io n sh i p a n d h as
the ce ntralist char acter istics of the re fo rm.
We also h ave to no te th at th is l ar ge -s cale re for m h as be en done i n time o f
pe ace. In turn, there are the need o f m uch t i m e a n d e n de a v o r i n t h e r e f o r m pr o c e s s o f
dec is ion - mak in g a nd im p le ment at io n , an d i t i s sa i d th at it t ake s much mo r e time to
acquire the results o f the re form.
Su ppo si ng th at the r e is a c ha rac ter is ti c of t hi s re form as m e nt ione d a bove, w e
mus t at te mpt to e x am ine o nc e more about wh at i mpac t i t h as for t he po li ti cal s ys tem
an d the lo cal go vern ment in Japan.
Thi s im pac t can be thou gh t of abo ut t he rel at io n wi th th e change of gove rn ance i n
Japan. The decentr a lization re form will beco me the extreme ly im po rtant factor which
in fl uen ces it s gover nance.
In

th i s

ar tic le,

wi l l

ve r ify

the

measure

and

content

of

the

Japan's

dece ntr a lization re form. The fr ame which anal yzes the decentralization re form is a s
fol lo ws.
( 1)

The

fi r s t

is

an

e x am i n a t i o n

a bo u t

the

po l it ic al

p r o c e s s.

W h at

did

the

dece ntr a lization reform carry for w ar d? It w i ll c lari f y t he po li t ic al proce ss and i t s

environme ntal conditio n.
( 2) The se co n d que s tio n is to make o pe n abo ut t he s tru ct u re o f t he r e fo rm wh i ch wa s
ac tu al l y d o n e . I w il l c l ar if y t h e f ac to r an d t h e o rg a n i z a t i o n w h i c h p r o m o t e d r e f o r m ,
de p ict the fu nc tio na l mo de o f the str uc t ure .
( 3) As fo r the co n te nt s o f the re fo rm, ac tu al ly, t he t hir d que st ion i s to ma ke c le ar t he
proce d ure th a t pro mote d t he re form .
( 4 ) T h e v e r i f i c a t i o n o f t h e r esult of the re form is the 4 t h que s tio n. We ha ve to
e xam ine whe the r o r no t t h i s re fo rm cha nge d t he go vern ance in Japan firs t , an d
whe ther o r not it c hange d th e con di tio n of loc al gover nan ce in Japan at the sam e
time.
T h e n , o u r q u e s t i o n i s w h a t re sult the governance ch an ge does m ake an d ho w
the go ver nance ch ange of the municipality an d t he pre fe c t ure w il l b e bro u g h t a bo u t .
Eve n i f i t take s lo n g ti me , do e s the de c e ntr a li z at io n re fo r m cha nge lo c al g o ve rna nc e
in J a p an i n t he ne ar fu tu re an d br in g a cha nge to the gover na nce in J a p an?

Al tho ug h the re a re var io us cr it ic ism to the pre se nt de ce nt r al i z at io n re fo rm, i t

is supposed to co nvert a conve ntio nal l o c a l g o v e r n m e n t s y s t e m b a s i c a l l y. T h e
orien t at io n

of

the

re form

an d

t he

est a bl i sh ment

of

renewe d

in st it ut io ns

ar e

pos i ti vel y est im ate d for t he moment. As fo r the gover nance change in the nationa l
an d loc a l l evel, i t se ems t h at t he ev alu a tio n o f t he reform i s very di ffic ul t.
Of cour se, it is not eas y to t a ke ac co unt fo r the results o f the re for m in th e
pre sen t si tu at ion t h at mos t o f the re fo rm i s jus t now laun chi ng ou t. At th is poin t,
since the realizatio n of the reform becomes un v e ile d g raduall y, we shou l d co ns i der
care fully as fo llows:
(1) Doe s th is re for m su bst a nt ive ly ch an ge the loc al go ve rnmen t s ys tem th at was
compo se d a fter t he Worl d War 2n d. An d then , i f i t c h a n g e s, wh at c h an g e i t c au s e d.
(2) Si nce th is re for m i s the r eorgan iz a tio n o f the systematic fr ame an d t he prac ti c e
by the lo cal gove r nmen t i s jus t s t art e d, we h a ve to t ry the ev al uatio n about t he
pos s ibi li ty of the fu t ure im pac t i n the sho r t -r an ge an d in t h e m i d dle r u n be fo r e h an d.
Tak i ng ac coun t of s uch a s i tu ation abo ut the dec e ntr a lization re for m wh ich i s
now deve l o p ing , it is u se fu l to so r t o ut t he re su lt an d the po i nt a t i ss ue o f th e
pre sent re form and pro s pect the future loc al gove rnmen t s y stem be fo rehan d.
There fore, we will e xam ine the de ce ntral i z at i o n r e fo r m i n J a p an a s fo l l o w s .
(1) To examine our case, the background en viro n ment an d his tor ic si tu atio n of t he
dece ntr a lization re form has to be m a de cle ar at first.
(2) We de pict the process of the re form thro ugh the Dece ntralization Promotio n Law.
( 3) Al so, we cla rif y t he re sult an d t h e evaluatio n of the re form to the 3rd.
An d t hen, we w i ll attem p t to exam ine t he me an in g wh ich t he dece nt rali z at ion refo r m
has on t he gover n an ce ch an ge in fu tu re Japan.

1 The Ti de of Decentralizatio n
T h e l o c al au t o n o m y s y s t e m i n t h e 1 9 8 0s a n d t h e 9 0 s h a d a l s o be c o m e t h e
object which has be en forced reorg an iz at ion in t he tu rn in g po in t o f the who le socie t y
wh ile t he loc al go vernme nt it se lf gr ope d for reorg an iz at ion .But the nece ss it y fo r
reorganization o f such a local auto nom y sy stem may have been said from the former
fre que ntly.

For exam ple, a ter m calle d dece ntr a lizati on is not wh at recently began to be
use d. T he n, i t w as use d br is k ly in t he 1 9 40 s an d 5 0s , a n d t h e l o c a l a u t o n o m y a n d t h e
dece ntr a li za t ion pu t t he alm ost s ame mean in g in tho se day s. Fo r ex am ple , bo t h
terms m a y h ave be en use d as " the e st a bl is hmen t of the l o cal auto nomy nee ds th e
reali z at io n o f dece ntr a li z at i on, for t he au thor it y o f loc al go vern ment h as to be
reinforce d," in m any ar gume nts in the N ational Diet after the war.
In case of the deliberatio ns o n the Lo c al G o v e r n m e n t A c t o f 1 9 47 , a s a bo v e
mentione d, it was disc us se d that the e s tablishme nt o f loc al au tonom y s ys tem wou l d
be re a li ze d thro ug h dece nt ra l iz a tio n an d the au t hori ty o f a loc al pu bl ic e nt i t y mu st
be stre ng t he ne d in t he co mm it te e de l i be ra tio ns i n the N at io na l Die t o f tho se d a ys. I t
mean t th at t he dece ntr a li z at i on i n s uch a po s t w a r per i o d r e fo r m o f t h e 1 94 0 s a n d 5 0 s
was a tr i a l to re ali z e the ide a l of the lo cal auto no my fo un d out by the essen t ial i de a
o f the Co n st it u t io n o f J ap a n o r the Lo c a l Go ve r nm e nt A ct.
Howeve r, the pro po s al , for e xa mp le, t h e Sh ar p r e c o m m e n da t i o n a n d t h e K an b e
recommendation, of the thorough re-distr ibutio n of adm in is tr ativ e fu nc tio ns h a d
collapse d on account o f the r a dical-ne ss. W h ile the decentralization type refo rm was
procee ding, the e f fort to maintain and s t r e n gt h e n t h e c e n t r al i z e d s ys t e m w a s
procee ding in sim ultaneou s par a lle l an d t he re w as a rever se movemen t to the
de ce ntr a li za t io n.
As fo r the Japanese govern m e n t s y s t e m i n t h e 1 9 60 s an d 7 0s , t h e r e v e r s e
movemen t of 50 s c ont inue d in t hi s w ay. I t a p pe are d th at t he ce ntr a li z at i on an d
dece ntr a li zat ion was mut u ally contradictory under the so -calle d ne w centr alizatio n
ten den cy. It c an be sai d th at the or i gi n al mot ion w as to li mit th e decentr a li z at ion
wh ich we nt too far beyon d and to rec o ns truc t the man a g e ment s ys tem of u n itar y
dome stic administr ation.
The view which co mpre hensively expr e sse s su c h a tren d was t he fu nct ion al
d iv is io n t h e o r y w h i c h w as c lai me d o n t he re l a tio n be tw een the r ole s o f ce ntr a l
gover nme nt and lo cal go ver nmen t. Showin g t h at t here are an in ter de pen dent and
in se parable re l at io n an d a c o mplic ate d coo pe ratio n bet w een t he c e ntr a l go v e rnmen t
an d loc al gover nme nt, it t rie d to co nquer the re dis tr ibut i on of fun c tio n theo r y th at
in si st s to se par ate func tio n s discre t ely, to alloc a te o ne fun ct i on to on e le ve l

gover nme nt an d to redis tr i bu te fu nct io ns to t h e m u n ic i p a l it y a s po s si b le as t h e y c a n

be ar re s po ns ib i li ty.
The functional divisio n theory is much convenie nt to the centr a l go vernme n t
wh ich w a nt s to m a in tain t he ir in ter fe rence to t he lo cal g o vernme n t an d kee p firm
hold on it. On the contrary, the re -distribution of func tio ns theory had s uited the
mainstre am of the decentr a li z at io n t il l the n .
Howeve r, in t he tre nd o f t he admi n is tr at ive re fo rm an d po li ti cal re form in th e
1 98 0 s an d 9 0 s, a c har ac te r is tic phe no me no n i s th at m an y pre m ise s o f the f o rme r
po li ti cal an d adm i ni str a ti ve sy stem have bee n c as t doub t on an d req ui red to
reorg an iz e .
gover nme nt

It

was

di ffic ul t

par tially,

to

ado p t

pres uppo sing

the

the

way

of

functional

pr eservatio n

of

im provem ent

cu rr ent

in

ce ntr al-loc al

r e l at io n sh i p, a n d t h e r e q u i s ite c o n s i de r in g th e centr a l an d lo c al gover n ments

pre sen t co ndi tio n as a prem i se ha s beco me que s ti oned.
There fore, although the term of functional division and the role inter action
theor y wo uld rem ain barely, the de centr alizatio n theory become s the m ainstream in
su bs t an c e o f t h e ad m in is tr at i ve r e fo r m . T he dece ntralization was adopted as one o f
main me thods which re alizes reorganization of governance system .

2. Back gr ound o f de centr a lizatio n re for m

In t he re form to w ar ds t he

p r e se n t de c e n tr a li z at io n , i t se e m s t o m e t h a t

there are t wo ki n d s o f b ac k gro u nd s. One i s a str uc tur a l re form o f J a p an t h a t i s

procee din g

by

t he

Ko iz um i

gove rnm ent

no w

in

Japan.

Adm in is tr at ive

r e form ,

dere gu l at i on, an d de centr a li z a tio n arg u ment c a n be pla ce d as the pa r t o f i t.

Ano the r o ne is a v i e w po i nt o f gro w th an d m at u rit y o f lo c al au to no my. A fte r
the po stwar re form, in the pile of the lo cal auto no my over a half-century, the pro ble m
o f p r e se nt lo c a l go v e r nm e n t s ys te m h as a c t ua l ize d a n d i t h as be c o m e c le ar th a t th e
pre sent system cannot be suitable for the ne wer si tu atio n of loc al co mmun ity. Then,
the vie wpoint of de centralizatio n has been a lso p ro po se d a s an im po rt an t ele me nt o f
solution in common to e ach problem.

Fir st, the mat uri t y o f lo c a l g o vernme n t h as pro vi de d u s t he im pre s sio n th a t

the al ti tu de of dece ntr a li z at i on in t he pre sent lo cal government system is inadequate ,
be c au se t he loc al g o ver nm e n t h a s ac qu ire d the e xpe rie nce of a half-c entury after the
postwar. For exam ple, from th e h i s t o r i c a l v i e w p oi n t , w e c a n n o t h e l p a g r e e i n g t h a t
the loc al gover nme nt h a s h a d an im po rt an t role an d le adersh i p ei t her i n pol lu tio n
an d e nv ir onmen tal pro b lem-s o lv in g or t h e promotion o f re sidents we lfare.
Moreove r, there are many e xam ples which show us the im pro v ement o f
capabi li t y

in

loc a l

gover n ment

as

fo llo w s:

the

de p lo y m e n t

of

"o n e -v i ll ag e ,

one-specialty e cono mic move me nt", and the mo vement o f "re v it a li z in g v i l la g e " an d
"re bu il d in g the to w n" et c. It can s ay th at while regulation and protectio n of the
center wh ich was mean in g f ul and u s efu l in fo rmer time has beg u n to disturb the
lo c al a c t i v i ty, the lo c al te c h n o lo g y an d c a p a bi l i ty wh ic h we r e acc u m u l a te d i n t h e
loc al gove rnmen t h a s begu n to make s uc h inter ventio n unne cessary. In other word, i t
i s c o n s pi c u o u s f o r u s t h a t t h e p r e s e nt l o c al au to nom y s ys t e m se r ve s a s a n o b st ac le ,
an d the lo cal c a pabi li ty canno t be demo ns tr ate d.
Of co urse , o n the o the r s i de, a bi g po l it ic al the me c al le d s truc tu ra l re form
bec ame th e fac tor wh ich adv ance s de c e ntr a li z at ion re for m. Act u al ly, whe n we sa w
J a pa n fro m t h e v i e w po i n t o f t h e g l o ba l w o r ld af t e r t h e 1980s , i t h ad be e n pre s s ed fo r
bi g conve r sio n pro m p tl y in a n y are a o f e cono my, so cie ty, po li ti cs, an d a dm in is t ra tio n
i n J a pa n . F o r e x a m p l e , t h e c onversio n to the dome stic dem and centere d e conomic
str uc ture , po li t ic al re fo r m a nd pa rt y re a li gnme nt, a n d a dm in is tr a ti ve re fo r m, e tc.
ha ve been more an d mo re i mpor t an t su bjec t. Howeve r, suc h co nv ersio n has be e n
pro d uci ng va rio us c o nf li ct s wi th in an d wi tho ut, a nd i t h a s no t pro gre sse d e a si l y.
As one o f the factors which have cau se d suc h a s tr uc ture p ro b lem, th e
Japanese sy stem o f centr a li z a tio n-o f-po wer is me nt ione d by m any cr it ic s. In t he c ase
of the land use in the who le country of J a p an , be c au se o f h av in g m an age d by the
centr a lizatio n-o f-po wer

type

dec ision -m ak ing

system,

both

overcro wde d

an d

de po pu l at io n tre n d s se e m t o i nte ns if y and the conce ntratio n o f po pulation an d

economic activity to Tokyo Me tro pol i ta n are a se e ms to be p ro gres s ing .
Centralization-o f-power

system

no t

only

h as

i n duc e d

the

close d

and

unchange a ble economic system, but also is said that co ncentratio n o f the econom y
ac c om p a n ied by o v e r- co nce ntra tio n h a s pro mo te d the ma l- d i str i bu t io n o f we al th .

Mor e o ve r, the pol it i c a l an d a dm in is tr a tio n s ys te m i s s t if fe ned s im il ar ly a n d b e c o m e s

unable to correspo n d on the newer pro ble m ap pr o pr i ate ly. As fo r so c ia l per s pe cti ve ,
diver si f ic at ion o f v al ue s ys te m has bee n pro cee di ng, an d it is n a tur a l t hat t he way o f
th ink in g a nd be h av i or become s more glo b al a n d pl ura l is ti c.
T he nec e s si ty for s u c h m an y- s i de d s tr u c tur a l re fo rm h as for ced to foc us o n t he
commun it y

an d

to

ado p t

the

de centr a li z a tio n

pos i ti vely.

In

th is

w ay,

the

dece ntralization be came o ne of the ultim a te targets in administr ative re fo rm an d

po li ti ca l r eform, an d a l so bec ame t he meas ur e to the changing enviro nment of socie ty
and

e conomy.

The refore,

the

establis hment

of

frame work

law

for

pro moting

dec e n tr a li za t io n w a s r e al i ze d.
It is un de rstandable th at the re is a co nnotatio n in whic h the lo cal c o mmun ity
wi l l r e a li z e the s tr u c tu r a l tr ansform ation o f the socie ty and e conom y in domestic and
a global scale in a community and can achieve the im proveme n t i n "t h e qu a li ty o f a
li fe " an d o rig in al "affl uence ".
It is a lso cert ai n t h at there i s a que st i on whe the r the targ et se tt in g an d th e
est a bl i sh ment o f l a w an d it s co nte nt ar e su it a b le for, a n d whe the r i t i s a de qu ate for
to corre spond the di versification of value an d t he newer pro ble ms in an d o ut s i de the
country. There is room in which we exam ine the se que stions because the natio n al
su ppor t to the dece n tr al i zat io n h as no t neces sari l y s how n t he ri se.
Moreove r, in term s of the de velo pme nt of a suc h decentr alization reform, it
has been taken u p as a very po li ti cal poin t at issue. There f ore, whe n we see it fro m
the v ie w poin t of loc al auto no my, it can not be de nie d th at th is re for m w as dis torte d
by bei ng t o l d in s a me r ank o f the pol i t ic al re for m, ch a nge of powe r, a n d an e lect ion
sy stem an d a par ty sy stem reform.

3 the De c entr a li z at ion pro po sa l: t he Wa y t o t h e D e c e n t r a l i z a t i o n P r o m o t i n g L a w o f

1 99 5
The

de ce ntralization

re form

starte d

w it h

the

e st a bl i sh m e n t

of

th e

dece ntr a li zat ion pro moti ng law in 1995 as an act ua l s ys te m re fo rm. Ho we ve r, the r e
were ma n y que st ion s an d arg umen ts w hic h were fu n dame n ta l ly com mon from var io u s

po s i tio n s u n t i l t h e l aw w a s e s ta b li sh e d .
The pro po sa l to w ar ds t he de centr a li z a tio n r e fo r m o f t h e 1 98 0 s an d 9 0s h av e
been con s i dere d in t he seco nd Pro v is ion al Admin is tr at i ve In qu ir y Comm it tee(198 1
-83 ye ars ) , the t hre e terms o f the Ad H oc Council for the Promotio n of Administrative
Re form ( 1 9 83 - 93 y e ar s), the governm e nt a d mi ni str a ti ve reform h e a d qu ar te rs, t he
Local Gov ernmen t Sys tem Res e arc h Cou nci l, e tc., in the gov e rnmen t s i de (refe r Tabl e
1 ).
On the o t he r h an d, var io u s de c e ntr a li za t i o n pr o po s a l s a l s o fro m a pr i v a t e
secto r or a loc al go vernme nt have been made. Fr om the loc al go vern ment s i de , t here
was a pr oposal fro m the 6 local gove rnmen t a sso c i at io n s, s uc h a s t he N a tio na l
Go ver no r As so c i at io n, the N a tio na l M a yo r A s s o c i at i o n , an d s o o n. M o r e o ve r, a mon g
the pr ivate sector, there were propo sals from the e conomic worlds , such as the
Federatio n

of

Economic

Organizations,

an d

J a p an

As soc i at io n

of

Co rpor a t e

Exe cu ti ve s or Ka ns ai E co no mic Fe de r at io n , t he Ju nio r C ham be r a nd o the r var io u s

kin d s o f pr iv ate

secto r or gani z at io ns s uc h as

the

Extr aor d in ary

Inve s ti gat ion

Comm it te e for Po l it ic al Ins ti tu tio ns , the N a tional Co nference o f Administrative

Re form, and the academic so cietie s, etc. Of cour se, at the gener al e lection in 199 3 ,
e spe c i a ll y i t wa s
de c e n t r a l i z a t i o n

very

and

im p r e ss iv e t h a t the
certain

fr a m e wo r k

promo tio n of
law

po litical re form an d

enactment

for

promoting

the

dece ntr a li za t io n be c ame the c am p ai gn p la tfor m o f e v e r y po l it ic al pa r t y i n c o m m o n .

Al tho ug h the pro po sa ls o f de ce ntr a li z a tio n are v ar io u s a n d d if fe re n t i n e ac h
other, we can sum mar ize th em in to 5 po in ts o f arg umen t w hic h are the co mmo n
fe ature

of

each

pro posals:

ho w

to

advance

the

de ce ntralization,

the

transfer-o f-authority, the aboli tio n o f st ate i n terve nt ion , the fu l f il lmen t o f loc al
r e v e n u e , an d the str e n g the n in g a bi l i ty o f lo c al g o v e r n m e n t wh i c h s u bsc r ibe t h e
tr an sfe r o f au thor i t y an d fu nc tio ns.
The firs t po in t o f argume nt i s the re -di str i bu tio n of fun ct io ns an d th e tr ans fer
of au tho ri ty. It me ans th at a su it able r ole as s ign ment be t ween the centr a l an d loc a l
gover nme nt an d be twee n the prefe ct ur e an d the mun ic i pali ty h a s t o be co ns i dere d
an d t he f unc tio ns an d a ut ho rit ie s h a v e to be t r an s ferre d to the loc al as pos s ib le a s
they c an.

In dece ntralization reform, t he tr an s fe r of aut ho rit y to th e local go vernme nt

an d t he a bol i tio n a nd s tre am li ni ng o f t he Age ncy - de le g ate d - fun ct ion s be co me a ma in
ai m. It re qu ire s th at the m un ici pali t y who se re dis tr ibut io n h as to be prio r t o oth e r
in st it ut io ns can im plemen t t he fun ct io n co ncerning basic reside nts service throug h
the re dis t ri bu tio n o f fu nct ion s to i t as fun d amen t al loc a l go vernme nt.
The se con d pro b lem is t he st ate i nte rv ent ion to the loc a l gover nme nt wh ic h
al w ay s i s po in te d out i n rel a tio n to t h e trans fer of au tho r ity. Base d on the l a w, the
centr a l go vernme nt is to be able to i nt e rvene loc al adm in i str a tio n c o veri ng v ar iou s
m at te r s, s uc h a s pe r m is s io n, lice nse , a p pro va l , a dm i s s i o n , an d a n o t i f i c a t i o n , an d i t
is requi re d for arr a ng ing an d abol i sh in g s uch in t erven tio n.
T he th ir d poi nt o f arg um e n t is c o n c e r n in g a so u r c e o f r e v e nue, t a x at io n an d
fi n ance s. There m u st be the fou n dat io n of lo cal pu bli c fi n ance i n de centr a li z a tio n as
the back i ng. If the revenue for the lo c al ac ti v it y is no t se cur able, e ven i f t he re is a
tr an sfe r of au thor ity, t he local go ve rnment cannot wo rk we ll. Then, althoug h
re qu ire d f o r e x p an si o n o f t he l o ca l ta x a s an in de p e nde nt so urce o f re ve nue , t he re a r e
few bo l d r e orga n iz a tio n pro po sa ls o f lo c al pu bl ic f in ance s ys te m e ve n no w.
The pro po sa l th a t i s fo c use d r at he r is t o red uce t he v ar io u s re st r ai nt s to lo c a l
pu b l i c f i n an c e , a n d t h e permissio n system o f the issue of local bo nd and the
categor ic a l gr an t sy stem to t he loc al g ove rnme nt are re garde d as questio nable. The
free issue of the lo cal bo nd, the arrangemen t a n d r a t io n al i z at io n of gr ant s sy stem ,
the tr an s f er to the menu gr ant s s ys te m or bloc k gr an ts sy stem an d so on h as bee n
exam ine d .
The 4 th poin t of ar gumen t i s th at t he bea rer of de cen tr al i z at ion wou l d be
n e e de d. I f t h e a dm i n i s t r a t i v e a n d f i n a n c i a l c a p a bi l it y to m an a ge t h e de c e n t r a li ze d
fu n c t io n s is n o t e qu i p pe d , i t i s m e a n i n g le s s t h at the de c e n tr al i za t io n a d v a n c e s a n d
the au tho rit y i s t r an s ferre d. There fore, the im pro vement i n c a p ab i l i t y o f a l o c al
gover nme nt is nee de d, an d it is s tre sse d th at the re g io nal admi ni str a tio n sy stem
compo se d of se ver al m un ic i p al i tie s a nd the m erger or co nso li d a t ion s ys te m are
shor tcu ts to st ren gt hen. Es pe ci al ly, s m al l -s cale c it ies , to w ns an d v il lages see ms to be
r e qu ire d f o r the r ad ic al im pro v e m e n t i n a c a p a bi l i ty le v e l th r o u g h i ts m e r g e r.
There fore, the Local Governm e nt Act was re vise d, and the intro duction of the

10

re gio n al unio n s ys tem a n d t he ci ty o f centr a li t y sy s tem were es t a bl i she d in Ju ne,

1994. In addi tion, about a prefectures leve l reorganizatio n, although there is an
arg umen t be ar in g a wi de r r e gio na l sy stem a n d a mer ger of pre fec t ures i n m in d, o n
t h e w h o l e , t h e a g r e e m e n t o f pre f e c t u r e reor ganization has not neces sarily bee n
at t ai n e d.
Finally, there is the sim ilarity o f ho w to advance the dece ntralization refo rm.
In quite early da ys, the establishment o f a f u n d ame n t a l l aw w h i c h a dv a n c e s the
dece ntr a li zat ion w a s c laime d bec au se it i s t he pro b lem wh ich s ho ul d be e x am ine d
e x ten s ive l y.

In

pol it ic a l

c am pa i g n

p l a t fo r m ,

m an y

pro po s a l s

of

basic

l aw

e st a bl i sh m e n t a p p e are d i n e ar ly 1 99 0s. I t w a s p r e su p p o se d th a t thi s l a w sho u l d

inc lu de t he fu n dament a l vi ew o f de centr a li z a tio n, ho w to adv a nce the refor m
concre tely, and the institutio n a l s y s t e m t o pro m o t e i t .

(2)

Table 1. The short history of the decentralization reform of 1980.90s

- -- - - -- - - - -- - - -- - - -- - - - -- - - -- - - -- - - - -- - - -- - - -- - - - -- - - -- - - -- - - - -- - - -1 98 2:

The

second

Provisional

A dm i n i s tr ativ e

Bo ar d-of-inquiry :

the

P rim ary

Recomme nda tio n (F unc tio na l as si gnme n t bet ween a s t ate a n d a loc al )
1 98 3 8 6: T h e f i r s t A d H o c C o u n c i l for t h e Prom otio n of Adm inistrative Re form; the
Local-adm inistrative-re form

Promotio n

Su bcommittee

(the

exam in ation

of

age ncy - de le g ate d - fu nct ion a n d perm i ss i on s ys te m )

1 98 9:

The

second

A d -Ho c - Cou nc il - fo r- a dmi ni s tr at ive -re f orm:

repo r t

of

the

su bcomm i ttee of ce ntr a l-loc a l re l at ion (Wi th e x a m i n a t i o n o f a f unc tion al as s i gnmen t

an d the d evelo pme n t o f lo ca l age ncy )
1 99 3: Bo t h H o u s e s r e s o l u t i o n t h e r e s olution o f promoting dece ntralization
: the third Ad-Hoc-Cou n c i l - fo r- a dmi n i s t r at i v e -r e f o r m : f inal repo rt (the deregulation
an d de c e n tr al i za t io n)
1 99 4: C a b i n e t de c i s i o n " t h e a dm in is tr a ti ve r e fo r m fu n d am e n t al pri n c i ple s " o f f ic e in
loc al adm i ni str a tio n su bjec t m ai nte n anc e
: the 24t h Local Go vernme nt Sy stem Rese arch Counc il "t h e recomm endatio n on the
promo tio n of de ce ntralization"
:

Cabine t

meet in g

de term i natio n

" t he

fu ndament a l-pr inc i ple s

of

pro mo tio n

of

de ce ntr a li za t io n "
(t he de ce ntr a li z at i on pro mo ti ng l aw an d the de ce ntr a li za t io n re f orm b y a dv i so r y
committee )

11

1 99 5: e n a c t m e n t o f t h e dec ent rali z at ion promo t in g l a w

: The Com mittee for the Prom otio n o f D e c e n tr a li z at io n i n a u g u r at io n
1996: the Committee for the Promotio n of De ce ntr a lization; the first co unsel (the
tr an sfe r of au thor ity, abo li t ion o f ag ency -dele gate d fu n ctio n, an d r ule -m akin g o f
st ate i nte rven tio n t o loc al go vernme nt )
1997: the Comm itte e for the Promotion of Decentralization second co unse l
(t he re for m of m an d ato ry e st a bl is he d o rgan and office , relation be tween pre f ecture
an d m un ic i pal ity, c a tegor ic a l grant , an d stre ng the nin g the l ocal i ns t it ut ion )
: The Co mmittee for the Promotio n o f De ce n tr al i z at ion 3r d co un s el ( refo rm of t he
sy ste m o f n a tio n al p u b li c se r v an t in loc al g o v e r n m e n t, a n d S pe c i al L an d L e a se L a w )
: The Co mmittee for the Promotio n o f De ce n tr alization 4th cou ns e l (adj us tment /
dispute processing rule be tween ce ntr al and lo cal gove r n m e n t , a n d t h e a u t h o r i t y
tr an sfe r t o m u n ic i p al i ty )
1998: The Cabinet meeting de termination

"the decentr a lization pro motio n plan "

: The Co mmittee for the Promotio n o f Decentr alization 5th co un s el (the re form o f
pu b li c wo r ks )
1999: " th e secon d dece ntr a li zat ion pr omotio n plan" Cabi net mee ti ng de term in at io n
(for the 5th counse l)
:

The

e stablishm ent

of

the

law

concerning

relate d

revisio n s

to

pr omote

dece ntr a li za t ion ( th e dece nt ralization pack a g e d l aw )

2000: the law e nfo rcement
- -- - - -- - - - -- - - -- - - -- - - - -- - - -- - - -- - - - -- - - -- - - -- - - - -- - - -- - - -- - - - -- - - --

4 From the Co mm ittee for the Pro motio n o f Decentralization counsels to the
dece ntr a li za t io n p ac ka ge d l a w
As men ti one d a bo v e, in o r d er to advance the dece ntr a lization re form, the
dec e n tr a li za t io n pr o m o ti n g l aw w a s e n ac te d wi th e x pir a t io n d a te f o r f iv e y e ar s i n
1995. As the technique to pro gress dece ntr alization, old various tec h ni que s, s u ch as
the

p ac ka ge d

l aw

of

age ncy - de le g ate d - fu nct io n,

arr an gem e nt
a nd

and

i ns t al la t io n

a bo li tio n
of

the

Lo ca l

of

i nte r ven tio n

Go ve rnme n t

an d

Sy ste m

Rese ar c h Cou nc il h ave bee n a do pte d u nt il now.

Howeve r,

the

fe ature

of

this

refo rm

sho w s

the

di fferent

aspe ct

by

establishment o f the de centra li z at ion pro mot in g l a w r a t her th an be fore. T h e l aw i s

12

enac te d a s a fr ame work act th at pro vi des not o nl y the pr inc i ple o f dece ntr a li za t io n
bu t al so t he promo t in g metho d an d tec hni que. T he ch ar ac teri s tic s o f t he l aw is t h at
it sho ws the ta rge t an d pr in ci ple s o f de ce ntr a li za t io n to so me e x te nt, in st a ll s t h e
Comm itte e for the Promotion of Dece ntralizat ion as t he ex am in at ion techn i que for i t ,
a n d pro vi de t h e r e s po n s i b i l i t y o f t h e c e n tr a l government for planning and c a rrying
out the de centralizatio n prom otio n pl an in res pon se to the Comm it te e coun sel s .
The principle s of the law are to establi sh the l o cal auto nomy an d make the
afflue nt and un ique loc al com mun ity th roug h the de ce ntralization. Its main purpose s
are the devolution, rearrangement o f age ncy- de leg ate d fu nct ion, re du ct io n o f st a t e
interve ntion, and re form o f c a tegor ic a l grants.
As shown in Table 1, the Com mittee for the Prom otio n o f Decentralization ha s
been

launche d

Academ icians,

after

the

decentralization

re pr esentative s

of

local

pro moting

gover nmen t

l aw
and

e n ac t m e n t
bu s in e ss

in

world,

1 9 95 .
an d

ex-nat ion al o f fi ci als were i ncl u de d i n the co mmittee. The com mittee to ok the
sect ion a l - meeti ng sy stem, and c ar rie d ou t i n st all in g a spe ci a l commi ttee , an d
a dv an ce d e xam in a ti o n. The r esu lt o f exam in a tio n w as f ir s t pro po se d a s " an i nte r i m
re po r t " i n s pri ng o f 1 99 6. The re, the pr opo s a l o f var io us re fo rm s w a s inco r po r a te d a s
a pl atfo r m of a fu t ure ex ami natio n. T he coun se ls after th en fo llo we d i n t he direc tio n
most ly sh own in th i s i nte rim repor t.
An d t h e fi r s t c o u n s e l w as i s s u e d a t t h e e n d o f t h e y e ar 1 9 9 6. In t h e
Comm itte e for the Promotio n o f Decentrali zation fir st coun sel, "the cre ation o f
dece ntr a li ze d so cie t y" wh ic h i s con s tant ly use d after an interim re po rt as a s u bt i t l e
was sho w n, an d t he cou nse l main ly de al t w it h t he arr an g ement an d re duc tio n o f th e
st ate in te rven tio n, rule -m ak i ng o f t he rel at ion s hi p bet we e n the ce ntr a l an d loc al
gover nme nt, the au thor it y tr an s fer to the lo cal, and the abolitio n o f age ncy-delegated
function and so o n.

(3)

T h e g r e a te s t po in t o f t h i s c o u n se l i s the abolitio n of agency-dele g ate d

function, and the counse l pr opose s to subs ti tu te t he leg a l ly en tru st e d func t io n an d
au tonomo us fu nc tio n fo r i t an d plans to re-dis tr ibute it i nto eit her fu nct ion.
The Com mittee fo r the Pro motio n of Decentr a lization second counse l was
is sue d i n 1 99 7. T he re were t he arr a ng e me nt o f age ncy - de le g ate d fu nct io n s le ft o f f

13

pre vio us ly, the dere gu lat ion o f m an d ato ry organ and o f fice , the re fo rm of re lation
between pre fecture and m u nic i pal it y, stre ng th enin g loc al adm in i str a ti ve age ncy,
subsidy re form, e tc. It be c ame the mo st volum ino us.
The Com mittee for the Prom otio n o f Decentr a lization 3r d coun sel is dealin g
wi th the n a tio n al p u b li c per s o n n e l i n l o c al g o v e r n m e n t s y s t e m a n d t h e S pe c i a l L a n d
Lease L a w to abso rb to the st ate an d, th rou g h t he handl in g o f su ch an emine n t
dom ai n, it tur ne d in to t he co u nse l o f ce ntr a li z at i on r at her th an de ce ntr a li z at i on.
The subse que nt 4th Comm ittee for the Promo tio n o f Dece ntr a lization co unse l
advise d

the

rule

of

reso lutio n

of

the

co nfl i ct

be twee n

the

ce ntr a l

and

loc a l

government after the abolition of agency de le g ate d f unc tio n, an d ano the r p ar t w a s
the au tho rit y tr an s fer from prefecture s to municipality.
The gover nment that rece ive d the counse ls covering the fir st to 4th d i d
c a bi n e t m e e ti n g de t e r m in a tio n o f t h e fi r st " de c e n tr al i za t io n pro m o ti o n pl an " i n M a y
1 99 8, a n d al m o s t al l t h e a d v i c e s w e r e ac c e p te d an d re a li ze d in the p l a n conc re te ly.
In

a d d it io n ,

the

c e n tr al -m i n is tr ie s

reorganization

w as

p r o gr e s s ing

sim ul t ane ous ly. The re we re v ar iou s c ri tic i sm s ab o ut t he n e w M in is t r y o f L an d a n d

Trans por tation which wo uld become a huge agency through the refo rm of re ductio n
and me rger of m inistries, and e s pe c i a l ly be r e s p o ns ib le fo r the m o s t o f pu b li c wo r k s
that is over-concentrate d in the rene we d m inistry. There fore, after the 4th co unse l ,
Prime m inister Hashimo to re que ste d to exam ine the dece ntralization of the authorit y
o f p ub l ic wor ks i n o r der t o mo der a te the e x cess ive ce ntr a li z at i o n an d a lso t h e
dece ntralization o f authority from the pre fec ture to t he mun ic i pal i ty wh ich ha d
become the pe nding que stion from the fo rmer.
In

this

way,

the

5th

counse l

of

the

Comm ittee

for

the

Pro motio n

of

Decentr a lizatio n was re com mende d focusing o n execution of the reform o f pu blic
work s and the refo rm of a subsidy system i n au t u m n o f 1998. T h e t r an s fe r of th e
manageme nt autho rity o f the main ro ads an d r ive rs w h ich ha d bee n expe cte d at the
beg in ni ng w as not r eal i ze d. Abou t th is coun sel, c a bi net me eti ng de te rmin atio n of the
"seco n d de centr a li z a tio n prom otio n pl a n " w a s c arr ie d ou t at the nex t y ear.
B ase d o n the dece n tr al i za t io n promo ti on pl an, the go vernment presente d "the

14

la w co nce rni ng t he rev is ion s o f the re l a te d la w s fo r a im in g at pro mo tio n o f

dece ntr a li zat ion (th e dece nt r al i z at ion pack aged law ) ", an d e nacte d it i n Ju l y 1999.
An d t h e l a w w a s e n f o r c e d i n A pr i l 2 0 0 0.
Thi s law has taken the for m of the so -c al le d p a cka ge d la w, an d p a sse d th e
Natio nal Die t inc l u d ing t he r e vi sio n o f 475 l aw s . T h e r e , t h e au thor it y tr an sfer, t h e
abolitio n of the age ncy de le gate d functio n , the arrangem ent and redu ction of state
interve ntion, the re exam ination o f o b ligato r y o r g an a n d o f f ices i n lo c al go ve rn me nt ,
and the large re vision of the Loca l Gov ernmen t Act were advance d.
The m ain char ac teristics o f this refo r m pro ces s is th a t t he M in i st ry o f hom e
affair that com pose d the Co m mittees o f fice an d t he 6 loc al govern me nt as soc ia tio ns,
espe cially the N ational go ve rnors associ ation and the decentralization pro motio n
office in it, influe nced the orientation an d the frame work of the re form. As a result,
wh ile

the

su bs t an ti al

abol it io n

of

tr an s f er of

the

age ncy -deleg at ed

au t hori ty

fu nct ion

w a s not e n ough,

was

adv a nce d

we ll ,

the

and the transfer from the

pre fe c tur e to t h e m u n i c i p a li t y wa s l it t le . T h e r e f o r e , t h e r e f o r m w a s v e r y c o n v e n i e n t
for the g o vernor and the M in is try o f home affair w hic h w as in fl uen ti a l to t h e
pre fe c tur e . T h is w il l be e x am i n e d i n t h e n e x t se c t i o n i n de t a il.

5. T he re sult o f dece ntr a lization re form and relate d pro b lem s

The decen tr al i zat io n re form th at w a s main ly advance d by the Com mit tee for
the Promo tio n of De centr a li z a tio n s ince it s i nter i m repor t was aim in g form all y an d
cons is ten t ly t he re vi tal iz a tio n o f the commun it y wi th it s in div i duali ty. Fo r t h at
reason, it wa s pr incipall y to make the cent ral-loc a l re lat ion ch an ge fro m th e
conve ntio nal ve rtic al relatio n be twee n th e ruler and the subjec t to the equal an d
c o o pe r a t i v e r e l a t i o n . A n d t h e pri n c i ple o f se l f - de te r m i n at i o n an d se lf -re s po n s ib i li ty
was set forth as the esse nce of the local au to nomy wh i ch mi gh t be ar a f utu re
community.
The comm unity im agined in the Comm ittee is not the fo rmer unifo rm and
st an d ar d i ze d o n e , b u t t h e de c e n tr a li ze d c o m m u n i ty w i th af fl u e n t i n d iv i du a li ty as an
i de a l . I n s h o r t , t h e v i e ws o f decentr a li z at ion re fo rm a re as fol lo ws: (1 ) b ase d on loc a l
self-go vernment

by

the

se lf-dete rmination

15

and

se l f -re s po n s ib i li t y

of

the

lo c al

c o m m u n it y, ( 2) in t h e e q u a l an d c o o pe r a ti ve relation be tween the central and local

gover nme nt, (3) to realize th e revit alized comm u nity wit h in div i du alit y an d variety.
For the r e al i z at ion o f suc h a tar ge t , the Local-Gover nme nt-Act re vision an d
other re fo rm we re implemented through th e e st a bl is hme n t o f the De ce n tr a l iz a tio n
pack aged l a w inc l udin g the rev is ion s of 47 5 l aw s. I n t h i s e na c t m e n t, fro m t h e
v ie w poi n t o f qu a n t i ty, the m ai n im p ac t w as on the agency de legate d functions. And
then, there were other refo rms th a t w e r e n o t i n c lu de d i n the pa c k a g e d l aw, s u c h as
t he re form of s ub sidy a nd o t he r t ra n s fe r s o f au t h o r i t y.
On the whole, it seems that the result o f t he r e fo rm fo r loc al a ut o no my i s
looke d at three po ints: (1) stre ngthe nin g the authority of local governm ent, (2 )
li ber a li z at ion

of

lo cal

auto n o my,

an d

(3)

re in forc in g

t he

loc a l

admi ni s tr at i o n

organization.
At first, on strengthening the authorit y o f loc al auto no my, the autho ri ty o f
the loc a l gover nme nt was ex pan de d th roug h an au thor i ty tr an sfe r a nd t he a b o li tio n
of age ncy - de leg ate d fu nct ion .
Secondly, thro ugh the dere gulation of the loc al a uto no my, suc h as t h e ma ki n g
rule of the co nflic ts reso lution be twe e n ce ntr a l an d lo c al go vern ments an d the
a r r a n g e m e n t a n d r e d u c t i o n o f t he s ta te i nte r ve nt io n, t he li be r a l iz a tio n o f lo c a l
gover nme nt has bee n procee ding.
Thirdly, there was the stre ngthening o f loc al a d min is tr at i o n organization. I t
expe cte d t o be ac ti v ate d not onl y b y t he rev is io n of l a ws bu t al so by the ef f orts o f
loc al gove rnmen t it sel f.
I n t h e l o c a l g o v e r n m e n t , i t s e e m s t h a t the prom otio n o f local adm i nistrative
an d fi sc a l reform, s tren gt hen in g of po l icy c a pa bi li ty an d j udic i al - a ff ai rs c a pa bi l ity,
the promo tio n o f the regional adm inistratio n and the consolidatio n of m unicipalitie s,
the lo ca l as sem bl y ac ti va t ion , the ci t i zen part i ci p at ion, an d t he e st a bl is hm ent o f
tr an spar e ncy an d f ai rne ss in the loc al gover nm e nt are g o in g to b e rea li ze d . A s a
r e su lt , w h i le the i n de pe n de n c e o f c o m m u n it y an d t h e e xp an s i o n o f i t s p o ten tia l
self-determinatio n are aime d at, in turn it mean s an ex pans ion o f s e lf-re s pon si b il i t y
or burden of autono my.
Fin a ll y th ese re su lt s w i ll be sho wn by the act iv it y o f loc al go vern ment in

16

fu ture . T h e loc a l go vernme nt of J a pa n ac qu ire d s ome new au thor i ty. I t al so ac qu ire d

some i nte rpre t at ion au thor it y of law wh ich was no t in t he fo rmer. Th e loca l
gover nme nt e n large s it s au th orit y to re organ ize its agen cy an d m an a ge it more free ly.
There is much po ssibility to re alize the ne w go vernance of loc a l autono my through
the se re fo rms.
Howeve r, it w a s s a i d th at decentr a li z at ion re fo rm i n a pre sen t s tage had
m an y l e f t - be h i n d s u bje c ts, and it has been cri ticize d be fore then. As the last r epo r t
of Comm ittee for the Promotion of Dece ntrali zation no tice d the requisite for the "2n d
dece ntr a lization re form ", the argume nt from the v ar io us s t an dpo in ts h a s bee n
already pr ogressing.
Altho ugh it is no t certain what direc t io n is aimed at co ncrete ly in the "2nd
dece ntr a li zat ion re form", it s main su bj ects mi gh t be as fo l l o ws:
( 1)

The pr im ary su bje ct i s a lo ca l f in anc e. To se c ure the s ta b l e a n d s u f f i c i e n t

revenue, there must be the re distribution of the taxation power and the re for m
of real loc at ion o f r evenue re source s w hic h h ave bee n cr it ici ze d to be absen t i n
the decen tr alizatio n refor m, an d the y have a lo ng h is tor y of ar gum e nt in the
reform pr ocess o f lo cal autono my system .

( 2)

Sec o n d i s the de v o l u t io n o f a u tho r i ty t o t h e m u n ic i p a li t ie s t h a t sho u l d be s ai d

as the s u bjec t t ha t wa s un lo a de d in t he reform . Thi s ma y be addr esse d as t he
"s ub si d i ar y pri nc i pl e " i n the above "the last re port."

( 3)

The thir d is the re form of re side nts' e mpo we rm e nt a n d c i ti ze n s' pa rti ci p a tio n
in m u n ic i p al a f f ai r s fro m a v i e w poi n t o f r e s ide n t s r ig h t o f a u ton o m y.

( 4)

The re a re var io u s r e str ic tio n s wh ic h t he curre nt law system has fo rmed and
wh ich con trol t he lo cal gover n ment mi n ute ly. It s houl d be c ons i dere d to become
im portant to remove and arrange the obliga t io n to an o r g an i zation or activity
of loc al go vernme nt.

( 5)

The f if th i s the sy ste m re fo rm o f pre fe c ture . I nt ro du ctio n o f a re g ion a l

g o v e r n m e n t sy ste m wi l l b e c o n s i de r e d.
There i s a pro b le m wh ich can be po in te d out i n co mmon th roug h the s e

argument of re form. It comes from the vie w point of the pr inciple of local auto nom y.
In a serie s of refo r m, the vie w poi nt th at the mu nic i pal it y has an i mpor t an t pos tu re
as a f un d a ment a l lo c al go vern ment ha s become we ak.

17

(4)

On t he o t he r h an d, i n the pr o ced ure o f a n a ct ua l decen tr al iz a tio n re form, t w o

ste p s procedure of reform has procee de d: at first, the re form of the relation be twee n
centr a l and loc a l gover nme nt s, an d, secon d ly, the re l at i onsh i p be twee n pre fec tur e
an d m un ic i pa l ity. T h e la tte r m ay ha ve s l i p ped in min d in t he re for m proce ss . A nd th e
focus of re form has been in the proce dure an d m a na gemen t bet we e n c e ntr a l a n d loc a l
gover nme nt s.
There fore, the original de cen t rali z at ion pro b lem as a de v o l u t io n c o n c e al s it se l f .
Moreove r, the dece ntralization o f authority to the municipality has bee n no t enoug h
c o n s i de r e d, a n d b e c o m e de ferment. Since the dece ntrali z at ion r eform fro m t h e
vie w point of ce ntr a l gover nm ent h as been advan c e d an d t h e r e fo r m o f c e n t r al- loca l
r e l at io n sh i p h a s be e n m ai n su bje c t o f refo r m, the re w as no ex am in at ion o f th e
pr inc i ple of loc a l autono my. In tur n, t he dece nt rali z at ion reform w hic h doe s not h a ve
a cle ar im age of ide al of local autono m y afte r all did only the re form of the relation
bet ween t he cen tr a l an d loc a l gover nm e nt s co nc erning th e gene ral refo rm o f state
interve ntion proce d ure.
Accordingly, fo r e xam ple, the operatio n and organization of municipality
become u ni form an d s t an dar d ize d, tho ugh there s exce pt ion. The reform has bee n
sel f -res tr i cte d to t h e ex ten t t hat the c o ndi tio n o f an ac tu al comm u ni ty i s no t fu l l y
reflecte d an d the m unicipality c anno t ma ke the i r own cho i ce inde pe nde ntly.
After all, in t h is re form, the most im po rt an t i s t he refor m of agenc y -dele g ate d
fu nct ion . It s refo rm i s m a in ly rel a ti ng to the aut hori ty o f pre fec ture . At t hi s po in t ,
the gre a t e st be ne fi ci arie s o f de ce n tr a li z at ion r e fo rm a re a l l pre fe cture s. Pr o b ab l y
pre fec ture s an d the ol d M in i str y o f H ome A f f ai rs (no w it be co me s the M in is try o f
gener a l affair s ) wi ll sure ly co ns i der t h i s decentr a lization re form to be a succe ss.
There fore, this refo rm appears to be pr oceed in g as if m a in concern i s the re fo rm o f
the general and pro cedural re lation be tween ce ntral go vernment and pre fec ture s.

6. Gover n ance ch an ge i n Ja pa n
In t his paper, con s ider in g th e gove rn ance o f Japan, it h as bee n tho ugh t th at
the de centralization refo rm be comes the ser iou s, i mpor t an t facto r wh i ch in fluen ces it .
It is r e qu ire d to v e r i fy w h e t h e r it is ac tu al l y i m por t an t. We w i ll e x am ine i t w it h

18

appl y in g th e fr a m e w o rk which a na lyze d dece ntr a lization re form.

The fi rs t po in t i s the ex amin atio n of a cen t ral-loc a l rel at ion un der the
po li ti ca l p roce ss o f t he re form. C ha nge o f the gove rna nce fro m the v ie w o f pro ce ss o f
dece ntr a lization

re form

may

be

see n

in

the

c e n tr a l -lo c a l

r e l at i o n sh i p

th at

is

transfo rm ed from the interlo cked gove rnmen t al mode l to the discr etel y se par at e
mode l o f i nter-go ver nmen tal r elat ion. And i t m ak e s t he c lari fic atio n of t he r ul e th at
is the im provemen t in the tr ans p aren cy of the ce ntr a l-loc a l re l at ion an d i s to resol v e
the c o n fl ic t i n the c o ntro ls of r e lat ion.
The ce ntral m inistries too k the lead o f such a r e form, and this re form will
change th e centr a l-loc al re l a tio n in to an admi n is tr at ive rel at ion from a po l it ic al
relation. There fore, the po litical pro ce ss re levant to mutual re lationship be twee n
centr a l po li ti cs an d loc al po l it ics be com e s w h at h as h ighe r tr an spar e ncy th a n be fore
the o paque th in g. In the fu ture in tergo vern ment a l process , th e adm in i str a ti v e
proce d ure wi l l be co me mo re i mpor t an t th an the d e mo cra t ic proce d ure ag a in.
Secon d ly, we wi ll ex am ine the st ruc ture of refo rm ac tu all y per forme d. It w a s
cle ar that the c hange of a po lic y targe t and the change o f the organization system of
the s t ate gover nme nt bec ame adv an cin g the de c e n t r a l i z a t i o n r e f o r m . T h e pur po s e o f
dece ntr a lization re form has had tr ansfor me d from the autho rity transfer to the
re arr a nge me nt
dece ntr a lization

of

ce n tr al
re form

loc a l

has

to

r e la t io n sh i p.
inc l ude

both

For

t ha t

re forms

re a s o n,
of

al tho ugh

t he

inte rgovernm ental

rel at ion sh i p an d au thor it y tr an s fer, in f act , the e f fort of re form has mainly targete d
to t h e c e n tr al - lo c al r e l at io n sh i p.
The t hir d pro ble m is if the resu lt o f dece ntr a li zat ion re form ch an ges loc a l
go ver na nc e o f J a p an an d t he c o nd i tio ns o f the functio n are change d a g a i n . A s f o r t h e
are a a n d i ts act iv i ty dom ai n of loc a l gov e rnment, it appe ars that the change of loc a l
gover nanc e may h a ppen in ne ar fu ture . It is cle a r th at t he loc al gov ernmen t c an ac t
mo re fre e l y a n d h a s an o p po rt uni t y to carry out the judgme nt by itse lf.
Howeve r, there is a pos s ibi li ty th at the c hange o f t hi s loc a l g o vern an ce wi ll be
confin i ng the loc a l go ver n ment ac t i vi ty i n t he res tr i cte d dom ai n. U s in g muc h
au tho r i ty un der t he cle ar j ur is d ic tio n se e ms to c l ari f y th e l im it o f le g a l a u t h o r i t y
and the restric t io n o f ac tivity re so urce s . T h e lo c a l g o v e r n m e n t wi l l h a v e the

19

lim i ta t ion o f ac ti v i t y by the l aw an d t h e r e v e nue so urce o f o ut si de , a nd , o n the ot her

han d, it w il l do sel f-regu l at ion in the loc al fi sc al c ris i s from the in si de .
Gener a ll y spe ak i ng , the pre s ent dece n tr al i zat io n refo rm mig ht appear to be
li tt le c hange after al l. It i s po in te d o ut that the many o f reform has o nly co nfirme d
leg a lly t h e ac tu al man a geme nt o f loc a l gover nme nt' s s it u at ion. T he agenc y-de l egate d
fu nct ion has bee n dome st ic ate d an d abso rbe d i nto t he lo cal auto n o my sy ste m for a
long time, and the state inte rventio n couldnt im plement without the cooperation of
the

lo cal

governm e nt.

Governance

of

Japan

may

no t

ch an ge

throu gh

the s e

dece ntr a lization re form.

Wil l t he r e al ch an g e of gover na nce be brought about? If we can conceive the
2nd dece ntr alizatio n refo rm, a pos sibilit y of the change in the gov ernance o f Japan
may n ot be den ie d. The gove r nance in each leve l of t he gov e rnmen t in Japan and the
gover nanc e of the inter- go vernme nt al re lat io n will c hange, if t he refo rm will
continue to se arch the ne wer reform dir e ctio n, such as, fo r exam ple, intro d uction o f
r e gio n al s ys te m , t h e su bs i di ary pr inciple, and the expansio n of re venue re source ,
wh ich Co mmit tee for the Pro motio n o f Decen tr a l iz a tio n co ns i dere d i n i ts fin a l repo rt.
We m ay e xpe ct the future dir e ctio n as fol lo ws: A lt hou gh present m u nicipality
an d pre se nt pre fe ct ure sy ste m ( t wo t ie r s ys tem ) rema in, it s num be r an d fun ct i on m ay
change a l ot. The de centr a li z a tio n of au thor ity to the municipa lity progresses further
by the c o nso lidation of m u nic i pality an d t h e u r b a n i z a t i o n . If i t do e s s o , t h e
emasculation o f pr efecture s will progress. I n o t h e r w o r d, t h e de c e n t r al i z ation of
au thor i ty to mu nic i pal i ty m a kes the ro le o f pre fe cture s ver y t hi n. On the o ther han d ,
the

re for m

tow ar d s

ratio n ali z at ion

an d

incre ase

in

e f ficiency

of

the

central

governme nt also progresses from no w on. T h e i n fl u e n c e al s o at t ai n s t o t h e loca l

gover nme nt an d makes th em more stre am line d.
There fore, the re gional o r prefecture leve l gove rnance will be e x pecte d t o
change. There are two directions which change the go vernance of the conve ntional
pre fecture s. One is foundatio n of the broader- ba sed se lf - g overn in g bo dy acco rdin g to
merger of se veral prefecture s. Ano ther is to i nt ro du ce the r egio na l go ve rnme nt over
the prefe c ture an d mun ici pal ity. Ho we ver, the predic tio n is di ffi cu l t for ho w th i s
change s the loc a l governme nt, the go vernance o f an intergovernme ntal relation or
the ce ntral go vernm e nt.

20

Note:
(1)

For ex am ple , a pro po sa l an d reco mmen da t i on of t he Local Go vernme nt Sy ste m

Re se ar c h Co u nc il a nd o the r i ns ti tu tio n s c o nce rning me tro politan system we re carr ie d

o u t r e pe a t e dl y i n t h e 1 9 6 0s , b u t n o t r ea l i z e d y e t . T h e r e w e r e t h e 9t h L o c a l
Gover nme nt Sys tem Re se arc h Co unc il "Reco mme ndatio n o n the re-dis tr ibut io n o f th e
fu nct io n " 1 96 3, t he 1 3t h Loc a l Gover nm e nt S ys te m Re se arc h Cou nci l "t he c it y s ys te m
in ter i m r e por t" 19 6 9 an d t h e 1 4t h L o c al Go vernme nt Sys tem Rese ar ch Cou nc i l
"Recommendation of big city system" 1970.
(2)

In the early 1990, the pro po sal of the To sh it am i K ai h ar a fo rmer go ve rnor o f

Hyogo Prefecture was the e nactme nt of the c e n tr al i za t io n -o f - po we r r e st r ic t i n g l a w,

an d t he Civ ic Prov i sio nal Inv est ig atio n Co mmi tte e fo r Po l it ic al In st it ut ions pr opos a l
was the decentralization organic act.
(3)

The agency de le gate d functio n com missio ns t he cen tr al gover nme nt' s fun ct ion to

the e xecutive o rgan of a local governme nt. The go vernor of pre fecture and the chie f o f
m u n ic i p a l it y h a ve t o e xe c u te the function co nven t i o n al l y as a j u n io r a dm in i s t r a t i v e
age ncy, while the minister as a h igh e r r a nk a ge nc y c o n si gn s t he i r f unc tio n to t h e
loc al go ve rnmen t e xecu tive. So to s pe ak, t he local gove rnmen t becomes th e loc a l
br anc he s o f ce ntr a l gover nme nt, a nd be comes s o m e o f na t io na l a dmi n is tr at ive o rga n.
Thi s s ys te m ha s be e n que st io ne d fro m the fo rme r to be big restrictive conditions fo r
deve lo pme nt o f the loc al au to nomy i n Japan. An d the abo li tio n h as been disc u sse d,
bu t it w as unre a li ze d un ti l ye ar 2000.
(4)

T h e de fi n i t io n t h a t the lo c a l au ton o m y i s b a se d o n t h e m u n ic i p al i ty i s g e n e r a l ly

acce pte d. On the other hand, the pr efecture is also local government in Japan.
H o we ve r, it c an no t be de nie d th at the m un ic i p a l it y go ve r n m e nt h as it s o wn tr a di t io n
since the chartere d city has been thought as im portant as one o f the i de as s u p por ti n g
the loc a l au tonom y after mo der ni z at io n. An d in t h e 2 0t h c e n tu r y, the c i ty w as al so
the pl ace of ci t ize n s l i ber at i on an d pa rti ci pa tio n or ur ba n soc ia l movemen t ag ai n.
Al tho ug h it i s am bi guou s to make s uc h a vie w poin t in to t he i dea o f loc a l aut onomous
s y s t e m , i t i s o ne o f t h e f u n d a m e nt a l v i e w po i n t o f th is p a p e r.

21