Subcommittee on Local Autonomy (First Meeting)

Thursday, February 28, 2002

Meeting Agenda

Matters concerning local autonomy

After a statement was heard from Prof. IWASAKI Mikiko concerning the above matters, questions were put to her; this was followed by discussion among the members.

Informant

Members who put questions to Prof. IWASAKI

Main points of Prof. IWASAKI's statement

1. Reforms aimed at decentralization

(a) The forces driving decentralization
>> Decentralization can be said to be a worldwide trend. The following factors are cited as the forces that are driving it: (i) democratization, (ii) cultural identity, (iii) the end of modernization, (iv) administrative and fiscal reforms, (v) globalization.

(b) Trends within decentralization
>> There are two trends within decentralization: (i) democratization, or the shift from a government-based model to a model based on self-government by the people; (ii) the shift from assignment of power (in which the assignee is constrained by the wishes of the assignor) to outright transfer of power (in which the party that transfers power plays no further part).

(c) Japan's decentralization reforms
>> In the previous round of decentralization reforms, the three main pillars were: (i) the abolition of "assigned functions," i.e., duties assigned by the central government to local governments; (ii) the introduction of correct principles for central government intervention; (iii) the establishment of the Arbitration committee for disputes between central and local governments.

>> Issues to be addressed in future include: (i) transfer of powers in the areas of taxation and public finances; (ii) adopting larger geographical units of local government (the question of whether to maintain a two-tiered system); (iii) improving the accountability of local authorities, with resulting participation of civil society in local self-government.

2. The size and capacities of local governments

(a) Raisons d'etre and criteria for deciding scale
>> The raisons d'etre of local governments are: (i) to supply public services, and (ii) to provide residents with a forum for political participation. The former requires "big government," which can deliver economies of scale; the latter requires "small government," which is closer to the people. It is important to strike a balance between these two opposing demands.

(b) Four patterns in the basic unit of local government

Size and Type of Basic Unit Mode of Public Services
U.S.A. Small and diverse Diverse
France Small and uniform Uniform (provider is the "department," at a higher level than the basic unit)
U.K. Large and diverse Diverse
Scandinavia Large and uniform Uniform

(c) Reorganization and expansion of the basic units
>> While maintaining a two-tiered system, Japan should reorganize its basic units of local government and enlarge their geographical area. The goal should be a Scandinavian-style system of local government that supplies uniform public services nationwide.

3. The "do-shu" and federal systems

(a) Essential difference between the systems
>> The "do-shu" system calls for the creation of larger, more autonomous administrative areas by combining neighboring prefectures. The essential difference between it and a federal system is that, in the latter, the constitution expressly stipulates the separation of legislative powers between the central government and the federated states or provinces.

(b) Issues in the "do-shu" system
>> If the "do-shu" system were introduced, likely issues would include: (i) deciding administrative districts; (ii) the method of electing heads of government; (iii) whether to adopt a two- or three-tiered system.

(c) Issues in a federal system
>> If a federal system were introduced, likely issues would include: (i) the need for a bicameral system with one chamber being geographically representative; (ii) the fact that devolution of power to the basic units of local government, e.g., municipalities, is not necessarily guaranteed even in a federal system.

4. Local autonomy and decentralization in Japan

-- Maximum decentralization within a unitary system --
>> Japan's can be called a "unitary" system of local government, in which the status and powers of the local authorities are prescribed by law, as opposed to a federal system, in which the separation of legislative powers is prescribed by the constitution. But even if we do not adopt a federal system, which would require constitutional revision, we should decentralize to the maximum extent possible within a unitary system, without changing the Constitution, by consolidating a system that gives local governments (a) discretion in executing policy, and (b) influence on the central government's decisions.

Main points of questions and comments to Prof. IWASAKI

HANASHI Nobuyuki (Liberal Democratic Party)

>> Because of the difference in population between the main urban centers and other regions, together with their cultural and economic disparities, I believe we also need to decentralize the national land policy. What are your views in this regard?

>> Members of the Diet are responsible for national affairs, while at the same time they also represent their local regions. What do you see as the proper role of Diet members in decentralization?

>> Whether or not we adopt a different administrative system, such as one with larger geographical units or the "do-shu" system, taking the history and traditions of Japan into account, what form of local autonomy do you see as ideal in terms of representing the character of the Japanese nation?


NAKAMURA Tetsuji (Democratic Party of Japan and Club of Independents)

>> You advocate the need for local cultural identity and local political parties in order to back up decentralization. If greater importance is to be placed on local cultural identity and local political parties, I think that, first, we need to correct the fact that the mass media are concentrated at a single point, and one way to do this would be to relocate the functions of the capital. What are your views in this regard?

>> There is duplication between the designated cities and the prefectures; for example, they tend to create similar administrative facilities. I think that, in studying the "do-shu" system, we should review the relations between these two. What is your view on this?


EDA Yasuyuki (New Komeito)

>> One could argue for partially transferring the income tax or consumption tax to the local level while reducing the Local Allocation Tax grants, but I think that the function of this last, of redistributing financial resources, is important. What is your view on the question of transferring financial resources from the central government to the regions?

>> How do you evaluate the Koizumi Cabinet's local autonomy reforms, which focus on strengthening local taxation and reviewing the Local Allocation Tax grants?


TAKEYAMA Yuriko (Liberal Party)

>> I have the feeling that in Japan, unlike the United States, there are disparities in public services between different local units. Why do such gaps arise, and why is so little progress being made in closing them?

>> You say that mergers are necessary to correct the disparities in public services between local units, but it seems to me that, at present, it is mainly the prefectures that are promoting mergers of such entities, and that local residents are not sufficiently aware of the issues to take the initiative. What do you think should be done to raise residents' awareness?

>> Given the trend toward globalization, if the "do-shu" system were realized, I think that, for example, Kyushu might pay more attention to its foreign neighbors, such as Korea and China, than to faraway Tokyo. I do not see this as a problem, but do you agree?


HARUNA Naoaki (Japanese Communist Party)

>> You have said that, in Japan, (a) local governments have little influence on the central government's decisions and little discretionary latitude in executing policy, and (b) the central government and the local governments interlock and are mutually dependent. I would like to hear specific ideas on how this situation can be improved.

>> The basic units of local government are important as a forum for residents' participation in the political process and as providers of adequate public services. Recently, there has been a series of municipal mergers directed from above by the central government. How do you view this trend in relation to the importance of these basic units?

>> The Local Allocation Tax system has the important function of adjusting financial resources among local governments, and yet it is being argued increasingly that it should be cut back. How do you assess this situation?


HIMORI Fumihiro (Social Democratic Party)

>> The foundations of local autonomy are freedom of information and citizen participation, but both of these are very underdeveloped in this country, and I think this is the reason for the lack of progress in decentralization. Do you agree with this view?

>> Is there not a risk that, as local authorities amalgamate and grow larger, they will no longer be able to provide an administration that works closely with local residents, or public services fine-tuned to the community?

>> The fact that many of the larger cities, such as designated cities, have budget deficits suggests that in local government finances bigger is not always better. Bearing this in mind, I see no point in pressing ahead with mergers unless the fiscal problems are resolved. What are your views in this regard?


KOIKE Yuriko (New Conservative Party)

>> What do you think is the right size for a municipality in terms of costs and supplying adequate services? Also, what is the right size for a prefecture?

>> To promote decentralization, it is important to reform the residents' attitude of depending on "the powers that be," and to carry on education for that purpose. What should be done to develop the human resources necessary to put local autonomy into practice?


HIRAI Takuya (Liberal Democratic Party)

>> As one of the driving forces of decentralization, you mentioned "the end of modernization." What does this mean in the Japanese context?

>> If we are to pursue decentralization, I believe we should drop the concept of "balanced development of the national land," which was emphasized in past National Comprehensive Development Plans, and instead allow "healthy differences" between local governments. What is your view in this regard?

>> Would you agree that, in Japan, the idea that a group is a collection of individuals is not as strong as the idea that the individual and the group exist in mutual opposition?


TSUTSUI Nobutaka (Democratic Party of Japan and Club of Independents)

>> You stated that the first steps toward decentralization reforms were (a) the abolition of the "agency-delegated tasks" system, (b) the introduction of correct principles for central government intervention, and (c) the establishment of the Arbitration committee for disputes between central and local governments. What are the remaining institutional problems, in particular, and how do you think they should be addressed?

>> With regard to the financial resources of local authorities, I think we should abolish the Local Allocation Tax system and unify it with local taxes, and any resulting disparities between local governments should be dealt with by creating a new adjustment fund. What do you think is the ideal form for the financial resources of local governments?

>> In your view, what is the ideal picture of amalgamated and expanded prefectures and municipalities?


WATANABE Hiromichi (Liberal Democratic Party)

>> From my past experience as a local government employee, I see human resources as important to decentralization reforms, in addition to the transfer of powers and financial resources. What is your view of human resource development by local governments?

>> Devolution to the municipalities, which are in close touch with peoples' daily lives, is likely to become increasingly important as the birthrate declines and the population ages. To that end, I believe we need to establish detailed provisions on local autonomy in the Constitution. What is your view in this regard?

Main points of comments made by members of the Subcommittee (in order of presentation)

HARUNA Naoaki (Japanese Communist Party)

>> Chapter VIII, "Local Self-Government," shows the farsighted nature of the Constitution of Japan; its provisions can serve as guidelines for local autonomy in the twenty-first century. But their spirit has not been fully realized, as seen, for example, in the central government's negative stance toward local referendums.


NAKAYAMA Taro, Chairman of the Research Commission (Liberal Democratic Party)

>> I believe that there is a need to consider term limits for heads of local government, because they are closely associated with their regions and possess strong powers, namely, the right to levy taxes and executive authority.


MORIOKA Masahiro (Liberal Democratic Party)

>> The division of roles between the central and local governments in the field of education is an important issue, and there is a need to study what role the central government should play with regard to education.


NAGAI Eiji (Democratic Party of Japan and Club of Independents)

>> Term limits for heads of local government, as advocated by Chairman Nakayama, are very relevant to decentralization, and we should certainly study them.


HANASHI Nobuyuki (Liberal Democratic Party)

>> The local referendums cited by Mr. Haruna should be held only on local issues. Matters that affect the whole country, such as security and environmental issues, should be deliberated in the Diet.


NAKAGAWA Masaharu (Democratic Party of Japan and Club of Independents)

>> I think that direct participation of residents in local politics is desirable from the viewpoint of local autonomy, and that we need to enact a Local Referendum Law.

>> In the past, the debate on local autonomy emphasized the aspect of "local unit self-government" as one of the true aims of local autonomy, but in future it will be more important to give substance to "residents self-government."


NAKANO Kansei, Deputy Chairman (Democratic Party of Japan and Club of Independents)

>> I hope to see early passage of the bill granting permanent foreign residents the right to vote in local elections, because even resident foreigners are residents of this country.


HANASHI Nobuyuki (Liberal Democratic Party)

>> Local politics and national affairs are closely related, and it is not advisable to have noncitizens involved-even indirectly-in national affairs. We should deal with the question of voting rights for foreigners by relaxing the conditions for acquiring Japanese nationality.


NAKANO Kansei, Deputy Chairman (Democratic Party of Japan and Club of Independents)

>> Those arguments have already been discussed fully in the competent committee. I think that the requirements for Japanese citizenship and the question of granting the franchise to noncitizens (not the right to run for election, but the right to vote) are two separate issues.