Japanese Law and Government Unit 9 ReviewLocal Government Structure in Japan

Historical Context

• Japan's local government system has roots in the Meiji Restoration (1868) which aimed to modernize and centralize the country
• The 1888 City, Town and Village Code established the basic structure of municipalities that still exists today
• After World War II, the 1947 Local Autonomy Law further defined the roles and responsibilities of local governments
  • Aimed to decentralize power and promote grassroots democracy
  • Gave local governments more autonomy in managing their affairs
• The 1950s saw a period of rapid urbanization and economic growth, leading to the expansion of local government services and infrastructure
• In the 1990s, decentralization reforms (ex. 1995 Decentralization Promotion Law) sought to transfer more power from the central to local governments
  • Aimed to address the challenges of an aging population and economic stagnation
• Recent years have seen a focus on regional revitalization and empowering local communities to address their unique challenges

Levels of Local Government

• Japan has a two-tiered system of local government: prefectures and municipalities
• There are 47 prefectures (similar to states or provinces) which are the larger administrative units
  • Each prefecture is headed by a directly elected governor
  • Prefectures are responsible for tasks that require a wider area such as public health, police, and high school education
• Municipalities are the basic units of local government and are further divided into cities, towns, and villages
  • As of 2021, there are 1,718 municipalities in Japan
  • Cities have a population of 50,000 or more and are given more autonomy and responsibilities compared to towns and villages
• Special wards (tokubetsu-ku) in Tokyo have a status similar to cities but with some differences in their relationship with the Tokyo Metropolitan Government
• In some areas, several municipalities may form a union (kouiki-rengo) to jointly provide services such as waste management or firefighting

Key Institutions and Roles

• The main decision-making body in local governments is the assembly (gikai) which is directly elected by residents
  • Assemblies pass ordinances, approve budgets, and oversee the executive branch
  • The number of assembly members varies depending on the size of the local government
• The executive branch is headed by the chief executive (governor for prefectures, mayor for municipalities) who is also directly elected
  • The chief executive proposes policies, submits budgets, and oversees the administration
  • Vice governors or deputy mayors assist the chief executive and may be appointed or elected
• Local governments have various departments and bureaus responsible for specific areas such as welfare, education, and public works
  • These are headed by administrative officials who are usually career civil servants
• Boards of education (kyouiku-iinkai) are responsible for managing schools and educational policies
  • Members are appointed by the chief executive with the consent of the assembly
• Agricultural committees (nougyou-iinkai) promote the interests of farmers and manage agricultural land use
  • Members are elected by local farmers and appointed by the chief executive

Decision-Making Process

• Policy proposals can originate from the executive branch, assembly members, or citizens through petitions or initiatives
• Bills are submitted to the assembly for deliberation in committees and plenary sessions
  • Committees (such as budget, welfare, or education) consist of assembly members and invite experts and stakeholders for input
  • Plenary sessions involve all assembly members and include debates, questions to the executive, and voting
• Approved bills become ordinances (jourei) which have the force of law within the jurisdiction of the local government
• The executive branch is responsible for implementing policies and managing the day-to-day operations of the local government
  • This includes drafting regulations, allocating budgets, and overseeing personnel
• Citizens can participate in the decision-making process through public hearings, comment periods, and local referendums
  • Some local governments have adopted participatory budgeting where residents can propose and vote on projects
• Decisions of local governments can be subject to intervention by the central government if they violate national laws or harm the public interest
  • However, the central government must follow due process and respect the autonomy of local governments as much as possible

Funding and Fiscal Autonomy

• Local governments in Japan rely on a combination of local taxes, fees, and transfers from the central government for their revenue
• The Local Tax Law defines the types of taxes that local governments can levy such as resident tax, property tax, and consumption tax
  • Local governments have some flexibility in setting tax rates within a certain range
  • However, the central government sets the framework and can limit local tax autonomy to ensure consistency across the country
• Local allocation tax (chihō-kōfuzei) is a transfer from the central government to local governments to ensure a minimum level of services nationwide
  • It is based on a formula that considers the fiscal needs and capacity of each local government
  • This system aims to reduce disparities between urban and rural areas and promote balanced regional development
• Local governments can also issue bonds (chihō-sai) to finance infrastructure projects or cover budget deficits
  • However, they need approval from the central government and are subject to limits on the amount and purpose of borrowing
• In recent years, there have been efforts to increase the fiscal autonomy of local governments and reduce their dependence on central government transfers
  • The 2004 Trinity Reforms aimed to reduce earmarked subsidies and give local governments more discretion over how to use funds
  • However, many local governments still face challenges in securing stable revenue sources and managing rising social welfare costs

Relationship with Central Government

• Japan has a unitary system of government where the central government has ultimate authority over local governments
• The Ministry of Internal Affairs and Communications (Sōmushō) is responsible for overseeing local governments and ensuring they comply with national laws and regulations
  • It provides guidance, advice, and training to local government officials
  • It also has the power to intervene in local affairs if necessary to protect the public interest
• The central government sets national standards and policies in areas such as education, welfare, and public works that local governments must follow
  • However, local governments have some flexibility in adapting these policies to their local context
• The central government provides financial support to local governments through various grants and subsidies
  • Some of these are general-purpose funds that local governments can use at their discretion
  • Others are earmarked for specific projects or programs and come with conditions attached
• Local governments can lobby the central government through national associations such as the National Governors' Association or the Japan Association of City Mayors
  • These associations represent the interests of local governments and negotiate with the central government on issues such as tax reform or decentralization
• There have been efforts to decentralize power and give local governments more autonomy in recent decades
  • The 1999 Omnibus Decentralization Act transferred many functions from the central government to local governments
  • However, critics argue that the central government still retains significant control over local affairs through financial and regulatory means

Challenges and Reforms

• Japan's local governments face various challenges such as depopulation, aging, and fiscal constraints
  • Many rural areas are experiencing rapid population decline and aging, leading to shrinking tax bases and rising social welfare costs
  • Urban areas face issues such as overcrowding, pollution, and housing affordability
• The Heisei municipal mergers (1999-2010) aimed to consolidate smaller municipalities into larger and more efficient units
  • The number of municipalities decreased from 3,232 in 1999 to 1,727 in 2010
  • However, some mergers were controversial and faced opposition from residents who feared losing their local identity and autonomy
• The 2011 Great East Japan Earthquake and Fukushima nuclear disaster exposed weaknesses in local disaster response and raised questions about the centralization of power
  • Some argue for greater local autonomy and resilience in the face of future crises
  • Others call for more national coordination and support for affected areas
• There have been calls for further decentralization and regional empowerment to address the challenges facing local communities
  • The 2014 Overcoming Population Decline and Vitalizing Local Economies Act aims to support regional revitalization efforts
  • The 2015 Amendment to the Local Autonomy Law allows local governments to set their own ordinances without seeking central government approval
• However, some argue that more fundamental reforms are needed to address the structural imbalances between urban and rural areas and ensure the long-term sustainability of local governments
  • This may require changes to the tax system, social welfare policies, and political representation at the national level

Case Studies and Examples

• Yokohama City (population 3.7 million) is the largest municipality in Japan and has been a pioneer in local governance reforms
  • It has implemented a ward system that devolves power to smaller units and promotes citizen participation
  • It has also been a leader in public-private partnerships and smart city initiatives
• Toyama Prefecture (population 1 million) has been facing severe depopulation and aging, with its population expected to decline by 30% by 2040
  • It has adopted a compact city strategy that concentrates public services and housing along transportation corridors
  • It has also promoted renewable energy and tourism as new sources of economic growth
• Kamiyama Town (population 6,000) in Tokushima Prefecture has attracted attention for its successful revitalization efforts
  • It has invited IT companies and entrepreneurs to set up satellite offices and work remotely from the town
  • It has also promoted art and culture as a way to engage young people and create a sense of community
• Onagawa Town (population 6,000) in Miyagi Prefecture was devastated by the 2011 tsunami, with over 70% of its buildings destroyed and 827 lives lost
  • It has rebuilt itself as a model of disaster-resilient and sustainable community design
  • It has relocated housing to higher ground, created a multi-purpose evacuation center, and promoted local industries such as fisheries and tourism
• These examples illustrate the diverse challenges and approaches of local governments in Japan, from large cities to small towns, from urban revitalization to rural resilience
  • They also highlight the importance of local leadership, citizen participation, and collaboration with the private sector and civil society in addressing complex issues facing communities today