Economic Recovery Leads to Regional Competition and Development in Japan


NEW YORK -- (BUSINESS WIRE) -- January 12, 2004

The Japan External Trade Organization New York (JETRO NY) released a newsletter today highlighting regional development in Japan. It can be viewed at:

http://www.jetro.go.jp/usa/newyork/focusnewsletter/focus31.html

• Japan Moves to Decentralize Decision Making to the Local Level
  
  Over the past few years the Japanese government has approved a series of policy measures designed to facilitate the shift toward a decentralized system of government. These reforms seek to promote greater self-determination, by helping local governments to create their own policies independently; and to allow local residents more participation in the decision-making process.
  
  
• Regional Development Strengthened Through Special Zones of Structural Reform
  
  
  To provide a "test laboratory" in which new reforms can be evaluated on the local level, a system of special zones for structural reform was proposed in April 2002. Four rounds of proposal applications have since been implemented and over 1500 proposals submitted. In April of this year the first decisions were made and almost 250 Special Zones have been approved for implementation. As a result, prefectures and municipalities will now be granted exemptions from regulations governing education, urban renewal, distribution, agriculture, medical care, industry-academic cooperation and other areas. This will help to enhance their core strengths and competencies, and help to develop new companies, industries, efficiencies and a stronger commercial infrastructure.
  
  For example, an international distribution zone has been proposed for one major port area. Customs clearance will run 24 hours a day - 365 days a year, and private companies are to operate a container terminal and a bonded area. In another zone, non-Japanese workers with needed skills will be allowed to extend their visas. The entry of foreigners from specified countries is to be eased in still another zone. Approvals have also been granted to establish schools founded by private companies, and a public road will come into use for testing robots that walk. In another case, Neoteny Co., Ltd., a Japanese venture capital and consulting firm is seeking to create a wireless LAN zone in a mountain community with low population density.
  
  Every proposal will not be approved and indeed some have encountered resistance from government bureaucracies as well as private parties whose interests are protected by existing regulations. By promoting this debate and many test cases across Japan, however, new ideas are being introduced and considered. Over time this will have enormous impact.
  
  
• Local Regions and Municipalities Identify and Build on their Competitive Advantages
  
  
  Attracting foreign investment and businesses to locate in areas outside of Japan's primary population centers will not be easy. The fact remains most foreign investors and companies in Japan choose to operate in Tokyo or Osaka, its largest industrial center. It is fair to say, however, that those who restrict their activity to these major cities are missing out on many attractive and potentially profitable opportunities as well as ways to reduce their cost structures.
  
  
  Japan has 47 prefectures -- from the northern-most region of Hokkaido to the southern island of Okinawa. Each possesses its own identity, character and strengths. Specific examples include:
  
  
• Fukui
  http://www.pref.fukui.jp/english/index.html
  
• Hokkaido
  http://www.pref.hokkaido.jp/index-e.html
  
• Kyoto
  http://www.pref.kyoto.jp/index_e.html
  
• Mie
  http://www.pref.mie.jp/ENGLISH/index.htm
  
• Shizuoka
  http://www.pref.shizuoka.jp/kikaku/ki-20/english/index.htm
  
  Data and statistics have been compiled by JETRO from publicly-released media accounts. JETRO does not guarantee their accuracy, and any such information should be checked by the reader before they are used to make any business or investment decision.
  
  Contact: Satoshi Miyamoto
  Executive Director, JETRO NY
  Tel: 212-997-0416
  Fax: 212-997-0464
  E-mail: Satoshi_Miyamoto@jetro.go.jp.