Regional Revitalization Measures under Population Decline
November 14 (Tuesday) 2006
The Japanese economy is continuing a long-term recovery process that, though gradual, should be labeled as a new growth era. Significant regional disparity, however, is apparent in this growth. Economic activity is buzzing in large city areas such as Tokyo, and areas that claim powerful corporations (such as Nagoya with Toyota Motors) are even experiencing severe labor shortages. In comparison, regions such as Hokkaido, Tohoku, Hokuriku, San-in, Shikoku, and southern Kyushu show signs of economic stagnation, where both the ratio of job openings to applications and income levels are low in the labor market. Population decline, which began last year, is beginning to cast a long shadow on this backdrop of regional disparity. Not only is economic activity stagnating in these regions, but a downward spiral is also emerging where young men move to Tokyo or Nagoya to seek jobs and the number of marriages and childbirths in these regions decline.
This year marks the 20th anniversary of the founding of the Fujitsu Research Institute. In commemoration, the Fujitsu Research Institute has been holding commemorative symposiums in cooperation with regional organizations.
On November 2, the Fujitsu Research Institute sponsored the Hokkaido Tourist Volunteer Liaison Council and a symposium was held in Sapporo.
As the Chairman of the Economic Research Center of the Fujitsu Research Institute and an advisor to Hokkaido, I had the opportunity to present the keynote speech at the conference. Afterwards, it was decided to pay a visit to Date City, about an hour south of Sapporo on the coast. In the midst of a declining population society, the residents of Date City have collaborated to promote attractive city development. Based on its performance, Date City could be called a model of city revitalization. I would like to take this opportunity to introduce the creative initiatives of Date City, as well as the meaning behind these initiatives.
Date City, with its relatively mild climate and little snowfall, is regarded as a comfortable and livable city for the elderly in Hokkaido. In recent years, it has been attracting local and nationwide interest as its mayor and city office, shinkin (cooperative) bank, chamber of commerce and industry, and citizens have all endeavored to plan and develop an attractive city for residents. Date is a rural city, where the population of 37,000 is concentrated centrally and the surrounding rolling hills are sprinkled with farms. In recent years it has become an attractive city for residents and the incoming population has outnumbered outward migration. This has resulted in a population increase of 1000 over the last three years, and despite continued deflation the rate of increase in land prices for residential plots has for some time been the highest or second highest in all of Japan.
For some years Date City has been conducting research to develop its consumer goods industry and consumer services. In January 2002, it established the "Date Wealthy Land Project Research Association", a collaborative public-private organization, and has been researching various projects. Furthermore, it dissolved the research association in May 2004, restructured the "Creation of a Prosperous City Association", and has been focusing activity on the implementation of the initiative.
Four projects are being promoted by the "Creation of a Prosperous City Association".
1. Safe and secure housing
In the spring of 2006, two units were newly constructed in a "care-provided" housing complex which operates privately and with no subsidies. Tenants now occupy 70% of the units, and this rate is increasing. Given severe financial shortages and corresponding difficultly in constructing publicly funded elderly institutions, these privately planned and developed elderly "care" housing complexes are models for the future.
2. Life mobility services
This is a system for providing a service based on the use of private cars, which is substantially cheaper than taxis especially if shared by multiple passengers. I proposed this service to the government when I was an advisor to Prime Minister Koizumi, and it was given trial experimentation by the Ministry of Land, Infrastructure and Transport. Date City is now officially promoting the service in earnest. The city initially experimented with using two shared vehicles, but realized the needs of citizens were high and put 10 vehicles from a local taxi company into operation. (The Date Chamber of Industry and Commerce plays the primary role in operations. Two local taxi companies have been commissioned for service. Operations began on November 15 under the name, "Ainori taxis"). The service, which is currently limited to those over the age of 60, is said to have made the elderly happier and more active in moving around town.
3. Quality rural housing
This is a plan to transform farm land near the city center into quality housing and provide it to residents. It was originally a special plan devised by the Ministry of Land, Infrastructure and Transport, but is currently being implemented as a specific project for nearly 90 housing units by Date City, which is expected to see an increase in incoming residents. (Applications are underway for the expected sale of roughly 53 plots, and construction begins around next spring).
4. Providing citizens with information for daily life
This is a project to collect information concerning the "safe and secure housing", "life mobility" and "quality rural housing" projects, as well various other consumer services such as local shopping centers, edit it into a convenient form, and then provide it in a comprehensive, high-density form to residents via the media (internet, regional cable television and etc.) A company with a young and enthusiastic staff was established to handle the production of information content and updating. The city community provided various means of support to help turn a profit, and this year the project was in the black and activity has been spurred even further.
In this way, the various projects for residents examined above are mutually complementary and have a synergistic effect, and contribute to increasing the attractiveness of Date City. These accomplishments should lead to more people becoming familiar with the city projects in various different ways, and be an opportunity for more people to visit Date City and experience its appeal.
For Japan's regional economies and governments cast under the sweeping dark cloud of population decline, the example of Date City, which has experienced success through its own initiatives and efforts without relying on public finances, will surely become a model example with a hopeful message. I sincerely hope that Date City’s experiments will continue to achieve success, and then begin to spread across the country.