Result Oriented Prefectural Reform

ABSTRACT

While the plan for local decentralization has been made based upon recommendations by thecommittee of promotion for the local decentralization, there are more and more prefectureswhich introduce any evaluation systems regarding their projects and programs.

It is generally said that there are four major problems regarding current local fiscal andadministrative system in Japan: accumulation of government debt, delay of localdecentralization, lack of accountability, and red tape and non-citizen-oriented public services.

In order for local governments in Japan to provide efficient and effective public services whichmeet needs of the citizen, it is necessary for them to create results-oriented public managementsystems that include medium or long-term strategic planning with the citizen and performancemeasurement. Reforms in Oregon, Texas, and Mie may be good models as advancedexamples in outcome-focused performance measurement systems.

To enhance the welfare of the citizen, it is essential to establish the results-oriented publicmanagement system as a comprehensive management framework which consists of strategicplans, outcome-focused performance measurements, analyses and evaluations, performance-based budgeting. Under this large results-oriented framework, specific mechanisms whichpursue efficiency in providing public services should be introduced. They include competitivetendering in providing public services between the public sector entities and the privatecompanies, active use of PFI, introduction of accrual accounting and capital charges that arebased upon valuation of fixed assets at a current cost.

Conclusion