Promoting Utilization of Resident Registry Networks and Cards

ABSTRACT

The computerization of government administration has eased public (financial) burden and increased fairness by bringing efficiency and reason to the civil service; as such, it is a valuable measure in improving services for citizens. The “Juki-net”, a resident registry network system which began its services in August 2002, is an important piece of e-Government infrastructure.

Many citizens are concerned, however, about personal information leaks or mass governmental surveillance programs and have deemed the resident registry network system as unnecessary. This can be attributed to inadequate explanations concerning the ways in which the Juki-net will be utilized, and how much the system will contribute to improving administrative efficiency and public services.

With this in mind, the cost benefits (economic effect) of the Juki-net were calculated in two phases: phase I (2005 fiscal year) and phase II (one fiscal year a few years after 2005). The economic effect in Phase I was calculated at \18.3 billion (approximately US$166 million), while phase II was calculated at \91.7 billion (approximately US$833 million).

Development costs for the Juki-net were \39.1 billion (approximately US$355 million), while operational costs for 2005 came to \17.6 billion (approximately US$160 million). In other words, current calculations have the benefits of the network system measuring up to the operational expenses. Furthermore, it has been verified that the positive economic effects will outweigh total investment costs (including initial investment expenditure) in the future. These calculations, however, are based on converting the reduction in workings hours (as a result of increased administrative efficiency) into money; therefore, personnel reductions in federal and regional governments are necessary to realize the potential boons of the Juki-net.

To further increase the positive economic effects of the Juki-net, it is necessary not only to expand utilization within the existing framework, but also to implement a “one-stop” system for changing personal information (such as a mailing address), employ the network system in the collection of federal and regional taxes as well as national pension premiums, expand the amount of information that the network system can handle, and promote versatile use of the “Juki-Card” (the network system card). In addition, free distribution of the Juki-card and opening up the individual verification service (which is based on the network system and was established by the government) for privatization would be desirable.

Note: The “cost-benefit calculation of the resident registry network system” included in this report was conducted by the “Special Commission for National Understanding of the Resident Registry Network System”, which is part of the National Council for Promotion of Computerization.