Tuesday, Feb. 20, 2007

EDITORIAL

The current economic recovery in Japan has been marred by imbalances. One imbalance is between the corporate and household sectors. While the corporate sector is prospering, much of the household sector is missing out on the fruit of the nation's longest postwar economic expansion. Stagnant wage growth is putting a damper on personal spending, which accounts for just less than 60 percent of the nation's gross domestic product.

Another imbalance is regional. While some regions and areas are thriving, others are suffering a decline in economic activity. Especially conspicuous is the hollowing out of some city centers in the countryside, as characterized by permanently closed shops.

In an attempt to bring life back to provincial cities, the Diet has revised three laws: (1) the revised urban planning law to control the establishment of commercial facilities of at least 10,000 sq. meters; (2) the revised law on location of large-scale retail stores to control various nuisances caused by such stores; and (3) the revised law to revitalize city centers to provide central government subsidies to city governments whose city center revitalization plans have been approved by the central government.

Together these laws will help prevent large-scale commercial facilities contributing to suburban sprawl. But the laws will not automatically guarantee revitalization of city centers. For that, local governments, city officials, local business people and citizens need to demonstrate ingenuity in working out revitalization plans.

The city center revitalization law is aimed at eventually consolidating various urban functions leading to the creation of communities in which aged people as well as families with young children can live comfortably. It is not limited to the revitalization of commercial centers. The central government has established the city center revitalization headquarters to enhance cooperation between different government agencies and ministries. More than 20 cities are working out revitalization plans, seeking to get the central government's approval and eventual subsidies.

The central government's basic guideline includes calls for consolidation of apartment buildings and commercial facilities. Subsidies from the central government will be used not only to revitalize commercial centers but also to construct apartment buildings and move public facilities such as hospitals to city centers. This idea is significant amid the graying of the population. Many people need commercial and other urban facilities that they can access without relying on cars.

The guideline also calls on city governments to spell out numerical goals pertaining to desired population, the number of business entities in a planned area and the reduction in the number of shops out of business. The goals will be assessed every year. In principle, revitalization plans must be completed within five years.

The cities of Aomori and Toyama have become the first cities to receive central government approval of city center revitalization plans. Aomori's plan covers an area of about 170 hectares. Apartment buildings will be built near JR Aomori Station. Elderly people will be encouraged to move into these buildings. That would spare them the trouble of having to remove snow from the roofs of their houses in winter. A facility will be built in which the Nebuta festival parade can be enjoyed throughout the year. The festival is now held from Aug. 2 through 7. The city hopes that 700,000 tourists, nearly double the current number, will visit the city annually.

Toyama's plan covers an area of 436 hectares, aimed at enabling residents in the area to live their lives without having to rely on cars. The city will introduce a loop-line service of new-generation street cars, which began operating in April 2006 on abandoned Japan Railway tracks. The city hopes that the number of "light-rail transit" users will increase to 13,000 in fiscal 2011 from 10,000 at present. Hospitals and nursing-care facilities will also be moved to the city center. The city has a goal of increasing the number of residents in the area to 26,500, up from some 24,000 at present.

Various groups took part in writing the revitalization plans for the two city centers. It is hoped that more citizens will be interested in the plans so that they can offer the necessary inputs for improving them.

As more cities complete their revitalization plans, the central government needs to develop the ability to correctly assess them so that approval does not lead to a mere scattering of subsidies. Cities, for their part, should work out plans that fully take into account local characteristics such as geographic, demographic and industrial features as well as cultural traditions.

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