Are rural revitalization grants truly serving rural areas?

by Ngo Tu Thanh (Frank Tu)

Is it not somewhat paradoxical that grants intended for rural revitalization might actually benefit urban areas more? A quick look at the governance and financial structures along with interviews conducted with key policy actors in Japanese prefectures, reveals a significant urban bias. Larger municipalities frequently reap more significant benefits than their rural counterparts. This blog post highlights such urban-centric tendencies through the cases of Fukuoka and Nagasaki Prefectures.

The electoral map can be a telling indicator of governance priorities and influence. Consider Fukuoka: out of its 87 members in the Fukuoka Prefectural Assembly, almost half represent just two cities – Fukuoka City and Kitakyūshū (Fukuoka Prefectural Assembly, 2023b). Similarly, in Nagasaki Prefecture, two areas – Nagasaki City and Sasebo/Kitamatsūragun – account for 50% of the 46 members in the Nagasaki Prefectural Assembly (Nagasaki Prefectural Assembly, 2023).

A diplomatic event to promote cooperation between Kyushu and Fukuoka Prefecture with Vietnam held in Fukuoka City
Copyright © Ngo Tu Thanh 2022

Notably, both Fukuoka City and Kitakyūshū City, as well as Nagasaki City and Sasebo City, enjoy special statuses of ordinance and core cities, respectively, which afford them higher degrees of autonomy. According to interviews, these statuses also allow them to bypass prefectural administration and directly secure funding from the national government. In stark contrast, smaller municipalities often find themselves collaborating with prefectural governments, navigating bureaucratic hurdles to secure vital funds. One consequence of this urban dominance is the potential erosion of rural representation. Representation in prefectural assemblies is determined by population size, placing regions with declining populations at risk of losing their voice in the assembly. An assemblyman from Fukuoka Prefecture cited the example of Ukiha City, which was merged with Kurume due to its shrinking population, effectively losing its sole representative in the Prefectural Assembly. As urban areas like Fukuoka City continue to attract residents, concerns arise that rural areas face the threat of reduced representation and, consequently, diminished influence.

While the population and representation imbalances are troubling, the fiscal disparities further underscore the challenge. In Fukuoka Prefecture, for instance, grants for rural revitalization, including the Rural Revitalization Promotion Grant, tend to favor larger cities over rural areas. This is primarily due to the funding structure that requires a 50-50 contribution, with the national government covering half and local regions handling the rest. An official from Fukuoka Prefecture criticized this system for inherently favoring regions with substantial resources to finance multiple revitalization initiatives (11/07/2022). He also noted that Fukuoka City and Kitakyūshū City are the two municipalities that have received the most national grants due to their financial capabilities. This places financially strained rural areas at a disadvantage, limiting their ability to leverage national funding opportunities.

Does rural revitalization grants benefit Nagasaki’s urban cities more than rural areas?
Copyright © Ngo Tu Thanh 2022

Furthermore, an examination of Nagasaki Prefecture’s financial allocations underscores this bias. Nagasaki Prefecture’s 2021 financial report reveals that the majority of funds from both the national and prefectural levels flow into major cities like Nagasaki, Sasebo, Isahaya, and Ōmura. In stark contrast, smaller municipalities such as Hasami Town find themselves at the shorter end of the spectrum (Nagasaki Prefecture, 2021). These accounts raise critical questions about the objectives and consequences of rural revitalization grants. The current system, whether inadvertently or otherwise, tends to support the revitalization of already thriving urban centers rather than rural areas. The disparities between urban and rural areas in Japan’s rural revitalization efforts are glaring. There is an urgent need to reassess governance and funding mechanisms to ensure that the true spirit of “rural” revitalization is realized.

References
Fukuoka Prefectural Assembly. 2023. “Iinkai No Jōhō.” Governmental Website. https://www.gikai.pref.fukuoka.lg.jp/site/iinkai/.
Nagasaki Prefectural Assembly. 2023. “Iinkai no meibō.” Governmental Website. https://www.pref.nagasaki.jp/gikai/2010-01.html.
Nagasaki Prefecture. 2023. “Reiwa 3 nendo shichōson zaisei no gaiyō.” Governmental Website. https://www.pref.nagasaki.jp/shared/uploads/2023/03/1678947217.pdf.

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