Sub Module 4 COOPERATION AMONG LOCAL GOVERNMENTS Case Study 3 Okhotsk Internet Project

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1 Sub Module 4 COOPERATION AMONG LOCAL GOVERNMENTS Case Study 3 Okhotsk Internet Project In this case study, we will look at the Internet connection project that was jointly started among 26 local government bodies and private companies. Outline and characteristics of the region The Okhotsk region is located to the east of Hokkaido, facing the Sea of Okhotsk. This region consists of 26 municipalities (which include 21 depopulated municipalities) and falls under the jurisdiction of the Abashiri branch office. Okhotsk region (26 municipalities) Population Number of Households Area ( km2 ) 338, ,748 10,689 (Source - National Census, Oct 1 st, 2000) Sea of Okhotsk Okhotsk region Sea of Japan Sapporo HOKKAIDO Pacific Ocean 1

2 Above picture from top The Sea of Okhotsk, the Jurisdiction of Abashiri branch office, the Sea of Japan, 83,452 km2 (including the Northern Territories), Total area of Hokkaido, the Pacific Ocean, cultivated acreage (173,500ha), forestry acreage (778,811ha) Table: Population of municipalities in Okhotsk region (*shows depopulated area) Abashiri County Shari County Tokoro County Monbetsu County Kitami city (112,000) Higashimokoto town* (3,000) Shari town (14,000) Tanno town* (6,000) Ikutahara town* (3,000) Abashiri city (43,000) Monbetsu city* (28,000) Memanbetsu town* (6,000) Bihoro town (24,000) Tsubetsu town* (7,000) Kiyosato town* (5,000) Koshimizu town* (6,000) Kunneppu town* (6,000) Oketo town* (4,000) Rubeshibe town* (9,000) Engaru town (18,000) Maruseppu town* (2,000) Shirataki town* (1,000) Saroma town* (7,000) Kamiyubetsu town* (6,000) Tokoro town* (5,000) Yubetsu town* (5,000) Takinoue town* (4,000) Okkope town* (5,000) Nishi Okkope town* (1,000) Oumu town* (6,000) 2

3 Okhotsk committee Although 80% of its region is made up of depopulated areas, intensive labor hours have been dedicated to the creation of the Okhotsk region. Between 1987 and 1989, when the Okhotsk region began drawing up a plan for its future in its Study on the future vision of Okhotsk region, adopting the slogan, Okhotsk will fly!, it began the process of information communication. A major theme of this study was the importance of equipping ourselves not only with hardware but also with software. The study was supported by the Hokkaido Regional Development Bureau, the Abashiri Development and Construction Department. It also had a university instructor as its chief examiner and a private think-tank to generate new ideas. Suggested Projects based on the Future vision for Okhotsk region 1)An international exchange featuring distinct regional characteristics, such as floating ice 2)Year-round activities for tourist promotion. 3)Creation of the Flower road and Fragrance Village 4)Creation of facilities for a Sports Land and inviting sports camps (attracting sports teams, such as school teams and professional teams, to have their training camps in Hokkaido) 5)Dissemination of information about its regional image 6)Coordination of street images and various other projects The fifth project listed above, Dissemination of information about its regional image relates to the process of information communication. After the design of the future vision was completed in 1987, the Association for the Advancement of Okhotsk into the 21st Century (referred to as OK21 ) was set up. Its purpose was to promote private sector support for this vision. OK21 was established as a private organization made up of volunteers from local construction industries, with 10 executive committees and 77 members. Local municipalities set up the Okhotsk Committee in 1990 to provide administrative support. These two groups worked together to carry out the projects listed in the Okhotsk will fly! plan. The Okhotsk Internet project is among them. It involved three sectors public, university, and private. 3

4 Outline of the Okhotsk Internet project Circumstances leading to the growth of information communication A study group was held in July 1995 among well-known members of the society to discuss the future of information communication. The Internet project was triggered as a result of the study. The OK21 identified two major requirements for the Internet project establishing facilities to support an information society, and advertising its regional characteristics across the nation. It suggested that the project required the full cooperation of all municipalities in the Abashiri branch. Upon this suggestion, the Okhotsk Committee, under instructions from the chairperson (the mayor of Abashiri city), made a strong effort to obtain agreement and cooperation from all 26 municipalities. While the initial response from the municipalities was lukewarm, by April, 1996, all 26 municipalities had agreed to cooperate with the Internet project idea. As a result, the Okhotsk Internet Management Committee was organized. Under usual circumstances, a basic infrastructure, such as an Internet facility, would be installed in the urban areas before service was spread to the local areas. However, the Okhotsk Committee decided that it would be more effective to bridge the regional gap (caused by adverse conditions regarding time and distance) by developing a strong information communication strategy. In order to do this, the Okhotsk Committee started the following projects aimed at preparing the environment so that information would be easily received and disseminated: Setting up an Internet server Installing access points within the jurisdiction of the Abashiri branch office (locating information centers in Kitami city, Abashiri city, and Monbetsu city) Sending out information about the Okhotsk region (launching a portal site to disseminate it) A critical factor of this project was its speed of implementation. In October, 1995, the Okhotsk Internet Installation Proposal was submitted by the OK21. By December of the same year, the Okhotsk Committee had officially announced the concept of the Internet project. In October, 1996, the project was launched. Faced with ever-changing technology and user environments, the information society has been constantly evolving. Likewise the original concept has had to be 4

5 constantly updated to avoid becoming outdated. To prevent this, it has adopted a pace that thinks and executes while running. The people in Okhotsk understood that the Internet would be a key instrument for its information communication. This explained the speed and momentum of the project. The Okhotsk Internet Project was launched within one year and two months (10 months after the introduction of the project concept). When the Okhotsk Internet project was first proposed in 1995, practically no private Internet provider had access within the region. Soon after, all municipal offices within the region were connected to the Internet, using and creating home pages. Gradually, Internet access has become available in schools, public facilities, chambers of commerce, agricultural and fishermen s cooperatives. Project expenses The Okhotsk Committee submitted an original budget that included revenue sources to fund expenses of the Internet project. It budgeted JPY31.1 million for the entire project. The details are shown in the table below. (Original) Source of revenue for Okhotsk Internet Project (Unit: JPY1,000) Section Amount Contribution from municipalities within jurisdiction 7,000 Contribution from OK21 4,000 Subsidy from Hokkaido 5,000 Subsidy from the Okhotsk regional development promotion body 3,500 Funding from the Okhotsk Committee 11,600 Total 31,100 However, in 1999, the actual management expenses of the project were JPY22 million, including the expenses for officers training. 5

6 Actual financial resources for management expenses of the Internet Project (Unit: JPY1,000) Section Amount Contribution from municipalities in jurisdiction* 16,900 Contribution from OK21 1,000 Subsidy from Hokkaido 2,000 Subsidy from Okhotsk regional development 2,000 promotion body Funding from Okhotsk Committee 114 Total 22,014 *50% of the contribution by municipalities were divided between Abasiri city, Kitami city, and Monbetsu city. Another 50% was divided between the remaining 23 municipalities, based on their population and financial circumstances. Results of the Internet Project and future issues The Okhotsk Internet project, jointly conducted by 26 municipalities in the local area at the dawn of the Internet era, made contributions in the improvement of its residents information literacy. The current usage levels are stunning: about 100 home pages created; about 530,000 hits to home pages; and about 2,300 accounts opened. Aside from the tremendous growth of Internet usage in the region, private sector involvement has also been seen in several municipalities, such as in the creation of content in municipal home pages and the issues of online magazines. The Abashiri city officer-in-charge said, There are outstanding home pages in the regional municipalities. From now on, each municipality will manage its own information communication operation, through hardware and software. This may encourage healthy competition among municipalities. He anticipates that each municipality will begin a new movement. Meanwhile, the broadcast of detailed regional information by residents through home pages and online magazines has generated positive feedback from regional residents as well as residents within the region who no longer live there. The Internet Project in Okhotsk has received many awards in recognition of its contribution and success. These are listed below. 6

7 Award for contributing to Regional Vitalization by Hokkaido Regional Development Bureau(July 1997) Regional Vitalization Center Award by Nikkei Internet Award (September 1997) Monthly Informational Promotion Meeting, Chairman Prize by 9 central ministries(october 1997) Award for contributing to Regional Vitalization by Hokkaido Regional Development Bureau(February 1998) Best Informative Organization, Minister of Home Affairs Prize by Ministry of Home Affairs(March 1998) However, some problems have arisen as a result of changes to the Internet environment, particularly the entry of competition from private Internet providers. From the early stages of the Internet project, the Okhotsk region had ensured that administrative information was well provided. As a direct result, all 26 municipalities in the jurisdiction of the Abashiri branch office had created home pages by 1996, setting a fine example for the nation. Later on, however, some municipalities began equipping themselves with their own Internet servers, preparing their own connection facilities, and introducing Cable TV. Those municipalities faced a double burden of Internet connection expenses. These changes, along with the entry of private providers, the development of Internet facilities such as high speed connections through ISDN and ADSL, forced the Okhotsk Committee to review the meaning and purpose of its Internet project. By the end of March 2005, this culminated in a decision to stop its Internet provider business. However, the role of providing Okhotsk information was maintained, mainly through the management of the portal site. Summary and Case Study Discussion Based on the concept that information communication is most effective in reducing regional gaps caused by time and distance factors, cooperation started between local and public bodies in depopulated areas and the regional private sector. 7

8 To materialize the future vision of the Okhotsk region, private and administrative organizations were formed, which led to cooperation between private and public sectors. The Okhotsk Internet Project was materialized by the local public body and the private sector working together without the central government s support. Material for this case study has been taken from home page of the National Depopulated Region Independence Promotion Association. 8