Extended Associations of Local Governments

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1 Extended Associations of Local Governments 1. Features of Extended Associations of Local Governments Extended Associations of Local Governments (kouiki-rengo in Japanese), authorized in 1995 in Japan under the revised Local Autonomy Law, is the expansion of the Consortium of Administrative Works (ichibu-jimu-kumiai in Japanese). They were mainly introduced to promote collaboration among small municipalities. Institutional definition Affiliated local authorities Purpose Administrative delegation from national entities /prefecture Relation with affiliated local authorities Direct petition from citizens Organization Election of assembly members Extended Association of Local Governments Special local public entity Prefecture, municipalities, and special wards - To response effectively to diversified demands on regional administration - To receive delegation of authority from national entities/prefecture - National entity or prefecture may delegate its administrative works to the Association through a stipulation of law, government decree or ordinance. - The Association may request from the national entity in the case of an affiliated prefecture or, in other situations, from the prefectural governor, the delegation of authority for administrative works. - The Association may request a revision of the concerned local governments bylaws. - The Association may formulate a regional plan and recommend its implementation by affiliated local authorities. Concerned citizens may make a petition to any affiliated local authorities. Assembly and the chairperson as an executive organ Assembly members are chosen via direct or indirect public election. (Source) Ministry of Internal Affairs and Communications (MIC), Japan Consortium of Administrative Works - To jointly implement the administrative works of affiliated local authorities Nil Nil Nil Assembly and the administrator as an executive organ Assembly members and administrator are chosen via either election or nomination according to Consortium s bylaw. Figure: Comparison Between Extended Association of Local Governments and Consortium of Administrative Works 1

2 The merits of the Extended Association of Local Governments include 1) the Association deals with various administrative works, 2) the Association coordinates and recommends the general administrative works of affiliated local authorities via a regional plan developed by the Association, 3) the Association functions as a recipient of delegation of authority either from national entities or prefecture, and 4) the Association adopts democratic systems regarding its organization and relationship with citizens concerned. 2. Procedures for establishing an Extended Association of Local Governments The local authorities concerned stipulate bylaws via a vote in their general assembly. The Extended Association of Local Governments including the member prefecture is authorized by the Minister of Internal Affairs and Communications while other Extended Associations of Local Governments are authorized by the prefectural governor concerned. The bylaws of an Extended Association of Local Governments shall cover the following: name of association, affiliated local authorities, area of jurisdiction, assigned administrative works, contents of regional plan, office location, components of assembly, method of electing assembly members, executive organ and its election, and reimbursement of expenditures. After being established, the Extended Association of Local Governments shall swiftly make a regional plan. Process of Establishing an Extended Association of Local Governments 1. Negotiation among affiliated local authorities and stipulation of bylaws 2. Voting by general assemblies concerned 3. Application for establishing an association 4. Authorization of establishment and public notice 5. Inauguration of association (Source) Ministry of Internal Affairs and Communications (MIC), Japan 3. Roles of Extended Association of Local Governments As of March 2004, there were 82 Extended Associations of Local Governments in Japan. The number of affiliated local authorities varies from four municipalities to ninety-one comprising a prefecture and all municipalities in the prefecture. 2

3 The typical profile of an Extended Association of Local Governments is an alliance of small municipalities that, alone, do not have sufficient fiscal and personnel capacity to implement administrative works effectively. Administrative works assigned to an Extended Association of Local Governments are broad. Many associations were established in response to the enactment of the Nursing Care Insurance Law of 1997 that had increased nursing-care capacity as well as the responsibility of local governments. Many associations deal with essential region facilities such as garbage collection and disposal, human-waste treatment plants, and crematoriums. Some associations handle regional programs ranging from community information systems to vocational training, from sightseeing to signage/landscaping, and from flood control to fire fighting. Extended Associations of Local Governments are expected to function in tandem with the decentralization of power from central government to local governments. (Source) Ministry of Internal Affairs and Communications (MIC), Japan Figure: Year of Establishment of Extended Associations of Local Governments Topics for Discussion 1. What are some of the issues facing small local authorities in your country, in terms of fiscal and personnel capacity, etc. for implementing administrative works? 2. How do local authorities, especially small ones, collaborate with each other in your country? 3. Are there any specific systems in your country to facilitate the collaboration of more than one local authority? 4. Which local administrative works are suitable for joint administration by more than one local authority in your country? 3

4 Designated Structural Reform Districts in Japan 1. Outline of Designated Structural Reform Districts As restrictions by the central government inhibit the activities of the private sector and local governments, the current Cabinet is endeavoring to remove restrictions and promote decentralization. Decentralization paves the way for local governments to initiate their own ideas that are in tune with local conditions. In 2002, the Cabinet Secretary and Cabinet Office established the system of Designated Structural Reform Districts to cut unnecessary nationwide restrictions and give wide autonomy to local regions. This system selects and assists local governments who are trying to change their conditions. Selection and concentration and non-fiscal assistance from the central government are the key concepts of this policy reform. Characteristics of Designated Structural Reform Districts are as follows: (1) Within the designated district, preferential measures are implemented toward local governments with a view to local characteristics and conditions. (2) Private businesses including individuals, as well as local governments, can submit proposals for designated district reform. Regions may compete with each other and enhance their creativity through compiling a plan. (3) Adopted measures are not matched with conventional fiscal preferential treatment. (4) The Assessment Committee within the Designated Structural Reform Districts Task Force evaluates the effectiveness of preferential measures that are to be extended nationwide. 2. Procedures for Proposing Designated Structural Reform Districts Procedures from proposal to accreditation of Designated Structural Reform Districts are as follows: (1) Twice a year, the Cabinet Secretary and Cabinet Office call for plans for regulatory reform from local governments and private businesses. (2) Local governments and private businesses raise issues regarding restrictions by the central government. (3) The Cabinet Secretary and Cabinet Office collaborate with related supervisory agencies and evaluate the effectiveness and feasibility of the proposed plans. (4) Regulations to be removed and plans to be added in the fundamental policy for 4

5 Designated Structural Reform Districts are sorted out. (5) Local governments and other public organizations draft a Designated Structural Reform District plan according to preferential measures outlined in the fundamental policy, and apply for official recognition. Additionally, local governments and other public organizations that do not propose regulatory reform can also utilize the preferential measure. (6) Accreditation as a Designated Structural Reform District is addressed. Regions. Collaborate Private businesses, Local governments etc. Designated Structural Reform District Adopt in policy (1) Call for plans for regulatory reform. (2) Propose (5) Apply for official recognition Cabinet Secretary and Cabinet Office (6) Accredit Fundamental Policy of Designated Structural Reform Districts (3) Collaborate (4) Sort out regulations to be removed and plans to be added Supervisory agencies Central government (Source) Cabinet Secretary and Cabinet Office Figure: Procedures for Designated Structural Reform Districts 3. Examples of Designated Structural Reform Districts As of this writing, 495 Designated Structural Reform Districts have been accredited. The contents cover a variety of fields including education, agriculture, forestry, fisheries, child care, medical welfare, industrial development, town development, community planning, etc. 5

6 Table: Examples of Designated District Structural Reform Category Contents Education - Establishment of a private school by a limited company - Tuition not based on the School Guidance Program set by the central government Agriculture, forestry and fishery - Alleviation of conditions for acquiring a license to produce doburoku, a Japanese alcoholic drink Child care and medical - Provision of public school lunch from out-of-school kitchen welfare - Provision of day service to physically handicapped persons at nursing care facilities for the elderly Community planning - Removal of corporate capital requirements for non-profit organizations that issue community currency (Source) Cabinet Secretary and Cabinet Office 4. Capacity enhancement of small- and mid-size localities through Designated Structural Reform Districts From among the 495 accredited Designated Structural Reform Districts, 228 or 46.1% were proposed by localities that are not located in Japan s three major urban areas (Tokyo, Osaka, and Nagoya). Thus, the system of Designated Structural Reform Districts contributes to enhancing self-reliance of small- and mid-size localities. As for the categories of reform, life & wellness and education are the two major ones. (Source) Cabinet Secretary and Cabinet Office Figure: Accredited Designated Structural Reform Districts by area (left) and by category (right) 6

7 Tenryu Village, Nagano proposed a plan for an educational corporation established by nonprofit organizations. Preferential measures in Tenryu s Designated Structural Reform made it possible to own the school without owning the school real estate. Without the burden of initial real estate costs, a nonprofit organization is able to run a school there. Thanks to the Designated Structural Reform District system, Tenryu currently accepts many exchange students from urban areas, and the knowledge of elderly persons in the village is utilized in the school. Topics for Discussion 1. How much do central government regulations and restrictions hinder local initiatives in your country? 2. What are typical central government regulations and restrictions for local governments and regions in your country? 3. Which system is more practical in your country, central government-led decentralization or local initiative measures? 7