IT Strategies for Local Regions
Ministry of Public Management,Home Affairs, Posts and Telecommunications
Local Administration Bureau
Planning Director for Information Policy
Shintaro Maki
１ Rapid Growth of Internet Broadband in
japan
In 2001, the IT Strategic Headquarters adopted the
e-Japan Strategy, which sets goals "to
make Japan the world's most advanced IT nation
within five years."
General-population penetration rate of the
Internet increased from 9.2% (about 12 million)
in the end of 1997 to 54.5% (about 70 million)
in the end of 2002.
Broadband (High speed internet) subscribers
rapidly increased from 216 thousand in March
of 2000 to about 11 million people in July
of 2003.
This dramatic growth is because Japan has
the cheapest standard of rates for high-speed
continuous Internet access in the world,
costing only less than 3 thousand yen a month.
Now new information communication equipment
besides personal computers, such as Mobile
phone and Digital TV, is increasingly common.
There were only about 200 thousand Mobile
phone subscribers in Japan 10 years ago,
but now, in July of 2003, there are 77.8
million mobile phone users and additional
5.4 million PHS subscribers.
Digital TV will be able to have bi-directional
communication tools and archiving tools included.
They are expected to serve as new information
communication terminals for personal needs
at home.
From December of 2003, digital terrestrial
broadcasting services will start, and by
2011 all television broadcasting service
systems will have been transferred from analog
to digital systems nationwide.
In Japan, the dramatic advance in information
communication infrastructure marks the advent
of the ‘Ubiquitous Society’, allowing anyone
to use a variety of information communication
equipment and networks, anytime and anywhere.
Internet Broadband service spread all over
Japan rapidly, but we recognize the digital
divide because of geographic reasons.
89% coverage by optical fiber networks exists
in large cities such as ordinance-designated
cities and prefectural capitals, but municipalities
with populations under 100,000 are only 49%
covered.
Tokyo and Kanagawa have over 30% penetration
level of CATV and DSL broadband internet
services in May 2003, but Kagoshima, Kochi
and Kumamoto have only less than 10%.
We understand whether private sectors will
establish network facilities depends on the
profitability, and it differs among areas.
But we believe that a fixed level of the
service is required nationwide in public
service.
According to e-Japan Priority Policy Program
2003, the central government encourage the
construction of regional public networks
that will connect public facilities(schools,
public libraries, social education centers
and city halls, etc) in high speed or ultra
high speed, until the fiscal year 2005. The
central government already set aside over
30 billion yen subsidy for local governments
in 2002 and also provided the source-of-revenue
of local governments by local bond and the
local allocation tax.
For the areas with unfavorable conditions,
such as underpopulated area, local governments
are supporting initiatives to open their
optical fiber networks to private sectors
and promote advanced information communication
networks. The central government allowed
local governments to open dark fiber networks,
optical fibers currently not in service,
which are supported by the central government’s
subsidy, to private sectors with simple procedure
of application.
3 Impact of Establishing IT Networks on Local
Regions
Deploying a nation-wide high-speed, reliable
information communication network to eliminate
geographical digital divides is not a simple
issue.
Connecting to IT networks is a double-edged
sword for local economies.
It is good for consumers to access the information
communication network which fosters the global
economy and offers the best and cheapest
product on the net.
Although IT networks are convenient for consumers,
there are fears that consumption and employment
will flow out of the local community. It
will decline the local ecomomy.
For example, the internet shopping may reduce
sales at a local shopping mall.
It has been said that we will be able to
work any place using the advanced information
network.
However, in fact, the increasing overconcentration of advanced IT personnel
in Tokyo is also a concern.
For example, Information Technology qualification
holders are concentrated in the 3 major metropolitan
areas of Japan, and this trend is increasing
according to the level of qualification.
Though the 3 major metropolitan areas have
47% of the population of Japan, 66% of basic
system administrators and 88% of system audit
persons are working in those areas. Especially,
the Tokyo Metropolitan area has only 26%
of the population of Japan, but 41% of system
administrators and 75% of system audit persons
are working there.
There are advanced engineers and workers
in the local areas in industries which led
the economic growth of Japan such as steel
making, automobile, household electric appliances.
However, IT personnel tends to be overly
concentrated in Tokyo.
Telephone Marketing call centers have been
constructed as a new business of information
communication network service in the local
areas, but this is because of the advantage
of the language benefit, which means that
Japanese language must be used, and cheap
employment in the local area. Many companies
contract with companies in China and other
countries to develop IT system, which does
not need Japanese language.
The IT revolution has brought the great impact
just as the Industrial Revolution did in
the past.
Industrial Revolution reinforced our human
body’s capabilities with machines. Information
Revolution empowered our brain’s capabilities
with the information communication technology.
People’s knowledge and creativity become
more and more important. We are moving to
an era in which people and businesses that
create new additional value will dominate
the development of local economies.
4 Promotion of Decentralization and the Role of Local Governments
Today, to promote decentralization is a big
issue in Japan.
Municipalities should provide public services
for local residents and they should be financially
independent from the central government,
no longer relying on subsidies or local allocation
tax.
For example, with welfare services, while
the central government handles the financing
such as supplying pensions (front services are operated by municipality),
local governments provide the personal services
such as long term care for the elderly people.
However, many local areas do not have profitable
industries. They have only construction and
agriculture industries which depend on the
subsidies from the central government.
Reform of the Three Major Policies ? reduction
of the amounts of state subsidies, transfer
of tax resources to local government and
reform of local allocation tax - have been
discussed recently in Japan, but there are
many municipalities with insufficient tax
bases and weak economic clout.
We are concerned that local demand will be
moved out by new information communications
network.
It is desirable to build a social system
in which local governments, leading community
welfare, can support themselves.
5 Policies of the Ministry of Public Management,Home
Affairs,Postｓ and Telecommunications
We implement measures to support the training
of human resource and enterprises, which
produce new additional value, in order to
circulate consumption demand and revitalize
the local community collaborating with public
and private sector in the local areas such
as follows ;
Subsidies for building e-communities
This is a financial support for good model
programs to promote the formation of information
communication networks to municipalities.
We assist model programs for local IT use
that takes advantage of local knowledge and
idea.
The purpose of the policies are
1 Experiment of coordination of information
technologies
2 Model project for promotion of local area
utilizing IT
3 Production of rich local content.
Prerequisites for the subsidy are the participation
of local small and medium-sized businesses
or NPO and the creation of new jobs for IT
personnel.
We granted 1.5 billion yen for 100 areas,
each receiving 10-20 million yen.
Adopted plans are :
Itayanagi Town, Aomori Prefecture
Traceability and accountability for production
and distribution of apples.
Sendai City, Miyagi Prefecture
Multi-lingual information service by L-mode
telephone for foreign residents
Namie Town, Fukushima Prefecture
On demand omnibus taxi using GIS in underpopulated
area
Nikko City, Tochigi Prefecture
E-Library, providing one-stop service for
search, reservation and delivery
Kusatsu City, Gunma Prefecture
Sightseeing navigation system with GPS Mobile phone
Sabae City, Fukui Prefecture
Online direct shopping system to easy-order
eye-glass and sunglass
Nishinomiya City, Hyogo Prefecture
Barrier free route navigation system with Web GIS
Fukue City, Nagasaki Prefecture
Security network for elderly pelple living
alone in the isolated island.
Examination of IT-based community currencies
To revitalize communities, we think that
there is a great potential for “community
currency”.
Community currencies can take several forms
such as paper / passbook systems. Many local
areas use the system to award the volunteer
activities for elderly care and welfare,
and local shopping. These systems promote
consumption cycles within a community, stimulate
neighborhood shopping areas and develop local
production for local consumption.
We also expect to protect local areas from
deflation by the global economy.
We are discussing about how the community
currency using information technology will
support volunteer activities, foster the
community business, and promote local shopping
mall in the research project of Revitalization
of Local Economy with New Tools(Chair: Prof.
Hiroshi Kato President of Chiba University
of Commerce)
Community currency will be one of the applications
of the IC card of Basic Residential Registers
Network System.
We are inquiring for support for local governments
to introduce community currencies.
The Ministry of Public Management, Home Affairs,
Posts and Telecommunication will contribute
to realize creative community with vitality
in the advanced information society.