Overcoming the Economic Crisis by Regional Policy and the Challenges

Makoto TAKETOSHI Vice-Minister Ministry of Land, Infrastructure, Transport and Tourism, Japan

1

Ministry of Land, Infrastructure, Transport and Tourism Trend of Japan's GDP Growth Rates since 1979

（％） 10.0

6.7 6.0 5.1 5.0 4.5 5.0 3.9 2.8 2.9 2.6 2.3 2.5 2.1 2.3 2.3 4.3 1.1 2.2 0.7 2.6 2.6 2.8 1.1 1.7 2.0 -1.4 0.0 1.9 0.0 -1.0 -1.5 -0.8

-5.0 -4.5

-10.0

-12.1

-15.0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 7 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 8 8 ① ② ③

Note: Quarter base estimation in 2008 2 Source: Cabinet Office Trend of Stock Prices and Land Prices in Japan since 1980

Stock Price（yen） Land Price Index 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 1980(=100） 45,000 450

40,000 400

Land Price of 35,000 350 Business District in Tokyo area 30,000 300

25,000 250

20,000 200

15,000 150

10,000 100 Nikkei Stock Market Index Closing Price of End of Month 5,000 50

0 0

Plaza Accord Black Monday

1980 1985 1990 1995 2000 2005

Application of zero finance Freezing PayOff Corporation Collection The Resolution and Establishment of securities firms major banks and Bankruptcy of interest rate policy dress public Injection of full

3 - Urban Renaissance Project in Tokyo

Ikebukuro 池袋駅Station

Shinjuku Tomihisa Area along Akihabara and Kanda 環状四号線新宿 秋葉原・神田地域Districts Shinjuku Station 富久沿道地域Circular Route No. 4 Surrounding新宿駅周辺地域 Area

（約 １６０ （約 １６０ha） Akihabara 秋葉原駅 Station ha） Shinjuku Station新宿駅 東京駅・有楽町駅Tokyo Station and Yurakucho周辺地域 Station Surrounding Areas Tokyo 東京駅 Station Circular Route No. 2 Shimbashi （約 １６０ha） 環状二号線新橋周辺・ Vicinity and Akasaka赤坂・六本木地域 and Roppongi Districts Shimbashi Station新橋駅

Shibuya Hamamatsucho （約 １６０渋谷駅ha） 浜松町駅 Station Station

Shibuya渋谷駅周辺地域 Station Tokyo Coastal 東京臨海地域 Surrounding Areas District （約 １６０ha） （約 １６０ Gotanda五反田駅 Station ha）品川駅 Shinagawa Osaki 大崎駅Station Station

大崎駅周辺地域 Osaki Station Surrounding Areas （約 １６０ha）

4 Shift in the Aggregate Market Value of J-REIT Real Estate Securities

8,000 45 End of May 2007 Number of REITs : 41 40 7,000 Market capitalization: 6.8trillion yen

35 6,000

30 5,000

25 4,000 20

3,000 NumberREITs of

15 Market capitalization (billion yen) (billion capitalization Market 2,000 10 End of February 2009 1,000 Number of REITs : 41 Market capitalization: 2.3 trillion yen 5

0 0 Sep.'01 Mar.'02 Sep.'02 Mar.'03 Sep.'03 Mar.'04 Sep.'04 Mar.'05 Sep.'05 Mar.'06 Sep.'06 Mar.'07 Sep.'07 Mar.'08 Sep.'08 5 Total (billion yen) Number of listed issues Trend of Regional Income Disparities in Japan (Gini coefficient)

0.14 Wider

0.13

0.12 Regional Regional Disparity

0.11

0.10

0.09

0.08

0.07

Narrower 0.06 1955 60 65 70 75 80 85 90 95 2000 (Fiscal Year)

Notes: 1)Calculated based on Prefectural Accounts, Cabinet Office, Government of Japan, as well as Population Census, and Annual Report on Current Population Estimates, Ministry of Internal Affairs and Communications. 6 2) The income figures of the prefectural residents are calculated based on the 68SNA for the years before 1989, and 93SNA thereafter. Source: MLIT Strengthening Global Business Power -Haneda Airport/Narita Airport-

Narita Haneda Airport Airport

２,５００ｍ（plan)

Ａ滑走路 3,000ｍ 国 Ｃ滑走路 3,000ｍ 際 第 タ 線 第 ２,１８０ｍ（current) ー １ タ ２ タ 旅 ー旅 ミ 客 ナ ー客 ミ ル ミ ナ ナ ル ル Keisei Takasago St. Inzai NihonIkadai St. Narita Nippori St. Airport 連絡誘導路 Terminal St. Tokyo St. Access to Narita from Tokyo by Train 50 minutes （current) → 30 minutes (in 2010) Keikyu Kamata St. Haneda Airport 7 Terminal St. Economic Linkage with East Asia

Trade with Asia -- 1.7 times increase in 7 years

Total （ billion US dollars） 1,332 1,400 Total 1,200 862 Others

1,000 Others Europe and North America 800 410 Europe 600 and North America 368 Asia 400 Asia 610 200 357 0 2000 2007

8 Revitalization of Local Areaｓ

Revitalization of rural Making city centers attractive economy by valorizing unused resources

Floral decoration in the main street Children’s Farming Experience

9 "Merchandised" Natural Leaves to Attractive public space in the mall Decorate Japanese Dishes Multiple-Job Collaboration

Cooperation between a forestry union with skills and a construction association with human resources and equipment in Hida area

10 Reform of National Spatial Planning System

Comprehensive National National Spatial National Plan Development Plans Strategies Regional Plans

Comprehensive Development Plan of Hokkaido

Tohoku Region

Hokuriku Region

Chugoku Region National Capital Region

Chubu Region

Kinki Region

Kyushu Region Shikoku Region

Okinawa Promotion and Development Plan 11 Decrease in the number of municipalities through merger

3,232 3500

3000 568

2500 1,821 1,793 2000 Villages 198 towns 1994 195 1500 cities 846 815 1000

500 670 777 783 0 1999 2006 2008

Source: Ministry of Internal Affairs and Communications 12 The Ｅｃｏ-Mｏｄｅｌ Cｉｔｉ ｅｓ

Shimokawa town

Obihiro city Iida city

Chiyoda city Toyama city

Yokohama city Kyoto city

Kitakyushu city

Toyota city

Miyakojima city Sakai city Yusuhara town 13 Minamata city