The Japanese Administrative System

Japanese Administrative System

1. Japanese System of Government 2. National Government Institutions 3. Local Government Organization 4. Financial State of National Government 5. Financial State of Local Governments

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan 1. Japanese System of Government

Japanese System of Government

 The Japanese system of government has a three-level structure: national, prefectural and municipal.

State (National (As of January 1, 2013) Government)

Wide area local public “To” “Fu” “Ken” bodies (prefectural “Do” (1) governments) (47) (1) (2) (43)

“Ku” or Basic local public bodies “Shi” or “Cho” or “Son” or special wards (municipal governments) cities (789) towns (746) villages (184) (23) (1742)

Population share 84.0% 7.1% 8.3% 0.6% Average population 135,803 391,134 14,153 4,509 Area share 57.9% 0.2% 35.7% 6.2% Average area 273.7km2 26.9km2 178.6km2 125.0km2 4

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Prefectural Distribution Map

Combined population 127.46 million

Combined 2 area 377,955 km

Tokyo-To (Tokyo Metropolis or “To” Tokyo Prefecture in English) only

Hokkai-Do (Hokkaido Prefecture “Do” in English) only

Osaka-Fu (Osaka Prefecture in “Fu” English) and Kyoto-Fu (Kyoto Prefecture in English) only

43 ken (prefectures in English) in “Ken” total

47 To-Do-Fu-Ken (prefectures) in Total all (As of 1 January, 2013) 5

Municipal Distribution Map (Aichi Prefecture)

Combined 7.43 million population Combined 5,163 km2 area

Cities 38 Towns 14 Villages 2 Combine 54 d total

(As of 1 Apr. 2013) 6

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Division of Roles among National, Prefectural and Municipal Levels of Government  Each local government conducts administrative affairs pertaining to its jurisdictions in an autonomous and comprehensive manner.

① Affairs of the nation that are consequential to its status as a member of the international community ② Administrative affairs concerning the activities of the people that should National Government preferably be regulated in accordance with nationwide standards ③ Programs and services that need to be implemented/provided on a nationwide scale and from a nationwide viewpoint ① Local administrative affairs Local governments ② Other administrative affairs specified by laws and ordinances

① Wide-area administrative affairs ② Administrative affairs concerning the liaison and coordination of municipalities Prefectures ③ Administrative affairs considered beyond the capabilities of an ordinary municipality due to their scale or nature

Municipalities All administrative affairs other than those conducted by prefectures

Concrete Examples of Division of Roles (1)  Functional division among the national, prefectural and municipal levels of government in a common area, under which local governments perform most of the type of administrative processing that has immediate relevance to peoples’ daily lives

Affairs National Prefectural/Metropolitan Municipal Family registers and Residents’ affairs residential basic book Elderly National Pension Nursing insurance Job search support / Unemployed Vocational training Social Employment insurance welfare Livelihood protection Livelihood protection Destitute (residents of towns and (residents of cities) villages) Health examination and Public health Quarantine food hygiene Public health National hospitals (advanced and Medical care and medical care, etc.) Prefectural hospitals Municipal hospitals hygiene pharmaceutical Licensing of medical (advanced medical care, National Health affairs practitioners and approval of etc.) Insurance pharmaceuticals 8

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Concrete Examples of Division of Roles (2)

Affairs National Prefectural Municipal Environmental quality Environmental regulation Regulation standards and pollution monitoring Environ- Supervision of disposal of ment Waste Disposal of general solid industrial wastes (private management wastes sector) Industrial land development Trade policy Industry and and luring of businesses Support for small and Promotion of local industries commerce Support for small and medium enterprises medium enterprises Industry Prefectural land National land improvement improvement projects Municipal land improvement Agriculture projects Improvement and projects Food security dissemination of agricultural technologies Expressways / national Prefectural roads / (national Roads Municipal roads Civil highways highways) engineer Class 1 rivers (designated Rivers other than class 1 or 2 Class 1 rivers (outside -ing Rivers sections) rivers as designated by designated sections) Class 2 rivers municipal mayors

Concrete Examples of Division of Roles (3)

Affairs National Prefectural Municipal Ports and Ports and harbors Ports and harbors Civil harbors engineering Airports Class 1 and 2 airport Class 2 and 3 airport Class 3 airport Housing Prefectural housing Municipal housing Water- Waterworks Housing works Sewerage River basin sewerage Public sewerage systems Public safety and National defense, trials Fire and ambulance Police security and punishment services

National universities and Prefectural universities Elementary schools and junior high schools Education colleges and colleges (teachers’ salaries to be Curriculum guidelines Senior high schools paid by prefectures)

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Regulatory Exceptions concerning Major Cities, Etc.

 Some of a prefectural government’s tasks (e.g. welfare, public health & hygiene, city planning and environmental protection) have been transferred to large cities.

Total System Prerequisites Examples number

Cabinet Nagoya order- ・Population 500,000 or more 20 Kobe designated cities Kyoto Toyohashi ・Population 300,000 or more Core cities 42 Toyota Okazaki

Special Kasugai 40 ・Population 200,000 or more cities Ichinomiya

(As of 1 April, 2013) 11

2. National Government Institutions

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Composition of National Government Institutions

 The powers of the state are divided into three independent branches, legislative, executive and judicial, to ensure three-way checks and balances (separation of powers).

Organization of Diet

Institutional House of Representatives House of Councillors framework Number of 480 242 members 4 years (the term to be terminated before the 6 years (half the members up for reelection every 3 Term of office full term in the event of dissolution) years, no dissolution) Entitlement to 20 years of age and over 20 years of age and over vote Eligibility for 25 years of age and over 30 years of age and over election Single-member constituency: 300 Prefectural constituency: 146 The whole country is divided into 300 districts. A prefecture-wide constituency is set up in all 47 Constituency Proportional representation constituency: 180 prefectures. The whole country is divided into 11 blocks. Proportional representation constituency: 96 The whole country constitutes a single constituency. Able to engage in investigations and deliberations Characteristics More reflective of public opinion from a long-term perspective ・Bills which have been passed by the House of Representatives but rejected by the House of Councillors become law if passed by the House of Representatives for a second time with a two-thirds majority of the members attending the session. Superiority of ・ the House of If the House of Representatives and House of Councillors pass contradictory resolution on the budget, a treaty or the designation of the Prime Minister and fail to reach agreement after a joint conference of the Representatives two Houses is held, or if the House of Councillors fails to pass a resolution within a predetermined length of time after the House of Representatives passes its resolution, the resolution of the House of Representatives becomes the resolution of the Diet. 14

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Diet Building

Frontal view Central entrance

Chamber of House of Committee Meeting Room No. 1 Representatives 15

Parliamentary Cabinet System  The Prime Minister is designated by the Diet from its members and appointed by the Emperor.  The Prime Minister appoints ministers of state (up to 17) ※provisional up to 18

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Cabinet

Prime Minister Shinzo Abe Abe Cabinet http://www.kantei.go.jp/

Prime Minister’s Official Residence Cabinet meeting 17

Administrative Structure of

Government

Ministry of Defence of Ministry Ministry of Internal Affairs andCommunications of Internal Ministry

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Number of National Public Servants  Although the number of national public servants currently stands at about 300,000 efforts are being made to trim this by formulating an employee reduction plan.

Ministry of Environment環境省 1,188人 0.4% Othersその他 2,724人 0.9% 内閣府 13,501人 4.6% Cabinet Office Ministry of Land, 国土交通省 61,203人 20.9% Infrastructure and Ministry of Justice Transport 法務省 48,921人 16.7%

Ministry of Internal Affairs and Ministry of Economy, Communications Trade and経済産業省 Industry 8,566人 2.9% Total 総務省 5,097人 1.7% 外務省 5,489人 1.9% Ministry ofForeign Affairs Ministry of Agriculture, 292,405 農林水産省 21,470人 7.3% Forestry and Fisheries

Ministry of Finance 財務省 71,365人 24.4% Ministry of厚生労働省 Health, 50,642人 17.3% Labor and Welfair 文部科学省 2,239人 0.8% Ministry of Education, Culture, (As of 15 Jan. 2009) Sports, Science and Tachnology 19

3. Local Government Organization

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Local Government Structure Each local government consists of an executive body and an assembly. Governor (Mayor) General Assembly Deputy Governor (Deputy Mayor)

Departments and bureaus specializing in general affairs, planning, the environment, welfare, industry, construction, etc. Standing Steering Special committees Committee committees Board of Education Public Safety Commission Auditing Expropriation  The governor (mayor) and members of commissioners Commission the assembly are elected by popular Other administrative commissions vote of residents. The term of office is four years.

Relationship between Governor (Mayor) and Assembly  The governor (mayor) and the assembly are equal to and independent of each other, and keep each other in check.

Submission of bills Resolutions (ordinances, budget, etc.)

Inspection/investigation

Mutual Checking Mechanism

Request for re-deliberation Assembly

Governor (Mayor) Governor Vote of no confidence

Dissolution of assembly

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Mechanisms for Direct Participation in Administrative Processes  To complement representative democracy, mechanisms for direct resident participation in administrative processes have been established.

Institutional Description framework  Voters are entitled to make direct demands to the Governor (Mayor), Auditing Commissioners or Election Administration Commission on matters such as (1) enactment, revision or repeal of ordinances, (2) auditing of the affairs of the local Direct demand government, (3) dissolution of the local assembly and (4) dismissal of local assembly members, the Governor (Mayor) and others by presenting a certain number of signatures.  Any special law that only applies to a specific local government must be put to a Local referendum vote of the residents and endorsed by a majority of the voters.

 As a taxpayer, a resident is entitled to demand that the auditing commissioners conduct an audit regarding, among other things, a suspected illegal or Resident’s demand unreasonable expenditure of public funds by local government personnel and for auditing take any necessary preventive, corrective or other measures.

 If a resident objects to the outcome of a resident’s demand for auditing brought Resident’s lawsuit forward by him/her, he/she may take the matter to court.

Number of Local Government Employees Trends in the Number of Staff in Local Governments by Sector  While the number of employees Police has been increasing in some

fields, such as police and fire Fire service, to bolster services, efforts are being made to keep Education the numbers in check based on a General Admin. scrap-and build approach by Public Enterprise setting payroll size control targets. 2004 2005 2006 2007 2008 2009 地方公務員数の状況 Number of Local Public Employee 地方公務員総数Total number of local public employees 一般行政部門General Administrative Sector (千人) 3232 3204 3172 3144 3117 3084 3042 2998 2951 3000 2899 2855

2500

2000

1500 1161 1152 1114 1100 1086 1069 1049 1027 1003 976 954 1000

500

0 24 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009年

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Overview of Local Public Enterprises  Local public enterprises are enterprises that are directly run by local governments to provide sewerage, water supply, transportation and other services. There are a total of 8,903 such enterprises.  In principle, they must be sustained with fees and charges collected from users.

(FY 2004)

Market Shares of Local Public Enterprises

 Local public enterprises play a major role in improving the living standard of community residents.

(FY 2009) 26

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Financial State of Local Public Enterprises

 While water supply, sewerage and other services enjoy surpluses, transportation and hospital services are consistently in the red.

4. Financial State of National Government

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Financial Size Private sector ¥382.6869 trillion of Government (77.4%) Sector

 The government sector Household sector accounts for 23% of the ¥301.2978 trillion gross domestic (61.0%) expenditure, with local Government sector governments ¥113.4274 trillion outweighing the (23.0%) National Government by Social Security Fund Enterprise a ratio of about 3 to 1. Local sector ¥81.3891 trillion

Central (16.5%)

(As of FY 2008) 29

State of National Government Expenditures  The bond expenditure accounts for about 22% of the total expenditure, which amounts to ¥92 trillion.

National Government bond expenditure General account

Interest payment

Social security debt redemption

General account total expenditure 922,992 (100.0) Public Local allocation works tax grants, etc.

Other Education and science promotion Defense

(Unit: 100 million yen) (FY 2010 initial budget)

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Breakdown of Public Investment Budget  Spurred on by a sustained high level of public investment, the level of infrastructure development has been rapidly rising.  In the future, there will be a need to shift to a more focused and efficient investment strategy while curtailing the overall size of investment.

Disaster災害復旧費 recovery 72,699 1.3% 推進費等Promotion 146,099 2.5% Landslide治山治水対策 and 686,862 11.9% flood control

Total infrastructure development 社会資本総合整備grant 2,200,000 38.1% Total public Road道路整備 982,179 17.0% works development expenditure ¥5.7731 trillion

Port & harbor, (Unit: 100 million yen) airport港湾空港 380,725 6.6% development Housing and urban environment住宅都市環境 504,009 8.7% development Forestry and fisheries (FY 2010 initial budget) 水道廃棄物処理等Sewerage, water supply, 237,129 waste infrastructure農林水産基盤 563,363 9.8% management,4.1% etc. 31 development 237,129 4.1%

State of National Government Revenues  With taxes and stamp duties only accounting for about 40.5% of its revenues, the National Government’s public bond reliance is as high as 48%.

Bond proceeds Income tax Taxes and stamp duties

Corporation General tax special bonds account total Consumption tax revenue

Other construction bonds Miscellaneous (Unit: 100 million yen) revenues

Tax burden for next generation (FY 2010 initial budget)

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Revenue Breakdown Trend

 The share of taxes and stamp duties have been steadily falling, while that of bond proceeds has been rising. (Unit: trillion yen)

FY1965 3.0496 0.1972 0.5263

FY1975 13.7527 5.2805 2.4402

FY1985 38.1988 12.308 3.4858

FY1995 51.9308 21.247 7.3794

FY2005 41.747 36.59 3.7739

0% 20% 40% 60% 80% 100%

Taxes and stamp duties Bond proceeds Miscellaneous revenues 33

Trends in Outstanding Amount of Public Bonds

 The outstanding amount of public bonds has been rapidly ballooning.

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan 5. Financial State of Local Governments

State of Expenditures of Local Governments  Expenditures are traditionally high in education and civil engineering at the prefectural level and in welfare and civil engineering at the municipal level. In recent years, welfare and bond expenditures have been on the increase. 36

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan State of Revenues of Local Governments  Local taxes only account for about 35% of the total revenue at both prefectural and municipal levels.

(FY 2009) 37

State of Local Taxes (Prefectural Level)  Tax revenues are rather volatile due to high proportions of corporate business tax and corporate prefectural inhabitant tax, which are susceptible to fluctuations in economic conditions.

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan State of Local Taxes (Municipal Level)  Tax revenues are relatively stable due to high proportions of property tax and personal municipal inhabitant tax.

Overview of Local Allocation Tax Grants Local allocation tax grants constitute a revenue source provided by the National Government to ensure resident accessibility to standard administrative services and the provision of basic infrastructure anywhere in the country by minimizing financial disparities among local governments.

 Like local taxes, the usages of local allocation tax grants are up to local governments.  Local allocation tax grants are provided to local governments which are set to experience revenue shortfalls based on a comparison of the cost of standard basic fiscal needs and basic fiscal revenues.  Local governments which do not receive local allocation tax grants are Tokyo Metropolis and 151 municipalities only (FY 2009).

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Function of the LAT

 Because of revenue source adjustments, there are no significant variations in the ratio of general revenue sources to total revenues among municipalities, be it due to population size or any other factor.

Overview of National Treasury Disbursements  Provided by the National Government to finance the whole or a part of services or programs provided/implemented by local governments, national treasury disbursements are classified into three categories as shown below.

Description Examples  The National Government bears the whole or a part National treasury of the cost of a service or program Compulsory obligatory share provided/implemented by the National Government education and a local government under joint responsibility.  The National Government bears the whole or a part National of the cost of a certain service or program Road government provided/implemented by a local government to development subsidy encourage/facilitate it. National treasury  The National Government bears the whole cost of a National payment for service or program provided/implemented by a local Census agential tasks government on its behalf.

 Unlike local allocation tax grants, the usages of national treasury disbursements are specified by the National Government. 42

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan Comparison of National Government and Local Governments in Terms of Access to Tax Revenue Sources  The National Government outpaces local governments in tax revenue raising by a ratio of 3 to 2, but the ratio is reversed when it come to expenditures, i.e. the National Government 2 vs. local governments 3.

(FY2009)

Outstanding Amount of Borrowings Made by Local Governments

 Local governments’ cumulative debt has been snowballing due to, among other things, a jump in the amount of local bonds issued to make up for revenue shortfalls due to a fall in local tax revenues and tax cuts and stimulate the economy.

UNCRD/AIT-VN Training Course on Management and Administration of Local Government Institutions for Bangladesh 19-20 March 2014 Aichi, Japan