Central and Local Government Relations

Abstract

In this chapter, the historical development of the relationship between the central and local governments in Japan will be analyzed in terms of three aspects – administration, finance, and politics – and the characteristics of the relationship between the central and local governments in Japan will be clarified by setting a framework of interfusion and separation. When modernizing, Japan studied the local government systems in place throughout the European continent and chose to adopt the interfusion model of the relationship between central and local governments, whereby the central government delegates its policies to local governments to ensure their implementation. The relationship between the central and local governments in Japan has undergone changes through functional centralization during the wartime regime, decentralization through reforms implemented during the Occupation, and decentralization reforms that have been taking place since the 1990s. However, the characteristics of interfusion have been maintained and reinforced through municipal mergers and the development of a system of fiscal adjustments. While Japan has a high ratio of local government to total government activities relative to other countries, this characteristic of Japan is supported by an interfusion-type relationship between the central and local governments.