Historical Overview of the Local Government System and Central–Local Relations

This chapter discusses the continuity and transformation of the local government system from central–local relations to consider the sustainability of local government. First, the components of continuity are the two-tier system, the nature of local government powers, and the personnel exchange system; they can be described as factors that support the stability of administration and the development of functions of local governments. Second, the components of transformation are the legal framework of local autonomy, the expansion of local government expenditure through reforms, the establishment of an autonomous local tax system, and the creation of a stable financial transfer system; they can be described as factors that support the direction of strengthening the fragile local autonomy. To sum up these historical facts, Japanese local government system can be assessed as having a history of combining components of continuity and transformation, and of striving to guarantee financial resources while emphasizing stability and the responsiveness of local government to the demands of the citizens. The sustainability of the local government is maintained in this policy fusion. However, new social changes, such as population decline and local resource constraints, require a more flexible approach to the central-local relations. The most crucial aspect is a clearer division of roles among the three tiers of government in terms of responsiveness to the demands of civic life.