Special Zones for Structural Reform Getting Under Way.

(From Journal of Japanese Trade & Industry (JJTI))

The establishment of special zones for structural reform (special zones) is stealing the spotlight as a way to revitalize the ailing Japanese economy. The reform zone scheme, to be introduced in various municipalities, is aimed at accelerating deregulation in the country as part of Prime Minister Koizumi Jun-ichiro's reform initiatives. The central government will start accepting applications for the establishment of special zones from local governments starting April 1 for piecemeal implementation.

Kitakyushu City, Fukuoka Prefecture, will apply for the establishment of a special economic zone for international distribution with 24-hour custom services to enable swift cargo delivery and enhance international competitiveness. The municipal government has started full-scale activities to attract companies to the zone, which is likely to be the first zone of its type in Japan. Mie Prefecture and Yokkaichi City jointly plan to establish an industrial revitalization special zone by relaxing regulations on the use of land formerly occupied by petroleum complexes. The two municipalities are currently holding consultations with local businesses on the details of the project.

Ota City, Gunma Prefecture, will establish an English education special zone and open combined primary, junior and senior high schools, where all the curricula, with the exception of the Japanese language and social studies, will be taught in English. In Hokkaido, several municipalities will apply for the establishment of agricultural special zones that would deregulate the possession of farmland and enable private companies to own it.

Fukuoka City, jointly with Fukuoka Prefecture and Kitakyushu City, will apply for the establishment of a special zone aimed at conducting practical experiments with robots on town streets. Fukuoka City has a track record of assisting the research and development of robots, sponsoring a world robot soccer competition, called "RoboCup," in June last year, and establishing "Robosquare" in the town, where citizens can come in contact with robots. In this process, the establishment of a "robot experiment special zone" was requested by scientists who wished to conduct robot experiments in the town.

In connection with the deregulation of medical services, which has been required by Nagano Prefecture and other municipalities and is the most controversial issue in the regulatory reform, the ...