Regional Policy in the Context of Diversification and Structural Transformation(<Special Issue>Japanese Regional Policy at the Crossroad)

<p>Japan has had just over half a century of experience with regional policies, many of which were first implemented in the country after World War II. Although the regional policies that have been promulgated in Japan were influenced by those of the UK, which was the first country in the world to develop and implement regional policies, Japanese policies are generally considered to be more complex in character. While the terms and methods used in regional policies in Japan are similar to those employed in the UK, the purpose and practical functions of these policy instruments differ. Even today, there is no doubt that the regional policies being developed in the nations of Western Europe provide an important point of comparison and reference with regional policies in Japan. In thinking about the future application of regional policies, policymakers need to ensure that they consider the following three realities: (1) the expansion and increasing complexity of economic globalization, (2) the decline in the population and birth rate, and aging population, and (3) the diversification and multipolarization of environmental problems, and changing cognitive pattern. In the context of the expansion and increasing complexity of economic globalization, strengthening competitiveness is often emphasized. However, the advanced countries with more mature economies need to rethink the nature of competitiveness. Also, this is the first time in the modern period that Japan is facing a declining population and birth rate. As policymakers contemplate future planning and business development initiatives, they must confront the question of how to retool and change from an extensive expansion-based approach to one of intensive fulfillment. Given these conditions, future regional policies must be grounded in sustainability and directed toward pluralistic communities. To achieve this, policymakers need to adopt perspectives that integrate economic, social, and environmental activities. When the focus is placed on these three perspectives, policy formation becomes a matter of achieving an effective policy mix. (1) Economic sphere: How should competitiveness be approached? Advanced countries with mature economies tend to take a narrow view that equates competitiveness with industrial competitiveness. Agents at the microeconomic level (i.e., companies) aim to expand their market share, increase production volume, and improve productivity, but these goals have the potential to produce a fallacy of composition in the macroeconomy. Thus, it is important that public policies at the macroeconomic level have different goals. In this respect, it means maintaining or improving flexibility, that is, the ability to adapt to changing internal and external conditions. (2) Social sphere: Social vitality is essential for maintaining or improving the ability to adapt to changing internal and external conditions. This requires the establishment of social conditions that facilitate a diversity of work patterns. Given the current decline in the population and birth rate, environments must be developed in which women, senior citizens, and people with disabilities can participate in the labor force (this is related to the issue of social inclusion that is currently being addressed in regional policies of the EU). This means creating conditions that are conducive to the achievement of work-life balance, creating communities that are sensitive to the needs of people with disabilities, and developing a diversity of networks that span the various dimensions of everyday life. (3) Environmental sphere: In societies with mature economies, converting increased productivity into an increase in the volume of goods produced destroys the economic and social significance of the productivity improvements that have been achieved. This is because an increase in the production volume of goods translates into an increase in the amount of</p><p>(View PDF for the rest of the abstract.)</p>