What should be done to rebuild Japan's tightly-knit, bureaucrat-led society? The question is gaining urgency as local governments clamor for greater autonomy. In response, the administration of Prime Minister Junichiro Koizumi is moving toward streamlining the complex system of grants and subsidies, which gives the central government enormous influence over prefectural and municipal halls.
The keyword is "decentralization" -- shifting a significant portion of the central government's tax authority to local governments. The idea is to make them financially more self-reliant. In exchange for this, existing grants and subsidies -- payments that usually come with strings attached -- is to be scrapped.
This is a bold plan which, if carried out in full, will go a long way toward resolving the crippling budget problems that afflict many local administrations. It is also an essential step toward creating a "decentralized" society in which local initiatives by residents, not central directives by bureaucrats, set the pace.