The announcement last June by Yubari, Hokkaido, a former coal-mining town now known for the Yubari brand of melon, that it had effectively gone bankrupt sent shock waves throughout the nation because many cities, towns and villages face a similar financial crisis. The city has adopted, and the government has accepted, a financial reconstruction plan to pay off accumulated debts of 35.3 billion yen over 18 years starting in fiscal 2007.

As Yubari becomes a "municipality under rehabilitation" with its budget monitored by the internal affairs ministry, its citizens will carry a heavy financial burden even as they see the quality of their public services decline to nearly the lowest level among the nation's municipalities. The city's 13,000 residents, 40 percent of whom are at least 65 years old, face a long period of perseverance. Reviving the city will tax the ingenuity and efforts of city officials and citizens alike.

The 35.3 billion yen debt to be repaid is eight times the city's 4.4 billion yen budget for fiscal 2005. The actual amount of debt is 63 billion yen. After the coal industry died, the city tried to revive itself by building amusement parks and ski resorts and sponsoring an international film festival, but without success. Fortunately, some groups and enterprises are ready to help organize or operate festivals as well as entertainment and tourist facilities.