What makes the changes inJapanese water resources?
Backgrounds of Changes in Japanese Water resources

YOSHIDA, Hiroshi
Associate Professor, Faculty of Agriculture
Tokyo University of Agriculture and Technology
JointWorkshop：

東Asia環境政策研究会

The Characteristics of Japanese River
In Japan, mountainous island country, rivers areshort and steep.
Therefore rainfall rapidly runs into sea and theflow of rivers largely fluctuate seasonally.
Rhine

Japanese Rivers

Loire
Colorado

AltitudeSeine
MekongDistance from sea

http://www.jice.or.jp/knowledge/japan/commentary08

Water Use in Japan
Unit: 100 million tons/year

Precipitation

UsableAgriculturevaporFlow into seaIndustry

Surface water

Groundwater

Municipal

http://www.mlit.go.jp/mizukokudo/mizsei/mizukokudo_mizsei_tk2_000012.html

As a monsoon country, annual
precipitation reaches 640 billion
tons/year in Japan.
But 230 billion tons in rainfall vaporize
into air and due to geographicalcondition, 329.5 billion tons flow into sea
in vain. We can use only remaining 80.5
billion tons per year.
Even today, Agriculture uses 53.9 billion
tons (approx. 67%) among available 80.5
billion tons. Industry uses 11.5 billion
tons (14%) and urban waterworks use
15.1 billion tons (19%).

Governmental institutions related to water resource• There are many governmental institutions related to water resources.
Ministry of Land, Infrastructure,
Transport and Tourism (MLIT)

Establish basic guideline on water resource policy
License new water intake from river
Construct and maintain large scale dams
Construct and maintain large scale sewage system

Ministry of Health, Labor andWelfare (MHLW)Regulate drinking water quality
Subsidize municipal waterworks
Subsidize small scale sewage system in urban area

Ministry of Environment (MoE)Regulate ambient water quality

Ministry of Economy, Trade andIndustry (METI)

Regulate groundwater pumping to prevent groundsubsidence
Subsidize industrial waterworks
Regulate hydropower generation

Ministry of Agriculture, Forestryand Fishery (MAFF)

Subsidize agricultural waterworks
Subsidize small scale sewage system in rural area

Municipalities

Operate waterworks and sewage system

Agricultural Improvement District

Operate agricultural waterworks

Water resources Development Public Corporation(水資源開発公団, WARDEC)• In 1961, Ministry of Construction (now MLIT), MAFF, Ministryof International Trade and Industry (now METI) and Ministryof Health and Welfare (now MHLW) jointly established “Waterresources Development Public Corporation (WARDEC)” todecrease the demarcation dispute among Ministries.
• WARDEC was responsible for water resource development inseven major "Full Plan" rivers.
• WARDEC withdrawn from dam construction and wasreorganized to Japan Water Agency(水資源機構) in 2000.

Seven “Full Plan” rivers
Area
Population
Manufactural
outputKisogawa
Yodogawa

CoveredTonegawa and Arakawa
Toyokawa
Yoshinogawa
Chikugogawa

http://www.mlit.go.jp/common/001020288.pdf

Not Covered

Basic Water Act of 2017（水循環基本法）• July 1 of this year, “Basic Water Act” was promulgated.
• The purpose of this new law is to integrate now fragmented water
related policies and authorities, including water resource
development, water supply and waste water treatment, into an
unitary scheme under the Cabinet.

• For this purpose, this law provides to establish Water Policy
Headquarter in the Cabinet. The chief of Water Policy
Headquarter is Prime Minister (now Abe Shinzo). The
Headquarter determines “Basic Water Plan” and arranges policiesof each Ministries.

Basic Water Act of 2017
（水循環基本法）• Actually until 2000 government reform, there was National
Land Agency in Prime Minister’s Office to integrate water
related policies. But the Agency has no authority on otherMinistries and could not control Ministries (National Land
Agency was nicknamed as “Kuge” (公家, “Noble”) because thedocuments they made were magnificent but they had few real
influence).
• Today high-rank bureaucrats in Ministries are appointed by
Cabinet therefore Cabinet can control these Ministries. Somebureaucrats are frustrated by this scheme because they think
the appointments by Cabinet (Abe Shinzo administration) isunfair. They leaked some secret documents to throw Abeadministration into scandal mess.

Abe in predicament:
Documents about building plan of
new veterinarian school owned
by Abe’s close friend were leaked
https://dot.asahi.com/wa/2017081800074.html

Background:
Japanese economic growth after world war II
Japanese government disclosed economic growth rate from 1956. The period
from 1956 to today can be divided into three or four stages.
1. Rapid growth (1954 - 1973 oil crisis)- other indicators than growth rate shows Rapid growth started in 1954
2. Stable growth (1974 - 1991)- 1986-1991 might be separated as “bubble boom period”
3. Stagnant, “lost decades” (1991 - today)

14

Economic Growth Rate (real term)
Rapid growth

12108
6

Stable growth
Lost decades

420-2

1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011

-4-6

Source: System of National Account of Japan

In rapid growth period, Japanese
economy enjoyed about 10%growth rate. Even stable growth
period after oil crisis, more or less
5% growth continued. But after
1991 “bubble collapse” nearly zero
growth continues so far.

Background:
Change in Industrial Sector
Changes in wordforce distribution by sectors
100%

Non profit

Government

80%

Other service industies

Transport andCommunication

60%

Real estate

Finance and insurance

40%

Wholesale and retail

Public Utilities

20%

Construction

Manufacturing0%1955 1965 1975 1985 1995 2005

MiningAgriculture, forestry andfishery

Source: National Population census• In 1955, Agriculture
occupied about 40% ofworkforce. The portion havecontinued to decline andbecome less than 10% in2005.
• Manufacturing expanded by1985 but after “PlazaAcord” fierce appreciationof yen (from 1$ =248.95yen at June 1985 to167.82yen at June 1986),
manufacturing also started
to shrink.

Background:
Urban population increase• In the rapid growth period, urban population also rapidly increased.
• More detail, while in 1950s the population in the large city like Tokyo or
Osaka largely increased, but after 1960s the population in large city hadreached to a ceiling and the population in satellite areas started toincrease.
• Recently, Tokyo’s population began to increase again.
14,00012,00010,000Saitama

8,000

ChibaTokyo

6,000

Kanagawa
4,000
2,0000
1950

1960

1970

1980

1990

2000

2010

Increase of Industrial and Municipal
water demand• v

Municipal
Industrial

Source:http://www.mlit.go.jp/common/001020288.pdf

Traditional Rules of Water Distribution• Japanese traditional rules of water distribution
were roughly established in Edo Era (Tokugawa
Shogunate, 1603 – 1868).
• Then farmers believed that abundant watersupply assures rich harvest. Hence they struggled
to seize so much water as possible.
• As a result, many water dispute occurred
between farmers or villages. Even today, theword “mizukakeron” (水掛け論, “water dispute”)
is used as synonym of “endless dispute”.

Traditional Rules of Water Distribution• Traditional rules of water distribution were:– Closeness to political authority is definitive.
• Tokugawa Shogunate divided land into pieces (which wassometimes very small) and designated different vassal aslord of each land piece (similar system to Europeanfeudalism). The closer to Tokugawa the lord of the land was,the more privileged the land was.
• Of course, the lands Tokugawa shogun directly rules(“Tenryo(天領)”, highest territory) were most privileged.

– Existing user is privileged over new comer.
– Upstream is privileged over downstream.

• These rules are remaining influential even today.

Note: Edo Era• Edo Era Japan (1603 – 1868) shared many coincident
features with European feudalism and in this period
manufacturing was developed to a considerable level.
• These conditions made the premisesof Japanese rapid industrializationand imperialist expansion after Meiji
Restoration of 1868.
Archer boy doll in Edo Era. This doll is powered by coilspring, turns face and shoots arrows.
Photo: http://karafro.com/zasiki/zasiki.html

Multi purpose dam• Under traditional water distribution rules, industrial
waterworks and municipal waterworks couldn’t get water
resource which they needed because they were new comer.
• Ministry of Construction (MoC) prohibited water resource
trading i.e. agricultural sector “selling water” to industrial or
municipal waterworks.
• Instead of water resource trading, MoC chose “multi purposedam” construction to provide water to municipal andindustrial waterworks.

Multi purpose dam• Multi purpose dam was constructed by WARDEC (in seven “FullPlan” revers), MoC or prefectural government (other rivers).
• The owner of Multi purpose dam sold “dam rights” to collectconstruction cost to the expected water users. (municipalities,industrial waterworks, agricultural improvement district, electriccompanies and so on)• The price of “dam rights” was different according to the value ofthe benefit which each water user would obtain from water use.
The “dam rights” for agriculture or municipalities was cheaper
than “dam rights” for industrial waterworks.

Multi purpose dam• The river authority (MoC for 1st-tier rivers and prefectural
government for 2nd-tier rivers) shared dam construction costfor flood prevention and environmental benefit (stabilizingflow in river).
• Of course, this cost allocation is ambiguous in reality andthere is much room for political bargaining.

Cost allocation for Yamba dam project(2008)
Total: 460 billion yen
Water Authority (MLIT*)

54.5%

Municipalities

43.6%

Industrial waterworks

1.8%

Hydropower generation

0.1%

http://www.ktr.mlit.go.jp/yanba/yanba_index003.html* Yamba dam is constructed in tributary of Tone river.
Tone river is one of the “Full Plan” rivers but WARDEC
withdraw from new dam construction in 2000.

Dams upstream of Tone riverSonohara Dam

Naramata Dam
http://www.water.go.jp/kanto/numata/12_photo/photo.html

Tone Great Barrage•

From left to right in this photo,– Minumadai waterway (mainly agricultural)– Musashi waterway (minicipal)– Saitama waterway (agricultural)•The width of waterways are proportional to theamounts of “dam rights” each waterway have.

Musashi Waterway

Asaka Purification Plant

Tokyo and other cities

Source: http://www.mlit.go.jp/common/001020288.pdf

Decrease of industrial water demandComparison forecast and real resultof industrial water demandLong term forecast of 1978

Long term forecast of 1987

real result• The industrial water demandrapidly increased until oil crisis of1973.
• After oil crisis, water priceincreased and manufacturers
made vast effort to economize
water use.
• As a result, industrial water
demand began to decrease. But
Japanese government persisted
unrealistic enormous water
demand forecast.

Source: Shimazu Teruyuki（嶋津暉之）, “Introduction to Water Problem （水問題原論）”, p.16,
Hokuto Press, 1991.

Nagaragawa Estuary Barrage

Source:http://www.water.go.jp/chubu/nagara/27_en
glish/index.htm• Nagaragawa Estuary Barrage was constructed against strong
opposition and completed in 1995.
• The dam developed 22.5㎥/S of water resource. But eventoday the real demand is limited only 3.592 ㎥/S.

Withdrawal from Construction Projects• Facing lack of water demandand strong opposition,
Japanese government
eventually decided towithdraw from more than
100 dams in late 1990s.

Accumulation of central government debt in Japan
Trillion Yen• After 1991 “bubble collapse”,
tax revenue, especially
corporate tax, decreased andgovernmental debt begin toincrease. This is anotherreason to withdraw
inefficient construction
projects.
Source: Ministry of Finance, “State of the public finance”
http://www.mof.go.jp/budget/fiscal_condition/related_data/201704_01.pdf

Waterworks managerial crisis• Many municipal waterworks suffered a loss byoverdevelopment of water resource andincreasing unsold water.
• Japanese waterworks law provides waterworks
should be run by its own revenue. But actually
many municipalities has been forced to subsidize
its waterworks.
• This means that complete privatization ofwaterworks is difficult even if privatization is not
impossible. Although there are some exceptions,most of current waterworks is not a profitablebusiness and not attractive for investors.

Water price divergence• Due to natural condition or other factors, water prices of eachmunicipalities are largely different.
• Especially because of the increase of dam construction cost,
the water prices of the municipalities in which water demand
recently increased is prone to be higher.
• On the other hand, water prices of the municipalities in whichwater demand suddenly decreased also is prone to be higher.
High water price municipalities

Cheap water price municipalities

Yubari City
Fukaura Town

6841
6588

Fujikawaguchiko Town

835

Ako City

853

Rausu Town

6360

Nagaizumi Town

1120

Esashi Town

6264

Oyama Town

1130

Oyano Town

6264

Shirahama Town

1155

Water price for 20ton/month as of April, 2014
Source: Japan Water Works Association

Future of waterworks in Japan• National Institute of Population and Social
Security Research forecasts continuous
population decrease in Japan in this century.
Population forecast by National Institute ofPopulation and Social Security Research

HighMiddleLow

Future of waterworks in Japan• Water demand also is forecasted to decrease.
The demand decrease will bring revenue
decrease.
• This means that the “water resource
development era” has been ended. Hereafter
proper maintenance and replace will be more
important for waterworks.
• Future waterworks will be required to operate
more effectively to adapt these conditions andto supply safe and stable water.

Thank you very much.
YOSHIDA, Hiroshi
Associate Professor, Faculty of Agriculture
Tokyo University of Agriculture and Technology
HALLA@cc.tuat.ac.jp