My Vision No.33
2018.1A New Stage for the Furusato Nozei System
In Japan, there is a strong tendency for young people to migrate to cities in order to continue theireducation or seek employment. As a result, despite the fact that rural areas may have contributed
to these young people’s upbringing and early education, they will not receive a return in the form oftax revenue, leading to a discrepancy in tax revenue between urban and rural areas. The furusato
nozei system was created in 2008 to address this situation. Under this system, individuals are able
to pay a local tax to a regional administration of their choice, enabling them to provide support toregional towns and regional bodies. However, a variety of problems affecting the system have also
been noted, for example excessive competition between municipalities in relation to the “thank you
gifts” offered for its use. It will be necessary to achieve a transformation of the furusato nozei system
to ensure that it contributes to the sustainable development of rural areas while also working toensure that reconsideration of the practice of providing high-priced gifts as an incentive for use of
the system does not lead directly to a reduction in revenue. What are the issues of the existing
system? What is the most effective means of using the furusato nozei in accordance with its
fundamental purpose? Ten years after the introduction of the system, this issue of My Vision takes
the opportunity to consider the direction for its next stage.

About this Issue
A New Stage for the Furusato Nozei System: Reconnecting the Country and the City
Shigeki Uno
NIRA Executive Vice President, Professor, Institute of Social Science, The University of Tokyo
Keywords…Supporters outside the region, regional revitalization, creation of new value in rural areas,rebuilding of relationships between country and city

Expert Opinions
A New Stage for the Furusato Nozei System

What are the problems of the existing furusato nozei system?
What are the most effective means of using contributions to the system for regional revitalization?

Clarify the uses of contributions and create
ongoing connections – Commonsense is called forin relation to “thank you gifts”

Offer incentives to the cities also – The one-way
flow of tax is problematic

Tatsuo Ikeda

Ryo Tanaka

Director, Municipal Tax Planning Division, Local Tax
Bureau, Ministry of Internal Affairs andCommunications

Mayor, Suginami Ward, Tokyo

Keywords…Support for hometown/rural areas, fosteringof a culture of charitable contribution, competition in“thank you gifts”, clarification of use of funds andapplication of creative ingenuity

Keywords…Outflow of residence tax, distortion of proper
functioning of taxation, incentives for urban areas,
coexistence and mutual prosperity

The furusato nozei is a tax system tailored topeoples’ lifecycles

The important thing is to increase the numberof repeaters

Issei Nishikawa

Naruhiko Kuroda

Governor, Fukui Prefecture

Mayor, Hirado City, Nagasaki Prefecture

Keywords…Outflow of young people, uneven distributionof taxation sources, project-based solicitation ofcontributions, mechanisms for the promotion of human
movement

Keywords…Virtual citizens, emotional bonds, promotionof industry, independence of industry

Focus efforts on projects that will attract people –Screening of projects is an urgent task
Mariko Mikami
Journalist

Interview period：September, 2017
Interviewer： Maiko Sakaki（NIRA Research Coordinator, Researcher）
Editor：Isao Arai

Keywords…Improvement of policy quality, sustainableregional revitalization, continuing long-term bonds withrural areas, utilization of pro bono services
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation presented here.
Translated by Michael Faul
Copyright Ⓒ 2018 by Nippon Institute for Research Advancement

My Vision No.33
2018.1
About this Issue

A New Stage for the Furusato Nozei System –Reconnecting the Country and the City
Competition in the Area of “Thank You Gifts” and theOutflow of Residence Tax Funds from Cities
Introduced in 2008, the furusato nozei system has now been
in existence for 10 years. The system has displayed a steadyincrease in scale. For example, in fiscal 2016, contributions
made through the system exceeded 280 billion yen. There aremany cases in which local municipalities are formulating
original ideas and using the system as a means of attracting
Shigeki Uno
people to their region and promoting an ongoing involvement. If
Executive Vice President, NIRA
the system makes people aware of specific regions, develop an/ Professor, Institute of Social
interest in those regions, and, furthermore, support local
Science, The University ofTokyo
projects, then it can be said to have realized its original aim.
However, this is not to say that the furusato nozei system isfree of problems. The first problem that should be indicated is competition between municipalities
in the area of “thank you gifts”. Clearly, the offering of these gifts is not the fundamental purposeof the system. “Thank you gifts” are no more than a sign of gratitude, a small bonus. If, despite
this, there is an excessive focus on these gifts, and the system comes to resemble catalogue
shopping, then we would be compelled to say that it has deviated from its original purpose. Taking
into consideration an appropriate balance with the efforts made by local governments in
implementing the system, providing “thank you gifts” equivalent to half or more of the amount of
the contribution directed to the local municipality is getting the correct order of priorities
backwards. From this perspective, it is regrettable that the Minister of Internal Affairs andCommunications was forced to issue a notification urging municipalities to curb excessivecompetition, as discussed by Tatsuo Ikeda, Director of the Municipal Tax Planning Division of the
Ministry’s Local Tax Bureau. It is to be hoped that the furusato nozei system will develop in futurewith a focus on its original purpose.
There is another criticism to be made of the furusato nozei system. Ryo Tanaka, Mayor ofTokyo’s Suginami Ward, points out that the system “distorts the proper functioning of taxation,”
given the principle that the burden of the cost of government services should be borne by theresidents who are the beneficiaries of the services. Demand for government services is also
increasing in the cities, for example as a result of the aging of the population. Mr. Tanaka’s urging
that we cannot afford to simply remain unconcerned by the outflow of residence tax due to thefurusato nozei system has a weight that makes it difficult to ignore. As Mr. Tanaka also indicates,
it will be necessary to envision incentives that prompt urban municipalities to “autonomously seek
to realize mutual prosperity in cooperation with rural areas.”

Raised in the Country, Working in the CityAs this indicates, the furusato nozei system presents issues that need to be looked at. Having
said this, we will be unable to accurately evaluate the system unless we return to its starting pointand consider why the system was introduced. This is discussed in this issue by Mr. Issei
Nishikawa, Governor of Fukui Prefecture, an advocate of the system. Governor Nishikawa
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation presented here.
Translated by Michael Faul
Copyright Ⓒ 2018 by Nippon Institute for Research Advancement

My Vision No.33
2018.1emphasizes the fact that people who are born and raised in the country leave their home regions inorder to work in the cities. In the case of Fukui Prefecture, every year 2,500 young people leave theprefecture to attend university, etc., but only around 600 return to find work. As a result, “despite
the fact that it is local municipalities that provide public services such as education and assistancewith child-raising, when the beneficiaries of these services become full-time workers, their tax
payments are made to large cities.” There is merit in Governor Nishikawa’s argument regarding
the need to correct this imbalance.

How to create Relationships with Supporters from Outside the Region?
How, then, should the furusato nozei system be developed in future?
As may be imagined, it is important not to make contributions to the system one-time events,
but to build lasting relationships between local municipalities and their supporters outside theregion via these contributions. Naruhiko Kuroda, the Mayor of Hirado City in Nagasaki Prefecture,
which recorded the highest level of furusato nozei donations in Japan in fiscal 2014 and has sincecontinued to attract a large number of contributors, believes that “it is not the amount of thecontributions they receive that municipalities should be competing over, but rather the number of
repeaters who continue to contribute.” In fact, in the case of Hirado City, the town has a resident
population of approximately 30,000, while its “virtual population” of furusato nozei contributors isapproximately 40,000. The fact that the city has more supporters outside the region than actual
citizens is a measure of its appeal. Competition to make the specific appeal of regional areas known
throughout Japan would surely have an effect in terms of regional revitalization.
When a rural area has won supporters outside the region, the next goal is to encourage those
supporters to actually visit the region. The journalist Mariko Mikami discusses the importance of
projects that foster the development of “human bonds and a continuing involvement in thecommunity.” As an example, Ms. Mikami points to the “Town of Photography” branding conceptthat has been advanced by Higashikawa in Hokkaido Prefecture. The holding of the National HighSchool Photography Championship (which has also been the subject of a movie) in the town
certainly stimulates relationships between residents and outsiders. Promoting the creation of newvalue from the interaction between regional residents and supporters from outside the region, thisis a living embodiment of the fundamental purpose of the furusato nozei. And this orientation canalso be effectively linked to such other initiatives as the design of second careers following
retirement and the establishment of bases in preparation for emergencies such as natural
disasters.

Cultivating More Diverse and Autonomous Relationships
It is both enriching and essential for those living in contemporary societies to have regions inwhich they are involved and regions which they provide with support other than the specific placein which they reside. Such a region may be the region in which one was born and raised, or it may
be a region with which one has had no previous involvement, but in which a project resonated with
one and prompted an entirely new involvement. It will be vitally important for people to cultivate,
via the furusato nozei, more diverse and more autonomous relationships with rural Japan.
In addition to teaching in The University of Tokyo’s Institute of Social Science, Professor Uno serves as NIRA’s
Executive Vice President. Professor Uno took his Ph.D. in law from The University of Tokyo. He specializes in thehistory of political thought and political philosophy.

This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation presented here.
Translated by Michael Faul
Copyright Ⓒ 2018 by Nippon Institute for Research Advancement

My Vision No.33
2018.1
Expert Opinions

Clarify the uses of contributions and create ongoing connections– Commonsense is called for in relation to “thank you gifts”
The furusato nozei system was created in 2008 as a mechanism
giving form to the desire to support various initiatives mounted by
local and regional organizations, in particular in donors’ hometowns.
The amount donated under the system has steadily increased,reaching more than 280 billion yen in fiscal 2016. I believe that thesystem has contributed to the fostering of a culture of charitable
contribution; for example, the system is also used to provide support
to regions hit by natural disasters.
The system itself should not be criticized for the excessivecompetition which has sprung up between municipalities, for
Tatsuo Ikeda
example in the provision of costly thank you gifts to donors. A
Director, Municipal Tax
notification issued by the Minister for Internal Affairs andPlanning Division, Local Tax
Communications in April 2017 has received the assent of large
Bureau, Ministry of Internal
numbers of local bodies, and we hope that they will respond with
Affairs and Communications
commonsense on the basis of this notification.
In the future, broadening the base of users of the system and ensuring even more effective use of
the funds obtained in promoting regional revitalization will be important to the sound development of
the system. Essential to the realization of these goals will be efforts on the part of local bodies to clarify
to the greatest possible extent the purpose and details of the projects that they will be implementing
when soliciting contributions, and to notify contributors to the system regarding project outcomes, etc.
In addition to this, given that people who contribute via the furusato nozei system are people who havean interest in or concern with the local community, efforts to maximize the bonds created by the system
and increase the number of visitors and potential residents will also be important. The Ministry ofInternal Affairs and Communications is compiling case studies of examples of excellence from regional
areas across the country, seeking to provide feedback to local bodies and expand best practicethroughout Japan.
Today, we are seeing creative ingenuity applied to the use of the furusato nozei in line with thespecific circumstances of specific regions, and efforts to solicit contributions based on crowdfunding
approaches are resonating with donors. Examples of projects include the preservation and restoration ofcultural resources and the purchase of books for children.
In order to provide active support for efforts of this type, the Ministry of Internal Affairs andCommunications has launched a new program to support the establishment of businesses in regional
areas and promote migration to and settlement in those areas, utilizing crowdfunding-based furusato
nozei. We seek to provide support to ensure that the funds obtained from the furusato nozei system areused effectively in regional revitalization and to create a virtuous circle of people, goods and jobs inregional economies.
It is my hope that regional organizations will advance efforts that are full of ingenuity, and that thefurusato nozei system will continue to develop soundly.
Mr. Ikeda is the director of a department in the Ministry of Internal Affairs and Communications, the entity withauthority over the furusato nozei system. He entered the (then) Ministry of Home Affairs in 1990, and took his
present position in 2016, following experience in positions including Director of the Akita Prefecture Public Finance
Division, Planning Director for Local Tax in the Local Tax Planning Division of the Ministry of Internal Affairs andCommunications’ Local Tax Bureau, Executive Director of the Department of Planning and Finance, Saitama
Prefecture, Counsellor of the Secretariat of the Minister of Internal Affairs and Communications (Local Public
Finance Division, Local Public Finance Bureau), Director of the Office for the Special Local Allocation Tax for
Recovery from Earthquake Disaster (Ministry of Internal Affairs and Communications), and Director of the Cabinet
Office’s Office for Decentralization Reform. Up to the present, Mr. Ikeda has chiefly been engaged in supervisingregional taxation and public finance systems, and is now involved in the planning of systems related to municipal
taxes.
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation presented here.
Translated by Michael Faul
Copyright Ⓒ 2018 by Nippon Institute for Research Advancement

My Vision No.33
2018.1
Expert Opinions

Offer incentives to the cities also
– The one-way flow of tax is problematic
Residence tax is the basic tax by means of which the cost of
government services in a region is shared between residents of the region.
The furusato nozei, which uses this tax as a source of funds, distorts theproper functioning of taxation. I believe that the current system is a
strange one. In fiscal 2017, approximately 1.4 billion yen in residence tax
flowed out of Suginami Ward as furusato nozei. Two years previously, thefigure was 130 million yen, which is to say that the figure increased
approximately tenfold in two years. Demand for government services isincreasing in urban areas also, for example measures to deal with an
aging population, urban disaster responses, and the provision of daycare
Ryo Tanaka
centers. What will happen if the outflow of residence tax continues
Mayor, Suginami Ward,unchecked?
Tokyo
The system is also causing problems in regional areas. Special local
products are being supplied as “thank you gifts”, while they may be
profitable within that particular framework, the economy will not remain viable if the system isstopped. This does not generate true regional revitalization, but rather encourages a reliance on
subsidies. The Showa period concept of redistributing city tax revenues to rural areas does not result ina fundamental correction of disparities.
The original expectation for the furusato nozei system was that it would correct the disparity
between country and city, and revitalize regional areas. At the least, it is essential to revise the existing
system in order to foster a relationship of co-existence and mutual prosperity between country and city.
The current system simply reduces the motivation of the city. It will be necessary to introduce incentives
that prompt Tokyo and other cities to autonomously seek to realize mutual prosperity in cooperation
with rural areas.
For example, we might consider introducing a mechanism to the furusato nozei system whereby,
when urban municipalities become involved in exchanges or policy-based cooperation projects with ruralmunicipalities, the equivalent of the cost of the project is returned to the urban municipality from theamount of residence tax that had previously flowed outwards via the furusato nozei system. Suginami
Ward is involved in exchanges with municipalities in Japan and overseas, including Nayoro in Hokkaido
Prefecture and Minami-Izu in Shizuoka Prefecture. Even exchange projects alone have effects such as
the promotion of tourism and the creation of jobs, and are therefore beneficial in terms of regional
revitalization.
In the arena of actual municipal management, a significant increase to the regional exchange
budget would face stiff political opposition, but if this mechanism was able to secure a new source offinance for exchange with rural areas, urban municipalities would not restrict themselves to exchange,
but would commence a variety of initiatives, such as collaborative projects and the formulation of policy
in tandem with rural municipalities. As part of this process, we would discover new hints and ideas thatwould stimulate economic effects in rural areas and contribute to measures to promote migration to andsettlement in those areas.
Mr. Tanaka is the Mayor of Tokyo’s Suginami Ward, a quiet residential area located on the Musashino Terrace, inthe western section of the area covered by Tokyo’s 23 wards. Following his election as Mayor, Mr. Tanaka
commenced actively implementing cooperative projects with municipalities in Japan and overseas seeking tobecome involved in exchanges. Among these, the establishment of a special nursing home for senior citizens outside
the ward, in cooperation with the town of Minami-Izu in Shizuoka Prefecture, attracted attention as the first of its
type in Japan. He argues that it is necessary for Tokyo to give attention to impoverished regional areas, but it isalso necessary for regional areas to understand Tokyo. Upon graduation from Meiji University, Mr. Tanaka firstjoined TV Tokyo. He also served in positions including member of the Suginami Ward Assembly, member of theTokyo Metropolitan Assembly, and Chairman of the Tokyo Metropolitan Assembly before taking his current
position in 2010. He is presently serving his second term.
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation presented here.
Translated by Michael Faul
Copyright Ⓒ 2018 by Nippon Institute for Research Advancement

My Vision No.33
2018.1
Expert Opinions

The furusato nozei is a tax system tailored topeoples’ lifecycles
Ten years have passed since the furusato nozei system wasestablished in 2008, based on a proposal from Fukui Prefecture. Thissystem offer a mechanism which is entirely new for Japan, by means ofwhich people who are now living in the cities are able to contribute to thetowns in which they were born and raised (in Japanese, furusato) bymeans of donating part of their tax payments. The background to the
proposal of the system was questioning of the present situation in which,despite the fact that it is local municipalities that provide public services
such as education and assistance with child-raising, when thebeneficiaries of these services become full-time workers, their tax
Issei Nishikawa
payments are made to large cities. In Japan, the uneven distribution ofGovernor,sources of taxation revenue resulting from a lifecycle pattern in which
Fukui Prefecture
people are raised in rural areas and work in the city has represented anissue for many years.
In Fukui Prefecture, for example, every year around 2,500 young people leave the prefecture toattend universities and other educational institutions. Of these, only about 600 return to theprefecture to find work. While certain fiscal measures are in place, child-raising expenses andinvestment in the future constitute one-tenth of Fukui Prefecture’s budget, but the majority of theresulting human resources leave the prefecture.
As a result, the cities into which these young people flow receive an annual “population bonus,”
for which they do not suffer the burden of child-raising and education expenses, etc. The essential
purpose of the furusato nozei system was to correct this imbalance. However, there has been an
issue in the perception on the part of city administrations that the furusato nozei system is robbing
them of their own money.
If the nation’s rural areas develop soundly, Japan as a whole is invigorated, and this is also a
benefit to large cities. I hope that the city side accepts this contribution to the regions in a spirit oftolerance.
The regional municipality side, the recipients of the furusato nozei, must recognize that thesystem rests on the tolerance of the cities and the gratitude of the municipalities, and work to
operate the system in such a way that they receive the understanding of the contributors and thecities. It is natural for the municipalities that are the beneficiaries of the donations to wish to offer
thanks, but we should avoid excessive competition in this area.
The furusato nozei system is widely known, but is still used by only a small percentage ofcitizens. It will be essential to broaden the base of users of the system.
At present, there is a focus on offering things as rewards, but in future, it would be desirable to
make the shift from things to personal experiences, and to solicit contributions based on projects
that create situations and offer activities. It will also be important to create mechanisms topromote human movement, by means of which donors visit the municipalities and experienceexchanges and brief residence in the community. I would like municipalities to work together toexamine how to utilize contributions and the types of outcomes we are seeking, and in this way tomutually improve policies.
Mr. Nishikawa is Governor of Fukui Prefecture. In May 2017, the Local Government Association for the Sound
Deployment of the Furusato Nozei was established with Mr. Nishikawa as one of the proponents of the scheme. Asof December 2017, 74 municipalities were participating in the association. One of the association’s roles is to award
particularly excellent examples of the utilization of the furusato nozei. Mr. Nishikawa graduated from the Facultyof Law, Kyoto University, and entered the (then) Ministry of Home Affairs. After serving in positions including
Director of the Municipal Tax Policy Division, Director of the Policy Planning Division, and Deputy Director
General of the National Land Agency, Mr. Nishikawa was appointed Vice Governor of Fukui Prefecture in 1995. He
was elected Governor in 2003, and is currently serving his fourth term.
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation presented here.
Translated by Michael Faul
Copyright Ⓒ 2018 by Nippon Institute for Research Advancement

My Vision No.33
2018.1
Expert Opinions

The important thing is to increase thenumber of repeaters
In fiscal 2014, Hirado City received more than 1.4 billion yen inrevenue from the furusato nozei system, Japan’s highest figure. Thissituation has continued since then, with large numbers of people donating
to the city. At present, between 25 and 40,000 people throughout thecountry support Hirado City every year.
The furusato nozei system was established, as I see it, on the basis of
the concept of people living in cities providing support to their hometowns
and regions. As a source of finance, the system enables regional
municipalities to autonomously advance measures including town
Naruhiko Kuroda planning projects, the development of human resources, and policies toaddress depopulation. The people who offer donations through the system
Mayor, Hirado City,
Nagasaki Prefecture
are, as it were, “virtual citizens.” Hirado City has around 30,000 officiallyregistered citizens. The way I think is that if you add the approximately
40,000 virtual citizens who use the furusato nozei system, then Hirado City has around 70,000 citizens.
The offering of gifts to donors in return for their contributions, in addition to being an expressionof gratitude, has at its root a desire to share with the donor the appeal of the region, something that a
local experiences every day, in order to inspire a sense of togetherness in participating in community
development. Giving and receiving the gift creates mutual bonds between the municipality and thedonor. Hirado City hopes that these bonds will persist, and that our donors will continue to contributeon an ongoing basis. From this perspective, it is not the amount of the contributions they receive thatmunicipalities should be competing over, but rather the number of repeaters who continue to contribute.
Almost ten years have passed since the commencement of the system, and in that period, via theprovision of thank you gifts, it has had great significance in terms of stimulating local industries. In
Hirado city, we had long struggled to brand the products of our main industries, agriculture andfisheries. With the advent of the furusato nozei system, we were able to create a Hirado brand as a
package, and this provided the impetus for success. This success enabled us to expand the scale of our
production system, and at the sites of production there is a heightened awareness that we areproducing directly for urban consumers.
The danger is that people will be happy to profit from the system and leave it at that. My hopeis that both primary industries and the tourism industry will investigate new modes ofmanagement, formulate appealing visions for the future, and advance essential capital investment,
and in doing so further boost their quality, productivity and management capacity. My aim is toactively offer the support that the administration can offer, enabling industries to become
independent and creating the conditions for the formation of new industries.
Mr. Kuroda is Mayor of Hirado City. Located in the northwest of Nagasaki Prefecture, Hirado City is made up ofalmost 40 islands including Hiradojima, in addition to a section of Kyushu. From ancient times, the city has been agateway to the continent, and it flourished as an international trading port until the closure of the country by the
Tokugawa Shogunate. Mr. Kuroda seeks to exploit the historical scenery of Hiroda City (still intact because the city
has lagged behind in economic development) while also actively incorporating future technologies, in order to make
Hiroda City “Japan’s hometown.” His motto is “Town planning is fun!” A graduate of Reitaku University, Mr. Kuroda
served in positions including Secretary to a member of the Diet and member of the Nagasaki Prefectural Assembly
before successfully standing as a candidate in the Hirado City mayoral elections in 2009. He is currently serving histhird term.
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation presented here.
Translated by Michael Faul
Copyright Ⓒ 2018 by Nippon Institute for Research Advancement

My Vision No.33
2018.1
Expert Opinions

Focus efforts on projects that will attract people– Screening of projects is an urgent task
Over the course of the decade since the system was commenced, theboom in “thank you gifts” has ensured that the furusato nozei policy has
become widely known among taxpayers. Nevertheless, while the thank you
gifts are effective to some degree in promoting the marketing of local
products, they are basically adjuncts to the incentive to contribution
represented by a tax deduction. Municipalities should now shift theiremphasis from advertising gifts to boosting the quality of the projects they
implement in order to inspire a deeper and longer-lasting commitment incontributors. It will be essential to realize sustainable regional
revitalization via the planning and implementation of projects.
As an example, Higashikawa in Hokkaido has been advancing a “Town
Mariko Mikami
of Photography” branding concept for many years. In addition to developing
Journalist
picturesque areas to attract photographers and fostering a culture ofphotography, the town is also promoting projects (the commercialization ofwine and agricultural products, etc.) on a multi-track basis, looking towards periods of several years toseveral tens of years in the future. Contributors are designated as “shareholders,” and have the opportunity
to periodically attend general meetings and participate in regional inspection tours. The number ofcontributors has increased to equal the number of town residents, boosting the population involved in
exchanges. Again, in Iwate Prefecture, contributors provide support for the educational and living expensesof children orphaned by the Great East Japan Earthquake through the furusato nozei (continuing up to
their graduation from university), and receive ongoing updates regarding the students’ educational status.
In both cases, human bonds and a continuing involvement in the community are being fostered, unlike asituation in which it is simply thank you gifts that are offered.
Identifying demand in urban areas will also be an important focal point in the determination of the
makeup of projects by regional municipalities. As examples, for individuals we can consider the design ofsecond careers following retirement as a preparation for extended lifespans, and for companies, we canconsider the dispersion of bases as a preparation against natural disasters and other emergencies.
Effective strategy and detailed business models based on international trends are also prerequisites
for the formulation of competitive projects. Because there are limits to what municipalities can achieveusing only their own resources, I recommend the use of pro bono services. Pro bono services supplement
the weak points of public services. Based on this concept, private sector specialists, for example
representatives of corporate CSR divisions, consulting firms, and financial institutions, or legal
professionals, are dispatched free of charge for fixed terms as a service for the public interest. We are
beginning to see cases such as the involvement of US investment banks in the revitalization of depopulated
regions of Japan. The professionals offering the pro bono services in these cases look to receive the benefitof training of human resources.
In the process of expanding the furusato nozei in future to project-based solicitation of contributions,
there will be a number of urgent tasks, including the establishment of systems for the auditing of money
trails, screening of the businesses that receive funding, and evaluation of project performance. Even today,
there are cases in which enterprises are involved in the management of websites that introduce “thank you
gifts” and the consignment of services, but, far from providing solutions that assist in regional
revitalization, are actually exploiting the system. The sharing of blacklists between municipalities should
be given consideration from this perspective.
A graduate of Keio University, Ms. Mikami reports on and writes about a wide range of subjects for US andJapanese media, with a particular focus on the economy and policy. She has held numerous public positions; inaddition to being a member of the Review Committee for the Grand Prize for the Future of the Furusato Nozei, she
has served as a member of committees including the Council for Small and Medium Enterprise Policy of the
Ministry of Economy, Trade and Industry, the Central Selection Committee for the Monodzukuri Nippon GrandAward, and the Expert Committee on Security Trade Control. Ms. Mikami’s ongoing column in the Nikkei Glocal,“Straight Talk with Mariko Mikami,” presents proposals for regional revitalization based on actual case studies,and has won considerable acclaim. She is also in demand as a speaker and lecturer, and was previously a visiting
associate professor at Shinshu University Graduate School of Management.
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation presented here.
Translated by Michael Faul
Copyright Ⓒ 2018 by Nippon Institute for Research Advancement