ICT utilization, such as the introduction of a sales system via the Internet, on the income from agricultural products. With this system, for instance, local products and specialties that have previously only been consumed locally can now be sold to consumers in remote areas, enlarging the market throughout the country by the introduction of an Internet-based sale system. In reality, more than 50% of municipalities with high ICT utilization have introduced net sales systems, whereas those with low ICT utilization have not introduced such systems.

## (b) Welfare/healthcare field

A total of 1,748 municipalities in the country are classified into three groups in accordance with the level of ICT utilization in the field of welfare/healthcare, and the change in social assistance expenditure from FY2000 to FY2005 is examined. The result shows that while municipalities with a high deviation score of more than 70, or those with high ICT utilization, have an the increased rate of 55.3%, municipalities with a low deviation score of less than 50, or those with low ICT utilization, have an increased rate of 64.4%, exhibiting a difference between these groups of 9.1 points. From this, it is found that there is a clear correlation between the level of ICT utilization and a restraining effect of an increase in social assistance expenditure.

## (c) Administrative services

A total of 739 cities and wards in the country are classified into three groups in accordance with the level of ICT utilization in the field of administrative services, and the efforts of cities and wards in administrative services are examined. The implementation rate of such efforts as disclosure of administrative information, promotion of participation by residents in administration and improving the efficiency of administrative affairs is high among municipalities with advanced ICT use. For example, with respect to the state of disclosing a preliminary plan during the process of formulating an important policy or the state of accepting and issuing various certificates at places other than the main or branch offices, the score of municipalities with high ICT utilization with a deviation score of 70 or more is twice the score of municipalities with low ICT utilization with a deviation score of 40 or less (Figure 1-20). This suggests that municipalities with a high awareness of the disclosure of administrative information, promotion of community participation in administration and facilitation of efficiency of administrative procedures are making active use of ICT in the field of administrative services.

### C. Classification of municipalities in terms of ICT use

Using a principal component analysis, one of the multivariate analysis methods, a new index is created from a field-specific ICT use index in municipalities to show the structure of the relationships among ICT systems, such as the strength of such relationships. A graphic classification of municipalities based on the index is shown in Figure 1-21. Municipalities positioned on the upper side of the vertical axis (welfare axis) are characteristic of intensive use of ICT in the fields of welfare/healthcare and medical care, while those positioned on the right side of vertical axis (regional revitalization axis) are utilizing ICT intensively in fields such as industry/agriculture and transportation/tourism.

When the attributes of the municipalities positioned on the first quadrant which have high scores on both axes are examined, 43.0% of them have an increasing aging population profile, including depopulation areas. These municipalities have high administrative demands for regional vitalization and response to aging population, such as the development of local industry and utilization of tourism resources, and therefore, they are assumed to be using ICT specializing in these fields.