Figure 2-2-3-3 Assessment of programs employing ICT as a means of overcoming local challenges (ICT programs already implemented)

Figure 2-2-3-4 Assessment of programs employing ICT as a means of overcoming local challenges (programs not yet implemented)

(Source) Ministry of Internal Affairs and Communications "Study on Promotion of Programs Employing ICT" (2011)

### 4. Analysis of factors impacting ICT utilization

## (1) Overall condition of local government and ICT utilization

We analyzed the correlations between municipal scale and population size, and status of ICT utilization, as they bear on promotion of local ICT utilization.

In terms of the correlation between scale of municipality (city, special ward, town, village) and composite index of ICT utilization, cities and special wards show more advanced ICT utilization. Meanwhile, as to the correlation with population size of the region, ICT utilization is more advanced in regions with larger populations. Also, examining the correlation with financial strength as expressed by the financial capability index $ ^{30} $ , we find that composite index of ICT utilization is higher in more financially solid regions.

As to digitization of administrative functions, a correlation was found between online submission and processing of notifications and applications, etc., and high composite index of ICT utilization. In other words, local governments which make proactive efforts to digitize administration also tend to make proactive efforts to promote ICT in their area of jurisdiction.

While large municipalities on solid financial footing are moving forward with ICT, small municipalities with weak finances, which are precisely the ones that could benefit most from ICT utilization, appear not to be making sufficient progress with ICT utilization.

## (2) Regional traits and ICT utilization

We analyzed the correlations between regional traits such as population makeup and income level and the status of ICT utilization.

With regard to population makeup, it was found that regions with a higher working-age (age 15-64) population in proportion to the total population were more advanced in terms of ICT utilization. Meanwhile, with regard to income level, higher taxable per capita income was directly correlated to more progress with ICT utilization. ICT utilization was also correlated with a low percentage of the population engaged in primary industry.

## (3) Regional challenges and ICT utilization

We analyzed the existing challenges facing regions and the status of ICT utilization, focusing first on all on the social welfare sector.

It would be ideal if a greater number of children and elderly people meant that a region had more ICT programs in place to assist parents and the elderly, etc., but as a matter of fact the higher the percentage of the population composed of children and the elderly, the less likely the region was to be implementing social welfare services employing ICT. We may infer that this is due to financial difficulties or other factors.

Next, we focused on correlation between challenges in the agriculture, forestry and fisheries sector and the status of ICT utilization. Here as well, it is to be hoped that a greater the percentage of the population engaged in primary industry, the more agriculture, forestry and fisheries ICT programs the region would implement. In fact, the opposite is true: no correlation can be found between prevalence of primary industry and implementation of agriculture, forestry and fisheries ICT programs, and the greater the percentage of the population engaged in primary industry, the fewer ICT programs the region implemented overall. This trend mirrors that of the social welfare sector.