## Chapter 3: Promoting Regional Revitalization

## Section 1 – Initiatives towards Regional Revitalization

The government is aware that regional revitalization is an important topic. Therefore, under the integrated system of regional revitalization (the Headquarters of Regional Revitalization Integration), positioned across the ministries and government offices and policies, initiatives towards regional revitalization are being pushed forward.

Furthermore, regarding the “Project on Revitalization of Local Areas” that supports the beginning stage of projects that are initiated from the ingenuity and creativity of local residents and private sectors, 191 new projects and 96 renewed projects were adopted in FY 2009. Moreover, for the promotion of regional revitalization measures, it is more necessary to listen to local opinions. Therefore, the national consultation system has been restructured to a one-stop mode and a system of ensuring that regional revitalization measures are consistently followed is being built.

In order to realize the living convenience and a local economic society with bustle and vitality, MLIT is also pushing forward the invigoration/revitalization of local public transportation such as local railways, buses, routes on remote islands; the improvement of traffic nodes; the promotion of comprehensive and strategic traffic measures; the invigoration of core urban districts and the revitalization of urban areas; the shift to intensive urban structures; support for community-based creative measures for tourism promotion; and the development of construction through the promotion of fair-price contracts, industrialization of regional integration, etc. Additionally, for the purpose of invigorating regions with a rapidly declining and aging population, MLIT is working on developing areas that are comfortable for living in, from the viewpoint of the local residents, through providing support for regional development activities by “the new public sector” with the cooperation of various parties such as NPOs; ensuring basic living services such as medical and shopping by village function invigoration; and securing transportation for daily life by supporting the introduction of community buses.

Regarding the revitalization of cities, the Urban Renaissance Headquarters in the Cabinet is working on 1) the promotion of Urban Renaissance Programs on international airports and regional disaster prevention bases; 2) the promotion of city revitalization by private sectors based on the “Act on Special Measures concerning Urban Reconstruction”; 3) the promotion of nationwide city revitalization that utilizes the regional development subsidy.

## Section 2 – Promoting Policies that Support Regional Revitalization

1. Initiatives towards Enhanced Autonomy and Discretion of Regions and Private Sectors

(1) The expansion and better operation of various subsidies

The “Regional Revitalization Infrastructure Reinforcement Subsidy” is the subsidy across ministries and government offices for collaboratively developing facilities with similar functions according to the regional revitalization plan. It is composed of the “Road Development Subsidy” (roads of prefectures, regional farms and forests), the “Sewage Processing Facility Development Subsidy” (public drainage, villages’ drainage facilities and purification tanks) and the “Port Development Subsidy” (facilities of regional ports, 1 $ ^{st} $ class and 2 $ ^{nd} $ class fishing ports). Up to March 2010, the total number of approved regional revitalization plans was 1,365 and this subsidy is being utilized for the MLIT related facilities projects based on 896 regional revitalization plans.

The “Regional Housing Subsidy” is a scheme for supporting regional public organizations to utilize regional autonomy and ingenuity on measures for the regional development of public housing and the surrounding living environment while promoting measures comprehensively and deliberately. According to the regional housing plan drawn by regional public organizations, the country grants the one-time subsidy yearly. By the end of FY 2009, 365 regional housing plans had been submitted and this subsidy is being utilized for the wealthy residential development that corresponds to diversified regional housing needs.

The “Community Renovation Subsidy” is a support measure for encouraging nationwide city revitalization through uplifting the autonomy and discretion of the region and implementing region-led individual development. According to the city revitalization development plan drawn by the prefecture, the country grants the one-time subsidy yearly. At the end of December 2009, this subsidy is being utilized for community renovation that corresponds to different issues throughout 1,278 districts.

The “Regional Vital Infrastructure Creation Subsidy” is a scheme that was established in FY 2009 for the purpose of creating regional vital infrastructures by supporting other social infrastructure measures with the main focus on the roads constructed by regional public organizations. According to the regional vital infrastructure creation plan drawn by regional public organizations, the country grants the one-time subsidy yearly. By the end of March 2010, 415 regional vital infrastructure creation plans have been submitted and this subsidy is being utilized for other road-focused infrastructure developments and soft projects.

Furthermore, starting from FY 2010, individual subsidies towards regional public organizations administered by MLIT was abolished including the “Regional Housing Subsidy”, “Community Renovation Subsidy” and “Regional Vital Infrastructure Creation Subsidy”, on the other hand, the “Infrastructure Development Integrated Subsidy” was established as a comprehensive