## Chapter 4: MLIT Policies that Accommodate New Relationship with East Asia

Business activity goes global and so does regional development. As it stands, Japan, which will suffer a declining population in no distant future, should take advantage of the vitality of East Asia—a center of rapid economic growth—for its economic activity and regional development. MLIT, for its part, should take various measures to ensure that both Japan and the rest of East Asia will prosper.

## [Policies that accommodate deepening relationships with East Asia]

○Infrastructure that accommodates increasing flows of people and goods

Further deepening interdependence and intensifying competition with the rest of East Asia make it all the more important for Japan to facilitate the flows of people and goods and maintain its status as a major center of the traffic network in East Asia. Other important tasks for Japan include establishing international relationships that suit the characteristics of the regions within the country and developing domestic and international transport networks that meet the needs of such relationships.

Of special importance is the development of an integrated transport network that connects many parts of Japan with many parts of the rest of East Asia. To that end, three steps should be taken: (i) developing major metropolitan airports and hub ports that serve as gateways to the world; (ii) increasing the air traffic capacity; and (iii) improving access to the transport network in Japan with a focus on more convenient transfers.

It is important to ensure flawless physical distribution in East Asia, including Japan, as a whole. To that end, it is necessary to reduce distribution costs and lead time by streamlining relevant procedures and using them more efficiently.

○Developing attractive and competitive regions and cities

To survive international competition, regions in Japan are required to take advantage of their ingenuity and characteristics for the benefit of regional development in the context of East Asia. The central government, for its part, needs to develop key domestic and international transport networks and other types of infrastructure. Support by the central government should enhance the autonomy and discretion of these regions.

The formation of regional blocks is thought of as an effective response to the geographical expansion of socioeconomic activity and an rapidly aging society with a declining birthrate. So various steps should be taken, including: developing a transport network that supports partnerships; creating frameworks for partnership by the stakeholders; and promoting public-private partnerships in developing internationally-competitive tourist resorts and in other fields.

There are concerns that the competitiveness of major cities in Japan is declining in East Asia. A number of steps should be taken to ensure that these cities continue to serve as centers for international activities. Among such steps are: improving networks that connect international airports and ports; and developing ring roads and urban railways.

Note: An international convention is defined as “a convention organized or supported by the headquarters of an international organization,” or “a convention organized by a domestic organization or a branch of an international organization that lasts three or more days and is attended by 300 or more participants with 40% or more of them being foreign nationals from more than four foreign countries.”

Source: Compiled from JNTO, Convention Statistics.