Another surprise was the gubernatorial election in Tochigi prefecture, where the three-term
incumbent, with no scandals to besmirch his record, lost by a slim margin to the mayor of a
small city. Again in March 2001, an independent female candidate became governor of Chiba
prefecture, adjacent to Tokyo, after defeating two contenders supported by major parties.
While these three prefectures traditionally vote conservative, the three new governors claimed
victory based on the citizens’ reevaluation of public programs. This was independent decision
making at the most decentralized level, where ideological orientation was not an issue. People
wanted a way out of the political bottleneck. The first stage of the decentralization process
has thus helped to set the political agenda.
CHALLENGES TO DECENTRALIZATION
Amalgamation of Municipalities
Related to devolution and fiscal reform, the issue of amalgamating municipal governments has
emerged during the past seven years. Two prior efforts at amalgamation decreased the number
of municipalities from 71,314 to 15,820 between 1889 and 1890, and from 9,622 to 3,786
between 1953 and 1957. Since then, the trend has slowed, with the number of municipalities
at the end of 2000 standing at 3,229.
Past amalgamation policies were instrumental in modernization and economic growth
(Furukawa 1997). Now, however, the issue is focused more on management concerns and the
decentralization of government. With increased and overloaded functions delegated to
municipal governments of various sizes over the past thirty years, many have been incapable
of implementing their respective functions, particularly those relating to welfare care for the
elderly, a major concern as Japan’s society ages increasingly rapidly.