Abstract
Since the end of world war II, migration in Japan has been a flow from rural area to urban area. This brought the opposite serious problems both in rural area and urban area, i.e., the depopulated problems and the overpopulated problems, respectively. Further concentration of population to Tokyo area has accelerated recently.
The problem of uni-polarization is discussed from the viewpoint of various stands and aspects. The problem of uni-polarization is classified into three problems as follows: (1) Difference in several aspects between Tokyo and other areas; (2) Congestion in using overhead capitals such as traffic systems, residence and so on in Tokyo itself; (3) Need of dual system in economic-social systems in Japan. In this paper, uni-polarization problem of type (1) and (2) is considered from financial aspects especially in Tokyo. First the simple model that explains the mechanism of migration between rural and urban areas is shown. If there is no intervention of central government, one region may become overpopulated region and the other undepopulated region. In the framework of the model, it is suggested that the central government may be justified in using a system of tax and intergovernmental grants to overcome these problems. In addition to intergovernmental grants, introduction of congestion tax and grants on agglomeration economies are suggested in this model.
In order to confirm the role of tax and intergovernmental grants, the financial structure of Tokyo Metropolitan Government itself and the comparison with other local governments such as Prefectures and cities are examined. From the comparison with other government, it is shown that the financial capability of Tokyo Metropolitan Government and especially of 23 Wards is not enough to overcome the problems. Further, population of daytime in 23 wards, especially in the central three wards is several times as population of residents. The revenue and expenditure per capita are not enough to provide public services. Taking into account the population of daytime, investment on social overhead capital in Tokyo by both central government and local government is not more than that of other areas.
In the case of the unstable case of the model, migration from rural area to urban area will continue. So it is suggested that the need has arisen to change the allocation of revenue in both central government and local government, while attractiveness in rural area must be pushed up in other way except intergovernmental grants.
