It is quite useful for designing policy framework for handicapped areas to examine the concept of handicap itself from the theoretical point of view. According to both the micro economics theory and the theory of differential rent in Marx-Ricardian school, physically handicapped condition of farmland does not necessarily imply disadvantage in the economics sense. The concept of handicap only makes economics sense with respect to family farm household whose income is earned as a mixed income.
Until recently the choice of farming enterprize suitable to the handicapped areas has been mainly considered from the standpoint of the absolute advantage of the enterprize in concern. However, it is more advisable to choose proper enterprize taking account of the viewpoint of the relative advantage. In this sense the most crucial question is whether rice in handicapped areas is a crop with the relative advantage or not.
Based on the above-mentioned theoretical examinaions, the following policy recommendations for revitalizing the handicapped areas are proposed.
Firstly, regarding small part-time farming, which is the majority of farming in handicapped areas except for Hokkaido, the improvement of rural infrastructure is more advisable than the so-called direct income payment scheme.
Secondly, regarding intensive farming such as flower growing, financial support with the concessional interest rate would be effective. Moreover, universdl concessional rate for all the subsidies for handicapped areas are desirable to make policy intention much clearer.
Finally, as for less intensive and land-using farming, it is essential to decide the strategic crops other than rice and give them the direct income support, if we try to maintain the agricultural land use in handicapped areas at all.

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The object of this article is to consider the direction of the development of regional industries, along with the role of agriculture, within Less Favored Areas (LFA's) in Japan. I begin by analyzing the factors which have turn LFA's into problematic regions.
I argue that the globalization of Japanese capitalism and the policies associated with the adjustment of the economic structure since the latter half of the 1980s have forced the retreat of regional industries from LFA's. I then focus my attention on LFA's that have poor regional strength, and try to find the internal causes of the retreat of regional industries from those regions.
These factors are a scarcity of investment power within a region, a disunion of regional inter-industrial relationships, and the generational division in the regional dispersion of work and the associated patterns of income circulation. Finally, through a review of former LFA industrial policies, I propose a hopeful direction.
It is necessary for reconstruction of LFA regional industries that a change take place at the national level in industrial adjustment policies, and that a rural industrial complex based on agriculture at the rural level be formed.

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In this study, the issues have arisen from the relationship between moutain villages and urban communities for more than 30 years.
Due to rapid enlargement of urban communities, which have developed under modern Japanese capitalism, they have been pursuing various ways in making the most of forest resources, while in the mountain villages the maintenance of green resources has become their major role.
The reality is, however that in the rural communities along with the process of increasing unpopulated areas mountain villagers are aging rapidly. Under the existing conditions the maintenance of green resources is actually a tough issue.
The aim of this study is to present some analyses of the issue, policy concept and countermeasuies, —that is, how to re-organize farmers and foresters to maintain forest resources under the circumstances; in what ways urban societies and the government bear expenses in maintaining functions of environmental preservation for forest and green resources and how to link a variety of usages for forest resources to re-produce forestry, to increase wooden products, and to use green resources for green-tourism.

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Rural life in the agricultural handicapped or depopulation areas has a lot of problems. These are summarized to three issues: a preparation of infrastructures, an advanced aging society and a revitalization problem. I approached these issues sociologically by analyzing the intention of people who live in the areas.
On a preparation of infrastructures, I discuss the unfair public investment which has been concentrated on a road construction and in central settlements. While the unfair public investment is inevitable in the light of investment efficiency, I propose at least the welfare of old resident would be secured in common.
An advanced aging society requires to form associational voluntary networks especially in rural communities, where the rate of old persons is seriously high. The fact that middle age women (age 40s-50s) are key generation to form such networks is derived from a case study.
In depopulation areas, a great generation change is taking place. When we seek the core of the next generation for a revitalization, an age group of 35-45 years old appears. They are sons of a comparatively much populated generation in such areas. We should adopt the concept of networking to organize them, because they are more individualistic than the former generations.

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