Ever since 1960, most of the remote mountain villages in Japan has experienced heavy out-flow of native junior and senior high school graduates, and young farmers. Furthermore, growing number of farm families has moved to city regions. Population and households of the remote villages diminished severely. As a result, many difficulties arose both in industrial activities and in daily life of the region. We call it "KASO problem" in the gross. The "KASO region" contains all the communities suffering from this "KASO problem". From about 1965, the national and local government authorities grasped the severeness of "KASO problem". They have planned and introduced many counter-measures to mitigate and conquer those problems. After twenty years of efforts, has "KASO problem" improved much better? How is the present status of KASO regions? I examined in this paper these two subjects chiefly from demographic viewpoint. According to the White Paper on KASO (that is the yearly governmental publication explaining the status of KASO regions and governmental counter-measures), total population of KASO regions decreased from 12,75 million of 1960 to 8.17 million of 1985. But now the heavy out migration in the 1960's has almost calmed. The intercensal population decrease was more than 10% in the 1960's, But, in the 1980-85 period it fell off to 3%. The number of local communities that experienced population diminution of 10% and above decreased from 877 in the 1965-70 period to 107 in the 1980-85. However, the population decrease of KASO regions has never stopped. The heavy out-flow of youngsters continues even now. As the resultant severe aging of population, the rise of death rate will become remarkable. The result of population projection shows that the rate of population decrease will rise to the double in the 2005 year. At present, the most serious social problem in KASO regions is a rapid increase in the number and the proportion of population aged 65 and above. The proportion reached 17% in 1985 (as for national population, it is 10.3%), and the speed of aging process will become much faster. In 2005 the proportion will augment to 27.5%. Accompanied with aging, natural decrease of population will grow even larger, and the number of old aged couples and elderlies living alone will increase rapidly. The aging aggravates the social welfare, but the more serious problem is its negative effects on the growth of local economy. In the 1970's, local economy has showed a marked development. The first basis of the growth was the abundance of native upper midde and old age population. Most of them were owner farmers. They worked on their own farm, and most of them had a side job. Their industriousness has worked as a driving force of the enlargement of local economy in the 1970's. But, most of them will be compelled to retire altogether from their jobs in the near future. Therefore, the source of supply of cheap and efficient labor in the local economy will dry up. Such a cursed process will cause maximal damage to the economy of KASO regions. The revitallization of local industry and community life in KASO regions now is the most difficult problem to the regional policy of Japan.
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