(1) Preface Since the 1960's Japan has enjoyed her economic development, and grown up as a great industrial state. Through this period many laborers moved from rural areas to urban areas, which has brought about the overpopulation in urban areas, and the depopulation in rurals. Various measures have been taken to solve this social problem. Here we shall discuss the issue of a decentralization in the depopulated municipality. (2) Characteristics of the period indicated in the changes of shares of urbanized municipalities and depopulated municipalities In the postwar as well as in the prewar the total number of municipalities has been decreasing : in 1996, the number is 3232 in total (city 665, town 1991, village 576), in which we can count the depopulated municipalities 1208. These municipalities share 37% in total number, 6% in population and 48% of national land, we can see urbanization also in the increased number of cities and decreased number of villages. (3) Finance of depopulated numicipality The share of local tax revenue is 9.6% in the total budget of these municipalities. The average share of local tax revenue on the national level is 34.4%. This contrast shows a weakness of financial power of these depopulated municipalities (4) Measures for depopulated municipality We have taken Takasu Village in Gifu Prefecture as an example of depopulated municipalities. We can also find many difficulties for them to keep their indepenedent status as an agent of decentralization when we look at their finance, tax revenue and man power. (5) Desirable way of decentralization Local Government Act of Japan enacted in 1947 is ideal act in itself, but many other legislations do restrict discretion of municipalities. We look forward to legislating these acts based on a new ides to foster discretions of municipalities.
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