A critical review of the rural policy development in Japan: The decay and future outlook of rural communities

The purpose of this paper is to reflect critically on the development of rural policy after the Basic Law on Food, Agriculture and Rural Areas established in 1999 (abbreviated as the New Basic Law hereafter) and propose issues through this work. Firstly the position of rural policy in the policy system of the New Basic Law was examined, focusing on the relationship among the four principles: “Securing a stable supply of food”, “Ensuring sufficient multi-functions”, “Sustainable development of agriculture” and “Rural promotion”. Conflicts and tensions between “Ensuring sufficient multi-functions” and “Rural promotion”, structural policies to realize desirable farm structure for “Sustainable development of agriculture” and “Rural promotion” have become clear. Secondly how the policy window opened and how the direct payment system in hilly and mountainous areas was realized were clarified by means of tracing and organizing the development of rural policy up to the New Basic Law. Rural policy entered a new stage with the establishment of this direct payment system. The policy has been inclined to the conservation and management of local resources while taking on the character of community policy. Thirdly the characteristics of rural policy in Japan were confirmed by the use of rural community, discussing the significance and issues of the direct payment system in hilly and mountainous areas and the multi-functional payment system. The former direct payment system is better than the latter. The problem of the rural policy is that the primary priority is not placed on self-sustaining endogenous development but on local resource management. Fourthly the uniqueness and context of the policy were identified by organizing the formation process and characteristics of rural policy in Europe and the UK while incorporating the viewpoint of fiscal constraints, which made it clear that the exercise of discretion based on decentralization was important. Finally taking into account the policy actors, such as local governments and communities, we looked at the ideal form of rural policy in the future. The goal should create a fund that brings out the independence of the local community, but the immediate issues are to support an increase in the indigenousness of the local community and to establish an organization to receive various grants such as the direct payment in hilly and mountainous areas and the multi-functional payment.