Outline of the paper submitted by Prof. Heizo Takenaka at the Industrial Competitiveness Council on September 20

National Strategic Special Zones should be “showcases for regulatory reform.”

Two types of Special Zones should be created for that purpose.
1.  “Global Business Cities,” which can attract excellent companies and human resources from all over the world,
2.  Models of local areas to grow autonomy, instead of depending on subsidies from the central government.


Shortlist of regulatory reform proposals (15 proposals) to be undertaken immediately


<Proposals for the Type 1>
1)　Infrastructure / interchange of people
　-　Transportation:  airports
　-　City planning :  relaxing the floor-area-ratio restriction,  improving area management
　-　Tourism:  allowing to use residential apartments for accommodations

2)　Industries
　-　Labor:  special rules for start-up companies and foreign companies
　　　　　　　 (dismissal rule, fixed-term employment rule, white collar exemption)
　-　Financial market

3)　Living environment
　-　Medical care:  removing the bed-number regulations,
　　　　　　　　　　　  lifting the ban on establishing new medical schools,
　　　　　　　　　　　  accepting foreign doctors,
　　　　　　　　　　　  allowing the use of foreign-approved drugs and medical supplies
　-　Schools:  allowing public schools to be operated by private organizations


<Proposals for the Type 2>
1)　Infrastructure / interchange of people
　-　Transportation:
　-　Member:  lowering the minimum age to run for elections
　-　Tourism: allowing to use historical buildings for accommodations

2)　Industries
　-　Agriculture:   allowing corporate ownership of farmland,
　　　　　　　　　　   removing regulations for bank loans,
　　　　　　　　　　   transferring the power of agricultural affairs committees to mayors,
　　　　　　　　　　   relaxing regulations on the use of farmland

3)　Living environment
　-　Medical care (remote diagnosis and treatment)
　-　Schools (remote learning)