What is “National Strategic Special Zones” ?

Chronology -- “National Strategic Special Zones” 

April 2013:　The idea was proposed at the government’s “Industrial Competitiveness Council” by Prof. Heizo Takenaka.

May 2013:　“National Strategic Special Zones Working Group” was formed under the Minister of Internal Affairs and Communications.

June 2013:　The government decided to establish the National Strategic Special Zones. 

　　　　　　　　(“Japan Revitalization Strategy” approved by Cabinet　on June 14)

August/September 2013:　The government solicited proposals by private companies and local governments, and shortlisted 15 items as　candidates for the initial list of regulatory reform measures applied　in the special zones.

October 18, 2013:　The government announced the initial list of regulatory reform measures.

November 5, 2013:　The government decided and submitted the “Bill on the National Strategic Special Zones” to the Diet session.

Proposal by Prof. Heizo Takenaka 

 ○At the government’s “Industrial Competitiveness Council” on April 2013, the idea was proposed.

◆Purpose: Create the best business environment in the world, first, within the special zones;  then, spread nationwide

◆Revitalize the special zones as showcases for drastic reform of regulations, including so-called “bedrock” regulations and taxes,

◆To achieve such reforms, create framework in which Prime Minister takes initiative;

  - Establishment of “Minister in charge of Special Zones”

  -“Headquarter integrating three parties (central government, local government and business) in each Special Zone  to act as quasi-independent government

  -“Council on Special Zones” chaired by Prime Minister

“National Strategic Special Zones Working Group”

○According to the suggestion in the Industrial Competitiveness Council, the government formed “National Strategic Special Zones Working Group” under Minister of Internal Affairs and Communications in May and started designing the new system.

 Members

  - HATTA, Tatsuo (Osaka University Professor Emeritus)

  - AKIYAMA, Sakie (Saki Corp. CEO)

  - KUDO, Kazumi (Coelacanth K&H Co. CEO)

  - SAKAMURA, Ken (Tokyo University Professor)

  - HARA, Eiji (Public Policy Planning & Consulting Co. President)

 “Bill on the National Strategic Special Zones” 

The Bill consists of two parts;

1) regulatory reform measures to be applied in the special zones

2) framework of the special zones

Issues to be discussed;

1) Is the list of regulatory reform measures insufficient, as many newspapers report?

2) Is the framework of the special zones designed well enough to ensure further deregulatory measures to be achieved and proper enforcement of such measures?

National Strategic Special Zones: Result of Focal 15 Items 

（Nov.2013）

○=Advanced, ×=Not Advanced, △=Partly Advanced

Menu of Regulatory Reform		Result	Memo
１．Medical Care
	（１）Practice by Foreign Doctors	△	・Paved the way for foreign patients ・  ‘to Japanese patients’ left behind
	（２）Regulation on Number of Beds	○
	（３）Treatment not Covered by Public Insurance	○
	（４）New Medical Schools	○
２．Employment （Specification of Working Condition, Terminable Contract, Working Hours）		△	・Achieved the original aim of ‘specification of working condition.’ ・’terminable contract’ to be programmed nationally in the next Diet ・’working hours’ left behind
３．Education (privately managed public schools)		○
４．City Planning
	（１）floor-area-ratio	○
	（２）area management	○
	（３）residential apartments for accommodation	○
５．Agriculture
	（１）Agricultural Committee	○
	（２）credit insurance	○
	（３）expansion of farmland use	○
	（４）regulation on farmland ownership	△
６．Local Assembly （Eligibility for Election）		×	・requiring further considerations nationally
７．Historical Buildings		○

Framework of the National Strategic Special Zones

 

So-called “Bedrock” Regulations 

1, Controlled sectors

	Quantitative Control	Price Control	Entry Control
Medical Care	Number of beds	Medical fee	Corporate entry
Nursing Care	Total quantity	Nursing fee	Corporate entry
Agriculture	Rice production control		Corporate entry
School Education	Council on private schools		Corporate entry
Energy (power, gas)		Fully distributed cost method	Regional monopoly

2, Barriers preventing human resources from moving to growing industries from declining industries

    -  restrictive labor rules, such as dismissal rules

    -  poor corporate governance