On Proceeding of National Strategic Special Zone(January 7, 2014)

 First meeting of the newly established “National Strategic Special

Zone Advisory Council” was held on January 7, and its five private

sector members, including Heizo Takenaka, jointly submitted a proposal

paper at the meeting.

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On Proceeding of National Strategic Special Zone(January 7, 2014)

Reiko Akiike

Tatsuo Hatta

Ken Sakamura

Masahiro Sakane

Heizo Takenaka

1.Reaffirmation of the Aim of the National Strategic Special Zone

  The chief aim of institutional design of National Strategic Special

  Zones is to realize an economic growth by breaking through

  the“bedrock regulations” to which adequate reforms could not be

  accomplished by the past attempts of special zones for structural

  reforms or comprehensive special zones, as well as to achieve

  drastic tax reforms which is an equally challenging task through a

  manner initiated by the Prime Minister. The “Special Zone” will

  serve as a breakthrough for that purpose (it is expected that

  ambitious people, corporations, and local governments will play

  major role to realize advance models overcoming the “bedrock

  regulations” and initiate the economic growth while gaining returns

  themselves).

2.Principles of Operation of National Strategic Special Zone and

  Management of Special Zone Advisory Council Meetings

　①thorough information disclosure

  ②sense of speed (close cooperation with Special Zone Working Group

    and regional committee, flexible management by utilizing of

    research committee by experts, etc.)

  ③promotion of competition among Special Zones (establishment of

    Plan-Do-Check-Act cycle, rescindment of Zones attaining inadequate

    success)

3.Issues to be Considered for the Moment

①Short-term challenges

  I.Designation of Zones

    Toward designation of Zones in March, the Working Group should

    swiftly start selection process taking into consideration the

    following elements as basic rules for selection.

    i.Selection of regions having “ripple effects” that could

      eventually lead to growth of Japanese economy through

      internationalization

   ii.Selection of “regions of actions” that could undertake reforms

     of the bedrock regulations decisively and steadily with a sense

     of speed(premised on an appropriate evaluation of “willingness

     and ability” of regions)

  iii.Subject of designation should be either of the following 2 types

　　　・“relatively broad designation” based on prefectural or

　　　　metropolitan scope

　　　・designation of “virtual zones” in certain fields

　　　　(zoning within certain field with explicit conditions)

　II.Launch of regional committee

　　・Following the designation of Zones in March, each zone should

　　　launch the regional committee as soon as in April

　　・Composition/membership should be as simple as to enable

　　　substantial discussions with the ministers (in addition to the

　　　minister-in-charge, the relevant ministers can participate the

　　　meetings). In particular, the membership requires high-rank

　　　delegate of private sector (well-known figure as promoter of the

　　　relevant special zones)

　III.Measures to be addressed in the next Diet session or thereafter

　　　(additional menu)

　　・The exceptional measures enacted in the last extraordinary Diet

　　　are no more than temporary initial menu, and it is predicted

　　　there will arise many challenges in implementing specific

　　　initiatives into practice in the future. Therefore, the Working

　　　Group should promptly review all the previous proposals and

　　　suggestions from the local governments and private companies and

　　　start advancing necessary coordination toward further

　　　legislative measures in the future Diet sessions including the

　　　next ordinary session with regard to the National Strategic

　　　Special Zone Act

　IV.Formulation of employment guideline

　　・The Working Group should immediately start discussions toward

　　　formulation of the employment guideline in March

②Setting of mid-term target in eye of 2020

・Discussions on mid-term targets should be taken place promptly in

  eye of 2020, including the Tokyo Olympic Games

・For beginning, it should be arranged that ways to break through the

  remaining bedrock regulations should be opened at least in the

  special zone in the following 2 years as intensive period

・Also, the special zone aims to conduct specific reforms within some

  boundaries of regional and business scope in a speedy manner, to

  review the result for further considerations, and to apply the

  achievements to national-level legislations. In this sense, the

  process and goal toward nationwide applications from the special

  zones should be clarified specifically

　(for example, a system to stimulate nationwide applications through

  competition of reforms among regions should be developed).