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Special zones for structural reform

Objective of special zones for structural reform

Special zones for structural reform are specially designated zones, established at the initiative of local governments or private businesses, where special regulatory measures tailored to local conditions are brought in. By advancing structural reform in the region where they are located, reform zones are designed to stimulate the local economy and by extension that of Japan as whole

Regulatory reforms implemented to date

The government has so far invited proposals for special regulatory measures on nine occasions; as a result, 210 regulatory reforms have been carried out in special zones and 366 at the nationwide level, for a total 576 (as of September 2006). These regulatory reforms encompass many fields traditionally considered off bounds to the private sector: a case in point is the entry of joint-stock companies into the fields of education, agriculture, and healthcare.

Special zones approved

Since applications for special zones for structural began being accepted in April 2003, a total of 910 zones have been established throughout Japan (as of December 2006), each with its own distinctive character.

Evaluation

When a year or so has passed after the introduction of a set of special regulatory measures in a special zone, an evaluation is performed by the Evaluation Committee, part of the Headquarters for the Promotion of Special Zones for Structural Reform. Of the eighty-three special regulatory measures assessed to date, the Headquarters has earmarked sixty-nine for implementation nationwide, this in line with the committee's recommendations.

Advisory Council

The Advisory Council on Special Zones for Structural Reform was set up to examine special zone proposals that had not yet been put into practice and select which among them should receive priority consideration for implementation. The Advisory Council, whose membership overlaps with that of the Evaluation Committee, compiled its recommendations on the eighteen ideas selected. On that basis the government then decided on plans of actions, under which two of the proposals were implemented at the special-zone level and twelve throughout Japan.

Special zones approved
Date approved Number of approved
1st round of approvals(1) April 21, 2003 57
1st round of approvals(2) May 23, 2003 60
2nd round of approvals August 29, 2003 47
3rd round of approvals(1) October 24, 2003 3
3rd round of approvals(2) November 28, 2003 69
4th round of approvals March 24, 2004 88
5th round of approvals June 21, 2004 70
(8 implemented nationwide)
6th round of approvals December 8, 2004 90
(1 canceled)
7th round of approvals March 28, 2005 74
8th round of approvals July 19, 2005 51
(52 implemented nationwide)
9th round of approvals November 22, 2005 100
(150 implemented nationwide)
10th round of approvals March 31, 2006 138
(6 implemented nationwide)
11th round of approvals July 3, 2006 31
(88 implemented nationwide)
12th round of approvals November 16, 2006 32
(1 implemented nationwide)
Total 910

Special zones approved, by field

Education
- Zones where joint-stock companies can set up schools 32
- Zones where classes not conforming to the official curriculum can be taught 94
Healthcare and welfare - Zones where care facilities for seniors can offer daycare services to people with disabilities 26
- Zones where NPOs (or such) that chauffeur the elderly / handicapped for a fee can use ordinary vehicles (e.g., sedans) 153
Promotion of industry - Zones with relaxed restriction on GVW (Gross Vehicle Weight) of special vehicles 3
Tourism - Zones with relaxed license conditions for brewing of doburoku (unrefined sake) 69
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