Otiaz-LGBコミュのNew Law on Special Regional Blocks Enacted — Hokkaido is the Touchstone

A law for The Promotion of Special Regional Blocks was enacted by the Diet on December 13.

Special Regional Blocks (doshu-sei tokku) will lead the way in the transfer of power and fiscal sources from the central government to local governments before implementing the regional block system nationwide. The status of the special regional blocks is currently only applicable to Hokkaido. Under the new law, the implementation of eight wide-area measures will be transferred to local governments.

I believe that the extent to which Hokkaido's local administration effectively utilizes the newly granted authorities to revitalize its finances and economy will provide a yardstick for the potential success of the regional block system. Hokkaido’s performance will likely come under a spotlight as a touchstone for measuring the merit of the regional block system.

However, given the size of the policies that will be transferred, I do not envisage a significant impact on Hokkaido' s credit as a result of the designation of a special regional block.