POINT OF VIEW/ Jiro Yamaguchi: Let municipalities decide how to use handouts

After the government decided in October to hand out cash benefits to all households nationwide--a policy touted as the centerpiece of the Aso administration's economic stimulus package--it then chose to leave the method of distribution up to municipal governments.

The officials at those governments weren't too happy to be stuck with the job, especially when Prime Minister Taro Aso said that having municipalities decide on whether to set income caps for recipients and other details would embody the idea of "decentralization."

To begin with, making a grand gesture and then dumping all the troublesome details on local governments can't be called decentralization. Yet the Ministry of Internal Affairs and Communications, after much internal debate, decided not to set income limits for recipients of the handouts as a general rule.

Moreover, in response to the economic downturn, the Aso administration has shifted from the "limited government" policies that had been promoted since the administration of Junichiro Koizumi.

Yet if the prime minister's words can be taken to heart and he really wants to encourage local self-governance, I can propose a way to advance decentralization and spur local economies.

First of all, I think the political decision to increase public spending to prop up the economy is a good one. But as long as we're spending taxpayers' money, there are more meaningful ways to do it. Maybe handing out cash to people is one way to stoke demand, but as public opinion polls show, many people do not appreciate the idea of getting 12,000 yen as a form of dole.

The saying that "quantity makes quality" is especially true in the world of policy. If slightly more than 120 million people in the country receive 12,000 yen each, they will probably spend some and save the rest.

But the earmarked 2 trillion yen, if spent wisely, could be put to use in a way that would bring benefits well into the future. The amount individuals receive would be small, but if pooled on a national level, it could be used to buy public assets that individuals cannot buy.

That kind of planning is the whole idea behind having a central government. Simply doling out cash to individuals is nothing short of political delinquency.

The government and the ruling coalition seem to be saying that they have no wise ideas about how to spend tax money. If so, why not let local governments come up with original ideas? They should be allowed to decide for themselves whether to distribute their share of the handout to individuals or use it for other emergency policies to meet the needs of their communities.

Having residents set policy goals for themselves is what local autonomy is all about.

For example, Sapporo, where I live, is supposed to receive about 23 billion yen for the handouts. With that much money, the city government could do much to dispel the everyday anxieties that citizens face.

I am sure Sapporo residents would support such ideas as improving the infrastructure for medical and nursing-care systems and investing in educational and environmental programs for future development.

On the other hand, if citizens really want the cash handouts, that is also an option.

The government should delay its handouts program until the new fiscal year begins in April. In the meantime, mayors, municipal assemblies and residents can decide how to use the money. With citizens actively involved in the decision-making process, local governments and assemblies will surely find the best ways to spend the windfall.

This is also where municipal heads and assembly members can demonstrate their abilities. If local governments compete to come up with constructive ideas, innovative policies will result.

On the surface, the handouts resemble the "hometown revitalization" project implemented by the administration of Noboru Takeshita 20 years ago. But the situation today is very different. That program took place during the asset-inflated economic boom, when all municipalities nationwide received 100 million yen each. The amount was either too much or too little to serve useful purposes, and recipients did not know how to spend it wisely.

Now, when our safety nets have started to fall apart and public anxiety is spreading, demand for improved social infrastructure is stronger than ever.

In recent years, policy debate has centered on budget cuts, offering citizens no hopes or dreams.

People should take advantage of this chance to join in the decision-making process to create public assets in their local communities. By doing so, they can learn firsthand what it means to participate in politics and promote grass-roots democracy.

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The author is a professor of political science and public administration at Hokkaido University and head of the Japanese Political Science Association. He is the author of "Wakamono no tame no Seiji Manyuaru" (Manual on politics for young people) and other books.(IHT/Asahi: January 6,2009)