Abstract
This paper aims to examine the changing nature of the Japanese and Tokyo's political system, which have driven spatial reformation and resulted in socio-spatial polarization in Tokyo after the bubble economy burst. By analyzing the policy changes, this paper reveals three points. Firstly, the destruction of inter-area redistribution system and the new market-oriented, urban development policy demonstrate the neoliberalizaion of Japanese “developmental state.” The government has reduced “inefficient” public investment in rural area and concentrated investment in Tokyo to promote large-scale development project by private firms. Though the Japanese government has still guided development, the political system became different from a “developmental state.” Secondly, spatial reformation of Tokyo has been enabled through neoliberal reformation in other realm by Tokyo Metropolitan Government (TMG). TMG has placed top priority on spatial reformation to become a “Global City” at the expense of welfare, medical services and education. Finally, fiscal crisis and fear of losing international status have urged the Japanese government and TMG for neoliberal reform. Tokyo's deteriorating competitiveness will continue to provide a further motive for exploring neoliberal strategies.
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