Abstract

Tokyo, the capital city of Japan, has always been a center of national economic growth, and hence a focal point of political struggle between local and national government. There exist two kinds of political forces; the former desires strong concentration of economic activities in Tokyo based on market rationality and economic efficiency, and the latter counters the former claiming more decentralization based on the balanced national economic structure. This paper reviews the development of urban and regional policy in Japan over the last 20 years and examines how such political forces have played out. After the decade‐long sluggish economic performance and the challenge of inter‐urban competition by Asian mega‐cities, Tokyo Metropolitan Government formulated an aggressive promotional policy under the leadership of the then Governor Ishihara. He tactically created a political consensus to give locational favor to the central part of Tokyo at the expense of other regions. It was partially challenged by the election of the then Prime Minister Shinzo Abe who insisted the need to revitalize the regions that were economically lagging. Despite his words, however, the centralization of Tokyo continued. This paper argues that the regional revitalization policy under the Abe administration was political rhetoric rather than reality, and Japan's economic fortune may still depend on the performance of Tokyo in the global economy under the neoliberal policy orientation.

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