“My Political Philosophy” (Chap4) Yukio Hatoyama Monthly journal “Voice” September Issue Aug 10th, 2009

Chap4 Empowering Local Authorities within the Nation State

When I made a speech announcing my candidacy for President of the DPJ, I stated, "My first political priority" is "reform to move away from a nation state based on centralized power structures and create a nation based on devolved regional power." A similar view was incorporated into the inaugural declaration when we formed the former DPJ 13 years ago. Back then, our aim was to achieve a nation based on regional devolution and empowered local authorities. We intended to achieve this by limiting the role of the national executive and legislature and promoting efficient local administrations vested with significant authority. Furthermore, based on this new system of government, we aimed to establish wide ranging welfare systems based on citizen participation and mutual assistance in the local community while also establishing fiscal, medical and pension systems which do not force debts onto future generations.

Count Coudenhove-Kalergi's "The Fraternal Revolution" (Chapter XII of The Totalitarian State against the Man) contains the following passage: The political requirement of brotherhood is federalism, the natural and organic construction of the state out of its individuals. The path from men to the universe leads through concentric circles: men build families, families communes, communes cantons, cantons states, states continents, continents the planets, the planets the solar system, solar system the universe. In today's language, what Count Coudenhove-Kalergi described is the principle of ‘subsidiarity’, a modern political approach that has its roots in fraternity.

The truth is that in today's age we cannot avoid economic globalization. However, in the European Union, where economic integration is strong, there is also a noticeable trend of localization. Examples of this included the federalization of Belgium and the separation and independence of the Czech Republic and Slovakia. Within a globalized economic environment, how can we preserve the autonomy of countries and regions, which serve as foundations of tradition and culture? This is an issue of importance not only for the European Union but also for Japan as well.

In response to the conflicting demands of globalism and localization, the European Union has advocated the principle of subsidiarity in the Maastricht Treaty and The European Charter of Local Self-Government. The principle of subsidiarity is not simply a rule that declares that local authorities should always be prioritized, rather it is a principle that can also be invoked to define the relationship between nation states and supranational institutions. We can interpret the principle of subsidiarity from this perspective as follows: Matters that can be dealt with by the individual should be resolved by the individual. Matters that cannot be resolved by the individual should be resolved with the help of the family. Matters that can not be resolved by the family should be resolved with the help of the local community and NGOs. It is only when matters cannot be resolved at this level that the authorities should become involved. Then of course, matters that can be dealt with by the local government should be resolved by the local government. Matters that cannot be resolved by the local government should be resolved by the next intermediate level of government. Matters that the next level of government cannot handle, for example diplomacy, defense and decisions on macroeconomic policy, should be dealt with by the central government. Finally, even some elements of national sovereignty, such as the issue of currency, should be transferred to supranational institutions like the EU.

The principle of subsidiarity is therefore a policy for devolution which places emphasis on the lowest level of local government. As we search for ways to modernize the concept of fraternity, we find ourselves naturally arriving at the idea of a nation based on regional devolution built upon the principle of subsidiarity. When discussing reform of Japan's local authority system, including the possibility of introducing a system of around 10 or so regional blocs to replace Japan's 47 prefectures, we must not forget to ask the following questions: What is the appropriate size for local authorities (which are embodiments of tradition and culture)? What is the appropriate size of local authorities in terms of their functional efficacy for local residents? During a speech I made at the time of the DPJ Presidential Election, I made the following comments: "I propose limiting the role of central government to diplomacy, defense, fiscal policy, financial policy, resource, energy and environmental policy. I propose transferring to the lowest level of local government the authority, taxation rights and personnel required to provide services closely related to people's livelihoods. I propose creating a framework that will allow local authorities to bear responsibility for making decisions and have the means to implement them. I propose abolishing the current system of central government subsidies (which can only be used for a particular stated purpose) and instead providing a single payment which the local authorities can use at their own discretion. In other words, I will break down the de facto master-servant relationship which exists between the central government and local authorities and replace it with an equal relationship based on shared responsibilities. This reform will improve the overall efficiency of the whole country and facilitate finely-tuned administrative services that take into account local needs and the perspectives of local citizens." The only way for regions to achieve autonomy, self responsibility and the competence to make their own decisions is to transfer a wide range of resources and significant power to the local authorities which are in closest contact with citizens, an approach which also clarifies the relationship between citizens’ burdens and the services they receive. This approach will facilitate the invigoration of local economic activities. It is also a path towards the construction a more distinctive, appealing and beautiful Japan. The establishment of a nation based on empowered local authorities represents the embodiment of a modern politics of fraternity and is highly appropriate as a political goal for our times.