Division over Backup Capital Act

Prime Minister Sanae Takaichi (president of the Liberal Democratic Party: LDP) had a meeting with Governor of Osaka Hirofumi Yoshimura (leader of Japan Innovation Party: JIP) at the prime minister’s official residence on June 22nd. Receiving frustration of some LDP members, Takaichi requested revision of draft of the bill for creating “backup capital,” on which representatives of both parties had once agreed. Takaichi did not like that the bill would enable the people in a local city can intervene in a decision of another city.

Japan has forty-seven prefectures which are broken down as one capital (Tokyo), one province (Hokkaido), two seats (Osaka and Kyoto) and forty-three ordinary prefectures. Project of building a backup capital is to make another capital alternative to Tokyo, for a possibility that Tokyo suffers from a major natural disaster which nobody knows when it will occur.

 

Before the Tokugawa Shogunate was built in Edo (currently Tokyo) in early 17th century, the political, economic and cultural center of Japan was in western region (Kansai), including Kyoto, Osaka or Nara. The Imperial Palace was moved from Kyoto to Tokyo in 1869 along with the Meiji Restoration. Not a few people thinks that Kansai region has a potential to be the capital of Japan again.

 

Building backup capital is a crucial political agenda for JIP, which is based in Osaka, appealing to that sentiment of voters in Kansai region. With strong demand of JIP, the LDP accepted an agreement to pass “backup capital act” in the ordinary session of the Diet in 2026 when they formed a leading coalition last October. A project team of both parties reached an agreement on draft of the legislation in March.

 

The draft proposes building a backup capital for maintaining function of state capital in a major natural disaster. It also aims at creating economic hubs in local area in Japan. A backup capital should be able to substitute function of governing Japan. It has to have certain volume of population, certain concentration of business sector, certain number of branches of national government to be a backup capital.

 

The most controversial point in the draft is the system of voting for referendum. For a city to become a backup capital, it needs to transform itself from city to special districts. For instance, city of Osaka needs to be reformed into some special districts. If Osaka hopes to be a backup capital, it needs to have a referendum. The draft demands the referendum to be voted by not only the people in Osaka city but in Osaka prefecture.

 

The JIP failed twice to get approval in referendum for Osaka Capital Initiative in 2015 and 2020. The referendum was made by voters in Osaka city. The JIP thinks that the initiative will have more support, if the voters were broaden to the people in Osaka prefecture. The draft of backup capital act includes revision of Major Metropolitan Region Act which determines the system of referendum.

 

However, there is an argument that the draft violates the Constitution of Japan. Article 92 says that regulations concerning organizations and operations of local public entities are fixed in accordance with principle of local autonomy. The provision is interpreted as each municipality has the right of self-determination on their government. If the people in Osaka prefecture can decide the fortune of Osaka city, it may disturb that constitutional principle.

 

Takaichi effectively overturned the LDP-JIP March agreement. Yoshimura was not happy with Takaichi’s abrupt request for revising the draft. As the issue is fundamentally important for JIP, it is not unrealistic that JIP may indicate leaving the leading coalition with the LDP, if backup capital act does not pass the current session of the Diet.

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