Regional Economic Development and Policy: a view from Kyushu, Japan Yoshihiro MIYAMACHI (Mia) Associate-Vice-President, Professor of Economic Geography University of Oita, JAPAN Open Days – European week of cities and regions Regional economic development from a comparative perspective - views from outside the EU Tuesday 5 th October,

Outline Introduction: Wheres Kyushu? Economic trends and their spatial impacts in Kyushu Regional Policy debates Contrast with the EU spatial policy 2

Introduction: Kyushu One of 7 regions in Japan Consists of 7 Prefectures Population: 13.3 million 3

Continued 10% economy of Japan, 1% of the world –Equivalent to Belgium A gateway to East Asia 4

Continued The biggest city: Fukuoka (2.7 million people including suburbs) Oita (0.6 million people) 5 Seaside town C.B.D.

Continued Major food production region in Japan Electronics and Automobile mfg A thriving tourism industry in hot springs localities 6

Economic trends: GDP change in Japan

Post-war economic phase War recovery High economic growth I High economic growth II Medium economic growth Roller coaster (bubble) 1998-present Low economic growth –Todays focus: after

Bubble economy period The Plaza Agreement in 1985 led to the asset price bubble Collapsed in 1992 Growth of FDI in mfg Tertiary sector shift Manual labor shortage in the heavily industrialized area 9

Sectoral and spatial impact in Kyushu Restructuring in export-oriented mfg Mother factory strategy –Intend to keep a leading position in technological guidance for overseas factories. Stronger links with Asian operation Expansion in automobile mfg Growth in tourism sector: Theme parks 10

Low economic growth period Currency crisis in Asia in 1997 Decline in land price Restructuring in the financial sector Deregulation under the neo liberal LDP Further financial deficit Development in ICT and knowledge- based sector 11

Sectoral and spatial impact in Kyushu Collapse of theme park bubble Development in consumer services –Nursing and medical sector Development of new industry –Environment-conscious sector –Animation and computer game Retail decline in small and medium cities 12

Regional policy debates: Techno-polis projects –Five areas in Kyushu was selected –Kumamoto became a leading area in semi- conductor mfg. Resort development projects Non-mfg sector development policy –R&D park projects –Office arcadia projects 13

Continued Regional policies were designed by the central government Competition between local governments in obtaining the central government approval and subsidiaries Campaigns to attract mfg-related companies to own district. 14

Regional policy debates: 1998-present Eco-town projects –Three areas in Kyushu were selected. –Kitakyushu is known as the most advanced case in resource recycling business. –Minamata, a pollution-plagued city, targets community-based recycling activities. 15

Continued Knowledge cluster projects –Set up a regional system for technological innovation. –Organized by local initiative around universities, other public research institutions and private companies. –Two areas in Kyushu were selected. –Super LSI cluster in Fukuoka and Environmental business cluster in Kitakyushu 16

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Continued A leading role in making regional policies has been progressively shifting from the central government to the local governments which enables better use of region-specific resources. Policys target is shifting from attracting business relocation to establishing networks of local actors. 18

Contrast with EU spatial policy Japanese policy is mfg-oriented. Region became more important, but still the central government rules most of policies. International exchange between regions in Asia is not developed compared to that in Europe. 19