New Challenges of Local Governance in Japan: The Smart Buyer Problem and Complicating Accountability Process

New Challenges of Local Governance in Japan: The Smart Buyer Problem and Complicating Accountability Process

The transformations of local governance in Japan toward more partnership and public participation oriented with private entities, and civil society organizations have produced much positive impacts. However, this changing governance structure evoked new issues and challenges among local governments. The main challenge is how to become smart buyer of the services from the sole service provider. Local governments had long been predominant service provider of the public services and they accumulated the capacity in dealing with citizens’ demands. However, they have little experience and capacities to deal with “Smart Buyer Problems” when they privatized service provider functions. The other compelling issue is the accountability problems. Lines and process of accountability are now more complicated than ever before, while simple dichotomy of public/ private sphere can never be applied. Local governments face many lawsuit cases of service responsibility and accountability. Japanese local governments are still trapped in the path dependence of the past development. Responding to changing context, building new capacities is imperative.

The transformations of local governance in Japan toward more partnership and public participation oriented with private entities, and civil society organizations have produced much positive impacts. However, this changing governance structure evoked new issues and challenges among local governments. The main challenge is how to become smart buyer of the services from the sole service provider. Local governments had long been predominant service provider of the public services and they accumulated the capacity in dealing with citizens’ demands. However, they have little experience and capacities to deal with “Smart Buyer Problems” when they privatized service provider functions. The other compelling issue is the accountability problems. Lines and process of accountability are now more complicated than ever before, while simple dichotomy of public/ private sphere can never be applied. Local governments face many lawsuit cases of service responsibility and accountability. Japanese local governments are still trapped in the path dependence of the past development. Responding to changing context, building new capacities is imperative.