Japan paying families 5 million yen to leave Tokyo - Asia Times (2024)

The Japanese government has announced a fresh round of incentives for people to move out of the Tokyo region. From April 2023, families seeking a new life in greener pastures will receive 1 million yen (US$7, 756) per child. This represents an increase of 700,000 yen ($5,430) on previous such payments.

Once the whole benefits package is included, the maximum amount a family will be able to receive is 5 million yen. 5 million yen might sound like a lot of money. However, this translates to $38,782, which will be quickly used up in relocating to a new home, job and community, and reduced incomes.

The main purpose of the scheme is to contribute both to easing overcrowding in the Tokyo region and revitalizing more rural and remote areas of Japan with an injection of youth and entrepreneurialism.

Japan paying families 5 million yen to leave Tokyo - Asia Times (1)

It is significant that this new scheme was announced in December, ahead of the new year holidays when many urban dwellers return to their rural roots, and conversations inevitably turn to what the future holds.

Even more significant is the fact that this is not the first time the government has launched such a scheme. In fact, successive Japanese administrations have tried – and largely failed – to stabilize rural prefectures’ populations and reduce urban overcrowding for 70 years.

Attempts at counterurbanization

The scheme concerns residents from the 23 wards of Tokyo proper, as well as commuter cities in neighboring Chiba, Saitama and Kanagawa prefectures, seeking to move to one of 1,800 provincial municipalities. The government hopes that around 10,000 people annually will take advantage of the offer.

There are conditions, of course. At least one earner in each household must either set up a business in their new locale or take up employment in a small or medium-sized enterprise there. And the family must stay for a minimum of five years. Failure to do so may result in having to repay the whole amount.

Japan paying families 5 million yen to leave Tokyo - Asia Times (2)

Japan is not the only country where governments pay people to relocate to the countryside. In 2021, Ireland started to move up to 68,000 government workers out of Dublin in its Our Rural Future plan.

Many countries have taken similar advantage of the increased flexibility of remote working the pandemic has stimulated, such as with the so-called “Zoom towns” in rural US. Other examples include Albinen in Switzerland, various Spanish villages and Presicce in Italy, which is offering $36,624 to buy an empty dwelling and take up residency.

There have been a long list of such measures in Japan since world war two. As detailed by German geographer Thomas Feldhoff, starting with the 1953 Remote Island Promotion Act, most of them met with only marginal success.

In the early 1970s, Prime Minister Tanaka Kakuei’s government invested in huge infrastructure development programs in Japan’s provinces. This was partly in an effort to boost employment and stabilize populations.

Tanaka was so ambitious that he wrote a book about it, Remodelling the Japanese Archipelago, which was published in 1972. And his plan did work for a while. However, it generated enormous environmental damage in the process, with which Japan is still coming to terms.

In the 1980s, the Isson Ippon, or One Village One Product movement, as it is known in English, was launched in Oita prefecture in Kyushu. It provided a gentler alternative, which is still being promoted internationally by the United Nations’ Food and Agriculture Organization, as part of Japan’s overseas development activities.

Japan paying families 5 million yen to leave Tokyo - Asia Times (3)

More recently, research I have undertaken with my colleague Yasuyuki Sato has shown how rural municipalities have resigned themselves to ever-reducing populations. In an attempt to take control of such futures, they have begun instead to focus on the health, well-being and living conditions of those people who remain.

A global concern

Urban sprawl and rural emptying are two sides of the same 21st-century coin, and are global in their extent. In the 19th and 20th centuries, as populations across the world grew exponentially, urbanization processes didn’t necessarily affect rural regions negatively.

Some communities benefited from younger people moving out to seek employment, education, and marriage in nearby cities, as families often had more children than they could adequately support.

In the 21st century, however, as family size has shrunk dramatically nearly everywhere, the so-called demographic dividend – that is, the benefits of a growing population – has come to an end in developed countries.

Japan has led the way in East Asia. In 1974, the Japanese total fertility rate fell below the population replacement rate of 2.1. Demographers would have known then that, should conditions persist, the country would eventually slip into depopulation. Sure enough, conditions did persist, and in 2008 Japan registered its first peacetime population decrease.

Although Tokyo’s population is now 13 million, the Kanto region of which it is the core boasts more than 37 million people – 30% of the whole population of Japan. Elsewhere in the country, hundreds of rural hamlets and villages face imminent extinction.

Japan paying families 5 million yen to leave Tokyo - Asia Times (4)

Japan is not unique. Greater Seoul has around 25 million people, nearly half of South Korea’s population in one urban area with the rest spread out across the rest of the country. And in China, the Pearl River delta area, which encompasses Hong Kong, Shenzhen, Macau and Guangzhou, counts 100 million people living within it, while the wider country now boasts 155 cities with more than 1 million population.

Further afield, at 1.7 million, the city of Auckland comprises nearly a third of New Zealand’s population. Only 1.2 million people, by contrast, live in all of the South Island.

The spatial impacts of this demographic transition have been felt most deeply in rural regions of the Asia-Pacific. These grew most rapidly in the 20th century, and now face almost as rapid a depopulation in the 21st. Entire communities are disappearing. Land and housing are being abandoned. Infrastructure is decaying.

As the rest of East and Southeast Asia follows in Japan’s footsteps, the archipelago is to some extent a laboratory for devising effective policies for dealing with the socioeconomic and environmental outcomes of depopulation, a phenomenon which will increasingly be felt globally.

Peter Matanle, Senior Lecturer in Japanese Studies, University of Sheffield

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Japan paying families 5 million yen to leave Tokyo - Asia Times (2024)

FAQs

Japan paying families 5 million yen to leave Tokyo - Asia Times? ›

From April 2023, families seeking a new life in greener pastures will receive 1 million yen (US$7, 756) per child. This represents an increase of 700,000 yen ($5,430) on previous such payments. Once the whole benefits package is included, the maximum amount a family will be able to receive is 5 million yen.

How much is the Japanese government paying people to leave Tokyo? ›

Japan is paying families $7,700 per child to move out of Tokyo as the country battles population decline. Japan wants people to move out of Tokyo's urban areas, and is paying families to do it. The country is disbursing $7,700 per child to families who move from metropolitan wards, per Kyodo News.

Why is Japan offering money to move out of Tokyo? ›

The story so far: According to local media reports, Japan will pay up to one million yen (approximately ₹6 lakh) per child to families if they move out of the Tokyo metropolitan area. This amount was previously set at 3,00,000 yen and has been raised to reduce population concentration in the capital area.

How much does Japan pay for family? ›

The government was already offering 300,000 yen per child for families relocating to other parts of the country. The move comes as authorities attempt to disperse the dense populations in Japan's metropolitan areas, improve declining birth rates and diversify aging populations in more rural areas.

What is the moving incentive in Japan? ›

In April 2023, the Japanese government introduced a new policy offering 1 million yen (US$6770) per child to families who move out of greater Tokyo and relocate to rural areas of Japan, as part of Prime Minister Fumio Kishida's Garden City Nation Project.

How much of Japan is cash only? ›

Even though Japan is technologically among the top countries in the world, cash is still the primary payment method. Statistics show that over 60 percent of all payments are made in cash. It's thought to be a more reliable and secure option, without the danger of personal information leakage.

What is Japan exit fee? ›

While a departure tax exists in Japan, it is not enough. Since 2019, travelers have been levied ¥1,000 when leaving the country to help develop infrastructure such as smooth Wi-Fi and multilingual signs — a mere $6.30 as of the time of writing.

Why is Japan income so low? ›

The weak income growth is largely driven by structural factors, including disincentives for second earners in the social security system, pension policies, and more broadly the dual labor market structure. Policies to address these structural barriers are key to boost income growth in Japan.

Why does the US owe money to Japan? ›

So banks, insurance companies, pension funds, and individual citizens buy US debt (as does the government as part of its foreign exchange reserves). The reason is simple. Japan has long been one of the largest exporters to US. They get USD for the sales and simply park the funds in US government debt.

What brings Japan the most money? ›

The service sector has come to dominate the economy in terms of its overall proportion of the gross domestic product and of employment. The emphasis on trade stems from Japan's lack of the natural resources needed to support its industrial economy, notably fossil fuels and most minerals.

Is $5000 enough for a trip to Japan? ›

Yes, $5,000 is generally sufficient for a comfortable trip, including airfare, accommodation, meals, and activities. Is Japan very expensive to travel? Many think traveling to Japan is expensive, but costs vary. Affordable options for where to stay, eating out, and transportation adjust to different budgets.

What is the average Japanese family income? ›

Japanese households had an average annual income of approximately 5.17 million Japanese yen in 2023, constituting a decrease of 1.5 percent compared to the previous year.

How much does it cost to live comfortably in Japan? ›

For a single-working professional, around a minimum of ¥ 200,000 per month may be required to cover the basic living expenses. While the basic monthly cost of living in Japan for a couple may go over ¥ 300,000, a family may require around ¥ 500,000 for a comfortable lifestyle.

Does Japan pay foreigners to live there? ›

Will Japan pay you to move there? Yes, you can get paid to move to Japan! Like many Asian nations, Japan's birth rate is falling at an alarming rate.

Who does Japan give large amounts of money to? ›

Over the past 30 years, it has provided over $200 billion to development as part of its official assistance program. While the top recipients of Japan's aid are primarily countries in East and South East Asia, it is also one of the largest donors in several African countries.

What is the disposable income of Japanese households? ›

In Japan, the average household net-adjusted disposable income per capita is USD 28 872 a year, less than the OECD average of USD 30 490 a year. In terms of employment, about 77% of people aged 15 to 64 in Japan have a paid job, above the OECD employment average of 66%.

How much is separation pay in Japan? ›

No severance pay is required by the Japanese employment law.

It makes it easier to convince workers to resign through voluntary resignation, instead of being terminated by the employer. Most employment contracts observe severance pay equal to anywhere between six and 12 months of the employee's work.

How much paid leave in Japan? ›

Full-time employees receive 10 to 20 vacation days based on the number of years of service. After the first 6 months (and 80% attendance), employees are eligible for 10 days of vacation. After 1.5 years of service, an employee gets 1 additional vacation day per year.

How much is the pocket money for Japan? ›

Sample daily budgets
Single TravelerTwo Travelers
Low Budget4,500 - 7,800 yen9,000 - 15,600 yen
Medium Budget7,800 - 18,500 yen15,600 - 28,000 yen
High Budgetover 18,500 yenover 28,000 yen
Sep 18, 2023

Is Japan paying reparations? ›

Japan's war reparations began to be paid to Burma and the Philippines in 1956 and ended in 1976. Approximately 65 years have passed since the reparation payment began.

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