New Public Management and Decentralization

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We investigate the philosophy of New Public Management, and tried to present a clear vision of Government Reform, which is required to put the old processes to work in better ways in Japan. This Reform will be needed to achieve Decentralization now on process in JapanMajor points of our research are as following. (1) Speed of the Reform using the methods of New Public Management, is very slow in Japan. (2) To achieve Decentralization, Central government should set the criteria for deregulation. (3) In the long-run, Japanese fiscal transfer system between Central and Local governments especially through LOCAL ALLOCATION TAX should be changed to weaken the re-distributional effect. (4) Nevertheless, in the short-run, Local governments have to try to exert to set up the new taxes. (5) Thus, Local governments can execute the marginal fiscal-responsibility, which is proper concept to he introduced to Japan