A Study on the Financial Management System of Local Governments - Focusing on the Cases of Yubari city in Japan - (지방자치단체 파산제도에 관한 일고찰 - 일본의 유바리시 재정파탄사례를 중심으로 -)

Shin, Bong-Ki (신봉기); HWANG, Heonsun (황헌순)

A Study on the Financial Management System of Local Governments - Focusing on the Cases of Yubari city in Japan -

Public Land Law Review
Abbr : KPLLR
2021, 96(), pp.157-184
Publisher : Korean Public Land Law Association
Research Area : Social Science > Law
Received : October 31, 2021
Accepted : November 22, 2021
Published : November 25, 2021

Shin, Bong-Ki ¹, HWANG, Heonsun ²

¹경북대학교
²한국법제연구원

Accredited

ABSTRACT

Recently, the population concentration in the Seoul metropolitan area has intensified in Korea. Despite the emerging problems of aging and low birth rate society, the population is moving further to the Seoul metropolitan area. In other words, local governments except on the metropolitan area should consider alternatives to the issue of population outflow. Because the outflow of the population is also a cause of poor local finances. If local finances become poor, there is a possibility that local governments will have to worry about the existence of local governments. Instead of leaving these issues to the responsibility of each local government, the state needs to act more actively to improve the financial health of local governments. This guarantees substantial local autonomy under the Constitution. As part of the plan, there was discussion about the introduction of a local government bankruptcy system in 2014. However, local government bankruptcy system has been not introduced. However, due to the centralization of the population into the metropolitan area, the financial crisis of local governments is still ongoing. Recognizing these problems, this paper will examine the institutional consideration of what the state should do to ensure and revitalize the existence of local governments. In that way, we will focus on the case of Yubari City in Japan. An introduction to the city of Yubari is also conducted in many Korean literature. This paper focused on taking a closer look at the current situation, as examples such as Yubari city’s case can occur in Korea as well. In general, if the accounting of local governments is not reasonable, residents may raise questions about it. In the case of Yubari City, it was difficult for residents to understand such accounting conditions. In the end, we can see that the part that cannot be solved by the autonomy of the residents needs to be managed by the state. Such supervision can be done by administration of the rule of law, such regulations can be prepared and implemented in the law. If such administration of the rule of law is not carried out, intensive control by the state may be carried out under the guise of management of local governments. What should be thought of from the case of Yubari City is that when management is carried out by the state, the debt repayment period should be set based on the quality of life and administrative services of local residents, not focusing on the figure of debt reduction. This will achieve both the enjoyment of balanced administrative services and the financial management of local governments.

KEYWORDS

Local self-government, Local finance, Fiscal management, bankrupt of local government, Yubari-city in Japan

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