Municipalities with lower tax revenues often face budget constraints, leading to cuts in funding for various cultural facilities—including parks, sports complexes, and libraries. Across Japan, many local governments are indeed forced to scale back the operating budgets for such facilities. However, recognizing that mere cost-cutting breeds dissatisfaction, some municipalities are creating mechanisms to generate their own revenue. A prime example of this model is the regional revitalization effort in Shiwa Town, Iwate Prefecture. Local volunteers leased town-owned land that had sat idle for over a decade and transformed it into a thriving business district centered around a library—attracting more than 800,000 visitors annually. The brilliance of this project lies in how they leased unused public land and achieved unprecedented business success. Despite a declining population, Shiwa Town has seen an increase in local tax revenue, demonstrating an improvement in the town’s overall productivity. Increased tax revenue allows for higher-quality public services; rather than simply curbing spending, the ability to generate income enriches the budget and enables better governance.
Switzerland is a country that has successfully built prosperous communities without relying heavily on public spending. In one Swiss village, the municipal office complex houses not only a school but also corporate tenants and a café facing the public square. Staff members—including the mayor—work on a part-time basis, and the convenience store located there operates only during the morning hours. The facility serves multiple functions; for instance, the library opens just once a week, while a multipurpose room hosts village council meetings that nine councilors gather for deliberations. Public servants at the office work under four-year, flexible contracts without bonuses or pay raises. They supplement their incomes through side jobs in agriculture or tourism—such as repairing farm and forest roads or clearing snow—thereby achieving some of the highest earnings in the world. Even as some of the wealthiest people globally, they practice prudent frugality, maintaining a modest lifestyle and ensuring the village is managed without waste.
Successful municipalities prioritize long-term goals over short-term popularity. Shimojo Village in Nagano Prefecture consolidated its administrative structure into four units—General Affairs, Regional Promotion, Welfare, and the Board of Education—and abolished the “section chief” system. By removing rigid job boundaries, they established a system that individual staff members handle multiple roles. As a result, the village was able to reduce its workforce from 51 to 34 employees. This demonstrated that operations could continue smoothly despite a smaller staff, provided each employee handled multiple tasks efficiently. The funds generated by reducing the workforce were quickly reinvested into initiatives such as free medical care for children and free high school tuition. The village also improved the educational environment by independently hiring assistant teachers and enhancing after-school care programs. These improvements in childcare and healthcare services attracted young families from neighboring areas to relocate to the village. Furthermore, companies that valued these child-rearing support measures began building factories in the village. A village environment that young working people can work with peace of mind makes the area attractive to companies as well.
