One of the structural problems of today’s Japan is that because many of its authorities and financial resources are controlled by the national government, local governments cannot take the initiative in developing and implementing dynamic policies. As a result, municipal governments do not make efforts to increase their income through appropriate investment and have instead been engaged over many years in unproductive local administrative activities that depend on subsidies. After reorganizing local governments to a larger scale through the decisive achievement of the abolition of prefectures and establishment of dōs, it will be essential to transfer the central government’s financial resources and authorities, along with its personnel, to local governments.