The proposition of a secondary capital in Japan is being warmly received by the market, but not without raising concerns over its source of funding. The government has yet to establish a clear fiscal plan for the ambitious urban development project. While the plan aims to foster regional growth and curb urban population concentration, critics highlight the urgent need for a detailed financing strategy.
In Japan, the concept of decentralization is widely discussed as a solution to overpopulation and economic disparity between regions. The idea of a secondary capital is the latest initiative in this ongoing discourse, with population distribution and regional revitalization at its heart. With the market's positive reception, it's clear that many see potential benefits, but concerns over fiscal responsibility reflect Japan's cautious attitude toward public spending.
In the US and EU, similar initiatives generally involve a more mixed funding structure to stimulate regional development, often combining public and private investment and sometimes including European Union funding in the EU's case. The main point of concern in these regions, as in Japan, tends to be the fiscal responsibility and the impact on taxpayers.