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Why Japan is paying families 1 Million Yen per child to move out of Tokyo

A very striking development is doing rounds in Japan. According to multiple media reports, the Japanese government will extend to families up to 1 million yen ($7,670) per child if they opt to move out of Tokyo this year. This amount equals to Rs. 6.33 lakh when translated into the Indian National Rupee. The move comes as a measure being taken by Japan in order to counter the rapid depopulation in the country's rural areas.

The development is not a new move as Japan was already offering 300,000 yen per child to families relocating to other parts of the country. According to data at hand and estimates, the Japanese government hopes that around 10,000 people will leave Tokyo in order to settle in rural areas by the year 2027 under this scheme which actually started in 2019. Reportedly, the Japanese government could support 1,184 families last year through the scheme, while it helped 290 families in 2020 and 71 in 2019.

The cost of funds are being managed by both the central government and local municipalities. In fact, an additional support will also be provided to those families who seek to start a business in the local area. On the other hand, those who move out before five years have passed will have to return the cash. The plan also has some other conditions that would need to be fulfilled strictly in order to avail and keep full benefits.

Understanding the Problem

The move comes as Japan makes efforts to disperse the dense populations in the metropolitan areas of the country, in order to control the rapidly declining birth rates and diversify ageing populations in more rural areas. As more and more young population kept migrating to metro cities for better opportunities and lifestyle, Japan's rural areas witnessed rapid depopulation in recent years.

According to Statistics Bureau of Japan's data, 28.9% of the country's total population was at least 65 years old in 2021, marking a record high for the nation. On the other hand, only 11.8% of the total population accounted for children between 0-14 years of age, the lowest level ever recorded in Japan.

Authorities hope that the increased amount under the scheme will encourage families to revitalise these rural areas and ease pressure on space and public services in greater Tokyo.

 

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