Japan’s 2nd Capital
Recently a New York Times article had the headline: “Cities Compete in ‘Gold Rush’ to Be Japan’s Backup Capital”
What does “Gold Rush” mean?
What does the headline mean?
Capital (city) = city where the government is
In history, a gold rush was when many people moved to an area to try and find gold. Do you know any places that this happened?
California, USA 1849
Victoria, Australia 1851
Yukon, Canada 1896
Witwatersrand, South Africa 1886
These days “gold rush” means when people or companies compete to get a big business opportunity.
The government has announced they plan to build a 2nd capital. Why?
1 ) If there is a big disaster in Tokyo that damages many government buildings, the government can continue to operate in a different city.
2 ) To create economic growth in a city that isn’t Tokyo.
3 ) Some people believe Takaichi wants to reward the Japan Innovation Party (日本維新の会) for their support. Their main base is in Osaka and they promised their supporters they will make Osaka the 2nd capital.
Many cities (Osaka, Sapporo, Gunma, Fukuoka, Nagoya) are now competing to be chosen like they are chasing a gold rush. Why do these cities want to be the 2nd Capital?
Based on the data below, do you think Japan should try to support economic growth outside Tokyo?
| Metric | Tokyo Metropolis (Prefecture Only) | Greater Tokyo Area (Full Capital Region) |
|---|---|---|
| Population | 11.45% | 30.03% |
| Gross Domestic Product (GDP) | 19.80% | 39.10% |
| Publicly Listed Companies | 51.20% | Over 60.00% |
Do you agree with these opinions?
Aichi’s Governor said because of Toyota’s factories Aichi is… "Japan's engine of economic growth and overwhelming center of industrial concentration."
Gunma’s Governor said Gunma has fewer natural disasters and it’s close to Tokyo so it can be a "backup base" to support Tokyo's "restoration and recovery" in case of emergencies.
Osaka’s Governor said making Osaka the 2nd capital can strengthen Japan by serving both as a backup for Tokyo and driver of growth through a more decentralized economic structure.
Can you think of any more pros and cons for these cities?
How about Sapporo, Nagoya or Fukuoka?
| City | Pros | Cons |
|---|---|---|
| Osaka |
• Second biggest economy with many large companies. • Already has infrastructure: big airports, government offices so less will need to be built |
• At risk of a large Nankai earthquake and tsunamis. • Local politicians often go against the rest of the country. |
| Sapporo |
• Far north, so it is safe from Tokyo earthquakes. • Lots of open land and natural resources (farms). |
• Too far from Tokyo for easy daily work. • Heavy snow in winter makes travel and life difficult. |
| Gunma |
• Inland with mountains, so it is safe from big tsunamis. • Close to Tokyo for fast emergency help. |
• Too small and lacks a big global city feel. • Too close to Tokyo so it feels like a Tokyo suburb. |
| Aichi |
• Strong manufacturing industry and infrastructure (Toyota, Subaru, Jtekt, Denso) • Right in the center of Japan with covenient bullet train links. |
• Faces the same earthquake and tsunami risks as Tokyo. • Lack of infrastructure, too much needs to be built. |
| Nagoya |
• Strong local economy and plenty of money. • Central location.- it's transportation system connects the east and west of Japan. |
• Soft ground, which is dangerous in an earthquake. • Exact same natural disaster risks as Tokyo. |
| Fukuoka |
• Gateway city for doing business with other Asian countries. • Located safely away from the Pacific earthquake zones. |
• Far from Honshu, making talks with Tokyo difficult. • Different local cities must agree and work together, which is hard. |
Can you think of any examples of “Gold Rushes” in modern business?
Tokyo Real estate - Late 1980’s
Smartphone games - Early 2010’s (DeNa, GREE, Sony)
Olympic sponsorships / construction projects - Mid 2010’s
Premier League team ownership - 2003 to now. Since 2018, many American billionaires or companies have tried to buy Premier League teams