Executive Summary

The Optimal Direction for NIRA as a Public Policy Research Think Tank:
Report of the Panel to Discuss the Optimal Direction for Japanese Think Tanks


The National Institute for Research Advancement (NIRA) was established in 1974 as a research institute focusing on the examination of policy trends at the suggestion of leading figures from Japan's industrial, academic and labor communities. Its establishment was authorized by the government under the National Institute for Research Advancement Act (NIRA Act). According to the stipulations of the Reorganization and the Rationalization Plan for Special Public Institutions approved by the Cabinet in December 2001. NIRA's financial base and research results must be examined and the Institute's optimal direction is to be reviewed with a view towards becoming a juridical foundation during the Period of Intensive Reform (until the end of FY 2005).

The increasing fluidity of the international order since the end of the Cold War has dramatically changed the conditions under which Japan formulates policy. NIRA's mission is therefore also undergoing major changes. This panel thus examined the optimal direction for NIRA's future from the perspective of the reforms necessary for the Institute to continue to meet the needs of the times.

Japan requires changes in its governmental structure to enable the development of a more mature democracy. An issue of particular importance is making the transition from a policymaking process that is centralized and led by the bureaucracy to one that is decentralized and led by politicians. It is essential that the policy-making process be moved in a direction that expands the choices of the Japanese people. To this end, it will be necessary for political parties, non-profit organizations, and others to offer diverse policy alternatives on the basis of scientific and objective analysis and evaluation of policies.

In that event of such a reform in the policy-making process, impartial public think tanks with international perspectives will play an extremely important role.

To date, NIRA has operated from a neutral stance using funds contributed by the national and local governments and the private sector, and has adopted a comprehensive perspective in its research on policy issues. NIRA fulfills many of the requirements for a major public policy research think tank during this time of rapid change.

NIRA's organizational review should therefore not diminish the Institute's functions, but should rather lead to organizational problems enabling it to fully exercise its unique characteristics. NIRA should be revitalized and transformed into a policy research institute fully responsive to the needs of the times.

The NIRA Act that authorized the Institute's establishment should therefore be revised to make clear NIRA's organizational independence and responsibility for itself and to enhance the vitality of its operations and the efficiency of its work.

With regard to NIRA's future fundamental mission, the Institute's major points of focus should be to; 1) Conduct policy research that meets international standards and offer policy proposals to the world as a leading Japanese think tank; 2) Carry out analysis and evaluation of public policy and research on related alternative policies as an impartial institution providing information to national and local governments; 3) Exchange research findings with and offer support to domestic and Asian think tanks to contribute to the progress of decentralization in Japan and economic development in Asia.

For NIRA to accomplish this mission, however, it must make diligent efforts to improve its level of expertise and strengthen its financial and personnel foundations while radically enhancing its ability to communicate its research results. NIRA must make a strong commitment to reforming its research and management systems.


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