As part of its structural reform policy, the administration of Prime Minister Junichiro Koizumi has urged local governments to become independent under the slogan that what can be done by local governments should be done by them.

But at the same time, a growing number of communities are suffering from financial difficulties amid the rapid aging of the population.

According to a survey by Kyodo News and its member newspapers covering the heads of 1,890 local governments nationwide, there is serious concern about the prospects for regional economies and managing local governments. The response rate was 99.7 percent.