Some independent or reformist prefectural governors have come out with their own plans to revitalize local politics and economies. Their ultimate goal is to end the centralization of administrative power that dates back to the Meiji Restoration and establish real local autonomy. To achieve the goal, fiscal systems equivalent to the national fiscal system and financed by local taxes must be established, governors say.

Responding to these moves, Prime Minister Junichiro Koizumi's Cabinet has announced a trinity of reform programs, including an overhaul of the state subsidy system. But the central bureaucracy is strongly resisting the plan, favoring ministry interest over national interest. It is unclear to what extent the fiscal 2004 government budget will reflect the proposed reforms.

After the Pacific War ended, the General Headquarters of the Allied Forces introduced a public election system for prefectural governors to replace the previous system in which the central government designating them. The idea was to break the centralization of power. The central government and prefectural governments were designated as separate entities.