Government to Incentivize Investment in 'Sunshine Income Villages' for Regional Decline Response Fund

The Ministry of the Interior and Safety is set to revamp the allocation system for the regional decline response fund, aiming to inject vitality into areas struggling with population loss. Starting in 2027, the ministry will prioritize local governments that actively engage residents in improving their communities. This means that projects where residents form cooperatives or social enterprises to enhance living conditions, create jobs, and foster local economies will receive preferential treatment when funds are distributed.

A key focus of this reform is the promotion of 'sunshine income villages,' a government initiative designed to create sustainable revenue streams by sharing profits from projects like solar power generation among residents. The government plans to establish over 2,500 such villages by 2030. This shift from annual investment plans to a medium-term (2027-2031) strategy signals a more strategic approach to tackling regional decline.

However, the proposed changes are not without their critics. Experts raise concerns about the vagueness of the evaluation and performance indicators, fearing that regions with fewer resources might be further disadvantaged. There are also worries about the potential for political favoritism in fund distribution if the evaluation and management processes remain opaque. Calls for a more integrated management system, linking various regional development funds and policies, are growing louder to ensure equitable and effective support for all struggling areas.