The Growing Role of Nonprofit Organizations as Society Matures - Issues and Possibilities in the Next Century

Introduction

As the next century approaches， Japan’s economy and society are confronting a major transi-tion period. Changes in population and household composition brought on by the declining birthrate and rapid aging are challenging the fundamental tenets of the social security system including pensions， health care， and long-term care insurance， as well as the education system. During the miracle years of rapid economic growth， the national objective was clear — to grow the economy and achieve material wealth — and government policies were keenly focused on this aim. But as the society matures and the public’s needs diversify， the govern-ment is exhausting its capacity to meet these growing needs beyond the civil minimum level. Today， new approaches are being sought to recreate the individual and society， and replace the already overburdened conventional socioeconomic system.

In this light， the public long-term care insurance system initiated this April contains a signifi-cant shift in the approach to elderly welfare — from care that is publicly administered， to care that is provided by contract. To provide universal welfare services while accommodating diverse long-term care needs， services that have traditionally been provided by public entities will need to be relegated to private businesses and nonprofit organizations (NPOs). And as society continues to mature， it will be necessary to deregulate private businesses as well as to develop NPOs throughout society， including but not limited to elderly welfare， health care， education， community building， culture and the arts， and environmental preservation. Mean-while， as the government pursues greater efficiency through administrative reform and decen-tralization measures， thereby better meeting the public’s needs while improving public finances， NPOs will play a critical role particularly in meeting the needs of residents at the local level.

The implementation of the NPO Law in December 1998 (Law to Promote Designated Nonprofit Activities) has started a profound new era for NPOs. But NPOs will first need to gain accep-tance among a public unfamiliar even with the concept， and will also have to confront many issues that lie ahead. This paper examines the present status of NPOs in Japan， and contem-plates the possibilities and issues for NPOs in their anticipated role of developing the mature society in the next century.