May 22, 2013

Prime Minister Abe Shinzo on May 21 expressed his intent to “achieve a goal of zero children waiting to enter childcare facilities within five years” by following Yokohama City’s policy to invite more stock companies to run children’s daycare centers.

In Yokohama City in Kanagawa, business corporations own 25% of 580 authorized childcare centers, far exceeding the national average of 2%.

Abe touts the way Yokohama adopts as “a successful example” and intends to push ahead with corporate management of daycare centers despite many skeptical voices concerned about for-profit childcare services.

The government’s Regulatory Reform Council which represents the special interests of the business world has tried to switch the point at issue by insisting that municipal restrictions on the entry of stock companies hamper the effort to reduce the number of children on waiting lists.

The Council has criticized municipalities cautious about corporate entry into childcare services and has demanded that the national government implement a plan to employ a similar practice to that in Yokohama City.

In response, the Ministry of Welfare on May 15 issued a directive to all prefectures and major cities to promote more entries of business entities into public childcare services.

In the “successful example” of Yokohama, however, the quality of childcare services has become worse: More children now spend their days at facilities with no playfield, no pool, and no common hall; facilities located in a room of a multi-use building; facilities with a rapid turnover in nursery teachers; and overcrowded facilities.

Inokuma Hiroko, a journalist specializing in childcare issues, said, “Australia, for example, witnessed the bankruptcy of a stock company supposedly responsible for 100,000 children. Australia is now moving towards publicly-owned childcare centers. Based on that example alone, I cannot agree with Abe’s intent to accelerate stock company entry into nursery schools and childcare services.”