Socio-political Context
Most of Japan's rural municipalities largely depend on subsidies from the central government. They are often criticized for spending money for wasteful public enterprises to keep jobs. The central government, which is itself running budget deficits, has a policy of encouraging mergers to make the municipal system more efficient.
Although the government purports to respect self-determination of the municipalities, some consider the policy to be compulsory. As a result of mergers, some cities such as Daisen, Akita temporarily have very large city assemblies.
Some people see it as a form of federalism; they consider that the ultimate goal is to change Japan into a union consisting of more autonomous states. So far the mergers are limited to the local municipalities. Mergers of prefectures are also planned in some regions of Japan.
Read more about this topic: Municipal Mergers And Dissolutions In Japan
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