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Base Bargains: The Political Economy of Okinawa's Antimilitarism
Unformatted Document Text:  29 Individual citizens and local townships can petition the DFAA if they have a verifiable grievance that is shown to be a direct consequence of the U.S. basing presence. A related group that directly benefits from the USFJ presence in Okinawa is the local construction companies who build the agreed upon public works and developmental projects. DFAA officials have no formal quotas for awarding projects to local companies, but they face political pressure to choose Okinawan companies when possible. Construction is the leading industry in Okinawa, and these companies are a key constituency in the island’s pro-base business lobby. In 2001, out of the 204 base-related contracts granted to Okinawa Prefecture, 176 (86%) – valued at 14.6 billion Yen – were granted to contractors based in Okinawa. 57 This percentage and total value would be even higher if it were not constrained by the Japanese state’s strict contracting procedures. According to the laws governing the tender process, any contract worth over 240 million yen must be awarded to a “category A” firm, where category status is based upon the number of employees and the structure of the corporate hierarchy. No Okinawan construction company yet fits this profile. 58 Hence the largest of these projects are undertaken, by default, by mainland companies who in turn may subcontract much of this work back to local firms. 57 DFAA, “Awarded Contracts of Construction to Companies Located in Okinawa Prefecture,” table from an unpublished briefing, 2003. 58 Authors’ interview with representatives from the construction industry, Naha, Okinawa, May 2003.

Authors: Marten, Kimberly. and Cooley, Alexander.
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29
Individual citizens and local townships can petition the DFAA if they have a verifiable
grievance that is shown to be a direct consequence of the U.S. basing presence.
A related group that directly benefits from the USFJ presence in Okinawa is the local
construction companies who build the agreed upon public works and developmental
projects. DFAA officials have no formal quotas for awarding projects to local
companies, but they face political pressure to choose Okinawan companies when
possible. Construction is the leading industry in Okinawa, and these companies are a key
constituency in the island’s pro-base business lobby. In 2001, out of the 204 base-related
contracts granted to Okinawa Prefecture, 176 (86%) – valued at 14.6 billion Yen – were
granted to contractors based in Okinawa.
57
This percentage and total value would be
even higher if it were not constrained by the Japanese state’s strict contracting
procedures. According to the laws governing the tender process, any contract worth over
240 million yen must be awarded to a “category A” firm, where category status is based
upon the number of employees and the structure of the corporate hierarchy. No
Okinawan construction company yet fits this profile.
58
Hence the largest of these projects
are undertaken, by default, by mainland companies who in turn may subcontract much of
this work back to local firms.
57
DFAA, “Awarded Contracts of Construction to Companies Located in Okinawa Prefecture,” table from
an unpublished briefing, 2003.
58
Authors’ interview with representatives from the construction industry, Naha, Okinawa, May 2003.


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