2025 New Year’s Greetings by the President

Beyond the Calm Period

Happy New Year

In this year, in 2025, I believe that National University Corporations will be tested for their true values and their capability to grow together with society. On this occasion, I would like to explain more about this matter and share with you Hokkaido University’s aspirations for the new year.

For about 30 years, from the early 1990s to the early 2020s, consumer prices in Japan remained virtually unchanged; rather, there was a period of continued economic deflation. During this period, Japan’s international standing declined, but domestically, we spent a period of extremely stable “calmness.” This period of “calmness” coincided with the 20 years since the incorporation of national universities and with the period known as the “Lost Decades.”

The incorporation of national universities in 2004 was intended to help national universities transition from a “convoy system” to public entities that contribute to the development of society through education, research, and medical care by establishing an autonomous financial structure. For better or worse, Japan’s economic growth remained stagnant for more than 20 years after this incorporation. As a result, amidst declining governmental subsidies, National University Corporations have barely been able to “maintain” their functions by increasing external funds to balance their financial books through self-help efforts. This situation has continued for 20 years. Ironically, it can be said that the 20 years of “calmness” have made it possible to maintain the functions of the National University Corporations until now.

Around two years ago, however, the situation surrounding National University Corporations changed drastically, as corporate capital investment increased and the consumer price index rose rapidly, resulting in inflation for the first time in 30 years. Perhaps even more so this year, Japan’s economic growth is expected to accelerate. There may be various interpretations, but Japan is finally catching up with global growth, which in itself is a welcome development.

Even so, for National University Corporations and National Research and Development Agencies, which rely on governmental subsidies as their basic income, the recent price hikes and economic growth led by the private sector have brought about new challenges. This means that the value of the decreasing governmental subsidies will further decline, and the competitiveness and value of National University Corporations as public entities will, relatively, decrease in a growing society.

This situation is the reason for my earlier statement, “National University Corporations will be tested for their true values and their capability in growing together with society.”

In retrospect, it is clear that the “calmness” of 20 years since incorporation could not have lasted indefinitely. In fact, it is unusual that it has lasted for 20 years in this fast-changing world. During these 20 years of borrowed time, National University Corporations should have taken preemptive measures against possible difficult scenarios and promptly implemented highly effective measures to strengthen their financial base.

The year before last, we announced HU VISION 2030, our university vision toward the year 2030. This represents Hokkaido University’s visions for the realization of a “sustainable well-being in society” in eight areas: education, research, co-creation with society, international collaboration, diversity, governance, financial base, and pursuit of sustainability. However, since the scenario of rapid economic growth has become a reality earlier than expected, we need to significantly accelerate our efforts to strengthen our financial base and governance. This will place a heavy burden on the entire organization; whether or not we can succeed will be a true test, not only of Hokkaido University, but of all National University Corporations. This year, the entire faculty and staff of Hokkaido University will work together to accelerate efforts toward the realization of HU VISION 2030.

Last but not least, I would like to reiterate the ideal form of financial management for National University Corporations in the future.

Given the fact that one of the operational and financial foundations of national university corporations is the financial authority granted by incorporation to manage external funds, donations, endowments, and properties, we should aim to maximize the use of this authority.

Nevertheless, the National University Corporation is not a private enterprise, but a public entity that is indispensable for the development of highly skilled human resources who will be responsible for the future of this country. Therefore, it is only natural that another pillar of the financial management of national universities is the will of the Japanese people, who have entrusted us with their support in the form of governmental subsidies. I believe that the challenge for the future lies in how we, as university administrators, can deepen the public’s understanding of the significance of National University Corporations. During this year, we are determined to communicate the significance of the National University Corporation to the public at large, while obtaining the understanding of students and many other stakeholders both inside and outside the university.

Next year, in 2026, we will celebrate the milestone of the 150^th anniversary of the founding of Hokkaido University. In that sense, I believe that the year 2025 is a unique opportunity to inform society not only about our activities as a National University Corporation, but also about our current challenges. We look forward to your continued support and cooperation with Hokkaido University.

In closing, I wish you all a wonderful new year, and I sincerely hope for your continued good health and happiness.

January 6, 2025

Kiyohiro HOUKIN

President

Hokkaido University