Originally proposed by the Administrative Reform Council, the independent agencies are created based on the concept of separating the ministries and agencies of the government into planning functions and operation functions.
Incorporated Administrative Agencies utilize management methods of private-sector corporations and are given considerable autonomy in their operations and how to use their given budgets.
In April 2001, the government first designated 59 bodies as the independent agencies, among which were many research institutions and some museums.
As part of the administrative reforms of the Ryutaro Hashimoto Cabinet in the latter half of the 1990s, this system was stipulated for the purpose of separating the actual business and service sectors from the central ministries and agencies.
According to the Administrative Surveillance Commission Investigation Office, the 108 corporations established during the six years from 1998, when the system was first established, to 2004, accounted for the fiscal 2004 administrative service implementation costs (taxpayers The total cost attributable to the public burden) was 2,095 billion yen.