Japan’s Development Trajectory

Sara Hsu

Development Influences Japan’s geography Followed Western nations in

industrialization Population (see map) Industrialization (see map)

Political-Economic History Tokugawa through Meiji

• Closing off to trade after encounter with Westerners

• Government decline• Meiji Restoration• Tax revenue• Government enterprises

Political-Economic History Meiji

• Technological know-how• Infrastructure • Monetary and fiscal systems• Textile and shipping• Agriculture• Compulsory education

Political-Economic History WWI to WWII

• Heavy industry• WWI and exports• Post WWI lag• Ministry of Agriculture and Commerce • Ministry of Commerce and Industry • Japanese invasion of China

Political-Economic History Post-WWII to Korean War

• Post-WWII occupation by Allies• Rural and urban restructuring• Dodge Plan• “Rationalization”• Booming economy with Korean War

Political-Economic History Post-Korean War to Eighties Post-Korean War slump Increase in domestic demand Import liberalization Second agricultural revolution Booming in sixties and seventies Financial economy in eighties

Industrialization Industrial power grew between 1881

and 1937 Accompanied by increase in capital

stock and horsepower Started with textile industry Located from Tokyo through Nagoya

and Osaka, to Fukuoka in the northern part of Kyushu

Technological Progress At the end of the nineteenth century,

inventions such as scientific measuring instruments, armaments, textiles and food industry inventions were created.

After World War II, additional technology was transferred to Japan from the West.

Data and Patterns of Growth

Number of Corporations by Industry

1903 1915 1927 1939 1951 1963 1975 1987 19990

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

ManufacturingAgriculture, Fisheries* contains forestry also 1950 onwardFinance and insurance

Railway Passengers Transported (in millions)

F.Y.1872 1880 1888 1896 1904 1912 1920 1928 1936 1944 1952 1960 1968 1976 1984 1992 20000.0

5000.0

10000.0

15000.0

20000.0

25000.0

Contracts for Electric Light and Power (1000)

1907

1910

1913

1916

1919

1922

1925

1928

1931

1934

1937

1940

1944

1947

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Bottom Line Japan focused on industrialization

and improvement of innovation during the Meiji period

Japan focused on light industry and then textile industry

Post-WWII decline was countered by pro-reindustrialization policies

Did You Know? Zaibatsu refer to large, family-

controlled banking and industrial conglomerates in Japan

The four largest zaibatsu before WWII were: Mitsui, Mitsubishi, Sumitomo, Yasuda

Fin Questions?