History of Japan

Japan

The Edo Period of Japan (1603-1870) created the pre-conditions for later industrialization and modernization

Until the 19th century, Japan was a weak rural nation, with little or no technology and heavily reliant on agriculture especially rice cultivation.

Japan was defeated in 1945 and the country’s economic base was destroyed. Under the US occupation, a recovery strategy under material planning was successfully conducted in 1947-48 and postwar inflation was terminated in 1949. From the mid 1950s through the early 1970s, Japan enjoyed very rapid growth and industrialization. The manufacturing sector expanded strongly and Japan became the second largest economy in the world (after the US) by the end of the 1960s.

How did Japan succeed so early in achieving such enormous economic growth with little natural resources and a tiny location?

The Edo Period

The analysis starts at the Edo Period of Japan (1603-1870) which created the pre-conditions for later industrialization and modernization. While the Edo period was politically centralized, it was economically decentralized. each han (local government) could decide its internal policies including administration, taxation, education, industrial promotion, issuing paper money, and other economic regulations as long as it was not explicitly prohibited by the bakufu (central government). The following points highlights this period:

(1) Political unity and stability

(2) Agricultural development in terms of both area and productivity

(3) The development of transportation and the emergence of nationally unified markets

(4) The rise of commerce, finance and the wealthy merchant class

(5) The rise of pre-modern manufacturing (food processing, handicraft, etc.)

(6) Industrial promotion by local governments (sometimes successful but not always)

(7) High level of education

By the end of the 18th century, foreign ships started to approach Japan for trade, the bakufu signed friendship and commercial treaties with...