Tuesday, December 01, 1998

The Government and Modernization of Japan

The rise of Japan during the last century is widely regarded as one of the marvels of the modern era. Certainly, no observer during the nineteenth century would have predicted that such a ‘backward’ and mostly rural country such as Japan would become one of the main economic powers of the world only a few generations later. Arguably, the most important catalyst for Japan’s economic rise was the influence of the government on shaping the process of modernization. Beginning during the Meiji Restoration and continuing through the imperial decades to the post-WWII recovery period, the government adopted many important policies which hastened the country’s modernization. A secondary, although somewhat lesser, influence on the nation’s development was the unintended consequence of several international events. Japan was favourably aided by several wars during the modern era, interestingly in most of which the country was not actually a participant. As a consequence, the country very rapidly rose to economic power in the twentieth century. Japan was in fact singular among Asian nations for its early and rapid development into a modern country.

One of the defining characteristics of modern Japan has been the strength and almost singular determination of its government. Indeed, a once commonly-held stereotype in the West was that Japan followed a centralized ‘plan’ with which it could realize its ascendancy. To a certain extent such a convention can in fact be substantiated, as the government did indeed lead Japan into the modern era. The strong, centralized nature of the administration had its origins in the dominance of the domain lords of the late-Tokugawa period, which was additionally when the cult of the emperor re-emerged. The Meiji administration which superceded the old regime adopted a policy of national modernization, which had in fact been commenced in the Chōshū and Satsuma domains prior to the Restoration. While such governmental intervention would be seen as highly detrimental in the West, Japanese leaders, educated in the paternalism of Confucian teachings, felt that it was their duty to mould Japan to ensure its future success. Indeed, under such strong leadership Japan’s transition from a feudalistic to a modern society was fairly rapid and non-violent. Following a reform of land distribution, the government initiated a system of taxation to fund industrialization. Japan’s initial foray into modern industrialism relied heavily on the West. The government was required to purchase machinery from Western countries to begin modernizing Japan. More importantly however, in order to become self-reliant in the future Japan hired experts from the West to teach industrial methods and technology to Japanese workers. Foreign currency gained through the export of textiles such as silk allowed the government to purchase such goods and services from the West without incurring a heavy debt. While the teachings of the West were certainly important in imparting a self-reliance to Japan, the wider sphere of public education cannot be ignored. An educational policy was instituted devoted to the indoctrination of the populace with the ideals of the Restoration, namely the modernization of Japan. Not only were the Japanese to be instructed in the basics of a modern education such as literacy and mathematics, they were also taught to be wholly subservient to the government and its ideals, with the emperor as its figurehead. Such an authoritarian system of education was not completely without precedent in Japanese culture, as Confucian teachings promote a reverence for the social hierarchy. The system did succeed in its ambitions, as it produced a workforce dedicated to Japan’s economic progress. Yet, by the twentieth century it was to become much more malignant as the main tool for the militarization of Japan under Imperial doctrine.

The government had come into the possession of the industries once held by the domain lords, yet to match the West it had to become much more technologically advanced. To this end, during the 1870s the government invested heavily in industrial technologies and factories. Such patronization was especially important for the expansion of mechanized production facilities and heavy industry such as steelworks, which required a greater financial investment than could be granted by private individuals or companies. Heavy manufacturing in turn stimulated the growth of other industries such as mining and fuel production. Of further benefit to Japan’s economy was the attention paid by the government to improving the country’s infrastructure, especially the creation of a national railway. The immediate effects of Japan’s increased productivity was the expansion of trade, to which Asia was the principle market, and a reduction in the dependence on imported goods from the West. Japan’s industrial and economic growth during the late nineteenth century did not proceed unimpeded however, as by the 1880s the government found itself in debt. The Government, led by its financial minister Matsukata began to further adopt a more western-style of economic policy. Almost all of the governmental holdings in industry were sold, although a close relationship was kept with the businessmen who subsequently took control. Perhaps the most important aspect of Matsukata’s reforms, however, was the institutionalization of a national system of banking. The establishment of the Bank of Japan and a sound currency allowed for investment capitalism, which greatly aided the growth of the private sectors of the economy. Furthermore, Japanese investments were not limited to the mother country, as by the early 1900s Japanese investors had turned their endeavours to the greater Asian market.

A similar centralization of reform policy occurred following the second World War. Under the guidance of SCAP during the Occupation, Japan proceeded to rebuild its economy to such an extent that it was to become an economic leader of the modern world. America wanted a healthy Japan as an ally against the Communist bloc, so a great deal of financial aid was given to the country to allow for re-industrialization and economic recovery. Certainly the war had not completely devastated Japan, for while much of its industrial base had indeed been annihilated, the country still had a large reserve of highly skilled and educated human resources available. The destruction of Japan’s industrial complex had a secondary consequence as well, as in rebuilding its industry the country adopted the most modern techniques and machinery of the period. Additionally, the land reforms initiated by SCAP decreased rural poverty, which in turn led to the modernization of agriculture as farmers began to use modern technologies and methods. A new system of education based on the American structure was introduced, which emphasized the liberal-capitalist ideology of the West. While the Occupation succeeded in demilitarizing Japan, greater economic advances were made after Japan once again became a free country. The Mutual Security Treaty allowed the nation to avoid high military expenditure and instead concentrate on developing the civilian economy. Again one can observe the close relationship between the government and the business elite as during the 1950s laws were passed allowing it to regulate investment to target development in specific industries, such as plastics and electronics technologies, which were believed to be important future enterprises; simultaneously, industries viewed as obsolete were not given any aid. Further aided by the domestic demand for consumer products, Japanese production and exports increased exponentially during the 1950s and 1960s. There can be little doubt that by this period Japan was fully modernized, and indeed by the 1970s the country led the world in the high-technology industries.

Although the modernization of Japan was in large part a consequence of governmental policy, during several crucial periods of development the country was the beneficiary of events outside of its influence. Of primary importance was the minimal amount of foreign intervention during the Meiji Restoration, which along with a relative stability domestically allowed the government to concentrate on internal policy. Japan was also greatly assisted by a number of wars of which it played no immediate part. During the first World War the Japanese economy greatly benefited from its position as a supplier of munitions for Britain and France. Additionally, Japan assumed trade in the commercial markets, especially in Asia, previously held by the Western nations who had become preoccupied with the war. The wartime boom was only temporary however, as by 1920 the western nations had reclaimed their trade monopolies. A more lasting benefit was gained during the Korean War however, when Japan became a base for United Nations operations. Soldiers stationed in Japan, especially Americans, purchased a great deal of commercial and military supplies, and thus gave the country vital foreign currency and promoted a second ‘wartime boom’.

Analysing the modernization of Japan allows the discernment of one key factor that influenced the country’s development. Led by a strong and intent government, the Japanese people became a unified and skilled workforce. Industry flourished with government investment, which in turn generated a development in other sectors of the economy. Development after the second World War was particularly rapid and successful as through specific governmental policy Japan became one of the world leaders in high technology. The nation was further assisted economically by international events such as the Korean War. Despite such fortuitous events, it is quite possible however to attribute Japan’s ascendancy into the elite of the modern world to a determined central policy of development begun during the Meiji Restoration.