Economic Development of Japan
No.1 Preview
Key Issue
Why Japan could catch up with the West
– Cumulative and evolutionary history
– Private dynamism and policy support
• Meiji Period (late 19th-early 20th century)
– Gosho, zaibatsu, super-businessmen, policy support
• Post WW2 high growth (late 1950s-60s)
– Industrial leaders, kaizen, MITI’s industrial policy, etc.
For more information, please see:
• Textbook: Kenichi Ohno, The Economic Development of Japan:
The Path Traveled by Japan as a Developing Country, GRIPS
Development Forum, 2006; hardcopy available for students; free
softcopy available at www.grips.ac.jp/forum/pdf06/EDJ.pdf
• Lecture slides: www.grips.ac.jp/teacher/oono/hp/index.htm
I. Emperor’s Rule
II. Samurai’s Rule
1603
X
III. Modern
-ization
PP.16-17
IV. Postwar
1867
Rapid
recovery
and
growth
NARA
Centraliz
ation
MEIJI
EDO
Jinshin War × 671
Taika Reform × 645
Clan
fights
HEIAN
Nobles,
Decentra
lization
KAMAKURA
MUROMACHI
SENGOKU
Hunting &
gathering
Internal
wars,
dynamic
& fluid
society
xxxx
Chinese culture &
Rice
Buddhism political system
Tokugawa
Shogunate
Peace,
isolation,
conserva
tive class
society
Westerniz
ation,
industriali
zation,
militariliza
tion
xxxx
WEST: guns &
Christianity
WAR
1937-45
xxx
WEST!!!
US occupation
1945-52
Dr. Umesao’s View of the World
P.9
Eurasian Continent
Umesao Tadao
1920-2010
Russia
The
Western
MeditterraEurope
nean and
(UK)
Islamic
States
Dry Area China Japan
India
Integration Viewed from Outside
P.5
WTO, WB, IMF, FTAs, USA…
Existing World System
Democracy, market economy, industry,
technology, life style …
Latecomer country
Dynamism for change (+)
Integration risks (-)
Integration Viewed from Inside
Interaction of domestic & foreign systems
Imported from outside
by:
“Translative adaptation”
（Prof. Keiji Maegawa)
Foreign
Systems
Conflicts and
adjustments
Government
must manage
Base Society
Internal systemic evolution
Invasion, colonization
Migration
Trade & FDI
Aid
WB, IMF, WTO
P.6
History: Evolution vs. Repetition
High technology
& civil society
Industrial
revolution
Rise of commerce &
merchant class
Feudalism
Fights among
local powers
External stimuli
Centralized
dynasty
Dynasty A Dynasty B Dynasty C
X
Destruction
X
X
Neo-patrimonial
Dynasty D Colonialism state?
X
X
Japan’s Multi-layered Identity
P.4
先史時代の日本
Pre-historic
Japan
Rice cultivation
Buddhism, China
Heian & Samurai
Culture
Guns & Christianity
Edo Culture
Western influence
Note: Colored areas indicate
external impacts
P.56
Cumulative history, Edo achievements,
national unity and nationalism
Japan’s economic growth was driven mainly by private
dynamism while policy was also helpful
Private-sector dynamism
and entrepreneurship
(primary force)
Policy support
(supplementary)
Rapid
industrialization
esp. Meiji and
post WW2 period
Policy was generally
successful despite criticisms:
--Power monopoly & close
linkage with big businesses
--Privatization scandal, 1881
--Excessively pro-West
--Unfair by today’s standard
Introducing Proper Mindset & Method for
Industrialization
Differences: fast-rising countries vs. stagnant ones
 Private dynamism (individuals and enterprises)
 National leader (wisdom, decisiveness, action-orientation)
 Policy method (procedure, organization, documentation)
 Policy content
Japan was special
 Japan in the 19th century & post-WW2 period had both
private dynamism and proactive national leaders. However,
most latecomer countries lack these conditions.
 For such countries, initial drive for development must come
from the leader/government that sets national goals, elevates
popular mindset, and engages in serious policy learning and
implementation.

Period 4 Portfolio Contents