Industrial Revolution in Japan - Essay Example

Industrial Revolution in Japan Japan does not have a large quantity of natural resources given that significant resources like oil and metals are scarce, while at the same time areas of arable land are also limited. Today, the main Japanese resources are plants, forests and fish (Karan 29). Because of this limited resources, Japan had to rely on other means to make her advance economically. Industrial revolution provided the right ingredient that would spur the country to greater economic heights, which would later on introduce the country as one among the 21st century’s industrialized counties. Many parallels can be drawn between the industrialization in Japan and that of other countries especially USA and countries from Europe aside from the fact the Japan’s industrial revolution came years after that of USA and European countries like Britain, which was the initiator (Spielvogel 613). Industrial revolution in Western Europe was a result of revolutionary force from below, led by merchants based in the urban centers who were calling for the destruction of the old social order and creation of a current one that would generate new institutions based on urbanization and commercial context of the region. In contrast, leaders who had gained power through the manipulation of the feudalistic social regime spearheaded Japanese industrial revolution (Levine 105). The call for the modernization of Japan the came from above, led by those who were eager to bring change to the older regime, but not through radical overthrow of existing rulers. The difference in sources of economic power between preindustrial merchant classes of England and France and that of Japan mirrored the theme of urbanism in the respective countries. From around 15th century, the urban merchants of these European countries made the cities the center of their rebellion against the feudalistic rulers. In Japan, anti-Tokugawa political force was inherent in the expanding population but not in the revolutionary sense of being anti-feudal as seen in the European countries. Those who wanted change were willing to achieve it through taking up of political offices as a means of gaining these advantages but not through a revolution in the social structure (Levine 105). To understand the performance of Japanese economy before, during and after industrial revolution, it is important to note that the country’s economic growth experienced a distinctive rhythmic growth during the period of 1887-1969. Lonien agrees that the Japanese economic growth since the beginning of industrial revolution to the end of the Second World War was cyclical (24). It is during this period that Japan joined the world’s major economic powers especially those from the west as far as it’s per capita and labor productivity is concerned. This economic growth took place through a growth phase that recognized by the Japanese economic development literature as upswings of long swings. Mosk recognizes this period as taking place in the following periods: 1887-1897, 1911-1919, 1930-1938 and 1953-1969. This are the periods that coincides with the time when Japanese economy experienced the most intensive growth rate (Mosk 6). Mosk notes that a long swing represents a growth pattern in the gross domestic product of the country in which the rate of output growth rises, reaches a peak, declines, reaches a trough and then begins to rise once again. Every long swing in this cycle involves two phases, an upswing phase that heralds the long swing and a downswing that that ends the cycle. Comparative to average growth over the complete long swing, growth rates during the upswing surpass the long swings average and growth rate during the down swing is less than that of the long-swing average. It is this analysis that provides historians with a mechanism to determine Japanese economic growth during the industrial revolution period (6). According to these upswings of long swings analysis, the first long swing in Japanese economic growth occurred in period between 1887 and 1904, the corresponding upswing took place between 1887 and 1897, the downswing between 1897 and 1904. The second long swing consisted of two upswing phases the first taking place between 1904 and 1911, a period when the focus of capital formation was on infrastructure. The second up swing taking place between 1911 and 1919, a period when capital build up focused on the Japanese industrial sector. This economic surge sustained over fifteen years was followed by a deep slump phase lasting from 1919 until 1930. In the 1930s, a third long swing began, its justification being preparations for an impending total war during and after 1938. The upswing of fourth long swing in the history of Japan began in mid-1950s and continued to be felt by the economy until the end of the 1960s (Mosk 6). The turning point in the industrial revolution of Japan was the abolition of social classes and feudal system practiced by the Tokugawa regime. In order to enable industrial revolution, the new the government embarked on a large-scale borrowing of American and European technologies. The policy of complete seclusion and isolation that was practice by the Tokugawa regime prior to this period was abandoned by the Meiji regime, which led to the opening up of the country to new technologies in almost all sectors of Japanese manufacturing industries from western countries (Lonien 9). Japanese political representatives known as Iwakura visited USA and European countries to learn about the western way of doing things as a part of government initiated industrialization policy that was aimed at keeping the country at per with the western developed countries (For Know-it-alls 59). Although industrial revolution had begun to take shape between 1868 and 1912 in the middle of Meiji regime, the abolition of a class stratification society led to a technocratic-based society in which maximum number of people benefitted from education for all policy. Many of those from poor background who could not access education previously could now go to school and learn up to the highest level. This open education policy led to double the number of Japanese engineers in the country during the last decade before the First World War. Nevertheless, the relatively backwardness in technology and production facilities in 1868 as well as the defeat in 1945 and destruction of Japan’s domestic industry that followed compelled the country to import foreign expertise from the west (Lonien 10). After the change of regime that took place and the introduction of new strategies and policies by the new regime, a number of economic sectors begun to develop and contribute to the beginning of industrial revolution in Japan. First, the invention of the spinning mill and the development of textile industries in Osaka in 1883 herald the beginning of this revolution. In the beginning, the textile industry relied on silk and cotton which was based on manual labor until the development of the waterwheel in 1878. By about 1885, the import of steam engines into the country led to the establishment of mechanical and later electric weaving looms because of invention of electric engines. Thus, the textile industry now handled wool in addition to cotton and mulberry (Lonien 12). Second, the development of the railroad was another contributing factor to the beginning of Japan’s modern economy. In 1872, the first Tokyo-Yokohama line was commissioned under the technical control of the British. Following this commissioning, the foundation of the first national railroad company was undertaken at around 1881. The railroad industry had a key role towards realization of Japan’s industrial revolution. Firstly, it enabled the formation of steel and iron mining industries. Secondly, it opened up the country economically through the transportation of goods and people. This transportation facility enabled mobility of the rural labor force who moved to the new urban cities thus creating a concentrated labor market in the urban centers. This concentration paid off as the labor took part in construction of industry through the building of bridges and tunnels that would extend the railroad lines further (Lonien 12). Thirdly, another transport industry that stimulated industrial development is the naval industry. The government guaranteed the creation of Osaka Mercantile Steamship Company in 1884 and Japan Mail Steamship Company in 1885. The government envisioned the naval industry would make transportation of cotton and textile easy. This development led to a further rise of other shipbuilding related industries like shipyards and iron and steel industries (Lonien 12). Fourth, the textile, railroad and naval industries benefited from the development of energy sources like steam engines and electricity from hydraulic power. Hydraulic power first appeared in 1878 and used as a source of energy by the labor-intensive industries. Steam engines slowly replaced hydraulic power at around 1885 before the electricity period began in 1887. The energy sector was further heightened by the introduction of steam power in 1905 and the high-tension transmission in 1914. The low capital cost of electricity engine in comparison to steam engines is what stimulated faster spread of electricity in Japan. Further, the communication industry especially the post office and telegraphy played a part in the Japanese industrial development. Telegraph lines enabled the easy flow of information and services while post offices were used for both communication and national savings (Lonien 13). As seen from the foregoing discussion, the Meiji regime initiated far-reaching policies and strategies that opened the country to western technology that played a big role in the industrial development of Japan through rapid Westernization and modernization of the country. Initially, the main external task was for the regime to avoid colonization by the West but after some time, the fear was overcame as Japan started to absorb Western technology while at the same time maintaining her national unity and identity. The key objective of the Meiji regime was to catch up with the Western civilization in every aspect, which made the country a first-class nation in a short period (Ohno 43). The First World War herald a period of mixed fortunes for the country that had achieved a lot of economic growth since the Western influenced economic growth. At first, many feared that Japanese economy would suffer from shortage of high quality industrial materials and machines due to the increasing domestic demand. Japan weathered all this reservations as because of the rapid increase in the global demand for the goods she manufactured. Since the war closed off the European products from reaching the rest of the world, the demand shifted to Japan. Although the products manufactured were of low quality compared to that of USA and European countries, the country offered the only source for these manufactured products. This demand pushed Japan’s gross domestic product to an annual growth rate of over ten percent (Ohno 100). Japan enjoyed this economic boom until the big crash of business that initiated the beginning of post war recession in 1920. Prices of many of Japan’s products fell sharply, the price of cotton yarn recording a 60 percent fall, that of silk 70 percent and her the stock market index dropped by 55 percent. The overcapacity and low competitiveness of the Japanese economy now exposed, as the country could not enjoy monopoly as she did during the war era (Ohno 102). Even as recession of the 1920s continued to be felt, Japan’s manufacturing industries were still recording growing particularly in the chemical and heavy industries. These industries were able to withstand the weak aggregate demand to record broad-based growth in areas like chemical general machinery, steel, electrical machinery and rayon. Up to the 1930s, the Japanese manufacturing industry could produce most of the country’s machinery domestically, a big accomplishment in relation to the Meiji period (Ohno 103). Several factors contributed to this continuous industrial development in Japan after the First World War. Apart from the fact that industries were shielded from collapse due to the demand for the country’s products, other characteristics of Japan’s industries enable it to thrive. Firstly, the industrial sector still relied on the industrial evolution policy that had been developed even after the end of Meiji dynasty. Additionally, the Seiyukai Party government that followed included fiscal activism that included tariff protection for emerging chemical and heavy industries. Overcapacity and excessive completion was also minimized through the formation and promotion of industrial cartels (Ohno 104). Electrification and railroad sector growth continued significantly due to the growth of Japan’s hydraulic power generation was the second factor that spurred this growth. Share capital from private investment into the construction of hydraulic power plants contributed to the growth and maintenance of these key infrastructures. As a result, there were cases of reported electricity surplus for example in the Kansai area. Electricity power companies decided to offer discriminatory pricing especially to large corporate consumers who were charged low prices. Further cost cuts was when the dams, electricity power plants and the necessary transmission lines were constructed making the marginal cost of additional electricity almost zero. Discriminatory pricing of electricity assisted to increase revenue and operation ratio, which further encouraged growth for electricity-intensive industries like fertilizer, aluminum refinery, ammonium sulfate and rayon (Ohno 104). Thirdly, Japanese companies had already absorbed a lot of foreign technology was absorbed through foreign direct investment. This investment supported companies like Furukawa, Mitsubishi Electric, NEC, Nissan and Shibaura that had economic ties with European and American giant companies like Siemens, Goodrich, General Electric, Westinghouse, GM, Ford and Dunlop. These corporations aided Japanese companies in the areas such as automobiles, electrical machinery, and rubber tires among others. The business relationships between Japanese and those in the west had different arrangements including technical cooperation, having joint ventures, equity participations and establishment of a Japanese subsidiary (Ohno 104). Fourthly, the link between different industries had already been established for example, growth of Japan’s steel industry was supported and motivated other industries that relied on steel like machinery and shipbuilding, and vice versa. The above factors steered Japanese industrial development through the periods after the First World War thus poisoning her to take the world stage as one of the most industrialized countries. This essay has shown that Japan had many strategic advantages that positioned her for industrial evolution. The change of regime, which came with new strategies and policies such as foreign relations, inspired this growth. Structural development was also a key ingredient for this growth as seen through the country’s railroad and naval systems. Communication facilities such as telegraph and postal services also eased the way services and interaction between people. This infrastructural and strategic positioning ensured the country withstood the economic turmoil during and after the First World War. Work Cited For Know-it-alls. Industrial Revolution for Know-It-Alls. Minneapolis: Filiquarian Publishing, LLC., 2008. Karan, Pradyumna P. Japan in the 21st Century: Environment, Economy, and Society. Lexington: University Press of Kentucky, 2010. Levine, Bruce. Confederate Emancipation: Southern Plans to Free and Arm Slaves During the Civil War. Oxford: Oxford University Press, 2005. Lonien, Claude. The Japanese Economic and Social System: From a Rocky Past to an uncertain Future. Amsterdam: IOS Press, 2003. Mosk, Carl. Japanese Industrial History: Technology, Urbanization, and Economic Growth. New York: ME Sharpe, 2001. Ohno, Kenichi. The Economics Development of Japan: The Path Traveled by Japan as a Developing Country. London: GRIPS Development Forum, 2006. Spielvogel, Jackson J. Western Civilization. Stamford: Cengage Learning. 2009. Read More