How and Why Japan Became a World Power

There is the idea that Japan grew rapidly to be a power after the second world war, as something unexpected, surprising. But the reality is that Japan’s most recent growth was a slow, calculated growth of at least 90 years since the Meiji Period. But how was it then that the growth and industrialization of Japan have been growing since the Meiji era.

Unfortunately, among the Western powers of the 19th century, there was an idea that civilization or modernity was equivalent to military and destructive capacity . But many societies, not only in Asia, were extraordinarily developed in economic and social terms . There are various socio-political and economic factors that existed in Japan even before the Meiji period, which facilitated “modernization” in Japan and pointed to industrial growth. Among the factors that pointed to a rapid growth in the 20th century of Japan are the following:

Infrastructure, Education and Complex Social Systems

A highly urbanized and established proto-industrial society. Where artisans, industry and commerce already had a very advanced and complex structure, even greater than in many Western powers. Agricultural and food needs were already perfectly satisfied. There was a strong domestic investment in infrastructure and education. It was very easy to adapt these advances to new technologies and automation systems with non-organic energy (coal, steam, etc.) Advanced infrastructure and high education allowed all economic sectors to transform rapidly. High education facilitated the transmission and learning of new technologies.

Along with this, the return of a central government removed feudal power and now each prefecture had less independence. Everything was more centralized and a better decision could be made globally, where interdependence and social knowledge became more complex. A prefecture with better knowledge of agriculture could benefit others that did not have as much agricultural tradition, etc.

Osaka merchants quickly adopted new technology-based production techniques, etc.

Policies Focused on Development

Part of Meiji’s policies was the fukoku kyohei , which was “rich country/strong military”, to promote future renegotiation of unjust treaties with the West.
A political system of Zaibatsu , or diversified economy , what we now know as large conglomerates, was created. later formally dissolved, but continued informally.

Even before, Japanese society was used to few natural resources such as iron or coal, so they focused on making the most of what little there was, working on details rather than mass production. There was even a lot of government resistance against the automobile industry , as it required a lot of iron and oil.

Entrepreneurial and Leadership Mindset

There is the idea that Japanese society always works as a team and together , especially seen by foreigners. At the same time, internally, many Japanese see this as imprecise, since many companies simply seek their own benefit as is common in all societies, although there are some details that can be considered different from other places, which may be strong factors in the growth and that are more or less generalized in society.

Companies take risks and competition very seriously. For example, being a society that grew economically with a lack of raw materials for so many years, the possibility of scarcity is in the minds of all companies , so measures are taken to work around this potential scarcity. Not necessarily by storing more raw material, but by seeking to guarantee its best use and refinement.

Put the national interest first . This is a bit subjective and somewhat “hypocritical” since companies definitely seek their own benefit but at the cost of what? Japanese society is very hard on the loss of credibility , if correct, be it with customers, partners, as well as even with the competition. Because of this, even if it is just a facade, the possible social benefit of a project, service, etc. is seriously discussed. or perhaps, what the country needs and within that idea, how can I help and benefit at the same time as a business or company.

The active responsibility of the leader reciprocated with respect for the leader . Work in groups, guilds, clubs, etc. in Japan, it develops from a very early age, where the leader receives a lot of support and respect, but at the same time is expected to be one step ahead of everyone, foreseeing the difficulties to prepare the team.

Harmony between Government and Companies

This leads to the primary role of leaders in companies. Knowing how to “sit down” which refers to the ability and work to hold meetings with governments, partners, groups, competition, etc. to maintain constant and deep communication and contact . Although not necessarily to talk about business, it can be about anything, although communication is essential so that others know your position, your goal, your vision, and this communication allows a deep understanding with the government to propose regulations, or projects and budget, or with potential partners, or even competition to work for a common good. On the other hand, if something is needed, you know who to go to. This scales at all levels , from mega conglomerates to small businesses , and constant communication is rewarded with very high loyalty in doing business, with a sense of relationship responsibility that is stronger than written contracts.

Governments that know what companies want can be better prepared to make changes or proposals and not waste time on negotiating deadlocks . Companies that understand the goals of the government can prepare their plans and changes ahead of time. This creates a certain atmosphere of trust necessary for investment and stability.

Also, in general, companies do not seek a total triumph over their competition. There is a philosophy in Japan, although it is not only from Japan since Machiavelli himself said it, “ if you cannot totally destroy your opponent, do not humiliate or defeat him, make him your friend ”. Obviously, this is not to say that there isn’t strong competition between companies in Japan, Sony vs. Panasonic, Nintendo vs. Playstation, Mizuhoi vs. Mitsubishi, etc. however, at the same time, the number of projects in which they finally work together is enormous, even if it is for the simple and temporary self-interest. But in the end, it is important to remember that you will have to continue working and living with these people.

Perhaps it can be said that the success of the Japanese economy and industry is due in large part to a strong social and economic base , which was able to quickly adopt new technologies. Society, even under the pressure of competition, values ​​long-term relationships more than short-term victories, which creates a lot of stability and a certain complicity.

Even all these details are neither absolute nor perfect in Japanese society . As everywhere, nothing is rosy, and there are no perfect answers. Why Japan became an economic power is a topic that requires much more study and time to discuss, but it was definitely not an “economic miracle” or an instant growth of 2 or 3 decades.