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 calculated and slow growth of at least 90 years since the Meiji period. 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.

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There are various socio-political and economic factors that existed in Japan even before the Meiji period, which facilitated “modernization” in Japan and led to industrial growth. Among the factors that pointed to Japan’s rapid growth in the 20th century are the following.

Urbanization, Education and Infrastructure

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 is strong domestic investment in infrastructure and education. Basic schooling was close to 80% of minors, which compared to 20% in places like England, was extraordinarily high.

It was very easy to adapt these advances to new technologies and automation systems with non-organic energy (coal, steam, etc.) The advanced infrastructure and high education allowed all economic sectors to transform rapidly. High education facilitated the transmission and learning of new technologies.

Central government

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.

The population quickly adapted to the new systems and rules, driving social improvements at a rapid pace. For example, Osaka’s merchantmen quickly adopted new production techniques based on technology, etc., and with Osaka being the commercial heart of Japan at this time, its system was quickly transmitted to other neighboring prefectures.

Progressive Policies

Part of Meiji’s policies was the fukoku kyohei, which was “rich country/strong militia,” to promote a future renegotiation of unfair treaties with the West.

A political system of zaibatsu, or diversified economy, was created, what we now know as large conglomerates. later formally dissolved, but continued informally. This created the bases of the relations between companies that still continue today, where an understanding of mutual benefit and cooperation is created.

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 is, working on detail rather than mass production. There was even a lot of resistance from the government against the automobile industry, since it required a lot of iron and oil.

Corporate Mentality and National Interest

There is an 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, with many companies simply looking for their own benefit. common in all societies. But there are some details, which can be considered different from other places, which may be strong factors in growth, which are more or less generalized in society.

Businesses 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 mind of all companies. So steps are taken to work around this potential shortage. 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” as companies are definitely looking for their own benefit. But at what cost? Japanese society is very harsh with the loss of credibility, of correctness, be it with clients, partners, and even competition. Therefore, even if it is pure 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?

Active responsibility of the leader, reciprocated with respect for the leader. Work in groups, unions, 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 he is expected to be one step ahead of everyone, anticipating the difficulties in preparing the team.

This leads to the primary role of leaders in companies. Knowing “sit”. This refers to the ability and work to hold meetings with governments, partners, groups, competition, etc. to maintain constant and deep communication and contact. Not necessarily to talk about business, it can be about anything, but 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. Or if something is needed, you know who to turn to. This scales at all levels, from mega conglomerates to small businesses. And the constant communication is rewarded with a very high loyalty when doing business, with a feeling of responsibility for the relationship 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 in negotiating deadlocks. Companies that understand the government’s goals can prepare their plans and changes ahead of time. This creates a certain atmosphere of confidence necessary for investment and stability.

Also, in general, companies are not looking for total triumph over their competition. There is a philosophy in Japan, which 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 is no strong competition between companies in Japan, Sony vs. Panasonic, Nintendo vs. Playstation, Mizuho vs. Mitsubishi, etc. But at the same time, the number of projects in which they finally work together is enormous, even if it is simply for their own temporary 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. Even all these details are neither absolute nor perfect in Japanese society. Like everywhere, nothing is rosy, and there are no perfect answers. Why Japan became an economic powerhouse is a subject that requires much more study and time to discuss, but it was definitely not an “economic miracle” or an instantaneous growth of 2 or 3 decades.