Economic Policies and Industrialisation
1. "Catch Up" Economic Development Priority:
1. In 1871, 50% of the state funds were being allocated to the samurai's stipend, putting a heavy strain on the economy. This amount of money was then scrapped.
2. In 1873, a land tax was introduced by the Japanese, but this was also known as a "blood tax" for the poorer working class had no way to pay the tax. In fact, it is estimated that 77% of the 28 million farmers in Japan at the time had no way of paying the tax.
3. In 1885, 42% of the economy was agriculture, by 1910 this number had dropped to 35%. In the same period, Japan's industry grew from 7%-13% of the national income.
4. In 1870, 90% of Japanese imports were manufactured goods. by 1910, 90% of the exported goods were manufactured goods.
5. Between 1870-1877, there is a critical inflation where prices almost double. However, the government is quick to solve this with the "zaibatsu" system. That is, the passing of baton from state to private firms who had an interest in state infrastructure. The epitome of this is that by 1890, 75% of the state railway system was in private hands. However, from this system also blossomed a few of the companies we known Japan to be famous for today. Namely, NEC and Toshiba.
Primary Source:
A mission was sent overseas in 1872 to study foreign economies known as the Iwakura Mission. When the Iwakura mission came back, japanese politician Okubo said this of the English economy "There is nothing growing in the ground except for coal and iron...this is sufficient explanation for england's strength and wealth."
Industrialisation:
- Japan before Meiji was largely an economy based on agriculture and handicrafts. However, the advent of the Meiji period instilled an urgency to develop and industrialize. This is perfectly encapsulated by the slogan "oitsuke, oisoke" which means "catch up, overtake".
1. In 1871, 50% of the state funds were being allocated to the samurai's stipend, putting a heavy strain on the economy. This amount of money was then scrapped.
2. In 1873, a land tax was introduced by the Japanese, but this was also known as a "blood tax" for the poorer working class had no way to pay the tax. In fact, it is estimated that 77% of the 28 million farmers in Japan at the time had no way of paying the tax.
3. In 1885, 42% of the economy was agriculture, by 1910 this number had dropped to 35%. In the same period, Japan's industry grew from 7%-13% of the national income.
4. In 1870, 90% of Japanese imports were manufactured goods. by 1910, 90% of the exported goods were manufactured goods.
5. Between 1870-1877, there is a critical inflation where prices almost double. However, the government is quick to solve this with the "zaibatsu" system. That is, the passing of baton from state to private firms who had an interest in state infrastructure. The epitome of this is that by 1890, 75% of the state railway system was in private hands. However, from this system also blossomed a few of the companies we known Japan to be famous for today. Namely, NEC and Toshiba.
Primary Source:
A mission was sent overseas in 1872 to study foreign economies known as the Iwakura Mission. When the Iwakura mission came back, japanese politician Okubo said this of the English economy "There is nothing growing in the ground except for coal and iron...this is sufficient explanation for england's strength and wealth."
Industrialisation:
- Oligarchs promoted economic reform
- took over arms-related industries, nationalising some and privatising others
- Supplied low-interest government loans
- Had foreign experts write banking laws
- First investments in advanced technology: railroad and shipyards, cotton-spinning and weaving factories, imported silk-spinning technology from France for exports
- By 1900, silk thread accounted for one-third of the value of japan's commodity exports, and textiles totalled more than half
- Growth Through Agriculture
- Social groups improved education: Agricultural development groups, seed exchange societies, journals and lecture circuits
- Annual agricultural productivity growth averaging 1.5-1.7% in the late nineteenth century
- Entrepreneurs and Artisans
- Developed intermediary technologies that "adapted Western machines to Japanese circumstances"
- Metric system, new calendar and Western timepieces improved standardisation and regularisation within Japan to establish common work practices.
- Working conditions:
- Workers had very poor conditions. by the 1890's a substantial portion of the work force was in light and heavy industry, including men and women. Many contracted tuberculosis,
- Women worked twelve-hour shifts in cotton mills
- Poor women were sometimes lured to South East Asian brothels, and remitted money back to Japan. This had a positive impact on Japan's balance of payments
- wages were very low, and environmentally-harmful industries such as mining impacted local environments, leading to deadly floods and toxic waste.
- Workers had very poor conditions. by the 1890's a substantial portion of the work force was in light and heavy industry, including men and women. Many contracted tuberculosis,