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Economic Particularities of Japan’s Meiji Period and the Industrial Revolution in Great Britain
1. Abstract
The person we are today is the result of numerous interactions with different individuals and events that have affected our lives, combined also with the unique characteristics of our own selves. The same can easily be said about our contemporaneous society, which is the result of millennia of historical events. Two such events that played pivotal roles in the formation of our currently globalizing economy are the reign of Emperor Meiji in Japan, between 1867 and 1912, and the Industrial Revolution commenced in Great Britain at the end of the eighteenth century and soon expanded onto all civilized countries.
The Meiji Era represented a time of prosperity and major changes for the nineteenth century Japan. It was the time that opened the Asian country to the rest of the world – a time responsible for both prosperity, but also important dissatisfactions and riots. The Industrial Revolution emerged in Great Britain to eventually expand to the rest of the world. It also represented times of major changes and advancements so important that life changed for good. One could easily say that the two are similar in that they set the basis of the modern world. But are they similar in light of the economic changes that occurred?
The specialized literature is filled with factual data and personal opinions on both periods in international history. The increased emphasis placed on both time periods can easily be explained by the role played by the reforms and developments in those times and their implications on the world and economy we know today. In other words, the Meiji period and the Industrial Revolutions are pivotal components which set the basis of the contemporaneous society.
2. The Meiji Period
“The Meiji Restoration has aroused immense controversy among both Japanese and Western historians during the twentieth century: controversy over the objectives of the Meiji leaders, the degree of ‘success’ or ‘failure’, and the nature and degree of changes initiated by the Meiji government. No disagreement exists, however, that the Meiji Restoration is the key to our understanding of modern Japanese history.”
The Meiji period began on the 23rd of October 1867 when sixteen years old Mutsuhito was enthroned as emperor of Japan. Due to the promises made and the high hopes for e better life, the period was called Meiji, meaning the enlightened rule, and it has been on numerous occasions stated that it represented Japan’s transition to the modern economy and society.
The historical period was set on the basis on an enclosed economy which had limited relations with other countries. Prior to the Meiji Restoration, Japan was producing internally all of their necessary subsidies and had engaged in trade operations with only four partners, to eliminate three of them and eventually only trade with the Netherlands. The country was being subjected to the stern regulations of the shoguns, which basically controlled all state and individual operations. But the fall of the Tokugawa shoguns and the crowing of the new emperor increased the Asian country’s communications and collaborations with the western powers and ended as such the shogunate‘s monopoly.
A primary act of the young’s emperor was to move the country’s capital from the shoguns’ “place of rule” in Kyoto, to Tokyo. Internal disputes emerged and were fought by proclaimers and opponents of the new emperor, his new instituted regime and the formation of the new government. It was not rare for the targets of the “terrorist” attacks to be the representatives of the western countries who were present in Japan to enforce international relationships with the country. Meiji however severely punished the rebels.
Other major ideas that sat at the basis of Meiji’s ruling regarded the need for a centralized control system, rather that the power being divided between numerous forces. This was required for the country to become culturally, politically and economically equal to the great powers of the west, objectives clearly established and stated by the emperor. Then, the centralization of the power was also necessary for the creation of a strong state which suffered limited foreign intervention into their personal agenda. In other words, the emperor desired to avoid any possibility that foreign forces would take control of Japan.
Changes in the military structures were also obvious, and this particular sector was among the first to adopt western organizational structures. The military forces in Japan were a pathfinder in hiring specialized foreign consultancy to aid them better organize their operations and improve their technologies. These actions set the basis for future cooperation and stimulated other sectors, such as shipping, munitions and mining, to request specialized foreign consultancy. The navy was constructed after the British model. Furthermore, the Japanese government sent numerous students abroad to inoculate them with the western way of thinking and expertise in all economic, political and technological sectors.
A major social effect of Meiji’s crowning and the fall of the shogunate (which eliminated the social hierarchies) was revealed by the large numbers of shoguns (nearly half a million) who were now unemployed. Most of these former shoguns were employed in the navy, the construction of ships or the multitude of other emerging industries. Problems occurred within the financial sector as well, but were solved starting with 1873 with the introduction of taxes.
“From 1871 to 1873, Meiji oligarchs went abroad to study the West - the Iwakura Mission. They examined technology, banking systems, political systems, infrastructures, educational systems, zoos and agricultural techniques and considered what would work in Japan and what would not. […] Universities were founded and an educational system created, influenced in part by what was discovered in the United States and Prussia. […] Japan adopted a police system and a legal system modeled roughly from what they found in France.”
The Meiji Era was also prosperous from the political stand point, as it generated the first Japanese constitution. After years of studying the western constitutions at the basis of state functioning, Japan’s officials established the country’s constitution in 1889. It was “modelled on a political theory of a German, Lorenz von Stein, who held that a monarchy existed to arbitrate between groups with competing interests, to prevent the exploitation of the weak by the strong. The Meiji constitution left the emperor as the arbiter of the will of all Japanese. There was to be no division of powers as with constitutions in the West. There was to be a parliament - the Diet - elected by men eligible to vote based on property qualification, but the Diet had no power other than to express grievances or to work on technical details regarding budgetary or security issues - all of which was subject to approval by the emperor. A governmental cabinet, working with the Diet but not responsible to it, was to have no power to initiate legislation or to deny the Meiji government money. In keeping with his godly status, the emperor was subject to no checks on his power.”
3. The Industrial Revolution
The Industrial Revolution encompasses a wide series of advancements which basically led to the replacement of human labor with mechanized work. It emerged in Great Britain to soon be felt throughout the entire world. As with the Meiji Era, the Industrial Revolution is a major time in history that set the course for the creation of the contemporaneous society and economy.
The developments in the nineteenth century are improperly organized under the term of revolution, moreover when the revolution implies a sudden action. And the changes in Great Britain were not sudden, but had been generated and expected for years. Therefore, the Industrial Revolution was not a revolution in the sense of unexpected occurrence, but it was a revolution in the sense of the major effects it generated – and this is the stand point from where it must be analyzed.
Similarly to the case of Japan and its Meiji Era, the Industrial Revolution in Great Britain was set on a complex background, already tormented by the need for change. Also, it emerged during the approximately same time period and was welcomed and believed to generate numerous beneficial results. It emerged in the insular country to eventually expand onto the entire European continent and also the United States of America.
But however the implications of the modifications generated by the British Industrial Revolution were extremely important, they do not have the same gravity as the changes brought about by the Meiji period, which entirely restructured the country and its population. In this particular sense, the industrialization of Great Britain impacted the British society as it encouraged the migration from rural to urban areas. Then, the women’s role changed once again and the introduction of mechanized work sent them back household activities. The women that worked outside the household were basically found in the textile industry.
Another major difference resides in the approach of education. Whereas the Meiji Era placed increased emphasis on creating scholarly institutions, the Industrial Revolution had little impact in this direction. The number of educational institutions remained the same and child labor has also stagnated. Entrepreneurs were still allowed to employ children, which they did moreover when they paid them lower wages.
Just like with the Meiji Era, the British Industrial Revolution opened new horizons and generated numerous development possibilities for the country and its population. The most important contributions were felt in the technological sector and materialized in a wide series of advancements. “It was not only gadgets, however, but innovations of various kinds--in agriculture, transport, manufacture, trade, and finance--that surged up with a suddenness for which it is difficult to find a parallel at any other time or place. The quickened pace of development is attested by the catalogue of new patents, the lengthening list of Acts of enclosure, the expanding figures of output and exports, and the course of prices, which, after remaining roughly steady for two generations, now began an ascent that was to continue for more than half a century.” Transports and communications also improved, and were supported by a better infrastructure.
4. Comparison of Economic Highlights
The Industrial Revolution and the Meiji Era represent major times in history and they were both marked by numerous economic as well as social changes. The pivotal economic effect of the two periods is that they managed to raise the initially posed barriers in the path of growth and development. The reign of Emperor Meiji opened Japan to international operations and significantly enlarged the number of strategic international partners. While for Japan the late eighteenth and early nineteenth centuries represented the opening of the door to global operations, to Great Britain, the period stood for the country’s chance to expand their operations even further and consolidate their leading position.
The major economic changes occurred during the Meiji Era and the Industrial Revolution refer to increased activities in the field of international trade, a growing role and importance of both national as well as international capital, modified structures and new regulations in regard to the labor force as well as the roles played by entrepreneurs.
International Trade
The Meiji Era is highly renowned as the period in which Japan began to emerge as an international trader. However trade was not uncommon before the period, it was rather limited. As such, the Japanese rules had divided the world’s countries into three major categories: the ‘Tsusho-no-kuni’, or the countries for trading, in which category were included China and the Netherlands; the ‘Tsushin-no-kuni’, or the countries which were considered partners and were invited to celebrate special and important events; and finally, the rest of the countries were frowned upon and were to be repelled. Great Britain was initially considered a Tsusho-no-kuni, but their lack of profit from the trade operations had forced them to slow down the activities. However, when they desired to reestablish the connections, the policies had changed and the English were prohibited from trading with Japan.
But with the Meiji, along came an opening of Japan’s borders to trade with other countries as well, practices highly neglected during the seclusion installed by the emperor’s predecessors. And the new formed government, despite the beliefs that it would once again enforce seclusion, reorganized the country and stated the impending need to engage in international operations in order to reaffirm the power Japan was in the eyes of all countries. And all these operations were to be developed in full conformity with the regulations imposed by the international community.
Trade operations were deepened with the already existent partners and were commenced with new countries, including the United States of America and numerous other western civilizations. By 1911, the Asian country had revised numerous agreements and reduced to even eliminate numerous taxes and tariffs. “Japan had begun to behave like a Great Power and to be accepted by the Western Great Powers as a member of the ruling directorate of international society.” The Asian country soon became an international power with a high entrepreneurial spirit, importing commodities and raw materials, to finally export the finished goods.
Just like in Japan, international trade was no stranger to the insular country, but it was significantly increased by the Industrial Revolution. With the new technological advancements integrated in efficient and effective machinery, the country could now produce unlimited quantities of goods. The new items were destined for both internal consumption as well as international trade. The global market soon grew accustomed with the British products and increased the demand for them.
Britain’s international commercial operations were mostly due to the country’s strong fleet, which allowed the merchandise to reach far destinations. “From the old commercial empire there was a significant English fleet which was utilised in trade with foreign markets from the mid nineteenth century. England shot to the forefront of the new capitalist economy primarily through its navy.”
“Although inter continental trade had been growing for centuries, the rate of growth accelerated dramatically during the nineteenth century. Inter-continental trade grew at around 1% per annum between 1500 and 1800, but it has grown at around 3.5% per annum since the end of the Napoleonic Wars. In1820, the ratio of merchandise trade to world GDP was ju%, but it was eight times this in1913.”
The developments in international trade in the two countries are only slightly similar in the meaning that, like the two major events, they occurred at the same time periods and had major impacts on the two economies. But they are different in the intensity of the changes generated. While the Industrial Revolution consolidated Britain’s position as an international leader, the Meiji Era only helped Japan become an international player.
Capital
With the growing international trade due to the Industrial Revolution, the wealthy men of Great Britain – either wealthy due to family fortunes, or due to the operations in commerce with slaves or with the British colonies – saw great opportunities for further expansion. In this sense, they commenced to invest in both local and international factories in the intent to register profits. “Individual investors played a vital part in the growth of the Industrial Revolution from the beginning. These merchants and other English people began seeking investment opportunities after seeing industries make large profits. Gradually, banks were founded to handle the increased flow of money. In 1750, London had 20 banks. By 1800, the city had 70.
Most banks did not directly invest in factories or make loans to factory owners for the purchase of machinery. Some banks, however, made short-term loans to industrialists to cover their operating expenses. Such loans allowed industrialists to use their own money to buy equipment and improve and expand their factories. Banks mainly provided credit to farmers, wholesalers, and retail merchants, who then placed orders with manufacturers. As machinery and factories became more expensive, the individuals who provided capital grew increasingly important. These industrial capitalists soon became one of the most powerful forces in British commercial and political life.”
The capital operations in Japan were barely existent in the shogunate’s era. And even during the beginnings of Emperor Meiji’s reign, the capital did not play a vital role. To better explain, capital was indeed offered to the needy entrepreneurs, but most of it came from the government, rather that banks or other national or international institutions. Capital was also raised through personal loans from family members, personal economies, informal networks and the reinvestments of the previous profits. Less than 25 percent of capital came from banks or other specialized institutions. International investments became more common only after 1879, when due to massive gold accumulations, the country pegged their currency to gold. This increased the trust and interest of foreign investors as it revealed that the Asian country was identifying itself with the western economies.
Once again, the situation of capital operations within Meiji Japan and industrialized England are similar in occurrence, but are extremely different in intensity and consequences.
Entrepreneurship
The Japanese entrepreneurs became more and more obvious and started to play a major role in the country’s economic development mostly during the Meiji Era. A main characteristic of the early Japanese entrepreneurs was their immense desire to contribute to the overall development and also their close collaboration with the state’s government. “The Meiji entrepreneurs were community-centered and had a genuine interest in general economic progress and in the things that benefit the nation as a whole.” Their beliefs were mostly based on their cultural heritage, applied in the economic sector. To better explain, most of the Meiji entrepreneurs were former samurais, who, through their growing and increased sense of honor and duty, placed the country’s wellbeing ahead of theirs.
Unlike the Japanese entrepreneurs, the early business men in Great Britain made their presence felt even before the commencement of the Industrial Revolution. Furthermore, they were extremely independent from the state and an eloquent example in this sense is that their capital came from private financial institutions, rather that the government, like in the case of Japan.
However early entrepreneurs were present in pre-industrialized England, the revolution changed their status. To better explain, the country had been filled with numerous merchants who based their earnings on trade with the United States or Britain’s colonies. But the occurrence of massive industrialization made these merchants realize the great potential of even larger profits. As such, the merchants came to develop more activities, to become involved in capital operations and to earn their status of modern entrepreneurs.
What can easily be observed in the case of Japanese and British entrepreneurs is that the first were engaged in defensive actions, meant to protect their economy from foreign interventions; whereas the latter were more focused on an offensive approach, meant to “conquer” as many regions as possible and establish their leading positions. Furthermore, the Japanese entrepreneurs were focused on the community’s growth and development, whereas the British were more centered on personal achievements.
Industrialization
The Meiji Era was a flourishing one from the economic stand point and it was similar to the Industrial Revolution commenced in Great Britain in the meaning that it brought in new technologies that introduced mechanized work. This then lead to the opening of numerous factories and a boom in the manufacturing process. All these, based in the context on an economic opening to international trade, aided the country to flourish. Foremost, the massive industrialization was a primary target even during the early years of the Meiji Era, when three major goals were set. The first one referred to the “industrialization on the economic front” and the other two revolved around the creation of “expansionist policy on the international front and the establishment of a constitutional government on the political front (which called for a
constitution and a parliament)”
Whereas in Japan, industrialization only came as a consequence, in Great Britain it was the event that generated other effects and consequences. It was based on the replacement of coal and timber with steam power, which represented the most important technological development of those times. Factories were built in regions rich in energy and natural resources and the first plans of urban organization came into being. The role of the employee also changed and the first signs of valuing and motivating the employee arose. In other words, the Industrial Revolution also set the basis for the modern human resource management.
In both England and Japan, industrialization led to the opening of numerous factories, the creation of jobs, an increase in the population’s living standards, infrastructural improvements and improvements in transport and communications. In both cases, massive industrialization represented the vital steps in creating a modern economy.
Labor Force
To the workers in industrialized England, the revolution meant additional help in getting better organized. Numerous regulations were installed as to protect the security and rights of the employees. This was the time the first trade unions were established. Most of the workforce was composed from former peasants, who had moved from the villages into cities and towns in search for a better life. But aside from the peasants, an important role was also played by the emigrating foreigners, who were allured by the developments in England and wanted to take their chance to a better life in the insular country.
It was also during these times, that the first regulations regarding child labor and the rights of working women were installed. Due to harsh economic conditions, the children in pre-industrialized Great Britain were forced to work from early ages and were seldom offered the opportunity to study. But the new regulations were prohibiting factory owners to employ children younger than nine, and based on group ages, the children were only allowed to work limited hours per week. However, the factory owners continued to employ children moreover when they were the cheapest workforce.
In Meiji Japan, most of the labor force was unskilled and unprepared to operate the newly introduced technologies. Accustomed with performing agricultural activities, the peasantry was now faced with the need to adopt and develop along. The main components of the Meiji workforce were the peasants and the former samurais. Women’s proportion was relatively reduced.
The main similitude between the English and the Meiji labor force is that they were both unprepared for the new technologies and they had to get better skilled. In addition, a large majority of the workforce consisted of former peasants who had moved from villages to industrialized towns and cities.
5. Conclusions
The reign of Emperor Meiji opened Japan to a new era of social and economic developments. And so did the Industrial Revolution in Great Britain. But the two periods can hardly be considered similar, basically because of the different and complex backgrounds against which they were set. On the other hand, there are several features which can be identified in both economies, such as mutations in labor force or the opening of newer factories. Whichever angle looked at, fact remains that both periods represented the countries’ transitions to modernism.
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