Japanese Industries (1)

Kazuhide Ohta

History of Japanese industries and current status 1.1 Development of manufacturing industries 1.2 Example of the heavy industry
1.

1.1 1.2
References /1/Harvard Business School , Japan (D-1): A Strategy for Economic Growth, 9-378-106 /2/ 1/Harvard Business School Japan :Free, Fair, and Global? N9-798-083 /3/ H12 fiscal economic survey http://www5.cao.go.jp/j-j/wp/wp-je00/wp-je00-000i1.html /4/ History of Industrial Policy Yoshiki Mikami http://kjs.nagaokaut.ac.jp/mikami/slide/postwarIP.files/frame.htm

1. History of Japanese industries

1.1
Kazuhide Ohta

1.1 History of industries and their growth strategy (0) Overview (1) State-led industrial development since Meiji era (2) WW2, reform and rapid economic growth (3) Best production country in the world and the harvest of the miracle economic growth (4) Collapse of the economic bubble and the subsequent lost ten years (5) Strategy of Japanese industries as the front-runner in the 21th century
1.1 (0) (1) (2) (3) (4)10 (5)21
Meiji era19861912, Taisho era 19121926, Showa era 19261989, Heisei era1989

1.1 History and growth strategy

0 History of Japanese manufacturing industries(1/3) Edo period (The foundation of economic growth were prepared)16031867 Forward operation market of rice, development of road and sea traffic Elementary school (Terakoya) 10,000. Clan school (Hankou) >200 Raw silk production(Home industry under the wholesaler's control) The Meiji era (Catch-up with western countries) 18671912 Industrialization to be wealthy country Promotion of technology transfer and expansion of engineering education Before WW2 Taisho and early Showa era (Development of industries) 19121926 Economic stagnation by great depression and big earthquake 19261945 Development of heavy industries. Formation of Zaibatsu(financial clique)
() 12 () () () 16031867
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18671912 19121926 19261945

1.1Development of manufacturing industries

0 History of Japanese manufacturing industries (2/3) Recovery from WW219451955 Dissolution of Zaibatsu / Antitrust & Decentralization law, Land reform, Labor reforms Restored to prewar level by emergency demand of Korean War High economic growth (1955-1972) Restart of the catch-up Technology transfer from U.S. & Europe, Improvement of Japanese QCD(Quality, Cost, Delivery) Progress of higher education and supply of excellent human resources Japans unique economic system Group of enterprises, Seniority-based wage, Lifetime employment, Enterprise union
(2/3) (19451955) // (1955-1972) QCD
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1.1 Development of manufacturing industries

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0 History of Japanese manufacturing industries (3/3) Harvest of the miracle economic growth(1972-1990) Pollution problems, Oil shock, Overcome of strong yen Japan as No.1, Trade friction Bursting of economic bubble and lost ten years (19912000) Policy change from industrial development to deregulation Lack of competitive ability in the global market Front-runner of manufacturing industries in the 21st century High value added manufacturing From process innovation to product innovation
(3/3) (1972-1990) Japan as No.1, 10(19912000) ()() 21(2001

Change of real national income from Meiji to Heisei

H12)
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GDP per capita (10k, converted to 1990 price)

Year

Edo Meiji(1868-1912)

Taisho

Showa (1926-1989)

Heisei

1.1 Development of manufacturing industries

Industrial fundamentals in the Edo Period 16031867 Improvement of road network including five major roads and side roads by daimyos alternating Edo residence Development of the sea route to transport land tax rice to Osaka (distribution center) and Edo (consuming region) The worlds first forward operation market of rice in Osaka (early18th century) Education(human resource development) Elementary school (Terakoya) 10,000. Clan school (Hankou) >200 Production volume of raw silk increased to 4 times in 17-18th century. Main export product in Meiji era Grounding of the industrial development since the Meiji era
()() ()
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Development of manufacturing industries

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(1) Growth of industries as the national policy since Meiji era From Tokugawa Shogunate to Meiji In 1850s, the power balance of western countries in Asia were almost settled. Visit of U.S. black ship in 1853. Starting point of Meiji revolution. Power politics of USA. Japan was changed by external pressure Nagasaki ironworks founded by Tokugawa Shougunate in1857 Repair of iron ship(Kanrin-maru) . Round voyage to USA with no trouble. Declaration of the Restoration of Imperial politics in 1867.
1850 1853 1857(4)1010 1867129

Development of industries as the national policy

Kazuhide Ohta

Nagasaki ironworks in 1860 (MHI Nagasaki museum)View from Akunoura. The Japan first western style factory constructed under the guidance of Mr.Hardes from Netherland. The origin of Japanese heavy industries
1860(

Nagasaki city in the 21st century

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MHI in Nagasaki

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Development of industries as the national policy

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Industrial significance of the Meiji Restoration Centralized political system: Abolition of clans and establishment of prefectures The abolition of the status system (1873) Land-tax reform to secure income of government Pay tax by money Liberalization of traffic and business Establishment of monetary and financial system Established ministry of industry(1870) and ministry of domestic affairs (1873) . Start of capitalism production led by government
()(1873) () (1870)(1873)

Development of industries as the national policy

Kazuhide Ohta

Wealth and strong military policies aimed at western countries Technology transfer strategy in the period of Meiji era Employ foreign expertSend studentsEstablish education system construct advanced factories(1869 Petition for industry development (1874 Toshimichi Okubo) Increase national wealth by industrialization National business managed by the ministry of industry (18701885) Mines, railroads, telegraph, lighthouse , ironworks, machine tools, shipbuilding, civil engineering Privatization(1885 mine, shipbuilding, ironworks etc Human resource development in engineering College of Engineering(1871)School of engineering in Univ. of Tokyo
() (1869) 1874(7)() () (18701885) 1885() (1871)

Example of Privatization

Nagasaki ironworks managed by Tokugawa Shougunate(1861) Governmental Nagasaki ironworks (1870) (Under the jurisdiction of the Ministry of Industry) Lent to Mitsubishi Corp.(1884) Bought by Mitsubishi Corp.(1887) (Price 459,000 yen)
(1861) (1870) () (1884) (1887) (459)
Ref) Mitsubishi Heavy Industries Nagasaki shipyard museum document
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Development of industries as the national policy

Kazuhide Ohta

Industrial Revolution in Japan Industrial revolution in Britain (18th century) Steam engine for spinning, railroad, marine transportation. Revolution of ironworks(charcoal coke) New technology developed in the late 19th century Telegraphic communication, electric power, chemicals, automotive Introduced into Japan for short period Japan's industrial revolution was accomplished for shorter period than western countries.(Similar to China in recent years) The main exports are textiles (silk) =light industry Reinforcement military-related industries as a national policy
18 (). 19 () ()

Development of industries as the national policy

Kazuhide Ohta

Progress of industrialization in Japan 18851910 Modernization of the cotton spinning industry Domestic production by introducing large machinery Mechanize the raw silk production manual mechanical filature Full-scale domestic production of steel 1901 Establishment of governmental Yahata ironworks and private steel mills. The shipbuilding technology of the world class Development of machine tools 1905 The complete production of the American lathe Ironworks Ikegai Corporation Factory power changed to electricity(19101920)
18851910 1901 1905 (19101920)

Development of industries as the national policy

Formation of conglomerates The sale of the business managed by the ministry to the private enterprise Secure a privileged position An organization controlled by the holding company Mitsui, Mitsubishi, Sumitomo, Yasuda (4 major conglomerates) Mitsui partnership(1909), Mitsubishi joint stock company(1893) Okura, Furukawa, Nakashima, Ayukawa (After the RussoJapanese War) After the financial crisis(1927), Industrial capital was concentrated to the financial combine Built a dominant position in the Japanese business ommunity
() ,,,(4) (1909)(1893) ,,,() (1927),
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After the Great Kanto Earthquake 1923, the banks earthquake bill processing triggered closure and bankruptcy of banks.

Development of industries as the national policy

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Inclined to the war economy Recession after World War I Great Kanto Earthquake(1923), Financial crisis(1927), Great Depression(1929) Emerge from Showa Depression in 1930's Low interest rates, weaker yen, Government spending by Takahashis financial policy Development of heavy and chemical industry Strengthen the government's economic control Sino-Japanese war(1937), National Mobilization Law(1938) Pacific War(1941), Munitions Company Law(1943)
1 (1923)(1927)(1929) 1930 , (1937)(1938) (1941)(1943)