Chapter 7: Modernising the Economy| Class 11 History Notes

The Meiji Restoration of the late 19th century heralded a period of profound transformation in Japan, marked by a relentless drive towards modernization across various spheres. Among its most pivotal endeavors was the modernization of the economy, a strategic initiative aimed at propelling Japan into the ranks of global economic powerhouses.

In this article, we delve into the intricacies of Japan’s economic modernization during the Meiji era, exploring its key initiatives, challenges, and enduring legacies.

Modernising the Economy

The Meiji reforms included a significant focus on modernizing Japan’s economy. This involved implementing an agricultural tax to raise funds and establishing the country’s first railway line between Tokyo and Yokohama in 1870-72. Textile machinery was imported from Europe, and foreign experts were brought in to train workers and contribute to education in universities and schools. Additionally, Japanese students were sent overseas for further education.

Modern banking institutions were introduced in 1872, and companies like Mitsubishi and Sumitomo received subsidies and tax benefits to become prominent shipbuilders, ensuring that Japanese trade was conducted using domestic vessels. Large family-controlled business conglomerates, known as zaibatsu, came to dominate the economy until after World War II. Japan’s population grew from 35 million in 1872 to 55 million in 1920, prompting the government to encourage migration to alleviate population pressure. Migration was promoted to Hokkaido, Hawaii, Brazil, and Japan’s expanding colonial territories. As industry flourished, there was a notable shift towards urban living, with 21% of the population residing in cities by 1925, increasing to 32% by 1935, totaling 22.5 million people.

Economic Revival: Levying the Agricultural Tax

Amidst the sweeping reforms of the Meiji period, modernizing the economy emerged as a crucial endeavor. One significant measure was the introduction of an agricultural tax, which provided the necessary funds to kickstart Japan’s economic transformation.

Railways and Trade: Connecting Tokyo to Yokohama

In a bold move towards modernization, Japan inaugurated its first railway line, linking the bustling metropolis of Tokyo with the bustling port city of Yokohama between 1870 and 1872. This infrastructure development facilitated trade and transportation, laying the groundwork for further economic expansion.

Importing Expertise: Embracing Foreign Technology

To bolster industrialization, Japan imported textile machinery from Europe and enlisted the expertise of foreign technicians. These experts played a pivotal role in training Japanese workers, imparting knowledge in universities and schools, and nurturing a skilled workforce essential for economic progress.

Banking and Business: Establishing Modern Institutions

The establishment of modern banking institutions in 1872 marked a significant milestone in Japan’s economic modernization.

Companies like Mitsubishi and Sumitomo received crucial support through subsidies and tax benefits, propelling them to become major players in shipbuilding and trade.

Rise of Zaibatsu: Family-Controlled Business Empires

Zaibatsu, large business conglomerates controlled by influential families, emerged as dominant forces in Japan’s economy. These conglomerates wielded considerable power and influence, shaping the trajectory of Japanese industry well into the 20th century, even beyond the Second World War.

Population Dynamics: From Migration to Urbanization

Against the backdrop of economic expansion, Japan experienced a demographic shift. The population surged from 35 million in 1872 to 55 million by 1920.

To alleviate population pressure, the government actively encouraged migration, initially to Hokkaido, then to overseas destinations like Hawaii and Brazil, as well as Japan’s growing colonial empire.

Urban Renaissance: The Rise of Cities

As industry flourished, Japan witnessed a significant urbanization trend. By 1925, 21% of the population resided in cities, a figure that rose to 32% by 1935, totaling 22.5 million urban dwellers. This shift from rural to urban living underscored the profound transformations sweeping across Japanese society.

Conclusion

The Meiji period’s relentless pursuit of economic modernization laid the foundation for Japan’s emergence as a global economic powerhouse. From railways and industrialization to the rise of zaibatsu and urbanization, these reforms propelled Japan into the modern era, shaping its trajectory for decades to come.

Modernising the Economy- FAQs

What were the main objectives of Japan’s economic modernization during the Meiji period?

The primary objectives of Japan’s economic modernization efforts during the Meiji era were to industrialize the nation, establish modern infrastructure, foster a skilled workforce, and promote economic self-sufficiency to ensure national sovereignty and prevent colonization.

How did Japan finance its economic modernization efforts during the Meiji period?

Japan financed its economic modernization through various means, including the levying of agricultural taxes, foreign loans, government subsidies, and the establishment of modern banking institutions. These financial mechanisms provided the necessary capital to fund infrastructure projects, industrial ventures, and technological advancements.

What role did foreign expertise play in Japan’s economic modernization during the Meiji period?

Foreign expertise played a crucial role in Japan’s economic modernization, particularly in industries such as textiles, shipbuilding, and engineering. Foreign technicians were hired to train Japanese workers, import advanced machinery, and impart knowledge in universities and schools, contributing to Japan’s rapid industrial growth.

What were zaibatsu, and how did they influence Japan’s economy during the Meiji period?

Zaibatsu were large business conglomerates controlled by influential families that emerged as dominant forces in Japan’s economy during the Meiji period. These conglomerates, including Mitsubishi and Sumitomo, received government support through subsidies and tax benefits, enabling them to expand rapidly and shape various industries.

How did Japan’s economic modernization efforts impact its demographic landscape during the Meiji period?

Japan’s economic modernization efforts led to significant demographic shifts, including population growth and urbanization. The government actively encouraged migration to relieve population pressure, resulting in the expansion of urban centers and the rise of cities as hubs of industry and commerce.