PowerPoint プレゼンテーション

PowerPoint プレゼンテーション

Introduction to Japanese Business History of Japanese Economic Development December 12th / 19th 2013 Prof. Y. Sano School of Economics 1 Main Business Area Nihonbashi, Edo in 18th century Scene of Echigoya in Edo, 18th Century 2 Trade in 6th Century (flow of culture and civilization) Mahyna Buddhism Gktrks Uighur

Kushan Empire Rice Theravda Buddhism Two Most Important Cultural Flows Buddhism and Rice 3 Trade in 6th Century (flow of culture and civilization) Mahyna Buddhism Gktrks Uighur Kushan Empire Rice

Theravda Buddhism Two Most Important Cultural Flows Buddhism and Rice 4 Historic Topics 2800 BC Rice cultivation 7th c. Buddhism, other Asian civilization emigrated through China / Korea 630 Prince Shotoku established Emperors ruling system 1192 First samurai government 5 Historic Topics 1274 1543

1281 Defeat of Mongolian invasion (Kamikaze) Portuguese introduced firearm matchlock (Tanegashima) 1549 Francisco de Xavier of Jesuits brought Christianity to Japan circa 1550 Oda Nobunaga and other local feudal lords initiated deregulated free market (Rakuichi, Rakuza 6 Historic Topics 1575 1600 Battle of Nagashino Gun-armed Oda-Tokugawa allies defeated Takeda cavalry.

Battle of Sekigahara 7 Battle of Sekigahara in 1600 (Tokugawas pre-modern Edo Era) Western Eastern Eastern (Tokugawa) Allies won and opened Tokugawa Shogun Government. Premodern Edo Era enjoyed 260 year isolation. 8 Historic Topics 1603 Tokugawa Shogun Government Basis for robust feudal government system 17th 19th c Edo Era 260 years of self-imposed isolation (pre-modern Japan) Period of unique Japanese culture development

9 New type of business Bill of Exchange Edo Osaka 550 km (344 miles) Hikyaku Flying Legs takes 7 days It may take longer, and dangerous Edo (Tokyo) Osaka 10 New type of business Suppose Buyer in Edo pay to Seller in Osaka Buyer in Edo asks Exchange House to Issue Bill of Exchange Buyer send B/E to Seller in Osaka which orders Customer to pay to Seller Customer counterbalances its account with Exchange House Customer

Osaka Edo (Tokyo) Exchange House No need to send money for a long distance reducing risk of loss. Functions of B/E has been established in 18th c. 11 New type of business Forward Rice Exchange 1693 Djima Rice Exchange Center of Japans system of ice brokers (fudasashi Forerunners to banking system. Established in 1697 Rice brokers and moneychangers (rygaesh ) gathered their shops and warehouses in the Djima. Samurais including daimyo (feudal lords) paid in rice

Rice brokers, moneychangers played crucial profitable role Economy shifted from rice to coin, paper money by Djima merchants Osaka merchants developed monopoly on rice trade Osaka, and Kinai. Samurai panicked over the exchange rate into coin, speculators and conspiracies kept stores of rice in warehouses 1733 starvation widespread. Riots uchikowashi ( ) happened 1735 Shogunate set price floor in Edo and Osaka Tokugawa Yoshimune (8th Shogun) made attempts at reforms, known as Kome Shgun (the Rice Shogun). Solved rice economy 1773 the Shogunate re-established the Rice Exchange Large proportion of the nation's monetary transactions handled through Djima managing deposits, withdrawals, loans, and tax payments. 12 Rice and Population in Edo Era Social stability promoted rice production growth. 1600 1700 Farmland 150% Population 12 mil 31 mil 1700 1850

Farmland expansion ended. Population stayed at 30 mil. Rice production kept rising by technical development (fertilizers, equipment etc.) million Phase-1 Phase-2 Development of cash crops (cotton, tea, rapeseed, silk) Rise of proto-industries 13 US 4 Black Steamships Opens the door of Japan (1853) 1858 Treaty of Amity and Commerce

Opened door for to foreign trade Unequal treaty > No jurisdiction over foreigners > No right on duty control (fixed to 5%) > No government control over trade > No control over money exchange rate (caused big outflow of Japanese gold) 14 Influence of International Trade at the end of Tokugawa Government Silk : Cotton : top export item (60-85%) top import item (35-50%)

Machine spinning cotton thread overwhelmed Japanese hand spinning thread One sided export / import might have caused Japanese monoculture economy potential economical colonization Tokugawa government relied on foreign finance. Trade imbalance caused heavy inflation. Cause of final collapse of Tokugawa government 15 Meiji Restoration in 1868 1853 1867 1868 69 From landlords economy (by rice) to capitalism economy (by money)

16 Topics in History Meiji Restoration to the 2nd World War 1868 Meiji restoration 1876 Mitsui & Co. Ltd. Established 1877 Seinan War 1880 Industrialization began 1894-95 Sino-Japanese war 1904-05 Russo-Japanese war 1923 Great Kanto (Tokyo) Earthquake 1927-32 Showa depression 1941-45 WW2 (Pacific War) 17 Meiji Restoration 1868

Change of City Edo renamed to Tokyo (Eastern Kyoto). High street changed from wooden to stony. New Tokyo Old Edo 18 Meiji Restoration 1868 Change of Ladies Edo girl Ladies have always been forerunners for change Ladies keep changing

dynamically though Meiji Ladies Now 19 Start of Mitsui 1602 Mitsui Takatoshi started Liquor Shop Echigo-ya ( 1673 Mitsui Takatoshi started Cloth Shop Echigo-ya which later became Mitsukoshi 18th c Echigo-ya expanded its business to Exchange House which later became Mitsui Bank New Tokyo Old Edo

20 Start of Mitsubishi 1870 Iwasaki Yataro took over Tsukumo Shookai ( ) then changed to Mitsubishi Shookai ( ) 1877 Made big fortune on Seinan War 1885 Iwasaki Yanosuke took over 20th c Expanded business to shipbuilding, banking, coal mining, real estate, brewing, electric etc New Tokyo Old Edo

21 Meiji Governments Priority Development Policy a) Military enhancement - Renewal of war equipment - Massive mobilization of soldiers b) Industrial modernization - National factories (Light industries) - Railway construction HJMS Mikasa by Vickers - Communication system - Banking systems - Coal mine development - Agricultural development Huge money and resourcesPlatt needed

Brothers spinning machine 22 Urgency of enhancing Japanese trading initiative Foreign traders dominated trade functions - export / import - shipping - trade financing - marine insurance Japanese trading knowledge were lacking. - foreign market information - materials / technology sourcing - financing knowledge - international product knowledge - capital strength to run various business at once 23 Birth of Trading Company (Sogoshosha)

1876 Mitsui & Co., Ltd. founded as the first Sogoshosha (General Trading House) President : Takashi Masuda Employees : 16 (now 39,864 consolidated) Mitsui family : No equity Credit support only Business style : Commission agency Export : raw silk, coal, rice, cotton fabric Import : raw cotton, spinning machines, railway machines and rails. Domestic : tax rice Mitsuis first HO 24 Seinan War (Last Samurais War) Rebels 30,000

Lost Won Government 70,000 25 Cause of Seinan War Meiji government took over Tokugawa liabilities including the sal aries to samurais without jobs. over 30% of the government expenditure Meiji government reformed tax from rice to money. detached samurai from feudalistic land ownership Meiji government abolished the social classes and removed samurais privileged social status, which caused them financial difficulties and future instability. Samurai angry!! Rebellions

26 Lessons from Seinan War Why did samurai lose the war against conscripts from non s amurai classes? - Modern equipment - Fire power superiority - Advanced communication system (including literacy) War was no longer the art of personal skill of Swards. The lessons from the war - Meiji government believed in the Western civilization. needs of industrial modernization - Government noticed the value of communication skill. needs of educational system modernization Key words : Military, Industrialization, Education 27 Consequence of Seinan War

Huge war expenditure - War expenditure ate almost total tax revenue. - Disorganized money supply caused terrible inflation. Government could not proceed industrial modernization. Tax increase and extreme deflation policy - Tax reformed : from rice (Edo Era) to money (Meiji Era) - Peasant exhausted. Miike mine mass of flow to cities caused cheap labors. => Massive industrialization by private sectors. First railway Government went for privatization of government assets - Railways (Nippon, Sanyo, Kyushu, Kansai, Hokutan etc.) - Government factories (silk mill, spinning firm, shipyard, beer etc.) - Government mines (Miike, Takashima, Sado, Ikuno etc.) - Banking sector (Daiichi etc.) - Real estate (Hokkaido development bureau etc.)

Tomioka silk mill 28 Growth of light industry (cotton: top priority for money save) of light industry (cotton: top priority for money save) ligh of light industry (cotton: top priority for money save)t industry (cotton: top priority for money save) (cotton: top priority for money save) top priority for money save) p priority for money save)riority (cotton: top priority for money save) f light industry (cotton: top priority for money save)or money (cotton: top priority for money save) save) In 1883, Osaka Spinning Co was equipped with 15000 spindles and run by steam engine in the city. With low labor costs, Japanese cotton thread became competitive for export by 1895. Osaka Spinning Co Early local spinning mills were too small with only 2000 spindles and run by water wheel. SinoJapanese war

RussoJapanese war 29 Growth of light industry (cotton: top priority for money save) of light industry (cotton: top priority for money save) ligh of light industry (cotton: top priority for money save)t industry (cotton: top priority for money save) (cotton: top priority for money save) top priority for money save) p priority for money save)riority (cotton: top priority for money save) f light industry (cotton: top priority for money save)or money (cotton: top priority for money save) save) New Ring spinning machines employed at early stage. (The machine for young girls to work with.) Young girl labors were massively supplied from agricultural sector at cheap costs. (Girl labors lived in a dormitory for 2 shift work.) Used various imported cotton for best mix (mainly Indian and American).

Rise of Japanese merchant fleet. Government support on financing and tax. 30 Growth of light industry (raw silk : top earning item) Production Export Share in US market Year Production

by machine Export To US tons % tons % % 1878 1,360 0.0

871 17.4 0.0 1890 3,255 42.5 1,266 66.0 52.0 1895 6,012

56.4 3,486 57.6 49.4 1890 6,584 56.4 2,779 57.1 51.0 1895

6,897 65.6 4,345 74.6 51.3 1910 11,230 74.7 8,802 70.2 62.0

Raw silk was top earning item (particularly from US) until WW2 31 Growth of heavy industry (Coal, the blood of industry) Japanese major coal mines were located in Kyushu island. Mass development was made by Zaibatsu. (Mitsui, Mitsubishi, Sumitomo, Furukawa etc.) Coal was the blood of Japans industrial development. Year Production Export (1,000 t/y) (1,000t/y) 1875

567 51 1880 882 132 1990 6,489 2,438 1910 Statue of miner 15,681 2,816

32 Growth of heavy industry (rise of Japanese technology) HJMS Yamato (1940) Yahata steel mill (1901) Japanese heavy industry relied heavily on military demand. This encouraged development of own unique technologies. Zero fighter plane (1939) 33 WW1, Earthquake, Financial Crisis then War Tone Economy Earth of light industry (cotton: top priority for money save)quake, Earthquake, Financial Crisis then War Tone Economy Financial Crisis th of light industry (cotton: top priority for money save)en War Tone Economy (cotton: top priority for money save) WW1, 1914-1918 WW1 lead Japan to booming but bubble economy collapsed after the war WW1 de-stabilized gold standard and exchange rate volatility widened WW1 turned Japan from debtor country to creditor country

Kanto earthquake in 1923 Earthquake devastated Tokyo, Yokohama with more than 140 k death toll Damage was over 3 times of Japans budget. Bank system got impact Financial crisis in 1927 Unsettled earthquake bills caused banking crisis Over 2000 banks in 1919 fell into 625 banks in 1932 but BOJ did not help Great depression, 1930-1932 Wall Street crash in 1929 devastated Japanese economy Social instability rose Fascism and aggression for new market Marching to War Economy, 1937-1945 34 Post War Economic Recovery Tokyo 1945 Tokyo 1990

35 Historical Top priority for money save)ics af light industry (cotton: top priority for money save)ter WW2 Japan 1947 Dissolution of Zaibatsu by GHQ order 1950 Korean war booming 1952 Release from Allied rule 1955-73 Post-war booming 1964 Tokyo Olympic 1970 Osaka Expo 1973 1st Oil shock Post war boom ended 1985-91 Bubble economy 1991-2001 Lost 10 years 2011 Tohoku Great Earthquake Asia 1949 China (PRC) Cold war 1950 Korean war 1956 2nd Middle East war (Suez War)

1960s Vietnam war 1967 3rd Middle East War 1973 4th Middle East War 1979 Iranian revolution 1981 Iran Iraqi War 1985 (Plaza accord) 1991 Gulf war 2003 Iraqi war 36 WW2 damage on industry War to China WW2 Korean War 37 GHQ Orders Entire demilitarization of Japan MacArthur

Indirect ruling through new Japanese government New constitution => democratization Purging pre-war leaders (political, economical) Strict anti monopoly law Dissolution of Zaibatsu Farmland reform(70%:from big landlords to peasants) Trade union authorized New educational system launched War compensation to Asian countries Pre-war economic order was destroyed. 38 Desperate Post War Economy War time stocks quickly exhausted Coal production down seriously (from 50 mil t/y down to 10 mil t/y) Extremely unbalanced goods and money (over money supply generated huge demand.) Hyper inflation

Immediate Production Needed Priority production system Reconstruction Fund Another inflation 39 Priority production system Special supply OIL OK Request Priority goal Steel Production 30 mil t/y

Steel mills Steel products smaller share priority share Coals Other industries GHQ Steel products priority share J. Gvt MITI Coal mines Reconstruction

fund Special rations 40 Hard Deflation Policy and Korean War 1948 Dodge Line deflation policy Yen/US$ rate fixed at Yen 360/$ (till 1971) 1949 Depression by deflation. Japanese starving Korean War 1950 Sudden war demand by US Dollar No direct involvement in the war 1954 Industry caught up pre-war level 41 Fruit of demilitarization policy and MITIs initiatives Demilitarization destroyed war industry

> Japan freed from military expenditure (security on small cost of US-Japan Security Treaty) > War industries reformed to heavy chemical industries (Asian textile industries replaces Japanese superiority) > War engineers moved to electronics, motor car industry. + MITIs leadership to industrial innovation > Projected ship demand to survive shipbuilding yards > Governments financial institutions to grow industrial competitiveness > Protection of industries against foreign intrusion > Privatization of power utilities (9 regional companies) > Massive and continuous infrastructure construction 42 Elements of post-war economic drive Large private investment > Heavy war damage -> > War based demand ->

Chance of facility renewal Consumers demand Massive consumers demand > Higher income distribution to labors and farmers. > High saving trend. Energy change from Coal to Oil > Cheap energy source for easier handling Banks Keiretsu formation > Major bank as leading equity / investment supporter Innovation trilogy > Renewal of heavy industries (improvement) > Motor car and electric home appliances (catching up US) > Petrochemical and electronics (brand new industries) 43 Leading entrepreneurs

Pre-WW2 entrepreneurs (typical) Post-WW2 entrepreneurs (typical) Toyota (motor car) Panasonic (electronics) Bridgestone tire (tyre) Mazda (motor car) Kuraray (textile) Honda (motor car) Ajinomoto (food) Sony (electronics) Nakano vinegar (food)

Yammar Diesel (machinery) Kikkoman soy source (food) Idemitsu (oil) Shinetsu chemical (chemical) Kajima (construction) Matsuzakaya department (retail) Obayashi (construction) Santory (food) Takeda pharmaceutical Maruha fishery (food) Kagome ketchup (food) Lion soap (sanitary) 44

Post War Recovery (Growth of mean personal income) Million Yen, at 1990 value 3.5 3.0 2.5 2.0 1.5 1.0 0.5 WW2 Mean personal income = Nominal personal income / GNP deflator Price is re-evaluated on the level of 1990 Until WW2, mean personal income was along with CPI. After WW2, increase of mean personal income was far more than CPI 45 Three sacred imperial treasures (symbol of consumers dream)

Original (in 7C) (The symbols of imperial legitimacy) New (in 20C) (The symbols of modern life) Wisdom Valour Benevolence Anyway rich 46 Spread of electric home appliances (spread of happiness?) Ratio of household spread of electric appliances Refrigerator

Color TV Washing M/C Mobilephone Vacuum cleaner Car PC Digi Cam AC Elect oven DVD player recorder Post war booming 47 GDP per capita Japan vs. World

Ratio Japan vs. World Japan Ratio Per capita GDP (US&) Japans GDP per capita has been on world average until WW1 time. Rapid growth after WW1 was heavily hit in WW2 but then sharply developed its productivity to 1990. What was the incentive behind? World Angus Madison HP (http://www.ggdc.net/maddison/) 48

Global market shares of typical countries USA Japan UK China 49 Symbol of success (Tokyo Olympic, Osaka EXPO) 1964 1970 50 Oil Shock 1973 and Recovery of Japan 4th Middle East War caused OAPECs new oil strategy

High energy price pushed up costs of production and services => High rate of economic booming ended Japans quick earlier recovery by export > > > > > High performance and reliable products Strong marketing (product variety, after sales services) Low profit margin, low wages Relatively cheap Yen rate Our company culture (Life time employment, in-house social security, in-house promotion till CEO) > Japanese QC/OJT theory : Kanban system etc. 51 Oil Shock 1973 and stable development Economic development rate

1985 1991 1974 Source: Prime Minister Office: Yearly GDP Growth 52 Bubble Economy in late 1980s Major city land price index and Nikkei stock index Bubble Collapsed Nikkei index Plaza accord Major city land price index

53 Bitter pay for development Rapid industrial development caused environmental pollution. It caused heavy damage on living environment and big social conflicts. > Air pollution (Yokkaichi asthma) > Water pollution (Minamata diseases) > Soil pollution (Itai-itai diseases) > Noise > Vibration 54 Bitter pay for development (Environmental Pullution) 1967 Pollution prevention law 1970 Intensive debate in the parliament 1993 Environment protection law > After number of casualties and damages left behind

tragedies, strict control was imposed and environmental technologies were developed. protection Now Japan has most advanced technologies. Ashio copper mine 55 Demographic challenge Long term demographic change (k) 1400 (m) 140 Pre history era 2006 peak 126.9

120 1200 115.2 111.9 100 1000 260 110 20 20 160 80 1000 years BC

0.6 4.5 5.5 6.4 Temperature down by 2 Reference : Up to Meiji Restoration : from Japanese History from population Hiroshi Kito (2000) 12.3 68.2 56.0 33.3 47.7

31.3 Meiji rest. 200 Kamakura Gvt Imperial rule 40 400 83.9 WW 2 60 Battle of Sekigahara

590 600 Tokugawa Shogun Gvt 80 800 95.2 6.8 AD Over 65 year old age rate Population in 1920, 1950, 1975,2000 : from Census results 2030,2050,2075,2100 : estimates by National Laboratory

of Social Security and Demographic Issues AD 56 What will be Japans future? Great Tohoku Earthquake 57 Thank you for your attention For further contact: [email protected] 58

Recently Viewed Presentations

  • HSF Parent Brand - University of Western Ontario

    HSF Parent Brand - University of Western Ontario

    North American Ginseng contains greater levels of ginsenoside Re which has vasodilatory and antihyperlipidemic properties. Obesity/heart disease etc. Obstructive Sleep Apnea. Sympathetic Activity. Renin-Angiotensin. Oxidative Stress. ... HSF Parent Brand
  • Industrial Biotechnology - Islamic University of Gaza

    Industrial Biotechnology - Islamic University of Gaza

    Selection from natural variants is regular in industrial biotechnology. ... The suspension of cells or spores to be mutagenized is placed in a Petri dish 2-3 cm below a 15 watt lamp and stirred either by a rocking mechanism or...
  • Restverschijnselen van frontaal hersenletsel 1. Neurologische aspecten Ewout

    Restverschijnselen van frontaal hersenletsel 1. Neurologische aspecten Ewout

    WAA frontaal letsel. Voxel-based lesion-symptom mapping of everyday problem solving. Barbey A K et al. Brain 2014. Voxel-based lesion-symptom mapping of everyday problem solving (factor score) (n = 144). The statistical map is thresholded at 5% false discovery rate.A
  • Physiologically relevant bleaching threshold methods provide ...

    Physiologically relevant bleaching threshold methods provide ...

    Physiologically relevant bleaching threshold methods provide updated global coral bleaching predictions. Cheryl Logan, California State University, Monterey Bay ... There are 4 scenarios, each resulting in a prescribed radiative forcing by 2100, in units of Watts per meter2.
  • Testimony to the Governors Council on Electric Vehicle

    Testimony to the Governors Council on Electric Vehicle

    DAS/Fleet Operations Overall Findings. Compressed natural gas vehicles do not meet the core mission needs of some agencies, such as DCF, and vehicles running on ethanol have issues with performance, cost, and efficiency. Despite several challenges, plug-in electric vehicles do...
  • A Review of Home Airtightness and Ventilation Approaches

    A Review of Home Airtightness and Ventilation Approaches

    Energy use and first cost of one fan. Can be combined with dedicated outdoor air systems (DOAS), standard air conditioners and/or dehumidifiers to remove moisture. Runtime option + appropriate controls can be effective during peak cooling and heating seasons; can...
  • Integrating Bluetooth onto LEGO Robots

    Integrating Bluetooth onto LEGO Robots

    Papyrus Times Title & Subtitle Integrating Bluetooth onto LEGO Robots Agenda Problem to be solved Project Solution & Goals Design Steps Design Steps Acquiring Bluetooth Antenna Design PCB Design PCB Verification BTM Integration BTM Integration BTM Integration Results & Conclusions...
  • Revitalizing Connecticuts Brownfields Tim Sullivan, Director of Waterfront,

    Revitalizing Connecticuts Brownfields Tim Sullivan, Director of Waterfront,

    On May 15, Governor Malloy announced that DECD is accepting applications for up to $20m of . brownfield. funding. Largest-ever round of Connecticut brownfield funding. Application, Ranking and Review grid and Notice of Funding Availability are available at . www.ctbrownfields.gov....