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Japan’s experience with modern capitalism and finance is characterized by a remarkable combination of shocks and adaptation. After being steamrolled by Western institutions and financial technologies, the country attempted to retaliate against this intrusion. However, regaining financial sovereignty proved a protracted process of trial and error. In the 1880s and 1890s, under the auspices of Matsukata Masayoshi, Tokyo seemed to get it right. The establishment of the Bank of Japan and related institutions, on the one hand, and the adoption of the gold standard, on the other, appeared designed to lift Japan out of its peripheral status. In reality, however, they mostly served to emphasize its role as an enabler of the British-led international order. Only in the 1930s, during the worldwide Great Depression, would it break with this role, if only to find that its autonomy had been compromised from the very beginning. Japan’s disastrous loss in World War II drove the country into the arms of the newly arisen global hegemon: the United States. In the early 21st-century, Japan remains a linchpin in the still surviving American-led world order and the corollary “dollar standard.”

Article

This is an advance summary of a forthcoming article in the Oxford Research Encyclopedia of Asian History. Please check back later for the full article. In 1907 the first Japanese-made motorcar was unveiled. A century later, the phenomenon of kuruma banare [車離れ], literally “turning one’s back on the car,” but often translated as “de-motorization,” appeared in the international press. Falling sales suggested that Japan’s domestic car market had reached full capacity reversing an almost continuous historical trend of increasing car ownership. In the 1960s and 1970s, personal car ownership changed the social and cultural fabric of everyday life and transformed the urban environment and landscape. However, the automobile also became the focus of anxieties about traffic congestion, air pollution, noise levels, and safety and by the end of the 20th century was seen as ultimately damaging to community, social harmony, and the environment. While reports of the death of the motorcar turned out to be exaggerations, Japan became the “Asian pathfinder” for setting ultimate limits for the growth of fossil-fueled automobiles worldwide. Historiographically, the focus on the astounding success of Japan’s major automobile manufacturers in international markets drew attention away from the social and cultural history of the car itself in Japan. Yet the story of how Japan was transformed from an essentially wheel-less society at the dawn of the 20th century into the first industrial power to have achieved almost full-capacity car ownership is no less remarkable and sheds light on current dilemmas surrounding car use and sustainability in developing countries such as China and India.

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The Japanese colonial empire was composed of territories adjacent to the Japanese archipelago, ranging from Southern Sakhalin in the north to Taiwan in the south. Unlike most European powers, Japan did not acquire colonial territories that were far away from the metropolis; rather, it did so within the region in which it was located—East Asia. The geographical proximity between the metropolis and its colonial territories influenced not only the structure of the colonial administration, racial hierarchies in the empire, and colonial and metropolitan identities but also the rhetorical strategies that were used to legitimize colonial rule. Although the government generally envisioned a European-style empire, the creation of which would earn Japan the respect of the Great Powers and eventually lead to the recognition of Japanese equality, a significant number of politicians, writers, and activists argued that it was Japan’s mission to unite the Asian people and protect or liberate them from Western colonial rule. These discourses have been summarized under the term “Pan-Asianism,” a movement and an ideology that emerged in the late 19th century and became mainstream by the time World War I began. However, although some advocates of Pan-Asianism were motivated by sincere feelings of solidarity, the expansion of Japanese colonial rule and the escalation of war in China and throughout Asia in the 1930s brought to the fore an increasing number of contradictions and ambiguities. By the time World War II started, Pan-Asianism had become a cloak of Japanese expansionism and an instrument to legitimize the empire, a process that culminated in the Greater East Asia Conference of 1943. The contradictions between Japan’s brutal wars in Asia and the ideology of Asian solidarity continue to haunt that country’s relations with its neighbors, by way of ambiguous historical memories of the empire and war in contemporary Japanese politics and society.

Article

Philip Seaton

The temporal span of the Japanese Empire is most commonly given as 1895–1945, from the acquisition of Taiwan following Japan’s victory in the First Sino-Japanese War to Japan’s defeat in the Second World War. Within this interpretation, the Japanese Empire was largely a reaction to the advances of the Western colonial powers during the 19th century. This “orthodox” narrative of the empire rests on a key assumption: the current borders of the Japanese state demarcate the inherent territory of Japan. But when viewed from Japan’s northernmost island of Hokkaido, a second story of the Japanese Empire emerges. Before 1869 Hokkaido was known to Wajin (ethnic Japanese) as Ezo. While the Japanese considered Ezo to be within their sphere of influence and there was a Japanese zone (Wajinchi) in the southern tip of Ezo from the 16th century, Ezo was a foreign land inhabited by the Ainu people. Hokkaido was only fully incorporated into the Japanese state in 1869 following the Meiji Restoration (1868), after which Japanese settlers colonized the island beyond Wajinchi. The indigenous Ainu people were dispossessed of their land and forced to assimilate. Rather than Taiwan, therefore, the story of the Japanese Empire begins with the colonization of the peripheries of the modern state: Hokkaido, and also Okinawa. Seeing imperial history from the vantage point of Hokkaido sheds light on some of the assumptions and oversights of much writing on Japan’s 19th- and 20th-century history. It reveals how the legacies of empire affect Japanese people today in those spaces where the colonizers and colonized continue to coexist. And it gives insights into how official and popular narratives of empire and war have been formulated at local and national levels in the postwar era.

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Although the political and military aspects of Japanese imperialism have received ample attention from historians, other dimensions of the country’s expansionist experiment with total war have been left largely untouched. Nevertheless, technologies of “soft” power played a very substantial role; in many ways, they predated and prefigured many of the repressive and militarist hallmarks of Japanese expansionism. Gold standard adoption, for instance, was directly related to Japan’s geopolitical positioning. It was a tool for projecting financial power abroad and establishing enclave economies in the colonies, for example through the creation of gold-exchange standards, the direction of the colonies’ central banks and financial institutions, and so on. Nevertheless, the adoption of the gold standard was not an aim in itself. It was a means to a yet higher end: the very establishment of the yen as a “vehicle currency” comparable to the British pound or, after World War I, the American dollar. For that reason, policymakers in Tokyo fostered distinctly mercantilist ideas about trade and, in particular, the share of Japan’s banking institutions and the Japanese yen in financing international trade and settling international trade transactions. The institution in the vanguard of this project was the Yokohama Specie Bank (hereafter: YSB), a bank with the explicit mandate of insuring trade among regions or countries on different currencies and, by extension, different metals (gold and silver). Soon after its creation in 1879, it was made to team up with the Bank of Japan (hereafter: BOJ) and put in charge of the international aspects of the country’s financial and monetary policy. In that role, 1. It financed the bulk of Japanese imports and exports. 2. It collected specie, part of which was added to the BOJ’s currency reserve. 3. It underwrote Japan’s sovereign loan issues. 4. It represented the BOJ abroad. 5. It even issued currencies in Japan-occupied territories before and during World War II. In view of its controversial role in Japanese imperialism (especially because of point 5), the General Headquarters of the Supreme Commander for the Allied Powers (SCAP) ordered its dismantling in 1946. Its assets were transferred to the newly formed Bank of Tokyo. Although it is still heavily understudied in both Japanese and Western languages, it is key to understanding in the vanguard of Tokyo’s expansionist economic project(s)