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Asian Indentured Labor in the 19th and Early 20th Century Colonial Plantation World  

Richard B. Allen

The period between the mid-1830s and early 1920s witnessed the migration of some 3.7 million Africans, Chinese, Indians, Japanese, Melanesians, and other peoples throughout and beyond the colonial plantation world to work as laborers under long-term written and short-term oral contacts. Studies of this global labor migration over the last forty years have been heavily influenced by Hugh Tinker’s 1974 argument that the indentured labor system was essentially “a new system of slavery.” There has also been a propensity toward specialized and compartmentalized studies of the indentured experience in various parts of Africa, the Caribbean, the southwestern Indian Ocean, India, Southeast Asia, and Australasia, with a particular emphasis on systems of labor control and worker resistance. Recent scholarship reveals that this labor system began two decades earlier than previously believed, and illustrates the need to explore new topics and issues in more fully developed local, regional, and global contexts.

Article

Astrakhan and Orenburg: Russia’s Asian Trade in the 17th and 18th Centuries  

Matthew Romaniello

Astrakhan and Orenburg were the Russian Empire’s two “official” entrances from Asia in the early modern era. Russia’s “Asia” was conceived broadly as the expanse of Eurasia from the Ottoman Empire to the shores of the Pacific. Russia’s control of the Volga River, culminating in the conquest of Astrakhan on the shores of the Caspian Sea in the 16th century, was intended to open direct access for Russia’s merchants to reach Asia. Throughout the 17th century, trade with the Middle East and Central Asia increased, followed by an important breakthrough in relations with China culminating in the Treaty of Nerchinsk in 1689. In the 18th century, Russia’s Asian trade increased; Astrakhan’s customs fees collected from Asian trade goods surpassed the revenue generated by Russia’s Baltic ports in the first half of the century. A growing trade with the Central Asian Khanates of Bukhara, Khiva, and Khoqand led to the creation of Orenburg as the entry point for overland trade from the steppe in 1753. In theory, the new outpost separated Russia’s “Asia” into separate zones for increased regulation: Astrakhan for goods arriving from the Caspian Sea, imported from Iran and India, and Orenburg for the increasing steppe traffic. This is not to suggest that increased regulation produced better control over Eurasia’s trade networks, but rather to reveal Russia’s significant investment in profiting from Asia’s trade as much as its competitors in Britain or the Netherlands did. While overland Eurasian trade remains plagued by a historiographical assumption of its decline in the 18th century, Astrakhan and Orenburg were vital centers of Eurasian commerce, revealing the robust overland trade that remained outside of West European observation.

Article

Bukharan Trade Networks in Eurasia  

Erika Monahan

Bukharan trade networks functioned as significant conduits to the movement of goods and people throughout Eurasia. Evidence of trade activities of Bukharans in the early modern period extends from the northern shores of Russia, east to China, and south to the Caspian, Iran, and the Indian subcontinent. In the Russian Empire Bukharan merchants became a privileged diaspora community that played a significant role in commercial life of Siberia. In Siberia theyoften maintained commercial and religious ties with their Central Asian communities; they seemed in some cases to established close ties with the Siberian Tatar community as well. Bukharan merchants were not necessarily from the city of Bukhara per se, but rather, probably due to the prestige of Bukhara, the Russian imperial state applied the moniker Bukharan (Bukharetin–singular; Bukhartsy–plural) to merchants that hailed from a variety of Central Asian cities and towns. In Siberia, some Bukharans served the Russian imperial state not only as merchants but also in the service of Russian imperial commercial and diplomatic administration. They served the Russian imperial state in various roles, includingin the customs administration and diplomacy. Commercial and spiritual reasons brought this diaspora community to Siberia. While the Russian state courted Bukharan immigration to Siberia for the economic benefits they could bring, Bukharan immigration to Siberia predated the Russian conquest. Bukharans came as proselytizers to Islam at the behest of Siberian Khan Kuchum, if not earlier. State policy toward them reflected a larger state economic strategy of building and maintaining an expanding empire and the army necessary to the project through activist commercial policies. Bukharans played integral roles in Siberian life yet maintained a distinct Bukharan identity. While their integrated economic life resembled that of Russians enough to elicit strong pressures to rescind their tax advantages, Bukharans defended their rights before the state and before their neighbors with savvy and enjoyed various tax privileges into the early 19th century. Although Bukharans lost market share to the Armenians in Astrakhan and the establishment of direct Russian involvement in theRusso–China trade undermined their role in that trade, Bukharan trade networks continued to be an important part of Eurasian commerce. Bukharans may have increased the share of European wares in their trade portfolios, for example. . Meanwhile, Siberian and transit Bukharans continued to cooperate generations after Siberian Bukharans had been settled in the Russian Empire. In short, Bukharans provided simultaneously adaptive to their new homeland and changing market conditions while, at the same time, maintaining the mercurial distinctness of a mercantile diasporic community. Despite their long-standing roots and presence in the Russian Empire, the imperial state counted them as a distinct population as late as the empire-wide census of 1897. That Bukharans were only subsumed into the category of Tatars by the Soviet state testifies to their enduring presence as a distinct group in the Russian Empire.

Article

The Canton Trade, 1700–1842  

Paul A. Van Dyke

In 1684, China reopened its doors to trade with the outside world, which had a huge impact on the development of global commerce. Canton quickly emerged as one of the few ports in the world where everyone was welcomed and where everyone (except Japanese and Russians) had access to everything including tea, silk, and porcelain. Unlike other ports, individual traders in Canton could buy and sell the same high-quality products as those handled by the East India companies. As the Canton trade grew, international networks became more sophisticated; as more ships went to China, new forms of remittance such as Letters of Credit and Bills of Exchange became standard, which streamlined international finance; as more money flowed into Canton, more goods were distributed worldwide, which gave rise to globalization; as economies in both the eastern and western hemispheres became more integrated with the Chinese market, there was a parallel decline in the risks of conducting trade, which encouraged the advancement of private enterprise. One by one the large East India companies found it increasingly more difficult to compete and went broke. However, the success of the Canton trade was also its weakness. Because the legal trade was so dependent on silver collected from opium sales, and because a decline in opium sales would likely lead to a decline in rice imports, only minimal efforts were made by local officials to stop the smuggling. Foreigners were eventually able to overcome the system with the outbreak of war in the late 1830s, but this happened because the system had already defeated itself.

Article

Central Asia in the Soviet Command Economy  

Isaac Scarborough

The five republics of Central Asia—Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan—spent the majority of the 20th century as part of the USSR and the Soviet command economy. Over this period, their economies grew significantly, as did the standard of living enjoyed by their populations. At the same time, the Soviet command economy, along with its particular application in Central Asia, created both significant barriers and long-term economic damage in the region. Local salaries and access to goods remained far below the Soviet average; agricultural production took precedence over industrialization and modernization; the combination of expansionist planning and resource extraction meant that over decades little was done to change the system even as ecological disaster loomed. When the Soviet command economy receded in 1991, it left an ambiguous detritus, one remembered as violently forced and perhaps unwanted.

Article

Chinese Merchants in Japan and Korea  

Jin-A Kang

In the mid-19th century, Chinese merchants moved to the treaty ports of Japan and Korea to expand the domestic commercial network abroad. They made significant profits by importing and distributing British cotton clothes via Shanghai to Japan and Korea. While Chinese merchants in Japan remained purely economic immigrant groups, those in Korea took an active political role since their advance to Korea on business was part of an effort by the Qing dynasty to strengthen its influence in Korea. Before the Mukden Incident in 1931, Chinese merchants in Kobe, Japan, engaged in trade with China and Southeast Asia and continued to be a powerful commercial group in Asian trade. However, Chinese merchants in Korea suffered from business crisis earlier on. They were hit hard by the sharp decline in import trade from China, which was their primary business, due to Japan’s protective tariff policy introduced in 1924. Until 1930s, both Chinese merchants in Japan and Korea were forced to gradually revise their business strategies to sell Japanese products in Greater China and Korea. The outbreak of the Sino-Japanese War in 1937 turned out to be a decisive blow to the already struggling businesses of the Chinese merchants in Japan and Korea.

Article

The Commerce and Economy of Ancient China  

Zhang Zhaoyang

Initially, commerce did not play an important role in ancient China. However, starting from the 6th century bce, China experienced unprecedented growth in this area. Land became privatized and a highly sought-after commodity, contracts began to be widely used in transactions, some sort of market network emerged, and merchants started to exert influence on society. This transformation was due to the various reforms and policies that reshaped the overall structure of ancient Chinese economy and emancipated the strength of merchants. Furthermore, the sophistication and advancement of agriculture meant ordinary farmers had a surplus of labor and products, providing them with incentives to go to market.

Article

The Commercial History of Japan, 600–1200  

William W. Farris

Because Japan was overwhelmingly rural with few consumers, commerce did not play a significant role in the economy or most people’s lives during the six centuries from 600 to 1200. This period may be divided into three phases based upon the nature of commercial relations. The 8th century witnessed a construction boom led by a relatively centralized state. Besides building five capital cities and numerous other governmental and religious structures, the state minted copper cash. Low-ranking bureaucrats traded in lumber, cloth, and other commodities, often for profit. The commercially most advanced region in Japan was in and around the numerous capitals located in the Kinai (Kyoto-Osaka-Nara) region. Interregional trade bound local regions together and was a source of illegal profiteering for officials. Gift-giving and barter dominated the less developed provinces, mostly in eastern Japan. Across the ocean, Japan participated in exchange with China and Korea on a limited basis to 800. Beginning as early as 735, epidemics and famines decimated Japan’s population. The value of copper cash declined, as inflation commenced. Government revenues also dropped. Government-appointed tax farmers garnered tax items for the tiny elite at court, enriching themselves in the process. The Song Dynasty (960–1279) arose in China and began trading with the Japanese elite, providing a spur to Japan’s commercial development for the rest of period. Overseas merchants were forced by Japan’s ruling elite to stop at Dazaifu in northern Kyushu, where Chinese goods could be obtained for Japanese gold. Japan’s depopulation continued unabated, subject to particularly harsh epidemics between 990 and 1050. To reverse flight from the land, the court initiated a two-pronged land system consisting of tax-farmed provincial areas and estates cultivated by sharecroppers and paying rents to capital and local elites. The rents were paid in-kind, and to secure the value of goods such as rice, salt, lacquer, iron, tea, and many other products, values were pegged to a gold standard. Song merchants also received gold for their wares. To buy Japanese raw materials, the Chinese paid with their own copper cash, helping to remonetize the archipelago. By the 1170s, inflation took off in Japan. A Ningbo–Hakata trade route became established for Song merchants, with bulk items such as sulfur, lumber, and mercury traded from Japan to China. By the late 1100s, the warrior family known as the Ise Taira took control of overseas trade with China, bolstering the family’s power at the Kyoto court.

Article

Commercial Structures of Ancient Central Asia  

Xinru Liu

Transactions between ancient communities across the varied ecological zones of Central Asia produced a complex commercial structure. Pastoral nomads on the steppe and farmers in the oases traded to supplement their livelihoods. Domestication of horses on the Eurasian steppe around four thousand years ago was a driving force stimulating interactions between the horse riders and settled farmers. Conflicts between horse-riding nomadic powers on the steppe and Chinese empires initiated the silk-horse treaty trade, which lasted until the end of the Tang Dynasty. Domestication of camels around 3000 bce enabled transportation across deserts and thus linked the oases to one another and to the outside world. Especially after the invention of a new saddle for the Bactrian (two-humped) camel, the caravan trade flourished as the major means of commercial interchange in the Central Asian deserts during the 1st millennium ce. Sogdian city states around the Syr and Amu Rivers prospered through farming, and the Sogdians became the agents of trade among Chinese empires, Persian empires, South Asian states, and various Turkic empires on the steppe. After the Islamic conquest of Central Asia, the Sogdians gradually submitted to Islamic rule, transforming themselves into Muslim traders and continuing to play an essential role in linking Central Asia to the wider Eurasian commercial world. Means of transportation and means of communication provided the infrastructure for trade. Governments and major trading communities such as the Sogdians were active in building trading networks, and religious movements such as the spread of Buddhism facilitated the formation of commercial networks.

Article

Commodities and Consumption in Modern China  

Karl Gerth

How did the introduction and spread of countless new commodities and their consumption shape modern Chinese history? The intersection of commodities and consumption provides the flipside to the better-studied history of production and underlies countless topics at the center of Chinese and world history since the 19th century, such as imperialism, trade, industrialization, revolution, social hierarchies, and the ascendance of China as a global manufacturing and export superpower. Consumption includes the introduction and spread of mass-manufactured consumer commodities, the proliferation of discourse about these goods in new forms of mass media, and an ongoing shift toward creating and communicating hierarchical social identities through the consumption of mass-produced commodities. While consumption is often viewed as an individual matter, one related to creating personal identities, a key theme that emerges throughout modern Chinese history is that the Chinese states and elites have long sought to link commodity consumption with ideas of patriotism and national strength, helping shape what it means to consume commodities right down to the present.

Article

Contemporary Perspectives on Labor History in India  

Chitra Joshi

A resurgence of writings on labor in India in the 1990s occurred in a context when many scholars in the Anglo-American world were predicting the end of labor history. Over the last three decades, historical writing on labor in India has pushed old boundaries, opened up new lines of inquiry, unsettling earlier assumptions and frameworks. Teleological frames that saw industrialization leading to modernization were critiqued starting in the 1980s. Since then, historians writing on labor have moved beyond simple binaries between notions of the pre-modern/modern workforce to critically examine the conflictual processes through which histories of labor were shaped. With the opening up of the field, a whole range of new questions are being posed and old ones reframed. How do cultural formations shape the specificity of the labor force? How important are kinship, community, and caste ties in the making of working class lives and work culture? What defines the peculiarities of different forms of work at different sites: plantations and mines, factories and domestic industries, the “formal” and the “informal” sectors? What were the diverse ways in which work was regulated and workers disciplined? What were the ritual and cultural forms in which workers negotiated the conditions of their work? How does the history of law deepen an understanding of the history of labor? Studies on mobility and migration, on law and informality, on culture and community, on everyday actions and protest have unraveled the complex interconnections—global and local—through which the lives of labor are made and transformed.

Article

The Cowrie World  

Bin Yang

For a long time cowrie shells originating in the Maldive islands had been used as a form of money in various Afro-Eurasian societies The use of cowrie shells as money was first adopted in Bengal around the 4th century, and cowrie money soon expanded into the Tai world, then into Yunnan province, on China’s southwestern frontier, where it became a legal currency. Local shell money was also adopted as early as the 10th century along the great bend of the Niger River in West Africa, and cowrie shells from the Indian Ocean were also shipped there by way of the Mediterranean. From the 16th century onwards, European merchants, led by the Portuguese, initiated the cowrie slave trade and the cowrie palm oil trade by shipping Maldivian shells through Europe to West Africa, thus reshaping the cowrie monetary zone in West Africa and creating a broad network that connected two oceans (the Indian and Atlantic oceans) and two worlds (the Old and New Worlds). The cowrie trade and cowrie money enabled the acquisition of Asian and African resources by Europeans and so promoted European dominance across the world, until a glut of cowrie shells destroyed this monetary system.The case of early China is different. While cowrie shells shared the same origin of the Indian Ocean, and played a significant role amongst the Chinese elite, they did not constitute a form of money.

Article

The Culture of Travel in Edo-Period Japan  

Robert Goree

The expansion of travel transformed Japanese culture during the Edo period (1603–1867). After well over a century of political turmoil, unprecedented stability under Tokugawa rule established the conditions for men and women from all levels of the hierarchical society to travel safely for purposes as varied as the cultural consequences of a country increasingly on the move. Starting in the first half of the 17th century, institutionalized forms of compulsory travel for the highest-ranking samurai and a limited number of elite foreigners made for conspicuous political spectacle and prompted the Tokugawa shogunate to develop and maintain an extensive system of roads, post-towns, checkpoints, and sea routes. Prompted by the economic prosperity of the Genroku era (1688–1704) in the late 17th century, an ever-growing portion of the population, including commoners from cities and villages, took advantage of newfound leisure to embark on journeys for pilgrimage, medical treatment, and sightseeing. This change was accompanied by the expansion of tourism, which grew into a sophisticated commercial enterprise in the 18th century. Poets, writers, painters, performers, and scholars took to the road throughout the Edo period for artistic and intellectual pursuits, often as teachers or students, generating and spreading culture where they went. With an astonishing output of travel literature, guidebooks, maps, and woodblock prints featuring landscapes, a thriving commercial publishing industry, which first blossomed in the Genroku era, used woodblock printing technology to popularize travel in increasingly diverse ways. Together with such influential forms of print, the things that people wore, packed, bought, enjoyed, and rode while traveling formed a rich body of material culture that reveals the lived experience of travel for the duration of Tokugawa rule.

Article

Domestic Commerce during the Tokugawa Period  

Martha Chaiklin

Under Pax Tokugawa, a wide variety of social, political, and economic factors coalesced to allow commerce in Japan to flourish to a theretofore unprecedented degree. The preceding century of civil war had had relatively little impact on the economy, but the removal of barriers to expansion such as toll roads that had been erected by warring daimyo (feudal lords) allowed the mechanisms of commerce that already existed in domanial economies to expand exponentially. Increased agricultural productivity and prosperity engendered a population boom in the 17th century. In 1635, the formal institution of sankin kōtai—a hostage system designed to ensure peace and prevent excessive accumulation of wealth in the provinces, usually translated as “alternate attendance”—created a movement of people and goods across the country that stimulated urbanization. The number of cities increased as did their sizes, with the largest of them, Edo, reaching an estimated million inhabitants by 1700. Robust distribution networks proliferated to support this urbanization, leading to greater monetization and consumerism. To support improving living standards and the need for revenue, the daimyo promoted the development of regional specialties, many of which flourished, buttressed by increased travel among all segments of society. Competition led to the development of branding and marketing. Merchants, who, according to Confucian ideals, were at the bottom of the social structure, became a larger and more important part of society in this period, resulting in the creation of unique ethical codes, religious sects, and philosophies geared to their specific needs and anxieties. Merchant houses, monopolies, and trade organizations formed. Some of the more successful—such as Mitsui and Sumitomo—would, in the late 19th century, form zaibatsu, and they still continue to exert influence on Japanese commerce.

Article

The Early Silk Road(s)  

Armin Selbitschka

Much has been said and written about the “Silk Road” since Ferdinand Freiherr von Richthofen coined the phrase in 1877. Fostered by spectacular discoveries by so-called explorers such as Sir Aurel Stein, Paul Pelliot, Sven Hedin, and others, the Silk Road soon became the subject of countless articles, books, museum exhibitions, and even legends. In times when almost any location—virtual or real—is but one mouse click away, the catchphrase Silk Road has not lost any of its original appeal. On the contrary, the term is almost constantly present in all kinds of media. Yet, it is never quite clear what exactly the Silk Road concept really entails. When was it established? Was it even formally established? What was its purpose? Was there but one function? And, more importantly, how useful is it as an analytical concept in the first place? These are the main questions this article seeks to answer. Its arguments are based on an analysis of the earliest available sources: archaeological finds from the Xinjiang Uyghur Autonomous region, indigenous documents written in Kharosthi script, and early Chinese historiography. The article will argue that the history of the early Silk Road (and its so-called prehistory) was considerably more complex than generally claimed. For instance, we can certainly not pinpoint a fixed date on which the Silk Road was established; neither were the intercontinental land routes primarily traveled (and populated) by traders. China’s initial forays into Central Asia in the 2nd century bce were politically motivated and had little to do with silk trade. The exchange of the famed fabric was at best a corollary of political interactions between the Western and Eastern Han Empires and powerful steppe nomads such as the Xiongnu. The latter extorted copious amounts of luxury goods from the former and redistributed them throughout Central Asia and Eurasia. Thus, this article claims that the Silk Road as an analytical concept does not do justice to the intricacies of prehistorical and historical realities. It therefore introduces the concept of movement as a heuristic tool to analyze cross-cultural interactions.

Article

The Emergence of Marketing in 20th-Century India  

Douglas E. Haynes and Tirthankar Roy

Business historians of colonial and postcolonial South Asia have not sufficiently studied internal trade and commercial institutions, a glaring omission considering that trade was one of the fastest-growing economic activities during the 20th century. While the historiography of the merchant has grown steadily, it remains focused on international trade or on non-economic issues like the relationship between ethnicity and commerce. One area that clearly requires more research is marketing. The involvement of producing firms in marketing activities, like sales and advertising, became much more extensive during the late 19th and the 20th centuries. Significant changes in the costs of transportation and communications made these tasks easier. Producers of goods, however, possessed imperfect information and needed to rely on intermediate figures—either various kinds of local actors or marketing “experts” who claimed local knowledge—to reach consumers. Sales and advertising in postcolonial India built on the legacy of this transformation in colonial India, rather than breaking sharply from it, even as technological change enabled more direct communication between the producer and the consumer.

Article

Environment and Economy in Song China  

Ruth Mostern

The period between the 9th and the 13th centuries in China, a largely temperate climate span that followed an interval of punishing droughts, was a time of pivotal economic and environmental transformation. The Song dynasty, chronologically divided into the Northern Song (960–1127) and the Southern Song (1127–1276) periods, dominated the era, but numerous other regimes and societies prospered in eastern Asia as well. Over the course of these centuries, China’s recorded population rose from sixty to one hundred million people, and perhaps 20 percent of them lived in cities. Technological innovation transformed numerous landscapes and areas of human activity, and market relations came to play a significant role in the exchange of land, labor, and goods. When deforestation caused a crisis in timber availability, some Song metalworkers shifted from charcoal to coal to power forges for iron and steel. The amount of land under agricultural cultivation expanded dramatically. In the Yangtze delta, the economic core of south China, farmers drained wetlands and constructed terraces and polders to support paddies on which they grew new strains of fast-ripening rice. Elsewhere, they turned grasslands and forests into fields, with consequences for herders and foragers, nonhuman animals, and soil stability. To the north, on the Yellow River watershed, deforestation and grasslands degradation caused major erosion that initiated an era of inundation and avulsion that transformed floodplain landscapes and modes of subsistence downstream. New maritime technologies ensured that the environmental consequences of the Song economic revolution extended beyond the borders of the realm and into distant Pacific and Indian Ocean worlds as well. Nevertheless, many Song landscapes lay outside human exploitation, and many Song practices allowed for sustainable relationships between people and the ecosystems that they inhabited.

Article

Financial History of Japan in Global Context, 19th and 20th Centuries  

Michael Schiltz

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

Fiscal Policy and Institutions in Imperial China  

Taisu Zhang

Up until the final four decades of the Qing Dynasty, fiscal extraction in imperial China was primarily a matter of taxing agricultural production, generally in the form of an annual property tax assessed on the basis of landholding, and collected in either grain or cash. All major dynasties prior to the Qing wielded this fiscal instrument somewhat flexibly, with large-scale reforms, usually leading to significantly higher taxes, occurring around mid-dynasty, but the Qing broke this trend: the absolute volume of agricultural taxes remained locked in place for the great majority of its 278-year life span, despite a near tripling of both the population and the economy. This eventually rendered the Qing fiscal state an extreme outlier in both horizontal and vertical comparisons: relative to the economy it governed, not only was it much smaller than its major early modern competitors, ranging from Japan to Western European states to other central Asian empires, but it was also probably the smallest post-Qin dynastic state by far. Preexisting scholarship has largely failed to identify, let alone explain, this sudden and dramatic shift in fiscal policy towards the end of China’s imperial history. There are a number of possible explanations for it, some of which have appeared in the extant literature, but the most promising one—which has not appeared—seems to be that the extraordinary circumstances of the Ming–Qing transition served as the catalyst for a decisive conservative turn in Chinese fiscal thought, pushing the Qing state into a fundamentally different political and institutional equilibrium than its predecessors.

Article

The History of Japan’s Silk Exports, 1859–1899  

Yasuhiro Makimura

The export of silk products created a regional trade surplus for eastern Japan, centered on Tokyo. In producing raw silk, the people of eastern Japan created factories to lead rural industrialization. This regional trade surplus was used to fuel growth in the consumer economy of Japan, as it pushed western Japan, centered on Osaka, to develop its cotton industry. These two industries and the Yawata Steel Works in northern Kyushu transformed Japan from an agricultural country to an industrial country in the late 19th century. In this story, the role of government is both central and peripheral. Without the decision by the Tokugawa shogun’s government to open Japan to external trade, this development would never have happened. However, once Japan was opened to trade, the Tokugawa government did not do much to help the trade, while the Meiji government, though desirous of fostering trade, did not always succeed in its efforts. Ultimately, it was the producers and merchants, the people, who transformed the rural economy and the country itself.