History of Japanese Economic Development

Kenichi Ohno is Professor at the National Graduate Institute for Policy Studies, Tokyo. He was born in Kobe, Japan and holds a PhD in Economics from Stanford University, California. He worked at the International Monetary Fund and taught at the University of Tsukuba and Saitama University before assuming his current position.

'This is a very exceptional book. Kenichi Ohno gives a brand-new analysis on Japan’s economic development and history from Edo until now, filling the gaps left by the cultural perspective of Japan’s history. It is admirable that Kenichi Ohno keeps his soberness and unbiasedness throughout his analysis by embracing various kinds of other explanations.' — Wu Suping, Editor, China CITIC Press'Ohno’s main contribution has been in the analysis on how the late comers of industrialization can catch up with advanced countries under the pressure of globalization. His unique approach to that issue is to analyze the interaction between domestic institutions and external impacts. Ohno considers the globalization faced by contemporary developing countries similar to the Western impacts faced by Japan in the 19th century. Japan’s flexible and pragmatic institutions, social capabilities and positive response to the foreign pressure have led to the success of the economic development. I am sure that reading the work by Kenichi Ohno, we are convinced that the experience of Japan is relevant to contemporary developing countries.Kenichi Ohno has written extensively in Japanese about this topic. I am glad that he has now incorporated his findings into a book in English, which is useful for readers who are not familiar with Japanese language.' — Tran Van Tho, Professor of Economics, Waseda University, Japan'This book offers an accessible and holistic description and analysis of Japan's economic development from the seventeenth century to the present. The author brings the fresh perspective of an expert on contemporary developing economies to central historical questions in Japan's modern evolution such as the interplay of domestic and foreign elements and of private dynamism and public policy. He draws on the work of historians, anthropologists, and sociologists alike to provide a multifaceted explanation of Japan's experience of adapting external influences to indigenous patterns while paying careful attention to key scholarly debates. Recommended for both general readers and students of Japanese and comparative development.' — Steven J. Ericson, Associate Professor of History, Dartmouth College'The experience of living and teaching in some developing countries and working with foreign policymakers for many years have helped the author, Professor Ohno, to become well- acquainted with all economic barriers and challenges that the latecomers might face in their economic development process. This has motivated him to analyze deeply the history of Japan’s economic development facing those challenges. Using historical examples, the author has successfully depicted the evolutionary and accumulative nature of Japan’s internal capabilities, and the Japanese private sector’s dynamism and resilience before external forces. While the author’s analyses have been based on the theoretical institutional economic framework to highlight Japan’s most significant historical events, the readers are not required to be familiar with complicated mathematical economic theories to understand comprehensively the path traveled by Japan as a developing country. The present book is strongly recommended to both researchers and students with different academic backgrounds who are interested in understanding the factors influencing the economic development of latecomer countries.' — Dr Nahid Pourrostami, Assistant Professor, Faculty of World Studies, University of Tehran, Iran

• Introduction1 An Overview: Evolutionary History and Translative Adaptation2 The Edo Society: Preparing Conditions for Industrialization3 Transition from Edo to Meiji4 Importing and Absorbing Technology5 Development of Key Industries6 Budget, Finance and the Macroeconomy of Meiji7 World War I and the 1920s8 The Banking Crisis of 19279 The 1930s and the War Economy10 Postwar Recovery 1945-4911 The High Growth Era12 Economic Maturity and Slowdown13 The Asset Bubble and Prolonged RecessionQuestions and Answers