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First Published by Notion Press 2019 Copyright © Preethi Amaresh 2019 All Rights Reserved.

ISBN 978-1-64760-824-8

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Acknowledgement������������������������������������������������������������������ 13 Foreword ���������������������������������������������������������������������������������� 15 Abbreviations �������������������������������������������������������������������������� 17 Introduction ���������������������������������������������������������������������������� 21

Chapter 1: Japanese contact with the Europe in 16th century ������������������������������������ 31 Chapter 2: The Edo or era ���������� 37 Chapter 3: The Meiji Restoration ������������������������������������ 45 Chapter 4: Made in Japan: The role of innovation and Industries �������������������������������������������������� 51 Chapter 5: Yoshida Doctrine ������������������������������������������ 65 Chapter 6: The Economic Miracle ���������������������������������� 71 Chapter 7: Income-doubling plan ������������������������������������ 79 Chapter 8: Zaibatsu ������������������������������������������������������������ 83 Chapter 9: Role of Ministry of Industrial Trade and Industry (MITI) �������������������������������������� 89 Chapter 10: The Political Economy ���������������������������������� 95 Chapter 11: The Policy of Rationalization ������������������������ 99 Chapter 12: Policy initiatives and financial system of Japan. ��������������������������������������������103 Chapter 13: The Asset Bubble Crisis ������������������������������111 Chapter 14: The Big Bang Policy of 1996 ������������������������117 Chapter 15: Japan Banking Crisis of 1997 ����������������������121 12 Contents

Chapter 16: Role of Japan in Asian Financial crisis ����������������������������������������������125 Chapter 17: Education as the basic factor in the economic growth of Japan ����������������129 Chapter 18: 2008 recession and impact on the ����������������������������139 Chapter 19: ASEAN and Japan economic co-operation ��������������������������������143 Chapter 20: TPP, CPTPP and Japan’s role ����������������������149 Chapter 21: Abenomics ����������������������������������������������������153 Chapter 22: Womenomics ������������������������������������������������157 Chapter 23: The Ageing Economics ������������������������������163 Chapter 24: The Crypto-Currency Phenomenon ������������������������������������������������169 Chapter 25: Aviation industry as a catalyst in the economic growth of Japan ����������������175 Chapter 26: The Progression of Artificial Intelligence in Japan ������������������������������������181 Chapter 27: Japan’s Pivot to Africa ����������������������������������187 Chapter 28: Economic Statecraft of Japan ��������������������191 Chapter 29: Japan towards a transforming tourism sector ����������������������207 Chapter 30: Gearing up for the Tokyo 2020 Olympics ����������������������������������211

Epilogue�������������������������������������������������������������������������������� 217 Glossary �������������������������������������������������������������������������������� 219 References ���������������������������������������������������������������������������� 235 Index �������������������������������������������������������������������������������������� 249 Chapter 1

Japanese Contact with the Europe in 16th Century 32 Nihonomics

The in Rome in 1615 (Coll. Borghese, Rome)

A group of Portuguese Nanban foreigners, 17th century Japanese Contact with the Europe in 16th Century 33

Portuguese ships arriving in Japan

The Portuguese “Japan Route” 34 Nihonomics

Dejima in , a former Dutch trading post

1634 Japanese red seal ship

he history of Japan led to many social changes after being Tfused with great trends of the world history. Nagasaki after opening up its port, allowed the chance for connecting land of the rising sun, Japan with the rest of the world. The Nanban trade is associated with the arrival of the first Europeans in 1543 such as the missionaries, Portuguese explorers and merchants during the Sengoku period, which lead to cultural exchange and introduction of firearms, Christianity etc. The Portuguese in 1498, were the first Japanese Contact with the Europe in 16th Century 35 from Europe to round the Cape of Good Hope, which is considered the southernmost tip of Africa, and later entered the Indian Ocean with the help of the Islamic sailors who had in-depth knowledge of the sea-lanes, that favorably joined the Indian Ocean trade. They maintained balance with the local ruling powers and also erected various fortresses at important places in major Asian ports with the permission from the local authorities to protect the trade. The word “Nanban trade” refers to the southern barbarian trade. Nanban in the 16th century was associated with the general area in the Indochina peninsula of modern and . The Japanese, who were so rich in precious metals and chief exporters of silver and copper, beguiled the Europeans. Due to the arrival of Christianity, many Jesuit missionaries were set up in the middle of 16th century. Suetsugu Kozen was the first to settle in Nagasaki and do business there. The Suetsugu family dominated commerce in Nagasaki for over a century and began to prosper as it began to mushroom as the terminus of the Portuguese. Suetsugu was had close proximity with the Hibiya family, who were the representative Christian merchants of Sakai, were wealthy and had a network to guide the Jesuits across Japan. At the start of the early modern period, yet another trade, shuinsen trade, began at Nagasaki, which was a mutually commendatory relationship with the nanban trade using Portuguese ships. Due to the famous Italian explorer, Marco Polo’s account details, trading with Japan was made more desirable. There was exchange of several new technologies and cultural activities between the Portuguese and Japanese such as religion, culinary, military and so on along with culture shock. Many other items were also exchanged such as Arabian horses, Bengal tigers, Chinese porcelain etc. in return for Japanese copper, weapons etc. It is important to note that European visitors who arrived to Japan early took to notice the quality of Japanese metal smithing and craftsmanship and the 36 Nihonomics

Japanese were prudent about their limited resources, which they used with expert skills. The Portuguese trade in the 16th century began Japan, China and . In the “Nanban trade”, the most precious products exchanged were Chinese silk for Japanese silver, which was later, traded in China for more silk. The Japanese red seal ships challenged the Portuguese after 1592 but neither the Dutch nor the Spanish were able to challenge the Portuguese because the later had greater access to Chinese markets. The Japanese shipbuilding industry proved to be very influential because of the European ships. Licensed ships such as the “Red seal ships” were put forth by the Shogunate that sailed throughout east and for the trade purpose. The decline of Nanban trade was seen after amalgamated Japan in 1603, the country closed itself to the outside world due to the threat in the rise of Christianity. The Nanban trade and Shuinsen trade eventually ended and travelling outside Japan and construction of large ships were banned. Only the trade outpost of Dejima in Nagasaki remained for the Netherlands, and some trade with China by the year 1650. Thus began the , which brought seclusion from the outside world leading to peace, prosperity and little progress. The nanban trade came back only 250 years later by reinforcing of industrialization and ending the seclusion of Japan, forcibly opening the trade by the American military under Commodore Matthew Perry in 1854. Chapter 2

The Edo or Tokugawa Shogunate Era 38 Nihonomics

Statue of Tokugawa Ieyasu at the Tōshō Shrine in Nikkō, Japan

The Tokugawa shogun Iemitsu receiving lords (daimyo) in an audience, colour woodblock print by Tsukioka Yoshitoshi, 1875 The Edo or Tokugawa Shogunate Era 39

Kimono, Edo period (1603–1867), Japan; in the Victoria and Albert Museum, London

Edo Castle in the Imperial Palace compound, Tokyo 40 Nihonomics

Edo Tokyo art

he modern city of Tokyo, Japan was previously called Edo. The Tperiod between 1603 and 1867 is referred to as Japan’s Edo Period because the centre of government was moved from Kyoto to the city of Edo in 1603. Japan’s Edo Period lasted 265 peaceful years, and to ensure this peace, most international trade was restricted by the reigning Tokugawa shogunate. The resources were limited and extremely valuable. Since very little trade was allowed, Japan had to be self-sufficient. With contact with the outside world restricted and very little internal strife; Japan was able to focus on fostering cultural refinement, education and developing a uniquely cooperative and sustainable society. The fortunes of cities very much depended on the power of their supporting political structure. Examples of ancient cities show that political dominance was found in the urban centre. This centralization of political power in its urban form did not principally change in the ensuing shift from ancient cities to those of the medieval period. On the other hand, political power was replaced gradually by other facto particularly the development of economic activity. From medieval to renaissance western European cities, the localized economic activity sustained by the surplus of agricultural Enjoyed reading this sample?

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