Government Institutions and Economic Development in Tokugawa Japan: A Tale of Systems Competition - Working Paper - Geert Schreurs1 03-11-2016 Abstract: This study focusses on the question of what the influence was of the government institutions of the Tokugawa regime (1600-1867) on economic development. The Tokugawa system of governance was quite different from the systems in use in Europe, and in the pre- and post-Tokugawa Japanese governments. Big differences were the controls on social mobility and international contact. This study finds that the continued employment of samurai in the government bureaucracy might have been beneficial to internal stability, but did not protect Japan from outside forces. The effect of the restrictions on outside contact can be seen in the main export sector of precious metals. New estimates of production show a sharp decline as technological advance falters, and a renewed growth after the opening up of Japan. In both military and trade the Tukogawa ‘closed’ system was outperformed by the Western ‘open’ system. 1 PhD candidate at Hitotsubashi University (ED122004). E-mail:
[email protected]. During the writing of this paper I have benefited greatly from discussion with and tips from Fukao Kyoji, Moriguchi Chiaki, Saito Osamu, Takashima Masanori and Nicholas Ford. 1 Introduction In 1844, shortly after the conclusion of the First Opium War, King William II of the Netherlands wrote a letter to Tokugawa Ieyoshi, shogun of Japan. This communication was an unprecedented step between the rulers of these nations. William II advised Japan to move away from its traditional trade restrictions, given the danger of being drawn into a trade war, likely with England.