ZaibatsuZaibatsu

KyokoKyoko FujitaFujita GeoffGeoff DankerDanker EEPEEP 142142 AA LittleLittle History…History… zz TheThe termterm zaibatsuzaibatsu waswas usedused inin thethe 1919th centurycentury toto referrefer toto largelarge familyfamily--controlledcontrolled bankingbanking andand industrialindustrial combinescombines inin Japan.Japan. zz Currently,Currently, itit isis notnot usedused nativelynatively byby JapaneseJapanese speakersspeakers forfor anythinganything otherother thanthan historicalhistorical discussionsdiscussions inin referencereference toto EdoEdo-- andand MeijiMeiji-- eraera zaibatsu.zaibatsu. 44 LargeLarge ZaibatsuZaibatsu zz TheThe controlcontrol ofof variousvarious largelarge corporationscorporations byby singlesingle capitalistcapitalist familiesfamilies throughthrough stockholdingstockholding companiescompanies isis knownknown asas Zaibatsu.Zaibatsu. zz BeforeBefore WWII,WWII, thethe bigbig fourfour werewere…… z MitsuiMitsui z MitsubishiMitsubishi z SumitomoSumitomo z YasudaYasuda TheThe MitsuiMitsui GroupGroup zz InitiallyInitially foundedfounded inin thethe EdoEdo periodperiod inin 1673,1673, whenwhen TakatoshiTakatoshi MitsuiMitsui openedopened aa fabricfabric andand draperydrapery storestore inin NihonbashiNihonbashi,, Tokyo.Tokyo. zz TheThe storestore calledcalled EchigoyaEchigoya grew,grew, prospered,prospered, andand developeddeveloped inin toto whatwhat isis nownow probablyprobably JapanJapan’’ss mostmost prestigiousprestigious store,store, thethe MitsukoshiMitsukoshi DepartmentDepartment store.store. TheThe MitsuiMitsui ExchangeExchange ShopShop zz AnotherAnother successsuccess runrun fromfrom byby thethe MitsuiMitsui family.family. ReceivedReceived thethe goldgold andand silversilver businessbusiness warrantieswarranties fromfrom thethe EdoEdo ShogunateShogunate andand becamebecame MitsuiMitsui Bank.Bank. zz InIn 1990,1990, thethe bankbank mergedmerged withwith TaiyoTaiyo KobeKobe BankBank andand then,then, inin 2002,2002, combinedcombined withwith SumitomoSumitomo Bank,Bank, creatingcreating oneone ofof thethe threethree largestlargest financialfinancial groupsgroups inin Japan,Japan, thethe MitsuiMitsui SumitomoSumitomo FinancialFinancial Group.Group. TheThe SumitomoSumitomo GroupGroup zz LongLong historyhistory commencingcommencing inin 16911691 whenwhen OsakaOsaka coppercopper tradertrader IzumiyaIzumiya openedopened aa coppercopper minemine inin BessiBessi inin Iyo,Iyo, nownow EhimeEhime PrefecturePrefecture inin ShikokuShikoku IslandIsland zz ExpandedExpanded itsits businessbusiness intointo coppercopper refining,refining, processing,processing, andand vendingvending andand finallyfinally transformedtransformed itselfitself intointo aa ZaibatsuZaibatsu beforebefore thethe startstart ofof thethe WorldWorld WarWar II.II. EconomicEconomic DominationDomination zz TheThe ZaibatsuZaibatsu grewgrew toto dominatedominate thethe JapaneseJapanese economyeconomy andand asas theythey werewere incriminatedincriminated inin JapanJapan’’ss warwar effort,effort, thethe GHQGHQ (General(General HeadHead Quarters)Quarters) ofof thethe AlliedAllied PowersPowers inin JapanJapan dissolveddissolved themthem duringduring thethe occupationoccupation ofof JapanJapan inin 1945,1945, declaringdeclaring thatthat thethe ZaibatsuZaibatsu werewere aa hotbedhotbed ofof militarism.militarism. FormationFormation ofof IndustrialIndustrial GroupsGroups zz IndustrialIndustrial groupsgroups withwith nono connectionconnection toto formerformer ZaibatsuZaibatsu werewere alsoalso formedformed aroundaround banks.banks. TheseThese groupsgroups includedincluded thosethose thatthat surroundedsurrounded thethe formerformer DaiichiDaiichi KangyoKangyo Bank,Bank, SanwaSanwa Bank,Bank, andand FujiFuji Bank.Bank. CompaniesCompanies withinwithin thesethese groupsgroups alsoalso tendedtended toto cooperatecooperate onon thethe businessbusiness frontfront andand havehave beenbeen anan importantimportant factorfactor inin JapanJapan’’ss rapidrapid economiceconomic developmentdevelopment sincesince thethe war.war. IndustrialIndustrial GroupsGroups expandexpand theirtheir KeiretsuKeiretsu (series(series oror subsidiary)subsidiary) zz ByBy acquiringacquiring sharesshares in,in, oror dispatchingdispatching directors,directors, toto companies.companies. zz CrossCross shareholdingsshareholdings andand thethe KeiretsuKeiretsu structurestructure ofof companiescompanies tradingtrading withinwithin theirtheir groupgroup havehave beenbeen citedcited byby thethe UnitedUnited StatesStates asas oneone ofof thethe signssigns ofof thethe closedclosed statestate ofof JapanJapan’’ss marketsmarkets toto foreignforeign businesses.businesses. ReorganizationReorganization ofof financialfinancial markets.markets. z DaiichiDaiichi KangyoKangyo Bank,Bank, FujiFuji Bank,Bank, andand thethe IndustrialIndustrial BankBank ofof JapanJapan mergedmerged andand becamebecame thethe MizuhoMizuho financialfinancial group.group. z SakuraSakura Bank,Bank, whichwhich waswas formerlyformerly MitsuiMitsui Bank,Bank, andand SumitomoSumitomo Bank,Bank, alsoalso merged,merged, andand subsequentlysubsequently thethe MitsubishiMitsubishi TokyoTokyo FinancialFinancial GroupGroup mergedmerged withwith UFJUFJ Holdings,Holdings, whichwhich waswas formerlyformerly SanwaSanwa BankBank andand TokaiTokai Bank,Bank, therebythereby creatingcreating aa newnew realignmentrealignment ofof JapanJapan’’ss industrialindustrial groupsgroups andand Keiretsu.Keiretsu. MitsuiMitsui GroupGroup zz --ToyotaToyota zz --ToshibaToshiba zz --FujiFuji FilmFilm HDHD zz --SapporoSapporo BeerBeer zz --SuntorySuntory zz --MitsukoshiMitsukoshi zz --MitsuiMitsui && Co.,Co., Ltd.Ltd. zz --MitsuiMitsui FudosanFudosan Company,Company, LimitedLimited MitsubishiMitsubishi GroupGroup zz --NipponNippon YusenYusen KabushikiKabushiki KaishaKaisha zz --KirinKirin BreweryBrewery Company,Company, LimitedLimited zz --MitsubishiMitsubishi CorporationCorporation zz --TheThe BankBank ofof TokyoTokyo--MitsubishiMitsubishi UFJ,UFJ, LtdLtd zz --MitsubishiMitsubishi UFJUFJ SecuritiesSecurities Co.,Co., Ltd.Ltd. zz --NikonNikon CorporationCorporation zz --MitsubishiMitsubishi MotorsMotors CorporationCorporation zz --MitsubishiMitsubishi ChemicalChemical CorporationCorporation SumitomoSumitomo GroupGroup zz --SumitomoSumitomo CorporationCorporation zz --SumitomoSumitomo ChemicalChemical Company,Company, LimitedLimited zz --AsahiAsahi Breweries,Breweries, LtdLtd zz --ITOCHUITOCHU CorporationCorporation zz --SumitomoSumitomo MitsuiMitsui BankingBanking CorporationCorporation zz --SumitomoSumitomo LifeLife InsuranceInsurance CompanyCompany zz --TheThe JapanJapan ResearchResearch Institute,Institute, LimitedLimited zz --SumitomoSumitomo RealtyRealty && DevelopmentDevelopment Co.,Co., LtdLtd ModernModern--dayday InfluenceInfluence zz Today,Today, thethe influenceinfluence ofof thethe zaibatsuzaibatsu cancan stillstill bebe seenseen inin thethe formform ofof financialfinancial groups,groups, institutions,institutions, andand largerlarger companiescompanies whosewhose originsorigins reachreach backback toto thethe originaloriginal zaibatsu,zaibatsu, oftenoften sharingsharing thethe samesame originaloriginal familyfamily namesnames zz However,However, somesome argueargue thatthat thethe "old"old mechanismsmechanisms ofof financialfinancial andand administrativeadministrative control"control" thatthat zaibatsuzaibatsu onceonce enjoyedenjoyed havehave beenbeen destroyed.destroyed. ModernModern--dayday InfluenceInfluence cont’dcont’d zz DespiteDespite thethe absenceabsence ofof anan actualizedactualized sweepingsweeping changechange toto thethe existenceexistence ofof largelarge industrialindustrial conglomeratesconglomerates inin Japan,Japan, thethe zaibatsu'szaibatsu's previousprevious verticallyvertically integratedintegrated chainchain ofof command,command, endingending withwith aa singlesingle family,family, hashas nownow widelywidely beenbeen displaceddisplaced byby thethe horizohorizontalntal relationshipsrelationships ofof associatioassociationn andand coordinationcoordination characteristiccharacteristic ofof keiratsukeiratsu.. THANKTHANK YOU!YOU!

HaveHave aa greatgreat weekweek andand goodgood luckluck withwith finals…finals…