The Meiji Restoration

To compete in the late 1800's meant building modern industries. And so Japan embarked on an ambitious program of economic development. The nation invested in coal mines, textile mills, shipyards, cement factories, and many other modern enterprises.

Few of these ventures were successful, however. In the 1880's, the government began selling its industries to private companies. Some of these companies, such as the Mitsui and Sumitomo groups, were old merchant houses that had been in business since the 1600's. Others, such as the Mitsubishi group, sprang up after the Meiji restoration. From the 1880's to the 1940's, these business enterprises grew large and rich. These conglomerates became known as zaibatsu.

Most zaibatsu were owned and operated by a single family or a family group. They created many related ventures, especially in banking, insurance, international trade, manufacturing, and real estate. The zaibatsu cooperated with the government to promote its aim of enriching the nation. But they remained private enterprises that enriched themselves at the same time.

The second strategy of the Meiji leadership was to strengthen Japan's military force. Former samurai took charge of a modern military recruited from the sons of farmers. With the advice of European military experts, the government built naval shipyards and assembled military arsenals. Within 20 years after the Meiji restoration, Japan had developed the best military force in East Asia.