Japanese PoliticalEconomic History

1
Japanese Political-Economic History

• 1920 - 1940

2
Japan Becomes a Great Power

• Codified explicitly in Article 227 of the Treaty
  of Versailles (1919)
• The Allied and Associated Powers publicly
  arraign William II of Hohenzollern, formerly
  German Emperor, for a supreme offence against
  international morality and the sanctity of
  treaties.
• A special tribunal will be constituted to try
  the accused, thereby assuring him the guarantees
  essential to the right of defence. It will be
  composed of five judges, one appointed by each of
  the following Powers namely, the United States
  of America, Great Britain, France, Italy and
  Japan.

3
Taisho democracy in Japan

• Death of the Meiji Emperor in 1912 and the deaths
  of the remaining Meiji advisors (Genro or
  elder statesmen) by the early 1920s.
• Set stage for
• Political parties in Diet began exercising more
  influence on government (as public became
  disillusioned with genro system)
• Universal Manhood Suffrage in 1925

4
Economic Performance

• Overall, economy continues growth, but not as
  strong as during Meiji era.
• However, economy experiences steep recessions in
  early 1920s and late 1920s (as did the rest of
  the globe).
• Chart on p. 57 of Flath

5
Military Takeover
6
Military Takeover

• Military takeover of Japanese Democracy was
  possible through four enabling factors
• Ideological Propaganda
• Gold Standard spreading the Great Depression
• Smoot-Hawley Tariff
• 1930 London Treaty

7
Ideological Propaganda

• Militaristic sentiment emerging in Japan during
  the 1920s.
• Konoye Fumimaro Japanese Politician and
  three-time Prime Minister from 1937 1941.
• Fumimoro argument US and UK post-war hegemony is
  predicated on keeping all resources for
  themselves.

8
Great Depression and Gold Standard

• Japan fully committed to Gold Standard on
  November 21, 1929.
• Keep in mind, US stock market crashed a month
  earlier.
• Because US Federal Reserve was still raising
  interest rates, BOJ also had to increase interest
  rates
• Consequently, Japanese decision to go on Gold was
  considered to be like opening a window in the
  middle of a Typhoon.

9
Smoot-Hawley Tariff Act of June 1930

• Sparks series of retaliatory tariffs by European
  nations.
• Severely harms Japanese rice exports, trade
  balance (see chart), and terms-of-trade (see p.
  45 of Flath).

10
Economic Result

• Increasing tariffs by Western nations leads
  Japanese government to deem West as unreliable
  export market.
• Therefore, turns attention to East Asian Markets
  (primarily Korea, Taiwan, and, eventually,
  Manchuria and Occupied China)

11
April 1930 London Naval Treaty

• Naval ratios considered unfair to Japan.
• See Key provisions (Art. 16).
• Also served to shift focus of industrial policy
  away from ship building and towards aircraft.

12
Political Result

• The Great Depression, Smoot-Hawley Tariff, and
  London Treaty add validity to Fumimaro argument
  and deepens support for militaristic views.
• Economic turmoil brought on by Great Depression
  means the nascent party system generates a series
  of short-lived Cabinets.
• This emboldens military to engage in a series of
  maneuvers from 1931 1936 to usurp power.
• These maneuvers culminated in the February 26,
  1936 Incident (p. 61 of Flath).

13
Beginnings of the Pacific War, 1937 - 1945

• Why Did Japan invade China?
• living space, raw materials, and buffer from
  the Soviets.
• Why Did Japan attack the United States?

14
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