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Before the mid-19th century, Japan's economy was supported by a rural,
agrarian society. Japan had maintained a policy of isolation, preferring to keep
some distance between itself and the rest of the world. With the visit of U.S.
Naval Commander Matthew Perry, this situation changed dramatically. Japan
became economically linked to the western world, and with the prospect of trade
with western nations, Japan began to transform itself as quickly as it could into
an industrial society.
In the mid-to-late 19th century, Japan began the transition toward modern,
economic growth. Much of this growth depended on international contacts, so
Japan systematically sought Western economic knowledge. They did this by
sending their best people to all parts of the world to be educated and to find out
as much as possible about different industries and processes from other parts of
the world.
The Japanese also did several things within their own country. They officially
abolished the class system and established a free and compulsory education
system. They began a policy of offering government subsidies to encourage
people to start private businesses. They also began putting money into key
industries such as textiles. Along with these changes they developed systems of
modern communication and transportation. Railroad and telegraph lines, as well
as a postal system, were established.
The Japanese began to import machinery for their factories. Silk and cotton
milling became an important industry. With the assistance of Western technology
and advice, mining also began to take on some importance. A modern banking
system was started with the establishment of the Bank of Japan and the
introduction of a modern form of currency. With an increase in industrialization,
government-sponsored factories were sold to private interests.
Even though many changes occurred in the mid-to-late 19th century, Japan still
depended on agriculture and a great deal of the population was rural. Around the
turn of the century, the Japanese economy was a combination of the new and
the old. This was because modernization depended on traditional factors of
production - a labour force, raw materials, food supply, and an industrial
infrastructure (capital goods).
World War 2 changed many things in Japan. The war left the Japanese economy
destroyed. Its roads, cities, factories, hospitals, etc. had been systematically
destroyed by the bombing. Over 8 million people were dead or injured. Japan
was occupied by U.S. armed forces and did not have sufficient resources to
rebuild on its own, It was completely dependent on western nations for economic
aid.
Japan's occupation by the U.S. resulted in many changes. Before World War II
Japan's early economic system had been controlled by what were known as
"zaibatsu". These were large, powerful financial organizations (trusts) owned by
single families who were very wealthy, conservative elites. They controlled and
operated such things as banks, factories, mines and so on in ways which were
often of more benefit to the family than to Japan. Eliminating the zaibatsu created
more competition in the Japanese economy by allowing more people to start
businesses and compete with new and better ideas.
Japan also benefited from a number of American policies toward Japan following
the war. Japan was not forced to pay for war damages to the U.S. and other
countries. The U.S. gave $2 billion in direct aid to Japan. The terms of Japan's
peace treaty stated that Japan could no longer have a large military. This meant
that Japan could concentrate its scarce resources on rebuilding its shattered
economy in ways that gave it the most up-do-date industries in the world.
The Japanese concentrated on new technology in such areas as steel
production, shipbuilding, electronics, household appliances, and the automotive
industries. Farmers were now allowed to own their land, organized labour was
established. Within a decade (the 1950's) the Japanese were back on the path to
prosperity.
The Japanese government established protectionist systems which made it very
difficult for any other nation to sell in the Japanese market. This internal market
was growing very quickly because of the population growth and because of the
rising standard of living. Since only Japanese industry could sell in this market,
Japanese businesses were able to grow quickly with little foreign competition.
During this time, Japan concentrated on international trade, rather than the
territorial expansionism they had been practising. By the mid-1950's, industrial
production had risen dramatically and economic output began to increase by
over 10% each year. There were two things that helped Japan during this time.
First, it began to produce things for export in the international market, and
second, world trade began to accelerate making it easy to sell on the world
markets. The work force, of course, was as disciplined and hard-working as ever
and so was able to turn out large quantities of inexpensive goods.
Today, Japan is successful to the point where western nations are either
complaining about its trading practices or looking to it to discover the secrets of
economic growth. Japan still makes it extremely difficult for nations to export
goods to Japan. Japan still subsidizes its farmers so that it is difficult to sell
agricultural products. Japan is accused of using unfair trade barriers against
other countries something Japan denies. Despite the fact that it has few natural
resources, Japan has the strongest economy of all industrialized nations.
Japan is held up as a model of industrial development. Despite the fact that
Japan lacks raw materials, Japan has been able to become one of the world's
leading industrial powers. Most observers agree that Japan's commitment to
quality products, good education, an emphasis on hard work, protectionism, and
little military spending are the reasons for Japan's success.
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When examining the economic history of Canada, much depends on the region
of the country and the origin of the people who settled those regions.
In the years before contact with the first European explorers, the Indigenous
Peoples of Central Canada lived mainly by hunting and gathering. These skills
would allow them to play a crucial role in the fur trade. During the 16th century,
French and British traders purchased furs from Central Canadian Indians in
exchange for tools and weapons. This drastically changed the Indian way of life.
It also established a view of Canada as a great storehouse of inexpensive natural
resources that could be easily exploited.
Permanent settlers first came to Central Canada to take advantage of fisheries
and trade. Two fur trading companies, the Hudson's Bay Company and the North
West Company played key roles in early economic and population growth. These
companies merged in 1821. By this time, Central Canada had established a
thriving timber industry.
As population grew, agriculture became more important and by the early 19th
century it was well-established in the St. Lawrence Valley. Major settlement
began with the United Empire Loyalists leaving the U.S. to come to what is now
Canada during the American Revolution. Trade in timber, potash and wheat
began to grow. Later, the Welland Canal and the St. Lawrence River became
important shipping routes that allowed for increased trade in a variety of goods.
With Confederation in 1867 Central Canada rapidly industrialized and cities
began to grow. Canada was becoming an exporter of raw materials. There was
much investment in developing an infrastructure (mines, sawmills, railroads, etc.)
which would make possible the extraction and export of natural resources as
inefficient and inexpensive as possible.
The Government of Canada was concerned to see the industrial and agricultural
base of Canada grow as quickly as possible. Its first objective was to make
possible a continental trading system by building a transcontinental railroad. This
railroad could only make money if goods and people moved back and forth on it.
So the Government established the National Policies in 1878 to make sure this
happened. These policies put in place high tariffs to protect the infant industries
of Canada from foreign competition so that only they could sell their products to
the rest of Canada. The rest of Canada would pay for these industrial goods by
selling their agricultural goods and their raw materials. The surplus products
would be sold in the foreign markets making everyone in Canada prosperous.
Central Canada became important for electrical equipment, chemicals, cars,
aluminum, pulp and paper. Later, cheap hydroelectric power accelerated
industrialization.
Montreal and Toronto became important ports which were the centre of
commercial and financial centres. By the mid-to-late 19th century, Central
Canada's economy had become urbanized and service-oriented.
As Central Canada's economy developed in the Twentieth century a number of
manufacturing industries grew up. Canadians started a number of auto
manufacturing plants which found they had to compete with American
manufacturing. Over time American businesses found they could get around
Canadian protective tariffs by buying up Canadian businesses and making them
branch plants of American businesses. Over time the percentage of foreign
ownership of Canadian businesses has steadily increased in all sectors of the
economy.
Economic activity in Atlantic Canada began with the fishing industry established
to meet the needs of markets in Europe. By the early nineteenth century,
fisheries, forestry and shipping were established. Nova Scotia was an extremely
successful trading and shipping area. By 1900, iron, steel and the railway
building industry became important. Halifax had developed into a financial centre.
However, trade began to go down the St. Lawrence river to Montreal and Toronto
bypassing the Maritimes.
Location began to work against Atlantic Canada, and the economy has grown
slowly in the twentieth century. World War Two brought some economic
prosperity with hydroelectricity and government-sponsored industries, but much
of the region could not maintain economic growth. Even today, Atlantic Canada's
economy is much poorer compared to the rest of the country. Although there is
potential for petroleum development off the coast of Newfoundland, the
Maritimes continue to depend on traditional ways of making a living such as the
fishing industry. These continue to do poorly.
The St. Lawrence Seaway which was a massive project to construct the
necessary locks to allow ocean going vessels to sail from the Atlantic Ocean
through to ports in Toronto, Chicago, Thunder Bay, etc. in the heart of North
America. The seaway was built to stimulate international trade and did help
Central Canada, but it has not done much for the Maritimes.
The development of Western Canada, like that of Central Canada, began with
the fur trade. The building of the railway provided the West with an economic
boost. Manitoba became important for wheat, and Winnipeg became a
commercial, railway and factory centre. By the late 19th century, with improved
farming methods and increased world demand for grain, the West became a
prosperous wheat growing area. The combination of wheat and the railway
greatly expanded the Prairie economy as settlers flooded in attracted by the free
land and a better way of life. The West became famous as the bread basket of
the world.
Conditions in the West became very difficult during the Great Depression (1930').
Severe drought was only one of the problems. The western provinces felt that
Canada's tariff system worked against them, because it raised the price of the
manufactured goods they had to buy from Central Canada while doing nothing
for the price of the products the West sold. Canada's protectionist policies hurt
the West because the rest of the world retaliated against Canada's tariffs by
raising their own. This made it difficult for the West to sell its agricultural products
on the international market.
After the Second World War, there was some diversification in the economy of
the West. Oil and gas exploration began in Alberta, and lumbering, fisheries and
mining were established in B.C. Vancouver became and important port for Asian
trade and Prairie wheat.
Western Canada was becoming increasingly urbanized. The economy diversified
as oil, gas, and potash became more important. This helped Alberta and
Saskatchewan. Lumber and coal development increased in B.C., and
hydroelectricity was developed in B.C. and Manitoba. Trade began to open up
with Japan, U.S.S.R., China and the Third World, all of whom needed wheat and
raw materials. Lumber and pulp and paper expanded, and investment in Alberta's
tar sands increased. By the 1970s, most of the population was urbanized and
service-oriented.
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Saskatchewan Learning: Evergreen Curriculum: Social Studies 10 Activity Guide
http://www.sasked.gov.sk.ca/docs/tensoc/activity/unit4/act6.html‘