Working Paper 07 KS
Working Paper 07 KS
07/04
Japanese Imperialism in
Global Resource History
Kaoru Sugihara
© Kaoru Sugihara
Department of Economics
University of Osaka
October 2004
This paper was presented at the second GEHN Conference, Irvine,
California (15-17th January, 2004) funded by a Leverhulme Trust
Grant: “A Millennium of Material Progress”
Kaoru Sugihara
associated with colonial rule in South and Southeast Asia and the
forced opening of East Asian ports to foreign trade. With the coming
device to ensure trade and capital flows in Western terms, that is,
ideas and legal institutions were introduced to Asia for that purpose.
1
In order for Meiji Japan to industrialise in this
which were not worth producing in the West where real wages were
1). Although the demand for modern mass consumer goods in Asia
East Indies and China. And this demand would be better met by
those Asian manufacturers who would have the will and access to
consumer taste.
2
capital by labour wherever technology was thought to be biased
example, the iron frame was partially replaced by the less strong
but cheaper wooden frame, while the night-shift system lowered the
industrialisation.
the one hand, and with Asian primary producers on the other, Japan
the West till the domestic industry became competent. The only
3
markets in large quantities during the interwar period. The ready
First, it singles out two most important factors, the ready access of
directed the real wage in Western Europe and North America to rise,
Table 1). On the face of it, this has little to do with what the
4
diffusion of industrialisation, by giving room for Japan, and later
China, to capture the huge Asian mass consumer market with the
use of cheap labour. Without the great divergence, the wage gap
would not have widened as fast as it actually did, and the low-wage
that the opportunities for emigration from Asia to the West were
less able to negotiate with the United States, were unable to help
5
relatively high-wage workers only, thus paving the way to
factors (coal and North America) have little to do with science and
these windfalls possible, but, from the East Asian point of view, the
crucial point was that the fruits of the industrial revolution, such as
of the Meiji government visited Europe and the United States in the
factory system and railways they saw operating in the West were
this was something that they could adjust (as was the case with the
power loom partially going back to the wooden frame), since the
6
accompanying organisational innovations (such as factory system)
were made available to the East Asian economy, while at the same
labour-intensive goods.
portrays that Meiji Japan and other East Asian industrialisers were
7
economic development at least since the sixteenth century with
differences, the core regions of East Asia and Western Europe had
in the culture-neutral sense, the speed and ease with which Japan
and skill makes it possible to suggest that, the East Asian path
turned out to look more like a natural heir of Smithian growth than
8
society with science-based technology involved urbanisation and
largely escaped Western colonial rule and endowed with high initial
conditions, East Asia emerged as the only region that was capable
9
technology with the use of skilled, high-wage labour, while East
advance over time, following different paths, and the two paths
increasingly interacted with each other. But they did not converge.
allocation.
The case of Japan illustrates the point. On the one hand, she
a fall in living standards, but this is consistent with the fact that
10
Toyoda automatic looms) (Sugihara 1989). Meanwhile,
century, if there had been no foreign trade and all the fuel and raw
thinking that led Pomeranz to argue for the significance of the trade
impose the land tax but also to make agricultural surplus available
11
land-intensive imports, rice and sugar from Taiwan and Korea, that
there. Even in the interwar period, both colonies were much more
to Japan and 71 per cent of her imports came from there in 1928,
while 87 per cent of Taiwan’s exports and 69 per cent of her imports
12
and energy had to be imported from outside the empire. Imports of
land-intensive raw cotton from India and the United States, for
regime of free trade in Asia and the world were important conditions
But by the early twentieth century the world was much more closely
13
While this eased the local resource problems by lowering
efficiency than of availability. And efficient fuel and good quality raw
world, triggering the fierce competition among the major powers for
exploration business and the sale of crude oil, partly because the
At least part of the oil industry was also driven by top technology.
cartels.
countries (the United States and Western Europe) and East Asia (In
14
energy consumption in coal equivalent terms. Even if these data
had used much less commercial energy (mainly coal, liquid gas and
crude oil) for a person to produce a unit of GDP before the Second
1950s.
influence. Japan relied on British Malaya and Australia for iron ore,
India for pig iron, Canada for aluminum and lead, Canada and
Australia for zinc, British Malaya for rubber, and the United States
The crucial turning point came with the Wall Street Crash of
1929. One of the vital assumptions that Japan had made, that is,
silk to the United States collapsed, and her attempt to restore the
Asia (Kagotani 2000). She also pegged yen to sterling in 1932, and
15
(Akita 2003), even though Japan’s economic diplomacy seeking
into Manchuria, but securing raw materials and energy sources was
supply base for raw materials and energy sources. In fact, Japan's
need to import them from outside the yen bloc increased, as a result
long-staple raw cotton produced there, and this was resisted by the
Japan would still have been largely dependent on the West for raw
fibres and for the raw materials for her heavy and chemical
16
Even more serious were the domestic difficulties arising from
ceiling for the rise in rural purchasing power and the standard of
limit to the expansion of the domestic market. The more East Asia
greater the resource gap between East Asia and the West became.
the Western, and a large gap with major Western powers remained.
she went to war with the United States. Meanwhile, it turned out to
17
be the Chinese resistance, in particular Mao’s strategy for
Japan opting for war. Having lost both prospects of further territorial
motivations played a part in this, but only a part. On the other hand,
18
scientists who advocated this line of thinking in the 1930s and the
early 1940s. However, faced with the Great Depression and the
means.
more autonomous resource base (of coal). By the early 1960s the
decision was made to go for the former option, with the implicit but
firm understanding that imports of oil from the Middle East were to
was even more dependent on the regime of free trade than prewar.
19
developed resource-saving technology in the second half of the
transport and household sectors was much lower than in the West
imports from North America and Australasia and oil imports from the
a very large trade deficit of Japan (and NIES) with the Middle East
and Japan’s trade surplus with Europe. To some extent the United
States also played a role similar to Europe in this context. From the
20
1930s, in so far as global resource allocation and the stability of the
21
Selected References
22
Kagotani Naoto 2000. Ajia Kokusai Tsusho Chitsujo to Nippon (The
Orient, 44-3.
23
Sugihara, K. 1989. “Japan's Industrial Recovery, 1931-1936”, in Ian
Kyoto.
London.
24
Sugihara, Kaoru 2003b. “Kindai Kokusai Keizai Chitsujo no Keisei
Shuppankai, Nagoya.
25
Table 1 Comparisons of Per capita GDP, 1820-1950: East and West
26
Table 3 Trends in Energy Consumption by Country or Region, 1925-1965
Sources:
All figures for energy consumption, Darmstadter 1971; all figures for GDP and population, Maddison 1992, Maddison 1998 and Maddison 2001. Includes estimates.
Notes:
1) Energy consumption is expressed in million metric tons (coal equivalent). GDP is expressed in million 1990 dollars, and population in thousands. Energy consumption per GDP is
in metric tons; Energy consumption per capita is in thousand metric tons; Energy consumption per GDP per capita is in thousand metirc tons. Commercial inanimate energy only.
Excludes human effort and that of draft animals as well as the output and consumtion of veretal fuels such as firewood and dung. Covers solid fuels (coal, lignite), liquid fuels
(crude oil), natural gas, and hydroelectricity.
2) Western Europe refers to Austria, Belgium, Denmark, Finland, France, Germany (including East Germany for 1950 and 1965), Italy, Netherlands, Norway, Sweden, Switzerland, and .
United Kingdom. Energy consumption calculated from Darmstadter 1971, 654-59 and 664. GDP and population from relevant pages of Maddison 1992 and 2001.
3) For GDP for USSR, 1928 figure was used for 1925.
4) Socialist Asia refers to mainland China for 1925 and 1938, China, North Korea and Monglolia for 1950, and the three countries plus North Vietnam for 1965. Energy consumption
calculated from Darmstadter 1971, 729 (Communist Asia). Population and GDP for 1950 and 1965 from relevant pages of Maddison 1992 and 2001. A half of Vietnam's GDP and
population figures were assigned to North Vietnam. GDP for 1925 and 1938 were calculated from Maddison's 1998 estimate for 1933 (Maddison 1998, 158), assuming per capita
GDP being constant between 1925 and 1938.
5) NIES/ASEAN refers to Korea, Taiwan, Philippines, present Indonesia and Thailand for 1925 and 1938; South Korea, Taiwan, Hong Kong, Philippines, Indonesia, Malaya and
present Singapore, and Thailand for 1950 and 1965. Energy consumption calculated from Darmstadter 1971, 677-81. For GDP for Philippines and Thailand, 1928 figure was used
for 1925. For GDP and population for 1950 and 1965, the territorial coverage is Malaysia rather than Malaya.
6) 1925 figure for world population was calculated by multiplying the 1929 estimate (Maddison 1992, 226) by the ratio of the 1925 population of all the regions included in this table
to the 1929 population of the same. 1938 figure for world population was obtained by multiplying the Maddsion 56 countries sample figure for 1938 (Maddsion 1992, 210) by the
ratio of his 199 countries estimate for 1929 to his 56 countries sample figure for the same year. 1925 figure for world GDP was calculated in the same way as world population,
using the 1929 estimate (Maddison 1992, 227). China 's GDP for 1929 was calculated as per 4). 1938 figure for world GDP was obtained in the same way as world population,
using Maddison's 56 countries sample figure for 1938 (Maddison 1992, 211).
27
Table 4 Relative Weight of Commercial and Non-commercial Energy, c.1956
Source and Notes : Darmstadter 1971, 818. Taken from UN, Proceedings of the International Conference on the Peaceful Uses of Atomic Energy ,
vol.1, The World's Requirements for Energy: The Role of Nuclear Energy , New York, 1956, pp.18-20. Communist countries are excluded from
tabulation.
Table 5 Changes in the Balance of Trade of the Middle East with Major Trading Partners, 1985 to 2000
(million dollars)
Sources: IMF, Direction of Trade Statistics Yearbook , and Taiwan Statistical Yearbook ., relevant years.
28
Figure 1 Japan, Intra-Asian Trade and World Trade, c.1900-1930
the West
m. p.p.
India m. Japan
p.p.
m. p.p. m. p.p.
m. (m)
p.p. m. →p.p.
Note: m. refers to manufactured goods, p.p. primary products. Since the late nineteenth century India
exported cotton yarn to China in large quantities, but from the end of the 1910s, it was replaced by the
exports of raw cotton. China exported a small amount of silk textiles in turn.
29
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