Japan’s Historical Periods: A Timeline

Heian Period (784-1185)

Capital: Kyoto (Peace and Tranquility)

Government: Emperor delegated power to regents.

Culture: Luxurious, focusing on culture and art.

Economic & Land Changes:

Rise of Samurais & Clans:

  • Samurai System (1185-1868)

Minamoto Shogunate

Government System: Dual

Bushido: Strict ethical code that samurai followed.

Harikari: Ritual disembowelment.

Zen Buddhism, Arts & Aesthetics: Release of inner thoughts, mental and spiritual tranquility.

Christianity and Weapons:

End of Shogunate (Warring States, late 16th century): Rising power of the Daimyos.

Tokugawa Shogunate (Edo Period)

Government System: Dual

State Status: Police State (strict mobility controls, punishments, and tortures)

Class System: Strict hierarchy with no mobility.

Isolation Policy:

Economic Growth: Merchants, commercial ports.

Reverse Power Dynamics:

Culture:

Opening of Japan:

End of Shogunate: Foreign treaties.

Meiji Restoration

Capital: Moved to Tokyo

Government System: Restoration of the Emperor, who lived in the Shogun’s Castle (Imperial Palace).

Westernization & Industrialization:

Militarism & Nationalism: (Invasion of Korea)

1st Sino-Japanese War: Peasant conflict in Korea = Korean independence from China.

Russo-Japanese War: Liaodong Peninsula for Japan.

Effects of WWII: Loss of territories (Korea, Taiwan, etc.), agricultural and industrial production.

Growth (1950s & 1960s)

  • Reconstruction: Heavy industry, exports, economic planning.
  • Japanese Miracle: GDP grew 11%.
  • Structural Change: From agriculture to industry.

Factors of the Japanese Miracle: Korean War, low military spending, labor, technology, trade.

Labor / Imports of Technology / Capital (GDP Saving Rates)

Exports: 90% manufactured goods. Imports: 80% raw materials, food, energy; 20% machinery, manufactured goods.

Production Pattern: High external dependence.

Specialization: Vehicles, machinery, steel, cameras, watches, TVs, etc.

Production Rates: Increased tenfold (Japanese Miracle).

Crisis (1970s)

Production Costs: Rose because the Yen appreciated.

Inflation: Increased fourfold in two years.

Government Industrial Policies: High R&D, new industries & automatization.

Less oil consumption & heavy industry.

Result: Structural transformation.

Plaza Agreement: Lowered the overvalued US dollar, causing appreciation of the Yen.

Strong Yen: Yen appreciated & Japanese exports.

Economic Trends (1980s-1990s)

FDI

Government Stimulus (domestic focus): Lower interest rates, more liquidity.

Financial System Deregulation

Economic Bubble (because of deregulation & expansionary monetary policy)

Economic Euphoria

Rapid Asset Growth (Nikkei index, land value index)

Wealth Effect (high credit consumption, high investment, overvalued properties)

Effects: Rising prices & interest rate hikes.

Bubble Bursts: Asset collapse, economic slowdown, unemployment.

Financial Crisis (1990s-Early 2000s)

  • Bank Failures (322 banks failed).
  • Corporate Crisis (asset devaluation, lower profits & investment, unemployment).
  • Household Impact (higher savings because of uncertainty).

Structural Problems: Dual system, pension system & public debt.