Economic Development and Ethics in Japan — A Historical Perspective

Abstract

Three phases of Japanese history are examined: the preindustrial phase of Tokugawa society, the early phase of Meiji industrialization, and the high growth phase of post-war Japan. Despite evolutionary changes in Japan’s vertical social order and horizontal web (non-hierarchical community entities ranging from family to corporation), certain distinctive traits have remained more or less intact. Values such as pragmatism and groupism make up a Japanese value system rooted in age old traditions. They have proven remarkably adaptable when exposed to dramatically changing conditions. Indeed, the cultural values and social structure of Japan have played an instrumental role in its economic development. What has emerged is a uniquely Japanese form of capitalism which embodies the essence of its culture.