Japan's Traditional Economy and Modern Economic Growth

Contributions to industrialization and modernization seemed to come from a variety of different sectors during the Meiji period, and such contributions greatly aided the growth of the country as a whole. The agricultural sector of Meiji Japan was no different. While this portion of the population failed to enjoy the early governmental assistance and stimulation that other sectors flourished with, it ended up contributing a great deal to the industrialization of Japan.

Since governmental focus and assistance was not on agriculture, farm families took it upon themselves to find more efficient and cost effective means of advancement. This included sharing information, exchanging ideas and crop seeds, organizing discussion forums, and holding lectures on advancements discovered elsewhere to improve crops. The agricultural community took it upon themselves to be innovative. They bred better strains of crops, adapted costly Western machinery into affordable alternatives (ex. using hardy specially made wooden frames for silk reeling instead of costly metal, and using water mills instead of steam engines for power), and invented new rotary tools and other tools for better and deeper plowing which made more effective use of fertilizer. All of these things increased the productivity of farmers, which led to a myriad of industrial contributions.

Meiji farmers began feeding the nation, calling upon reduced need for government spending on imports. Indeed, agricultural exports became a decent money maker for Meiji farmers. This increase in production due to increased efficiency led to increased capital, meaning higher incomes and better standards of living for many rural families. Farmers had more money to spend and put into different industries. Quasi-banks sprang up around the countryside to manage the capital flowing in and out of the rural communities. The extra banks and capital within them allowed for investment in industries affecting agriculture, such as exports of Japanese tea and silk (McClain, 2002).

Additionally, extra money was put toward the buying of equipment meant to make farming even more efficient. Some farmers even put their extra capital toward business ventures which also spurned economic growth.

The rural community would later see governmental attention and assistance; however, early on farmers were forced into innovation and achievement on their own. They encouraged economic growth through exportation of foodstuffs and other goods; they spurned industry through investment, banking, and solutions to common problems. This was something farmers had learned during the rough Tokugawa period, but it flourished under the open Meiji rule.