development of political economy as a discipline in Japan: civilization, enlightenment, and modernization
著者（英） Mikio Nishioka, Jun Miyata, Shigeta Minamimori, Atsushi Nishi
journal or
publication title
Keizaigaku‑Ronso (The Doshisha University economic review)
volume 61
number 4
page range 849‑890
year 2010‑03‑20
権利（英） The Doshisha Economic Association
URL http://doi.org/10.14988/pa.2017.0000012517
【研究ノート】
Political Economic Thought and
the Development of Political Economy as a Discipline in Japan: Civilization, Enlightenment, and Modernization
Nishioka Mikio Miyata Jun Minamimori Shigeta Nishi Atsushi
1 An Introductory Note:
Political Economic Thought and Political Economy in Japan (Nishioka Mikio＊) In the latter half of the nineteenth century, Japan introduced a system of political economy (economics)1), which was urgently needed for its modernization, in addition to new system that was required for modernizing its military affairs, politics, and industries. It was a popular consensus that political economy was transformed by the period of introduction and the circumstances of the countries by which it was adopted.
However, was political economy in Japan nothing but the imported from Europe and the United States, that is, merely a borrowed piece of Western culture,
＊ Nishioka Mikio is majoring in the history of economic thought, and belongs to the Faculty of Economics at Doshisha University, Kyoto.
1） This papers publication is supported by grants as part of the special expenditure for promoting and the upgrading graduate schools.
institutions and social science? Should Japans political economy which gave rise its rapid modernization be regarded as having nothing in common with the traditional Japanese school of thought, known as Keisei-ron , which means political economic thought ?
This paper seeks to examine the features of the traditional political economic thought that continued the development of political economy as a discipline in Japan from the latter part of the Edo era to the Showa era2). Was there any kind of catalyst during the Meiji era that aided the rapid development of economic thought? What relation did this period, known as the age of the enlightenment , have with the traditional Japanese political economic thought, originating from the collective consciousness that was born against the backdrop of East Asian civilization? Moreover, could it be possibly said that it was this common base of collective consciousness that was continued /discontinued to result in the formation of modern economics?
In this paper, we have attempted to identify and discuss the general self- perception of rational thought that have prevailed in Japan since the late Edo era;
we have also sought to examine the field of political economic thought on the basis of which we have carefully tried to trace the development of political economy as a discipline in Japan, which united a civilization and led to an era of greater enlightenment.
After analyzing whether the traditional Japanese school of economic thought has indeed made any contribution to Japans present political economy, this study will proceed to examine the building of social consciousness, that is, public welfare by interests as part of the practical science. This paper also aims to discuss how
2） This paper is based on the presentation title, Politic Economical Thought and the Development of Political Economy as Discipline in Japan: Civilization, Enlightenment, and Modernization , as part of a session on the history of economic thought for the Kwansei Gakuin University Workshop (2 March, 2009).
the way to policy-makers influenced institutionalization processes of political economy.
The three reports that comprise this paper strive to define and discuss the characteristics of economic thought in Japan during the specific periods in history.
They seek to shed some light on the organization and the development of rational ideas on socio-economic thought in Japan. The main objective of the paper is to determine how the self-perception and rational thought prevalent in Japanese during the early modern age (the Edo era) related to the formation of the current political economic thought in Japan and the institutionalization processes of the Japanese political economy.
The first report3) analyses political economic thought of Honda Toshiaki (1743―
1820), who insisted that the political economy in Japan modeled on policies followed by Western countries, which laid the foundation for Japanese peoples understanding of political economic thought and became the source of their knowledge for solving various difficult economic problems. According to Honda, in the past, it had been difficult to fathom the national consciousness in order to formulate a national policy for the Japanese political economy. In the latter half of the eighteenth century, Japans political and economic objectives (in Dazai Shundais words, the endogenous growth (i.e. the inner or internal growth of the market economy)) clearly corresponded with countrys politico- economic system. However, this picture changed following the Kyoho Reforms in the first half of the same century, when Japanese economy was influenced by the exogenous impact (i.e. the outer or external growth) due to its contact with the West, mainly Russia. What kind of intellectual impact this produced, and in what way did it influence the economic thought of that time, is covered in the Seiiki (the Western region) image as explained by Honda Toshiaki.
3） Miyata Jun (Kanto Gakuin University), "An Outline of the Political Economic Thought of Honda Toshiaki (1743-1820)"
The second report4) discusses the contribution of Kanda Takahira (1830―1898), who shed much light on the institutionalization process of economic policies in modern Japan. In the years immediately after the establishment of the Meiji administration, in what way did the economic thought of that era regard the concept of civilization , with respect to the governments inside and outside Japan?
Until now, Kanda has been regarded as a practical intellectual due to the number of years he worked as a teacher at the Bansho Sirabesho (which means the institute for the study of barbarian writings ) in the Bakufu; he was also known as a formulator of the political economic policy of the Meiji government. This report discusses the real depth of his enlightenment, due to which Kanda can be said to have lived
"two lives" in the new civilized age―since he was aware of the gap between the traditionally popular view that civilization had originated in East Asia, and rapidly processing Europeanization that led to extensive modernization during the Meiji era.
The last report5) examines why a modern economist, Aoyama Hideo (1910―
1992), who was generally regarded as an orthodox economist, sought to explain the relation between modernization and the economic ethics in Japan. Why did a modern economist, who wrote The Economic Theory of Monopoly (1937) and The Study of Economic Fluctuation Theory (1949―1950), persist in studying theme of business ethic and modernization in Japan?
Just as this introduction has described the three topics that will be covered in this paper, we believe that the three topics will be able to summarize the formation of political economic thought in Japan and provide a comparison of the various economic policies that were adopted in the past. In other words, this
4） Minamimori Shigeta (Kansei Gakuin University), " Kanda Takahira (1830-1898) and His Contribution to Political Economy".
5） Nishi Atsushi (Mie University), Aoyama Hideos (1910―1992) Scio-economic Thought and the Ethic Pertaining to Modernization .
paper compares the various economic perspectives and policies ranging from the traditional views on government administration and peoples welfare (i.e. political economic thought in terms of how to administrate a nation) to the current situation of Japanese civilization, enlightenment, and modernization in terms of the modern political economy of Japan. Hence, further studies can develop the process of economic thought in terms of the institutional design and the frameworks that are constructed to ensure public welfare in the new social stage.
If there can do any contribution to Japanese economic thought, the chair wants to search for the building of social consciousness, that is, analyse public welfare by interests as a part of the practical this paper examines the institutionalization processes of political economy as suggested by science (the learning of practical use that offered proof and rationality).
2 An Outline of the Political Economic Thought of Honda Toshiaki (1743–1820)
(Miyata Jun＊) Honda Toshiaki (1743–1820) was a Japanese mathematician who promoted political economic thought in the latter half of the Edo period. His areas of learning extended from mathematics, astronomy, geography, and sailing to European thought. Hondas most important works include Sekii Dosei (The Development of Russia) (1791), Keisei Hisaku (An Approach to Politics and Economics)(1798), Seiiki Monogatari (Tales from Europe)(1798), Keizai Hogen (An Unreserved Discussion on Political Economy)(after 1801). These texts discussed the domestic as well as the international situation of political economy.
＊ A lecturer at Kanto Gakuin University and Kokushikan University, and researchr belongs to project of BDKE(Bibliographical Database of Keio Economists) at The Keio Economic Society of Keio University. Miyata Juns areas of specialization include historical science, history of Japan, and history of Japanese economic thought, library material theory.
In his writings, Honda particularly focussed on the financial problems faced by the Japan nation due to famine and diplomatic problems that emerged from Japans dealings with Russia. Even though Hondas political economic theories were founded on European knowledge, his originality is remarkable. For example, his theories of national-interest creation, development of colonies, and government-controlled trading conducted under the samurais supervision were inspired by policies that had already been implemented in Europe. Hondas hopes and dreams of rebuilding and establishing the Japanese nation are revealed through his theories; in addition, his theories contain the basic elements that are required for strengthening the national economy for the future.
Hondas view is based on previous studies by Honjo Eijiro6), Nomura Kanetaro7), Abe Makoto8), Tsukatani Akihiro9), Miyata Jun10), and Donald Keene11)̶researchers who have worked in many different academic areas, for instance, Japanese history, history of Japanese economic thought, economic history of Japan, and Japanese intellectual history.
My report seeks to analyse Hondas Keizai (economic) contributions, and at the same time, aims to supplement the previous findings. To this end, I have attempted to analyse the text Keizai Hogen, which was authored by Honda.
Keizai Hogen came into existence after 1801. This book contained Hondas thoughts on political economy, based on the influence of European economic thought.
The books main ideas were similar to those put forth in Hondas previous works,
6） Honjo Eijiro (1966) Nihon Keizai Shisoshi Kenkyu, Tokyo: Nihon Hyoron Sha.
7） Nomura Kanetaro (1939) Tokugawa Jidai no Keizai Shiso, Tokyo: Nihon Hyoron Sha.
8） Abe Makoto (1955–57) Honda Toshiaki No Denkiteki Kenkyu , Historia, vols. 11–13, 15–17, Osaka: The Osaka Historical Association.
9） Tukatani Akihiro (1970) Kaisetsu Honda Toshiaki , Nihon Shiso Taikei, vol. 44, Tokyo: Iwanami Shoten.
10） Miyata Jun (2004) Honda Toshiaki No Keisei Saimin Shiso , in Nihon No Keizai Shiso Sekai, Tokyo: Nihon Keizai Hyoron Sha. My report received the suggestion from this thesis.
11） Keene, D (1969) The Japanese Discovery of Europe, 1720–1830, Stanford, Calif: Stanford University Press.
Keisei Hisaku (1798) and Seiiki Monogatari (1798).
Honda explained his views regarding Japanese economy in Keizai Hogen. In fact, it is important to note that the term Keizai (economy) is mentioned in the title of this book, for Honda has not mentioned the word in the titles of any of his previous works. This means that Honda specially developed his economic theories and focussed on economic aspects in Keizai Hogen. As a result, Hondas concept of economy is clearly reflected in his book, through which we can also glean his views regarding future prospects for economy.
This report is a discussion on Hondas political economic thought as presented in Keizai Hogen. As far as the book is concerned, how does it describe Hondas views on economic thought, and what does it contain regarding Hondas concrete ideas on economic policy? How can one evaluate Hondas theoretical contributions to the development of economic thought in the Edo period? I want to attempt to address these aspects in this report. In addition, I will consider these issues while taking into account the temporal transitions and historical background of the era.
2. 1 An analysis of Hondas concept of Keizai and his criticism of theories of Kumazawa Banzan (1619–1691) and Ogyu Sorai (1666–1728)
As mentioned in the introduction, Honda elucidated his concept of Keizai (economy) in his book Keizai Hogen̶the expression provides us with clues to understand Hondas economic thought. For example, the following quotation contains Hondas acknowledgement of his theoretical predecessors work on the economy. The quotation proceeds as follows.
Two hundred years passed after the founding of the Tokugawa Shogunate.
Several thinkers appeared in the meantime, and Japanese society of the time saw the emergence of various new ideas. In the intellectual domain,
there were two thinkers who gained recognition for being experts on matters concerning the economy (Keizai); their names were Kumazawa Banzan (1619–1691) and Ogyu Sorai (1666–1728).
(Honda 1935, p.113)
The above quotation is Hondas first mention of the term Keizai. In fact, this term had not appeared even once in any of his other writings until then (for instance, Keisei Hisaku and Seiiki Monogatari). Another important point that should be noted is that Honda was involved in the same field wherein Kumazawa and Ogyu were acknowledged as experts̶the development of economic thought (Keizai) during the Tokugawa period. This is connected with the way in which Honda regarded the academic research environment, particularly the concept of the economy, as mentioned above.
Honda, however, was quite critical of the theories put forth by Kumazawa and Ogyu, as evidenced by the following quotation.
According to Kumazawa and Ogyu, in order to facilitate economic activity, it was necessary to first reduce expenses; second, to secure the cost of the surplus; and third, to transfer it to the businesses that required expenditure. Only if this method were adopted, they felt, would the Japanese nation eventually become prosperous. However, this suggestion had several limitations, because they considered only the management of expenditure and the increase and decrease in production. Hence, their insight into the matter was rather superficial.
(Honda 1935, pp.113–4)
Honda, who criticized some of the views put forward by Kumazawa and Ogyu,
believed that economic policy should not only concentrate on cost-saving but also regard buyers and sellers as compensating each other through an exchange of capital and goods. In this way, Honda differed from those who took judgemental positions on whether or not the inducement method was right or wrong, with respect to economic policy.
Honda recorded his reasons for his atypical position, which was made clear in the following quotation.
Kumazawa and Ogyu disregarded the limitations of the land from which production ensues. I wish to explain and theorize on something that they did not consider, as follows. In my view, it is a basic human tendency to wish to increase production. Nevertheless, there is a limit to the amount of production that can be secured, just as there is a limit to the human lifespan, which cannot be prolonged beyond a certain point. In other words, the land which yields the produce also enforces certain limitations on the amount of produce it can yield. In reality, this theory implies that at all times, the demand of the populace exceeds the supply of the product. Therefore, if my view is correct, the ideas of Kumazawa and Ogyu are meaningless conceptions that cannot correspond to the tendency of increase in the population. Hence, I consider them to be presumptuous experts.
(Honda 1935, p.114)
The above sentences show that according to Honda, it is important to pay attention to the relation between production and the population. Moreover, his perspective was one of the first to take into account the territorial limits of the Japanese nation wherein the product was produced. Based on this, we can gather that in Hondas view,
it would be impossible to formulate an economic policy that would allow for growth in correspondence to the increasing demands of the population, unless the territorial area̶that is, the sphere of influence of Japan̶were not enhanced. Honda predicted this in terms of a situation wherein it would not be possible to prolong a persons life without making some improvements in persons social circumstances. In this way, he expressed his own views regarding economic policy on the basis of his prediction.
Similarly, Honda criticized the theories of Kumazawa and Ogyu because they failed to consider the eventualities that he foresaw. This justified his fierce criticism of them.
The following excerpt is another example of Hondas critical reception of the theories of Kumazawa and Ogyu.
The economic policies laid down by Kumazawa and Ogyu took into account only those regions that were controlled by Japan at that time.
Therefore, it would not be possible to apply their ideas to real life in such a way as to improve the supply–demand problem of goods. In other words, their ideas are useless for improving the quality of economic life in the nation.
(Honda 1935, p.114)
In the above quotation, Honda declared that the theories propounded by Kumazawa and Ogyu were worthless. While expressing this criticism, he emphatically used the term Keizai.
Up to this point, I have introduced Hondas critical reception of the economic theories of Kumazawa and Ogyu and explained Hondas own views on the matter.
Based on the above, I would like to list out some points in order to define Hondas conception of Keizai, which appears to include the following:
(1) Phenomena that can be resolved by implementing cost-saving policies.
(2) Phenomena that can be resolved by introducing the policy of mutual help. This approach aims to stabilize the supply of goods and capital.
(3) Phenomena that need political intervention for resolution. This refers to the roles that politicians can play in influencing other people.
(4) Phenomena pertaining to the relation between population increase and the supply of goods.
(5) Phenomena that cannot be resolved by taking into account only those regions that are controlled by Japan at the time.
In this way, Honda understood the concept of Keizai as a five-feature phenomenon. The above list can also be explained as follows. Hondas conception of Keizai pertained to the contemporaneous economic perspectives, which considered only the regions under Japanese dominion. Honda, however, focussed on the relationship between people (demand) and goods (supply), which constantly undergoes quantitative changes. According to Honda, economic failure would be natural at some stage, since this relationship is characterized by instability.
Therefore, in order to ensure a steady economy and society, he advocated borrowing from politicians technique.
Here, it is important to note a special aspect of Hondas thought̶it is clear from the above example that Honda foresaw a population increase. Hence, Hondas notion of Keizai should be regarded as a theory that attaches much importance to what may happen in the future. In this way, considering future eventualities was an important factor for Honda in his attempt to resolve economic problems.
Therefore, the most significant elements of Hondas thoughts on Keizai included his recognition of a relation between population increase and production or the supply of goods, and future prospects for the same.
Hence, Hondas original conception of Keizai, which is based on predicting
future prospects for the economy, is obviously different from the ideas of Kumazawa and Ogyu. It is very important to keep this difference in mind while seeking to understand his unique perspective on the matter.
2. 2 Analysis of concrete measures based on Hondas concept of Keizai
Section 1 of this report analysed Hondas views on the concept of the economy, as also his criticism of Kumazawa and Ogyu, who were considered experts on the economy at that time. In addition, it clarified important features of Hondas own conception of the economy.
Based on this, in 2.2 I would like to analyse Hondas concrete policies that he regarded as effective in improving economic conditions. According to him, it was possible to adopt certain measures to encourage steady economic growth̶he explicitly mentioned them in Keizai Hogen as follows.
People involved in economic activities should have wisdom. Otherwise, we cannot achieve stable economic conditions.
(Honda 1935, p.115)
The above quotation stresses the importance of wisdom in carrying on economic activities. What, then, is concrete wisdom in Hondas opinion?
Effective wisdom for people involved in economic activities is the knowledge of astronomy and geography.
(Honda 1935, p.115)
This quotation reveals his opinion that it is importance to gain practical knowledge or wisdom regarding astronomy and geography. Honda again reinforces
his emphasis on astronomy and geography as follows.
It is necessary for the Japanese nation to trade with other countries in order to acquire economic profit. For the purpose of carrying out trade, it is necessary to learn the art of sailing. Furthermore, to learn the art of sailing, it is essential to acquire knowledge on astronomy, geography, and mathematics. When this theory is brought into practice, Japan can secure various goods through trade. This approach will surely yield profits, just as European nations have acquired precious goods such as gold, silver, and copper from other countries through such trade. Their implementation of this method has resulted in their securing economic stability, which has facilitated the creation of several affluent nations in Europe. In short, the principles that I advocate are based on the model of economic activity implemented in European nations.
(Honda 1935, pp.95–96)
In this quotation, Honda describes his ideal conception of economic policy. The proposition with which Honda grappled is as follows: What economic policy do we adopt to enrich a poor nation? In answer to this question, Honda suggested the policy of acquiring the knowledge of astronomy, geography, mathematics, and sailing, which would surely bring economic prosperity for the nation. It is clear that Honda was fully convinced that implementing his theory would result in economic success for Japan.
In addition, some characteristic elements of his theory can be listed as follows.
(1) It is possible to understand Hondas theory as a chain-reaction theory.
(2) Honda views on trade appear to be based on the economic policies followed by European nations.
(3) Honda realized that the economic success of European nations resulted
from their practical use of knowledge regarding astronomy, geography, mathematics, and sailing.
(4) Honda believed that it was imperative for Japan to adopt an economic policy that was similar to the one implemented in European nations.
Hondas theory regarding economic policy comprised the four features that were mentioned above. All in all, his theory can be basically understood as an economic policy that relies on the activation of foreign trade.
Honda considered trade to be an essential component of economic progress. He recorded his reasons for this belief as follows.
Japan is an island nation, surrounded by the sea. Therefore, the knowledge of sailing is crucial for Japan to be a seafaring country. The sea should be used as a channel of distribution for foreign trade.
(Honda 1935, p.117)
This view takes into account the geographical location and natural environment of the Japanese nation. After taking into account this unchangeable aspect of Japans location, Honda suggested how to effectively incorporate sailing into the economic policy of Japan. The economic policy that he suggested was tailored to suit a seafaring country. Since sailing could be used to facilitate trade with foreign countries, Honda was convinced that his policy would result in the economic prosperity of the Japanese nation.
However, in order to put this theory for ensuring economic prosperity into practice, someone is needed to take the initiative. Who can play this role? The following quotation reveals Hondas views on the matter.
First of all, the administration of the Tokugawa Shogunate should buy produced goods and load them onto the ships under the Shogunates jurisdiction. Afterwards, these ships should be sent to various countries for trading purposes, and they will bring back gold and silver. In this way, finally, Japan can become a wealthy nation.
(Honda 1935, p.113)
The idea of the Tokugawa Shogunate administration taking on the role of an economic agent was an unusual idea in the Edo period. At that time, the administration of the Shogunate was carried out by the warrior class (samurai), and there was a general assumption that the samurai had no role to play in commercial activities. This assumption can be understood as a characteristic aspect of the Edo period; however, Hondas suggestion overstepped all these conventional notions of the age. It should be noted that until Hondas theory arrived on the scene, no economist had even thought of suggesting that the samurai be put in charge of commercial activities such as trade.
In addition, Honda chalked out a very clear plan of action for the Shogunate administration.
The Shogunate administration should impart the knowledge of sailing to people of various classes.
(Honda 1935, p.117)
As mentioned above, Honda opined that the samurai could play an important role in Japans economic and commercial activities. In addition, he mentioned another important economic contribution that the samurai could make̶in addition to supervising foreign trade, the samurai could also be given the charge of educating
the masses. Achieving all this, according to Honda, would facilitate the trade between Japan and other countries.
Honda has discussed the roles that can be played by the other classes in another place, quoted as follows.
The affluent people who live in Japan should be allowed to move around freely and develop new stretches of land. The people who can become pioneers of economic growth include the warriors (samurai), farmers, artisans, and merchants. The political authorities of the warrior class (samurai) implement such a policy, we can expect economic development.
If ambitious people are encouraged to increase their land holdings, the Japanese nation will, in time, be able to dominate the islands around Japan.
With the adoption of such a policy, the Japanese nation can extend its influence over new areas, which will correspondingly expand its economic bloc. Consequently, this will benefit the national interest of Japan.
(Honda 1935, p.100)
This quotation conveys an interesting point. For Honda, the role of a pioneer in economic growth was not restricted to the warrior classes (samurai); people from various other classes could also expect to contribute. I would like to add a new point here. The economic activities practiced at the time of the Edo era were based on a hierarchical division of labour, as evinced in the familiar expression Shi-No- Ko-Sho (warrior-farmer-artisan-merchant). Hondas ideas, however, signal a break from the traditional economic regime of that era̶bridging the class barrier was an unusual notion at that time. However, Honda insisted that the existing economic practices should make way for a new type of economic activity. This insistence on change can be seen as laying the foundation for achieving the ideal of economic
prosperity through trade.
In the analysis presented here, I would like to emphasize that Honda believed that his suggestions could be implemented as a concrete economic policy. Let me explain this statement in terms of the four features that characterize Hondas economic theory. The first of the four features, as already mentioned above, pertains to the nature of Hondas theory̶it is similar to a chain-reaction in its outline. The other three features are as follows: Honda modelled his policy on the economic policies followed by European nations; he recognized that it was important to acquire knowledge in specific areas in order to implement his economic policies; he felt convinced that Japan could achieve successful economic growth by implementing his suggestions. Honda greatly emphasized the practical value of his theory.
Based on Hondas theory, a concrete economic policy can be charted out as follows.
This is an overview of practical aspects addressed by Hondas economic policy.
(1) Honda envisioned Japans future as a seafaring country. In this context, he looked at Japans prospects not only from a geographical viewpoint but
also from the viewpoint of its place in international society.
(2) Honda stressed the importance of using practical business knowledge12) for implementing the economic policies that he suggested; he saw this use
of knowledge as an essential requirement for the success of his policies.
Here, he focussed on the application of knowledge to activate foreign trade.
(3) Honda suggested a new role for samurai in facilitating the nations economic prosperity. He not only suggested the samurais active engagement in economic activity but also recommended that they educate and induce the other classes to participate in the economy.
(4) Honda insisted on breaking away from the traditional system of class-
12） Minamoto Ryoen (1990) Edo Koki No Hikakubunnkaronteki Kosatsu , in Edo Koki No Hikaku Bunka Kenkyu, Tokyo: Perikan sha.
wise division of labour. In order for Japan to achieve economic prosperity, he requested the samurai and people from other classes to co-operate for trading purposes. This, according to Honda, would only be possible if the entire nation came to regard trade as its principal economic activity.
(5) Honda based his theories upon a study of other countries that had succeeded in achieving economic prosperity. He realized that European nations, along with their economic activities, could be treated as exemplary cases and role models for Japan. From their success, Honda was inspired to formulate his economic policies in such a way as would ensure the economic development of the Japanese nation.
Honda believed that adopting a concrete economic policy based on the five abovementioned features would result in the economic development of Japan. In practice, his policy would ensure that the supply of goods would increase in tandem with the increasing population; thus, he was of the opinion that a considerable number of poor people would stand to benefit from an assured supply of goods. Hondas theory, in this way, strove to optimize and protect the national interest of the whole of Japan.
In the end, I would like to emphasize the valuable contributions of Hondas concrete economic policies. His policies were composed of a wide world-view that envisioned a place for Japan in the international arena, suggesting a new system of business that exceeded class barriers. It was based on new knowledges that had made European countries affluent. His economic policies are particularly significant, in my opinion, because they are based on ideas that were very unusual in the Edo period.
2. 3 Conclusion
To conclude, I would like to point out the historical value of Hondas contribution to the understanding of the economy. This includes a discussion on the historical
background against which he propounded his theories and his views and theories regarding the economy itself, as analysed in sections 1 and 2. Section 1 has already explained Hondas conception of the economy as characterized by two features: (1) Honda believed that it was important to consider the relation between population increase and supply of goods, and (2) he stressed the importance of trying to predict and plan for future eventualities. Based on this conception of the economy, Honda also suggested a concrete economic policy, which has been explained in section 2.
This concrete economic policy constituted five features; in addition, it gave rise to three new valuable notions̶namely, that it was important to find a position for Japan in international society, that the economy as well as society would benefit if Japans rigid class system were to be reformed, and that important lessons could be learnt by applying Western knowledge to the benefit of the Japanese nation. All these notions were new at that time.
These notions, however, went against the traditional norms of the Edo era, as indicated in the following list.
(1) According to Hondas concrete policy, in order to find a position in international society, it was necessary for Japan to become a seafaring nation and focus on trade. This transformation, however, went against Japans policy of national seclusion (Sakoku).
(2) Honda suggested the reformation of the rigid class system in society so that various classes could pursue trading activities; however, this contravened the concept of the class system (Shi-No-Ko-Sho) that was prevalent at that time13）.
(3) In formulating his economic policy, Honda attached a lot of importance to Western knowledge because he believed it to be of much practical use, but this went against the exclusivist sentiments of the intellectual environment in Japan.
13） Hondas ultimate ideal was the economic prosperity, recovery by authority of samurai nevertheless.
Thus, the concrete economic policies that Honda proposed contravened the norms set by the political platform of the Tokugawa Shogunate. Moreover, his suggestions, if implemented, would have brought about sweeping changes to the closed social structure in Japan.
Hondas opinions were unusual for someone who lived in the Edo period14）. Although any criticism of the political system was an offence at that time and invited a criminal penalty, Honda did not suffer the wrath of the authorities because he was sensible enough to keep his unconventional opinions to himself. Therefore, Hondas economic policy was not adopted by the Tokugawa Shogunate during his lifetime.
However, we should note that there did come a time in Japan during the latter half of the nineteenth century̶years after Hondas death̶when Japanese economy had to open up to the world. Policies of the Meiji government promoted the import of knowledge and technology from Europe as Japan situated itself as a member of the international community. This principle of accepting products of Western civilization was a part of the movement for civilization and enlightenment (Bunmei Kaika). Moreover, the class system prevalent in the Edo era was abolished in the Meiji era, which ushered in the policy of allowing people to choose their own profession, under the principle of equality of all people (Shimin Byodo). These important policies, which heralded the modernization of the Japanese nation, are similar to the concrete policies proposed by Honda during the Edo period. In other words, Hondas suggestions were eventually put into practice by the Meiji government. Thus, we can say that with respect to the era in which he lived, Hondas thoughts were far ahead of the times.
In conclusion, I would like to emphasize that the historical value of Hondas economic thought, his understanding of the economy (Keizai) and his vision for its
14） Hondas final purpose was protection of the Shogunate system in essentials, therefore, a new economic policy was reasserting samurai’s authority.
development̶as evinced by the concrete economic policies that he suggested̶
were pioneering ideas in the formation of the modern Japanese nation.
3 Kanda Takahira (1830–1898) and His Contribution to Political Economy
(Minamimori Shigeta＊) The publication of Keizai Shougaku [Elementary Political Economy](1867) by Kanda Takahira is thought to have played a very important role in the introduction and development of economic thought in Japan, particularly with respect to the political economy. His translation was the first to introduce the political economy of England to Japan; in addition, it also was the first work that explained and established of the technical terms of political economy and economics in Japan.
Therefore, previous studies on Kandas contribution to economic thought have all extolled the virtues of his translation, and consequently, he has come to be regarded as the pioneering teacher of Western political economic thought. Because of this association, numerous studies have attempted to compare his thought with the Western thought of that time. Among these, many have identified a streak of liberalism in his thought15).
If we look at Kandas educational background, we learn that in his youth, he chiefly studied the principles of Confucianism [Jyu Gaku], after which he began to study the Dutch̶the language and the knowledge available through books in that language [Ran Gaku]16). In fact, most of Kandas contact with Western thought was through books written in the Dutch language. Therefore, it would be simplistic
＊ Minamimori Shigeta is majoring in the history of Japanese economic thought and is associated with the Graduate School of Economics at Kwansei Gakuin University, Nishinomiya.
15） Refer to Sumiya (1934), Hori (1935), Hori (1948), Tukatani (1960), Oshima, Kato, Ouchi (1972), and Honjo (1973) for their assessment of Kanda.
16） Refer to Kanda (1910) for more information on his educational and career background. However, please note that the book contains some obvious errors and inconsistencies.
to explain Kandas theories only by contrasting them with the idea of liberalism in England. Moreover, few researches have sought to clarify his interpretation of the political economic thought [Keisei-ron] as it had developed in Japan until then or its influence on the reception of Western economic thought. By studying these aspects, we can trace the historical path of the political economic thought, the development of political economy, and the study of economics in Japan dating back from the Edo era to the Meiji era, extending until the present.
This report elucidates the abovementioned aspects as follows. 3.1 contains a general overview of Kandas thought. In this section, I have described how Kanda, who valued the relationship between a ruler and his people, regarded government participation in economic activities and suggested what kind of role the government could play in them. 3.2 describes Kandas insight into the peoples current situation and his views on the enlightenment that was necessary for them. Based on the abovementioned considerations and after fully explaining the main features of Kandas economic thought, 3.3 concludes with a discussion on how Kandas thought contributed to the further development of political economic thought and political economy in Japan and how it shaped the future direction of economic thought.
3. 1 The development of Kandas economic thought
A general overview of Kandas economic thought indicates that above all, he wanted Japan to be as economically independent as possible; in order to achieve this independence, he believed that it was important to value public sentiment [Minshin]17). Even after the change in the political system as the Shogunate gave way to the Meiji government, Kanda consistently upheld this belief. For instance, in Noshoben [An Exposition on Agrarian and Mercantile Nations](1861), he discussed
17） Kanda has clearly mentioned this view in Nihonkoku Toukon Kyumu Gokajyo no Koto (1868).
the importance of politics based on humanity [Jinsei], through which the samurai seized power and became rulers, supported by public sentiment . Moreover, his writings̶both before and after the surrender of the Edo castle̶advocated the introduction of a conference system [Kaigi] through which the ruler could rally public support. With regard to economic thought, Kanda prioritized the tax policy, mainly because he considered a people-friendly tax policy to be crucial in rallying public support for the ruler, and tried to formulate a financial policy that minimized the peoples tax burdens of tax a minimum.
In that case, what were Kandas views on the economic situation of Japan? In Noshoben, he writes that farmers harvest the agricultural produce from land every year, workers manufacture various products from raw materials, and merchants carry these products to other regions for trading purposes (Kanda [1861] 1879, p.2). In other words, Kanda considered farmers, workers, and merchants̶who comprised the subjects [Shimo] in the class system of the Tokugawa Shogunate̶
to be the ones responsible for the economic activities of production and circulation of goods. In contrast, the samurai or the ruling classes [Kami] took care of politics and military affairs and levied taxes to procure money for these activities (ibid., p.2).
In this way, Kanda had considerable insight into the real state of the Japanese economy. He realized that certain taxes, especially the tax on rice [Beinou Nengu], had a negative impact on economic activity. He noticed that the tax system influenced peoples economic activities and the financial income of the government, and believed that continuing the policies of the current political dispensation, wherein the samurai comprised the ruling classes, would harm Japans future economic prospects and its independence. Moreover, he believed that merchants, who acquired the major share of profits in agriculture, industry and commerce, were in a better position to bear the brunt of the tax burden. Therefore, he insisted
that not agriculture but commerce made the source of tax revenue18).
A comparison between Kandas abovementioned reform plan and the other economists ideas on tax revision in the Edo era reveals three distinctive features pertaining to Kandas vision. First, since the other economists fiscal deficit cancellation plans were based on retaining the existing tax system, most of them agreed that the price of rice had to remain high. In contrast, Kanda suggested reforming and revolutionizing the entire tax system. If we think from the economists point of view, we realize that they might have retained the tax on rice because they knew that the revenue from rice, in fact, financed the Tokugawa Shogunate. Hence, they insisted that domestic industry was promoted and Japanese products were exported to other countries in order to achieve economic development. This is their common feature shared by the economists and Kanda.
However, while the former discussed what role the samurai could play in the management of the economy, Kanda focussed on the economic activities of private organizations. This was the second distinctive feature of his reform plan.
In this context, it is important to note that though the Tokugawa Shogunate and the various clans would have incurred considerable expenditure in adjusting the price of rice and encouraging peoples participation in economic activities, their actions would not have yielded a significant effect. Kanda recognized that the ruler would not be able to single-handedly supervise the market economy that had been formed in the Edo era. Therefore, in Noshoben, he proposed the policy of reducing the rulers participation in economic activities̶this was the third distinctive feature of his reform plan. He continued to advocate these ideas after the Meiji Restoration.
In concrete terms, he suggested that the annual government expenditure was reduced by simplifying the business administration of the taxation system.
18） Refer to Minamimori (2008b), for further details regarding Kandas tax reform ideas as mentioned in Noshoben.
In Tazei Shinpo [Reform Plans for Land Taxation](1872), Kanda insisted on the introduction of a tax based on land title certificates [Koken Zeihou] in order to simplify the tax-related business administration. His tax reform ideas were based on the following aspects. First, buying and selling of land, which was prohibited during the Edo era, should be permitted, with the issuing of a land title certificate for purchase or sale of each plot of land. Landowners should decide the price of their land, and taxes should be levied on the basis of this fixed price (Kanda 1872, pp.5–6). Second, the transfer of land titles should be managed by administrative units or public offices [Sho Yakusyo] set up for every five to ten villages; these offices should be entrusted with the responsibility of calculating the total price of land under their jurisdiction based on the average amount of tax revenue gathered from the tax on rice in the last 20 years. In this case, Kanda suggested calculating the tax rate by dividing the latter amount by the former sum ( pp.6–7). Moreover, he recommended that the payment of taxes was made in cash ( p.8). Based on these reforms suggested by Kanda and his critical view of the existing tax system, the Meiji government abolished the tax administration of the time.
In its place, the Meiji government instituted land-tax reforms [Chiso Kaisei] based on Kandas abovementioned suggestions. However, in the reforms instituted by government of the Meiji era, the government stipulated the price of land. This change required considerable expenditure and did not adequately reflect Kandas plans, which had aimed at simplifying the tax system and its administration. Therefore, on 26 September 1873, he sent another proposal to Mutsu Munemitsu (1844–1897), which he also made public in Nissin Shinjishi and Tokyo Nichinichi Shinbun under the title of Zeihou Shigen [My Personal Opinion on Taxes](1873).
Kanda discussed the land-tax reforms implemented by the Meiji government as follows. According to him, although the income tax [Shotoku Zeihou] is the best kind of tax to levy under the land taxation system, the land title certificate tax
[Chiken Zeihou] had to be introduced because the former could not be immediately implemented (Kanda 1872, p.2). According to Kanda, however, income tax should be levied on income accruing from the rent of land [Kosaku-Ryo]̶which he considered the proper basis for taxation. If this tax system were introduced, Kanda pointed out, the tax authorities would not need to calculate the price of land, because the tax rate would form a share of the lease contract. Moreover, the lease contract would be fixed on the basis of negotiations between the lessee, who would strive to pay the least rent, and the lessor or the landowner, who would try to get the highest amount of rent for his land. In this way, Kanda believed that the tax system and its administration would be simplified to a large extent. In short, he suggested the land-rent amount as the tax base in order to simplify the tax system.
Regardless of the political dispensation, Kanda believed that if his reforms were introduced, they would not only reduce the governments expenditure over tax collection but also indirectly benefit private economic activities that were obstructed due to the current tax structure. Of course, Kanda did not entirely oppose government intervention in economic activities; however, he stressed the immediate need to introduce his suggestions in order to tackle the gold and silver outflow problem that had emerged at the beginning of the Meiji era19). In addition, he recommended that the government developed iron mines, which would benefit national defence capabilities, in his Tetsuzan Wo Hirakuheki No Gi [proposal for the development of iron mines](1875). According to Kanda, these were economic problems that were closely related to the independence of the nation. Therefore, it would be difficult to solve them if they were wholly entrusted to private economic
19） At that time, Kanda published Shihei Hikikae Konganroku [Proposal to Convert to Paper Money] (1874), Syoukin Gaisyutsu Tansokuroku [Grief for specie outflow] (1874), Shihei Nariyuki Mousouroku [Future Prospects after Converting to Paper Money] (1875), Kahei Byokon Ryochisetsu [Proposal for Solving the Cash Inflow Problem] (1875), and Kaheiyonroku Fugen [Four More Articles regarding the Cash Inflow Problem] (1875) in Meiroku Zashhi. Refer to Minamimori (2008a) for his recommendations in these articles.
concerns. In such cases, Kanda emphasized the role of the government.
3. 2 The civilization theory of Kanda
Kanda believed that private economic activities were obstructed by the imposition of taxes. Therefore, he advocated an indirect tax reduction by reducing the fiscal expenditure. Moreover, his introduction of the idea of a budget system was another attempt to directly reduce taxation. This section provides further details on his fiscal contributions.
In Zaisei Henkaku No Setu [Proposal for Fiscal Reform](1874), Kanda explained the relationship between the people and the government as follows. The people contribute their salaries and other costs to employ the government, while the government receives these salaries and other costs in return for being employed by people (Kanda [1874] 1976, p.1). In an assembly, people demand that the government provide them administration for the next year, while the government provides reports of the last years administration to people (Kanda [1874] 1976, 1). It is in this context that we should evaluate the budget system introduced by Kanda. First, he proposed that people in charge of the governments finances should be elected from among the assembly members by popular vote; elected members should comprise the auditing bureau [Kaikei Kensa Kyoku] of the government (Kanda [1874] 1976, p.2). This bureau would be in charge of the expenditure budget.
Thereafter, Kanda suggested that the assembly discuss the expenditure budget by referring to the estimates of each ministry and those of the auditing bureau (Kanda [1874] 1976, p.2).
Second, Kanda proposed that while fixing the expenditure budget, the Diet should discuss and decide the organization of the revenue budget as follows. At the onset, the assembly should estimate the annual revenue that it cannot directly decide to increase or decrease̶that is, revenue from sources such as import and
export taxes, royalties, licensing taxes, and profits from government-owned land, mints, mines, postal services, railways, etc. This estimate should be deducted from the total expenditure budget. Thereafter, the assembly can decide to increase or decrease revenue from indirect taxation such as the tax on liquor, cigarettes, shipping etc.̶these estimates should also be deducted from the budget. The balance should be allocated according to the direct tax burden of each prefecture (Kanda [1874] 1976, p.2). In this respect, the local assembly of each prefecture should be responsible for deciding the taxes to be imposed on the towns and villages under its jurisdiction (Kanda [1874] 1976, p.2). A similar procedure should be followed the local government of each town and village, which should calculate the taxes payable by every household (Kanda [1874] 1976, p.2).
Following this process, in the next year, every household in every town and village should pay the stipulated tax to the local authorities. These taxes would be collected from each town and village and pooled at the prefectural level, and thereafter, from each prefecture they would be paid to the Ministry of Finance [Okura-Sho]. This ministry would then allocate finances to every other ministry, as part of the annual expenditure. This was Kandas conception of an annual budget (Kanda [1874] 1976, p.3). Finally, in the following year, each ministry should calculate its total amount of annual expenditure, and if this differs from the initial estimate, the ministry must provide reasons for the same to the auditing bureau. Thereafter, the national assembly must preside over the closing of accounts, during which the person in charge of the auditing must be able to explain the reason for the difference between the initial estimate and actual amount of annual expenditure. However, if the person is not able to explain this discrepancy, he should resign.
According to Kanda, introducing the budget system would reduce peoples tax burdens. Since the taxpayers representatives would be in charge of discussing and fixing the expenditure budget, they would try to reduce the annual expenditure as
much as possible, as also the tax (Kanda [1874] 1976, p.3). Moreover, this ensures that the administration does not end up abusing the national heritage and that the taxes paid by people will be used responsibly (Kanda [1874] 1976, p.4).
As mentioned above, after the Meiji Restoration, Kanda came to recognize the people as not only supporters of economic activities but also supporters of politics. Kanda pointed out that when ruler one-sidedly levied taxes on people for recovering enough money from them to repay the national debt, people developed a grudge against the current government (Kanda [1861] 1879, pp.8–9). He believed that this grudge had the power to drive the nations political will, which was what compelled European and American powers to invade other countries. In short, he recognized that national independence depended on the peoples political will.Therefore, shortly after the surrendering of the Edo castle, once it became obvious that the political dispensation of the samurai government has lost public support, in Edo Shichu Kaikaku Shikata-An [Ideas for the Administrative Reform of Edo City], Kanda suggested the establishment of a national assembly [Sodai Kaigi] consisting of the taxpayers representatives elected by the taxpayers̶that is, the landowners̶themselves (Kanda 1868, pp.2–3).
This view of Kandas̶where he positively admitted that it was people who supported the economy as well as the political system̶was an extremely unusual notion for that time. For instance, Yokoi Shonan (1809–1869), who had written Kokuze Sanron [Three Articles on the National Policy](1860) towards the end of the Shogunate, insisted that the samurais prerogative was to supervise peoples economic activities.
Under the Meiji government, his ideas resulted in the policy of increasing production in order to establish Japans business prospects. It was assumed, at this stage, that since the masses were not aware or civilized enough to think for themselves, it was necessary for the government to handle their affairs. Moreover, several intellectuals had misgivings regarding the peoples level of education and awareness; therefore,
they believed that it would be premature to establish a democratic form of government.
Moreover, many of the top governmental officials as well as intellectuals were beginning to identify civilization with Europeanization. Therefore, undertaking to civilize the masses would require considerable expenditure. Kanda, on the other hand, was in favour of educating people in order to win their political support by introducing the budget system and to promote patriotic feelings among them.
This interpretation of the civilization theory, which would not require much expenditure, was suggested by him in Kahei Byokon Ryochisetsu (Kanda [1875] 1976, p.8). In other words, Kandas reform measures were not only aimed at reducing government expenditure as much as possible but also attempted to cultivate or civilize people̶a policy that he believed was necessary for the independence of Japan.
3. 3 Conclusion
Kanda introduced the theories of Western political economy to Japan through the publication of Keizai Shougaku. In Hogo Motte Kyouju Suru Daigakko Wo Setti Suheki No Setsu [Proposal for Establishing a Japanese University], he stressed the importance of teaching economics that would be applicable to the circumstances in Japan (Kanda [1879] 1879, p.178). He suggested that the university promoted and encouraged talented persons to initiate business activities in the domestic sector.
In this way, Kandas views on the political economy were founded in the political economic thought of the Edo era.
In that case, how can we assess Kandas contributions to economics, political economy and the political economic thought in Japan? The rulers as well as the intellectuals in the Edo era had begun to recognize the development of a market economy; they believed that the samurai should exert their control over this
economy. Hence, they implemented economic policies wherein the price of rice was adjusted according to their wishes and trade was carried on under government control, supervised by the samurai. However, eventually the market economy developed to such an extent that it was impossible for the samurai to oversee it, and their continued attempts to control it necessitated considerable expenditure.
At this point of time, they realized the need for a policy change. Kanda, who was an economist at this very turning point, opined that it was necessary to reduce rulers participation in peoples economic activities. To be sure, Kandas economic thought mainly concerned the role of the government in the market economy. However, he did not provide a detailed analysis of the roles that could be played by other economic agents apart from the government. It was left to the next generation of Japanese economists to tackle this problem.
4 Aoyama Hideos (1910–1992) Socio-economic Thought and the Ethic Pertaining to Modernization
(Nishi Atsushi＊) In this report, I wish to examine Aoyama Hideos view of economy by analysing a series of his literary works, ranging from his pre-World War II to his post-war work. It is important to understand Aoyamas views regarding the connection between institutions and their ethic, because he considered that it was important to understand the economy according to such dual characters20).
Concerning Aoyama, thus far, previous studies have already discussed his early work̶that is, the study of monopoly (Aoyama (1937)) and the study of economic fluctuations (Aoyama (1949), (1950a))̶and his work on the social theory of Max
＊ Lecturer at Mie University; research field: history of Japanese economics.
20） Needless to say, the term ethic has a different meaning from the term ethics . Ethics is associated with conscious norms, while the word ethic is used to refer to the conscious and non- conscious norms that can influence the actions of people. It is similar to the concept of the ethos in German.
Weber (Aoyama (1950b)) is regarded as having reached a new milestone in the history of Japanese studies on Max Weber. In this way, Aoyamas contributions have already been analysed and assessed in each area of his exploration, be it economics or sociology.
However, there has been no research so far on the relation between Aoyamas contribution to economics and his study of Max Webers sociology. More particularly, the relation between his wartime studies on Webers sociology and his post-war study on business ethic is yet to be considered.
In the following sections, I will concentrate on this abovementioned aspect of Aoyamas work. Through this, I aim to shed some light on Aoyamas views on economy.
4. 1 General aspects of Aoyamas views on economy
Aoyama started his academic career by studying orthodox economics. However, as Japan entered the era of war, some non-scientific and vulgar beliefs were spread around in order to manipulate public opinion.
Aoyama could not have avoided the ultra-nationalists views; for instance, their views on history were as follows. They criticized orthodox economics for being an Anglo-American ideology and explained the history of the world as an irreversible process in which liberal economies became controlled economies. In order to refute the criticism of the ultra-nationalists, Aoyama began to write Kindai- kokumin keizai no Kozo (The Structure of Modern National Economy) so as to clarify the general features of the modern socio-economic structure.
Aoyama began by defining the concept of the modern national economy and described its characteristics as follows.
First, on the superficial level, it is immediately obvious that three main features̶that is, modern technology, nation states, and rational management̶
comprise the essence of modern society, whether it is a liberal economy or a controlled one (Aoyama (1948), p. 13).
In this manner, Aoyama negated the ultra-nationalists stand by defining the economy in modern society in terms of the abovementioned features.
In addition, Aoyama defined the modern national economy as a macrocosm of the economic actions of members in nation states (Aoyama (1948), p. 11) and summarized its features as characterized by systematism .
Systematism, according to Aoyama, implied that the economy of a modern society provides greater opportunities for computation, and national economic actions can be carried out at a highly rational level on the basis of strict computation (ibid. pp. 13–14).
More specifically, systematism refers to the rational basis for the bureaucratic management of the modern army, other bureaucratic systems, and companies21). While this rationality is a constant property of the modern economy, the presence of a liberal or controlled economy is a variable property. Regardless of whether economy is based on socialism or capitalism, such computational rationality is necessary to maintain affluence and efficiency in modern society.
For the reasons stated above, we can grasp Aoyamas concept of the economy as explained in his book, Kindai kokumin keizai no Kozo, as follows. Aoyama regarded systems in terms of how they could be used to upgrade the problem processing capacity of organizations; to be more precise, he considered what would improve the ability of functional groups to solve a number of problems (pertaining to administrative services, national defence, supply of goods and services, etc.) and realized
21） Here, Aoyama has used the term bureaucracy to refer to a certain type or form of power that exists in some groups: Of course, each group has its own predominant feature, but in modern society, regardless of its superficial appearance, each group has a common feature . Weber defined this common structure of power at the heart of modern groups̶including government offices, military, business organizations, educational establishments, political parties, etc.̶as being characterized by bureaucracy.
that a form of modern bureaucratic power could be used to enhance the efficiency of functional groups.
4. 2 From the general aspects to a particular aspect
From such a sociological standpoint, Aoyama delved deeper into the problem̶
in his book, he also attempted to determine a common mentality that constituted such groups.
In modern society, according to Aoyama, people are able to differentiate between the limitations imposed by their own selfish minds or the arbitrariness of a particular group or particular person and the larger aim of an organization;
they have the capacity to voluntarily inhibit their own selfish feelings and devote themselves to fulfilling the organizational aim. This particular type of stoic ethos or human type, in Aoyamas view, characterized the modern era. Aoyama went on to further qualify the human type that, according to him, facilitated the modernization of society as a business worker (Max. Weber)22).
As was generally known, according to Max Weber, the Protestant ethic played a large role in the emergence of such a human type in the West; however, there was no such Protestant ethic in Asia. Despite this, Japan was the first country in Asia to be modernized, and that too, rapidly. In that case, Aoyama wondered, what kind of mentality among the Japanese people led to this modernization? Aoyama believed that finding the answer to this would contribute to the modernization of other countries in Asia.
Aoyama read books such as Shinaron (The Discourse on China) by Naito Konan (1866–1934) and realized that nationalism played an important role in the emergence of such a human type in Asia (Aoyama (1944), p. 73, Aoyama (1948), p. 73). This was because in modern society, it is necessary to rule out the arbitrariness of a ruler
22） See Sato (1993) for such a structure of the distinctive abstinence.
or a particular group, step out of tradition, and stop organizations from being identified with an individual, and to achieve that end, society needed to look up to worthy persons who would voluntarily negate themselves and devote themselves to the public.
However, in the Protestant ethic, the relations between people and organizations were built independently of traditionalism, by complete thinking of original sin and by a denial of the worship of creature. Moreover, the ethic included a voluntary denial of selfish interests in order for a person to achieve salvation. To add to this, the Protestant ethic was consonant with the market ethic due to its advocacy of impersonal love for ones neighbour23).
However, according to Aoyama, nationalism in Japan did not function in this manner (Aoyama (1951)). In Japan, the prevalent idea of worship was associated with traditionalism and the patriarchal system̶that is, it was more concerned with personal and emotional power relations than with realism24). Such a situation generated a certain type of closed ethic wherein individuals were included in a collective identification with organizations, instead of breaking away from them. To this end, the denial of selfish interests was forcibly imposed, not voluntarily.
In addition, it was believed that common good necessitated a denial of private interest, which led to the development of a controlled economy in which the free market was straitjacketed under the pretext of protecting the nation from the volatility of free markets. In this way, the market ethic that blended in with the Protestant ethic was suppressed, and neighbourly love was interpreted as love for ones fellow man.
According to Aoyama, since the Meiji Restoration, the connection between nationalism and traditionalism defeated the transformation from the modernization
23） See Ohtsuka (1977), pp. 142–145 on this point. For his view of traditionalism, refer to Weber (1989), p. 63.
24） See Hashikawa (2005), p. 171 for the relation between nationalism and traditionalism.
from above to the modernization from below (in concrete terms, by the power of the private sector, for example, the free market)25).
4. 3 Aoyamas views on particular aspects of the economy
After the Second World War, Aoyama addressed the issue of whether it was necessary to control economy with a heavy hand. He became interested in the problem of how to transform the modern institutions that were introduced from above into those that could be controlled from below. In this context, he published a series of studies on business ethic, such as Bijinesu no Yogo (The Defence of Business) (Aoyama (1952)).
His findings in the above study were that there is no business ethic in Japan.
Generally, some countries other than Britain and the United States lack a business ethic, which is regarded with disfavour by the society. Contrary to expectation, such a situation is detrimental to not only economy but also society, culture, politics, and foreign diplomacy (Aoyama (1952), p. 2).
In the modern era, Aoyama argued, it is necessary to depoliticize economy, since that would negatively impact a countrys relations with other countries. In such an age, it is also necessary to acquire an appropriate business ethic. This was Aoyamas view, and he expected that the market ethic resulting from the network of selfish interests would eventually solve this problem.
Without doubt, each age has its own set of selfish interests, but these cannot all be called anti-traditionalist. According to Weber, commercialism can, at times, increase traditionalism.
However, commercialism is not the only feature of a modern market; on the contrary, the modern market is characterized by restraints on extreme
25） See Morishima (2004) for more information on the expressions modernization from above and modernization from below .
