PALGRAVE STUDIES IN ECONOMIC HISTORY CONFUCIAN CAPITALISM Shibusawa Eiichi, Business Ethics, and Economic Development in Meiji Japan John H Sagers Palgrave Studies in Economic History Series Editor Kent Deng London School of Economics London, UK Palgrave Studies in Economic History is designed to illuminate and enrich our understanding of economies and economic phenomena of the past The series covers a vast range of topics including financial history, labour history, development economics, commercialisation, urbanisation, industrialisation, modernisation, globalisation, and changes in world economic orders More information about this series at http://www.palgrave.com/gp/series/14632 John H. Sagers Confucian Capitalism Shibusawa Eiichi, Business Ethics, and Economic Development in Meiji Japan John H. Sagers Linfield College McMinnville, OR, USA Palgrave Studies in Economic History ISBN 978-3-319-76371-2    ISBN 978-3-319-76372-9 (eBook) https://doi.org/10.1007/978-3-319-76372-9 Library of Congress Control Number: 2018944677 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations Cover illustration: travelbild-asia / Alamy Stock Photo Printed on acid-free paper This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland For Wendy Preface In the 150th year since the Meiji Restoration, it seems especially appropriate to revisit the ideas of Shibusawa Eiichi, whom many have called the “father of Japanese capitalism.” His life story and his call for a “unity of morality and economy,” which I have called Confucian capitalism, encompassed many of the ideals and contradictions of the Meiji Restoration itself My own perspective on the Meiji Restoration has evolved significantly in the last 30 years When I first started to study Japanese history in the mid-1980s, the Bubble Economy was cresting and accounts of Japan’s rise as an economic superpower were classic success stories Through hard work, institutional innovation, and some measure of good fortune with favorable economic conditions in the Cold War, Japan had emerged from its catastrophic defeat in the Second World War to become the world’s second largest economy As an undergraduate, I became fascinated with the Meiji Restoration and the story of Japan’s first industrial revolution, in which, as was often said, the Japanese people turned their country from an isolated agricultural society into an industrial power in less than a generation With the bursting bubble in the 1990s and deeper study in graduate school, many of the Meiji Restoration’s contradictions and problems became apparent My doctoral dissertation, which became the Origins of Japanese Wealth and Power: Reconciling Confucianism and Capitalism, vii viii  Preface 1830–1885, explored the evolving economic thought of several leaders in the Meiji government This book argued that these leaders essentially accepted market capitalism as the means to achieve national objectives defined primarily in terms of military security Accepting the market meant overcoming the Confucian moral bias that the samurai class had against the merchant class and commercial profits To explore this theme from the perspective of the private sector, I have focused in this book on the financier and industrialist Shibusawa Eiichi I was drawn to Shibusawa because he was among the most prolific and successful entrepreneurs in modern industry during the Meiji era who championed the Analects of Confucius as his moral guide When many leaders in modern intellectual and business world were looking to the West for inspiration, Shibusawa continued to insist on Confucianism as a foundation for business ethics The topic of business ethics is often a cause for skepticism for good reason Competitive pressures can drive out of business those leaders who incur additional costs when trying to move beyond legal compliance in providing benefits to employees and the wider community It is hard to believe that people will engage in one set of behaviors when the capitalist system rewards another set In Shibusawa’s case, I think the answer lies in the nature of his business As a capitalist promoter who assembled investors for a large number of new ventures, his business success depended upon trust His Confucian capitalism provided a vision that united a network of investors who worked with Shibusawa in a long series of transactions By creating and maintaining this network on the basis of shared ethical commitments, Shibusawa contributed greatly to Japan’s Meiji economic development in the late nineteenth and early twentieth centuries Presently, after decades of slow growth and a series of government and corporate scandals, there are renewed calls for political and economic reform The close government-business ties that characterize the “developmental state” or “Japan, Inc.” and that were effective when Japan was importing and adapting technology from other parts of the world now stand in the way of innovation and growth Shibusawa Eiichi today can be seen as a contradictory symbol On one hand, he was the “father of Japanese capitalism” and Japan’s first “salaryman” professional manager  Preface     ix who helped build a system that now needs to be dismantled On the other, he was a Confucian capitalist for whom economic success was simply the means to ethical and humanistic ends Note that Japanese, Chinese, and Korean names have generally been given in the customary order of family name first Macrons on long Japanese vowels have not been used in the main text, but keywords have been given with macrons and kanji characters in the glossary McMinnville, OR, USA John H. Sagers Acknowledgments I would like to thank the Japan Foundation for the Short-Term Research Grant that launched this project I am also grateful to Rikkyo University in Tokyo and to Professors Igarashi Akio and Mark Caprio for their warm hospitality and gracious assistance on several research trips to Japan The Shibusawa Eiichi Memorial Foundation and Museum has been most supportive and has welcomed me into their network of scholars Their kind invitations to participate in international conference panels allowed me to gain a much broader perspective on Shibusawa Eiichi’s life and work The Shibusawa Museum also graciously provided most of the photographs that appear in this book Thanks especially to Shibusawa Masahide, Komatsu Jun’etsu, Kimura Masato, Inoue Jun, Koide Izumi, Kato Ruri, and Kuwabara Koichi for their kind assistance and encouragement at various stages of this project Discussions  and conference panels with fellow scholars of Japanese economic and business history have been most helpful Thanks to Steven Bryan, Simon Bytheway, Martha Chaiklin, Jeffer Daykin, Steven Ericson, Kaitlin Ferber, Janet Hunter, Kikkawa Takeo, Kim Myungsoo, Mark Metzler, Kenneth Pyle, Shimada Masakazu, Richard Smethurst, Tanaka Kazuhiro, Tao Demin, Peter Von Staden, David Wittner, and Yu Chen for helping to shape my thinking xi 230  J H Sagers There will also need to be a greater culture of risk-taking and entrepreneurship In 1992, Harvard Business Review interviewed Son Masayoshi, founder of Softbank Son described how he emerged as an outsider and had to fight business and government hierarchies to be successful Son also noted the difficulty of hiring employees in Japan where the most successful students seek jobs in large companies or the government After Softbank was established, recruiting became easier and more people were willing to join and work on creative new projects To succeed he noted, “We have to be innovative both in our products and in how we business.” Son’s story tells us that it is possible to be successful by constantly looking for ways to improve; forming partnerships with people who have the know-how, and securing financial backing either with one’s own funds or outside investors (Webber 1992) In addition to Softbank, there are other examples of successful entrepreneurship in Japan Scholar Kathryn Ibata-Arens has documented how the Ministry of Economy, Trade, and Industry (METI), has attempted to promote more entrepreneurial dynamism in Japan The Kyoto area with Kyocera, Samco, and other innovative firms is one shining success story that has been difficult to replicate in other regions METI has promoted the diamond-cluster idea of Harvard Business professor Michael Porter to facilitate regional innovation, but these efforts have fallen short Ibata-­ Arens argues that METI has been quick to establish new formal rules and institutions, but has failed to adequately understand the softer side of informal social networks Regional rather than national focus seems to hold the most promise for the future Some measure of civic-mindedness combined with technical expertise and coalitions of stakeholders are ingredients for successful initiatives in Kyoto As Ibata-Arens concluded, “At the core of these innovative regions are civic entrepreneurs, embedded with certain informal institutional arrangements, including ­innovative coalitions of local stakeholders.” Innovative small firms have struggled against the abuses of the keiretsu corporate group-dominated system as large firms exploit their exclusive relationship with suppliers Networks, rather than hierarchies, are preferred if companies are to maintain any innovative spirit (Ibata-Arens 2005, 102, 111, 159, 205–209) Successful reform attempts in the Japanese economy will also have to include entrepreneurial efforts on the part of Japan’s universities Before   Purposeful Preservation of Shibusawa Eiichi’s Legacy    231 changes in Japan’s intellectual property laws in 1999, innovations and discoveries made in publicly funded university laboratories belonged to the national government and there was little incentive for faculty and students to patent their ideas To increase the role of universities in technological innovation, the Japanese government in the 1980s encouraged links between companies and university researchers, but these efforts were generally unsuccessful as the incentives for actual cooperation between university and corporate personnel was weak With a series of legal reforms and administrative policies, the government has encouraged greater university-industry cooperation over the last two decades Although the number of start-up companies based on university discoveries has increased, problems remain as large companies still control the great majority of joint research projects with universities (Shi and Yonezawa 2012, 367–85) Entrepreneurial education is now increasing in Japan with more universities offering courses covering topics associated with starting new businesses Even so, the traditional system of recruiting new college graduates into existing firms does not encourage students to create new businesses, but rather to rush into well-established large companies To encourage greater entrepreneurship in Japan, government, universities, and industries must coordinate their efforts to nurture and reward creativity, scientific research, innovation, risk-taking, and founding new businesses (Shi and Yonezawa 2012, 382) Some theorists have proposed that “nine Fs” are necessary for successful entrepreneurship: Founders who provide entrepreneurial leadership, companies focused on narrowly defined niche markets, fast decision-­ making and implementation, companies that are flexible and responsive to change, forever-innovating, flat organizations with few layers of management, frugal with resources keeping costs down, friendly with ­employees and partners, and are fun workplaces with a lot of creative energy Smaller companies can respond more quickly to changes in technology and markets than big organizations encumbered with many levels of management Large companies are increasingly depending on partnership with smaller entrepreneurial firms for innovation (Bygrave 1997, 25–26) 232  J H Sagers Future success may require dismantling the bureaucratic capitalist model of hierarchical industrial groups to form more loosely integrated series of networks Survival in a competitive marketplace demands competence, hard work, and attention to profitability Shibusawa’s story can inspire a new generation of business leaders who are working to overcome older hierarchical patterns within the Japanese economy Government, business, and universities must work together to encourage further growth in entrepreneurship to respond to the challenges of the future In spite of criticisms of Japan, Inc., Shibusawa’s image today is generally positive The Shibusawa Foundation’s Reference Book on Shibusawa Eiichi recounts some of the highlights of his memory With nearly 500 corporations and 600 public welfare organizations, Shibusawa was called the “1000 armed Kannon of the business temple” or the “jack of all trades of the business world” during his lifetime because he seemed to have a hand in just about everything For Shibusawa, business in Japan was a new field and any new enterprise required supporting industries like paper and bricks or infrastructure development of railroads and harbors to develop The narrative of Shibusawa’s life story illustrates a number of tensions in the history of Japanese business ethics and economic development He was a vocal follower of Confucianism while supporting liberal reforms that undermined the Tokugawa Confucian order in both politics and economy His businesses depended on personal relationships with government leaders while he criticized the arrogance and inefficiency of bureaucratic involvement in the economy He was also a critic of the zaibatsu system of crony capitalism while depending on Mitsui money to start Dai-Ichi Bank Confucians might object to his leaving his father’s business or abandoning his first son Tokuji as lapses in filial piety, but he justified these in terms of a higher loyalty to the state Because his story was complicated and multi-faceted, he is of enduring interest to many in Japan who also face dilemmas of how to behave ethically when there is extreme competitive pressure in the workplace In 2007, Lawson convenience store President and CEO Niinami Takeshi stated in that company’s annual report, “The entrepreneur Eiichi Shibusawa, who is known as the ‘father of Japanese capitalism,’ summed this up effectively… As he said, I think that management which skillfully   Purposeful Preservation of Shibusawa Eiichi’s Legacy    233 balances a Japanese-style corporate culture with global economic rationalism is the source of stable, long-term growth” (Lawson Japan 2007, 9) Here, Niinami did not explicitly endorse Confucianism as a moral guide, but he found Shibusawa’s ideas helpful in thinking about how to maintain Japanese values while competing in global markets Since the economic bubble burst in the early 1990s, few have advocated for Confucian capitalism or a return to the developmental state Instead, most argue that structural reform is needed to dismantle the close government-business relations that have stopped serving their purpose To this end, the Shibusawa Eiichi Memorial Foundation has hosted seminars on business ethics and entrepreneurship to discuss how business leaders might assume a greater role in planning for the future of the Japanese economy and what principles should guide them in the absence of government leadership Shibusawa Eiichi’s quest to unite morality and economy is still inspiring to many References Allinson, Gary D 1987 Japan’s Keidanren and Its New Leadership Pacific Affairs 60 (3): 385–407 https://doi.org/10.2307/2758880 Bygrave, William D 1997 The Portable MBA in Entrepreneurship New York: Wiley Chikudate, Nobuyuki 2002 Collective Myopia and Disciplinary Power behind the Scenes of Unethical Practices: A Diagnostic Theory on Japanese Organization Journal of Management Studies 39 (3): 289–307 Hirai, Yuichiro, and Tomokazu Takada, eds 2014 Kioku to Kiroku No Naka No Shibusawa Eiichi Shohan ed Tokyo: Hosei Daigaku Shuppankyoku Hurst, Daniel 2018 Japan Cronyism Scandal Linked to Shinzo Abe and Wife Worsens with Suicide Note The Guardian http://www.theguardian.com/ world/2018/mar/16/japan-cronyism-scandal-linked-to-shinzo-abe-and-wifeworsens-with-suicide-note Ibata-Arens, Kathryn C 2005 Innovation and Entrepreneurship in Japan: Politics, Organizations, and High Technology Firms New York: Cambridge University Press Institute for the Study of Japanese Folk Culture 2018 Keizo Shibusawa and the Attic Museum http://jominken.kanagawa-u.ac.jp/en/about/03.html 234  J H Sagers Johnson, Chalmers 1982 MITI and the Japanese Miracle: The Growth of Industrial Policy, 1925–1975 Stanford: Stanford University Press Katagiri, Nobuo 1999 Gaikan 91 Nen no Shogai to Sono Jiseki In Koeki no Tsuikyusha Shibusawa Eiichi: Shinjidai no Sozo, 3–24 Tokyo: Yamakawa Shuppansha Latz, Gil, ed 2014 Rediscovering Shibsawa Eiichi in the Twenty-First Century Tokyo: Shibusawa Eiichi Memorial Foundation Lawson, Inc 2007 Annual Report 2007 Tokyo: Lawson, Inc http://www.lawson.co.jp/ Lincoln, Edward J 2001 Arthritic Japan: The Slow Pace of Economic Reform Washington, DC: Brookings Institution Press Morikawa, Hidemasa 1976 Shibusawa Eiichi—Nihon Kabushiki Gaisha No Soritsusha In Nihon No Kigyo to Kokka, Nihon Keieishi Koza, vol Tokyo: Nihon Keizai Shimbunsha Obata, Kyugoro 1938 An Interpretation of the Life of Viscount Shibusawa Tokyo: Zaidan Hojin Shibusawa Sei-en o Kinen Kai Ryumonsha, ed 1955 Shibusawa Eiichi Denki Shiryo 58 vols 10 supplementary vols Tokyo: Shibusawa Eiichi Denki Shiryo Kankokai Sano, Shin’ichi 1998 Shibusawa-ke Sandai Tokyo: Bungei Shunju Shi, Lili, and Akiyoshi Yonezawa 2012 Innovation and Entrepreneurship: Trials of Japanese Universities Globalisation, Societies and Education 10 (3): 367–385 Webber, Alan M 1992 Japanese-Style Entrepreneurship: An Interview with Softbank’s CEO, Masayoshi Son Harvard Business Review, February Wilson, William T 2015 Japan Needs Real Economic Reform 163 Special Report Washington DC: Heritage Foundation http://report.heritage.org/ sr163 Yamamura, Kozo 1974 Study of Samurai Income and Entrepreneurship Cambridge, MA: Harvard University Press Glossary Sino-Japanese war Russo-Japanese war Tokuawa (Edo) era Meiji era Taisho era Showa era bunmei kaika bushidō chōnin Chūgai Shōgyō Shinpō (1894–1895) (1904–1905) (1603–1868) (1868–1912) (1912–1926) (1926–1989) Civilization and Enlightenment movement The Way of the Warrior Merchants in the Tokugawa period Domestic and Foreign Commercial News CSR Corporate Social Responsibility Dai-Ichi Ginkō First Bank Dai-Ichi Kokuritsu Ginkō First National Bank daimyō dōtoku keizai gōitsu Feudal lord Unity of Morality and Economy fukoku kyōhei Wealth and power, literally rich nation, strong military Wealth and strength, a contraction of fukoku kyōhei Joint-stock company Word Shibsuawa used for cooperative capitalism Returning virtue or repaying moral debts fukyō gappon kigyō gapponshugi Hōtoku © The Author(s) 2018 J H Sagers, Confucian Capitalism, Palgrave Studies in Economic History, https://doi.org/10.1007/978-3-319-76372-9 武士道 町人 中外商業 新報 第一銀行 第一国立 銀行 大名 道徳経済 合一 富国強兵 富強 合本企業 合本主義 報徳 235 236  Glossary Japan, Inc Jitsugyō no Nihon jitsugyōka kagyō Kaitokudō kanson minpi Kantō Keidanren keiretsu keisei saimin keizai Kinai kō Kōgyō Iken kokueki kokutai Kyōchōkai ōdō Rongo Rongo Kōgi Rongo to Soroban ryō ryōgae Ryūmon Zasshi Ryūmonsha samurai Seien Shibusawa Eiichi Denki Shiryō shidō shihonshugi shikon shōsai shishi Japan, Incorporated – Pejorative term suggesting that Japan’s government is so close to big business leaders that the whole country is run like a single corporation Business Japan 実業之日 本 Business person, literally person of 実業家 practical affairs Family business 家業 A merchant academy in Osaka 懐徳堂 Revere the government official, despise 官尊民卑 the people Region around today’s Tokyo 関東 Japan Business Federation 経団連 Corporate groups 系列 Order the realm and rescue the people 経世済民 Modern word for economics derived from 経済 keisei saimin Region around Kyoto 機内 Village cooperatives 講 Opinion on the Development of Industry 興業意見 National interest, benefit, or profit 国益 National body politic 国体 協調会 Cooperation Society to join government, management, and labor in solving labor disputes Way of (the ancient sage) Kings 王道 Analects by Confucius 論語 Lecture on the Analects 論語講義 The Analects and the Abacus 論語と算 盤 Unit of currency in the Edo era 両 Money changers 両替 Dragon Gate Magazine 竜門雑誌 Dragon Gate Society—Shibusawa’s study 竜門社 group or think tank Japan’s warrior elite Shibusawa Eiichi’s literary pen name 青淵 Shibusawa Eiichi Biographical Materials 渋沢栄一 伝記資 料 Way of the Warrior 士道 Modern word for capitalism 資本主義 Samurai spirit, merchant techniques 士魂商才 Anti-shogun imperial loyalist, literally a 志士 “gentleman of high purpose”  Glossary     shōgun shokusan kōgyō sonnō joi Takuzenkai Wakon yōsai Yōikuin zaibatsu Military ruler of Japan Promote production and encourage industry Revere the emperor and expel the barbarians Predecessor to Tokyo Chamber of Commerce, literally “Choose the Good Society” Japanese spirit, Western techniques A social welfare institution Shibusawa helped manage Large family-owned industrial groups 237 将軍 殖産興業 尊王攘夷 択善会 和魂洋才 養育院 財閥 Index A Allen, Horace, 162 Allied Occupation, 226 Analects, 7, 12, 30, 32, 33, 90, 92, 95, 105, 109, 114, 138, 170, 182, 183, 187, 192, 193, 199, 200, 210 Analects and the Abacus, 16, 35, 115, 186–197, 214, 229 Army, 9, 41, 42, 128, 133, 146, 161, 162, 213 Asano Soichiro, 76, 102, 104, 183 Ashio Copper Mine, 104 Asukayama, 171, 174, 195, 210, 213, 225 Awa indigo, 27 B Bank of England, 65, 70 Banks, 43, 51, 60, 64–72, 74–77, 80, 81, 98, 103, 105, 121, 131, 135, 136, 157, 160–165, 171, 176, 199, 223, 225–228 Berle, Adolphe, 156, 157 Brunat, Paul, 62 Buddhist, 19, 31, 32, 34, 40, 114, 191 Bushido, 48, 109, 110, 112, 147, 153, 176, 193, 212 C Capitalist manager, 98 Carnegie, Andrew, 155, 156, 175 Chamber of Commerce, 2, 57, 88, 90, 92, 108, 112, 129, 139, 142, 157, 158, 162, 166–168, 201 Chiang Kaishek, 171 Chiaraijima Village, 20 China, 8, 10–14, 32, 34, 41, 64, 78, 112, 113, 115, 120, 124, 131, 133, 134, 137, 140, 145, 147, © The Author(s) 2018 J H Sagers, Confucian Capitalism, Palgrave Studies in Economic History, https://doi.org/10.1007/978-3-319-76372-9 239 240  Index 148, 158, 159, 167, 168, 171, 172, 174, 177, 193, 197, 200, 204, 205, 212–214 Civilization, 43, 45, 62, 63, 93, 123, 125, 126, 154, 155, 158, 159, 167, 175, 176, 214 Civilization and Enlightenment, 12, 64, 87, 88, 123 Communists, 125 Confucian, viii, ix, 1, 8–15, 17, 19–24, 29–34, 39–42, 44, 48, 51, 61, 65, 85, 87, 88, 91–93, 95, 99, 101, 108–110, 112, 114, 115, 119, 123, 125–127, 138, 141–149, 153, 159, 165, 169, 175, 181, 182, 186, 187, 190, 192–194, 196, 197, 199, 200, 203, 209, 212, 215, 218, 221, 222, 226, 227, 232 Confucian capitalism, vii, viii, 1–17, 19, 51, 52, 65, 81, 85, 87, 108–115, 119, 151, 177, 181–215, 218, 233 Confucius, 8, 9, 14, 16, 24, 31–33, 38, 56, 79, 92, 105, 109, 112, 170, 183, 188–191, 193, 196, 201, 211–214, 220 Constitution, 124 Corporate Social Responsibility (CSR), 3–7, 106, 107, 156, 187, 194, 206, 221 Crony capitalism, 15, 101, 218, 220, 232 Crony capitalist, 96 Currency, 43, 120 Curzon, George, 167 D Dai-Ichi Bank, 2, 51, 52, 59, 64, 65, 67–72, 74, 88, 99, 103, 104, 107, 157, 159–161, 163–166, 168, 171, 181, 182, 199, 210, 211, 218, 219, 225–227, 232 Dazai Shundai, 34 Diet, 124 Dodd, E. Merrick, 157 Domain monopolies, 25 E Edo, 24–29, 34, 38, 48, 67, 80, 87–89, 92, 109, 113, 153, 198, 222 Edo Township Agency, 56, 92 Egypt, 160, 161 Entrepreneurship, 2, 7, 108, 121, 218, 225, 229–233 Ethics, viii, 2, 4–8, 13, 15, 16, 19, 32, 34, 35, 57, 88, 89, 91, 95, 106, 108, 112, 128, 143, 146, 148, 151, 153, 154, 156, 175, 189, 193, 194, 196, 217, 218, 232, 233 Exports, 135 F Fleury-Herard, Paul, 42, 43 Fukoku kyohei, 62 Fukuzawa Yukichi, 17, 87, 89, 159 Furukawa Ichibei, 68, 74, 77, 103, 104  Index     G Gapponshugi, 45 German Historical School, 140 Gold standard, 66, 86, 124, 134–138, 140, 149 Great Learning, The, 31, 109, 196 Gulick, Sydney, 152, 213 H Hadley, Arthur, 156 Han Feizi, Han Sangyong, 171 Hansung Bank, 171 Han Yu, 40 Hara Kei, 125 Heaven, 45 Hiraoka Enshiro, 39 Hitotsubashi, 39, 40, 46, 88, 89, 92, 199 Hokkaido, 96, 98, 103, 104, 128 Hotoku movement, 36 Humanism, 241 Inoue Kaoru, 52, 55, 65, 67, 69, 78, 103, 125, 160 Investment, 2, 6, 43, 55, 63, 69, 77, 78, 86, 88, 103, 107, 109, 119–149, 158, 161, 162, 170, 206 Investor manager, 98 Ishida Baigan, 34, 88 Ito Hirobumi, 52, 62, 65, 71, 78, 92, 125, 134, 160, 163, 164, 174 Ito Jinsai, 32 Iwakura Mission, 61–63 Iwasaki Yataro, 94, 95, 97–99 J Japan Mail Shipping Line, 98 Japan Sugar Company, 168–170 Jiji Shinpo, 148 Jitsugyo no Nihon, 108, 153 Jitsugyoka, 46, 85 Joint-stock companies, K I Imperial Hotel, 77, 102, 110, 129, 141, 210 Imperialism, 120 Imperial Rescript, 114, 123, 181 Imports, 135 Import substitution, 138 Indigo, 20, 21, 27–29, 31, 37, 48, 56, 144 Infrastructure, 54, 69, 78, 86, 92, 102, 107, 119–149, 208, 232 Kabutocho, 73, 210 Kaitokudo, 33, 34, 88 Kawase kaisha, 66 Keidanren, 222 Keisei saimin, 33, 34, 48, 192, 197 Keizai, 34, 194, 196 Kim Okkyun, 160 King Kojong, 160 Kingly way, 126 Knox, Philander, 172 Kogyo Iken, 121 242  Index Kokueki, 48, 74 Korea, 10, 14, 32, 64, 115, 120, 124, 130, 131, 140, 143–145, 159–168, 171, 172, 174, 214, 219 Kyodo Shipping Company, 98 Kyoto, 21, 23–26, 38, 39, 67, 77, 220, 230 L Labor unions, 203 Leaving Asia, 159 Legalists, 8, Lu Xun, 11 M Maeda Masana, 61, 120 Mainichi Denpo, 131 Masuda Giichi, 108, 153 Masuda Takeshi, 76, 103 Matsudaira Sadanobu, 24, 33, 56, 80 Matsukata Masayoshi, 61, 65, 75, 120, 134, 137, 161 Means, Gardiner, 156 Meiji, 22 Meiji Charter Oath, 10 Meiji Civil Law, 114, 125 Meiji Constitution, 123 Meiji Restoration, vii, 12, 21, 45, 51, 53, 54, 61, 65, 66, 79, 85, 86, 88, 89, 93, 94, 125, 154, 198, 199, 205 Mencius, 9, 126, 127, 159, 193 Merchants, 42 Militarism, 125, 145, 146, 194, 200, 214 Military buildup, 137, 140, 165, 175 Ministry of Agriculture and Commerce, 201, 222 Ministry of Economy, Trade, and Industry (METI), 230 Ministry of Finance, 2, 48, 53, 56, 58, 59, 65, 68, 69, 71, 76, 80, 96, 121, 163 Missionaries, 66, 152–154 Mito School, 14 Mitsubishi, 64, 94–99, 102, 107, 199, 219, 226 Mitsui, 64, 65, 67–69, 71, 73, 74, 77, 95–99, 102, 103, 107, 199, 219, 222, 226, 232 Mizuno Tadakuni, 25 Monopoly, 96 Morality, 15 Mutsu Munemitsu, 55 N Nakai Chikuzan, 24, 33 Nakamigawa Hikojiro, 98, 103 National Bank Act, 70, 76 Navy, 128 Nihonbashi, 73 Ninomiya Sontoku, 25, 35, 36 Nippon Yusen Kabushiki Kaisha, 98 Nishogakusha, 187 O Obata Kyugoro, 172, 213, 221 Odaka Atsutada, 30, 38, 92, 99, 210 Ogyu Sorai, 32, 33 Ohashi Hanshichiro, 160 Oji Paper, 71, 98, 102, 103  Index     Okubo Ichio, 45, 53, 80 Okubo Toshimichi, 55, 61, 65, 69, 79, 80 Okuma Shigenobu, 52, 53, 55, 65, 75, 78, 94, 160, 161 Ono group, 67, 74, 77, 104 Osaka, 23–28, 33, 67, 73, 88, 139, 229 Osaka Cotton, 138 243 138, 140, 143–145, 148, 149, 154, 166–168, 212 Ryogae, 67 Ryumonsha, 92, 111, 123, 128, 171, 181, 182, 187, 217, 218, 225 Ryumon Zasshi, 59, 92, 166, 175, 176, 204, 220 S P Paris, 1, 21, 41, 42, 44, 45, 58, 63 Peace Preservation Law, 125, 202 Pearson, Charles Henry, 167 Philanthropy, 156 Poverty, 209 Professional manager, 98 Protectionism, 138–141 Q Qin dynasty, Qing dynasty, 143, 167, 168 R Reform, 230 Reuters, 174 Revere the official and despise the people (kanson minpi), 37, 48 Roosevelt, Theodore, 147 Rules for Establishing Organizations, 58, 59, 61 Russia, 129, 137, 147, 148, 154, 163, 165, 166, 171 Russo-Japanese War, 86, 110, 112, 124, 125, 127, 129–132, 137, Saigo Takamori, 61, 78, 79 Saionji, 76, 146 Saitama Prefecture, 20 Sakatani Yoshiro, 163, 164 Sako Tsune, 169 Sako Tsuneaki, 169 Salvation Army, 213 Samurai, 23 San Francisco, 158, 168, 173 San Francisco earthquake, 168 Sapporo Beer, 102, 104 Satsuma Rebellion, 62, 65, 74, 75, 98 Securities and Exchange Act, 156 Seiyukai, Rikken, 125, 202 Seoul-Pusan Railroad Company, 162 Seventy Percent System (shichibun), 24, 80 Shand, Alexander Allan, 70, 71, 76 Shang, Lord, 8, Shibasaki Kakujiro, 171 Shibusawa Eiichi Memorial Foundation, 233 Shibusawa Kisaku, 99 Shibusawa Yoshimasa, 30 Shidehara Cabinet, 226 Shinto, 19 Shinzo, Abe, 229 244  Index Shishi, 30, 38, 39, 79 Shizuoka Commercial Association, 45, 47, 48 Shokusan kogyo, 62 Sino-Japanese War, 64, 115, 124, 127, 129, 131–134, 137, 144, 160, 164, 166, 212 Smith, Adam, 112, 113, 138, 187, 194, 195 Social welfare, 213 Social work, 208 Sonno Joi, 38, 79 Stories for a Rainy Evening, 71 Suez Canal, 42 Sumptuary laws, 25, 27 Sun Yatsen, 171 T Taguchi Ukichi, 108, 138, 141 Taiwan, 12, 15, 96, 120, 128, 129, 158, 176, 223 Takahashi Korekiyo, 129 Tanuma Okitsugu, 23 Tariffs, 139 Tax, 2, 10, 20, 23, 26, 27, 37, 51, 53–56, 69, 80, 107, 120, 128–130, 132, 139, 140, 143, 145, 146, 148, 165, 205 Tenpo Reforms, 25 Theory of Moral Sentiment, 138 Tokonami Takejiro, 203, 204 Tokugawa, 1, 19–48, 51, 53, 54, 57, 58, 60, 67, 72, 74, 80, 85, 87, 89, 99–101, 114, 147, 185, 187, 197, 199, 219, 232 Tokugawa Akitake, 41, 44 Tokugawa Yoshimune, 23 Tokugawa Yoshinobu, 21, 45, 53 Tokushima, 27, 28 Tokyo, 53, 57, 64, 68, 70, 73, 77, 80, 90, 92, 93, 97, 103, 106, 124, 143, 144, 168, 171, 208, 211, 213, 222 Tokyo Chamber of Commerce, 2, 57, 88, 90, 92, 108, 112, 139, 142, 157, 158, 167, 168 Tokyo Electric Light, 106 Tokyo Keizai Zasshi, 108 Tokyo Marine Insurance, 102, 103 Tomioka, 99 Tomioka Silk Filature, 63 Toyo Keizai Shimpo, 108, 141 Trade policy, 120 Trans-Siberian railroad, 148 Treaty of Portsmouth, 130 Treaty Revision, 139, 153, 154 Tsuchiya, Takao, 20, 30, 31, 37 U Ueda Sadajiro, 59, 112 Ultranationalism, 125 Unity of morality and economy, vii, 2, 16, 36, 187, 194, 201, 222, 233 V von Mollendorf, Paul Georg, 160 W Washington Naval Conference, 177 Way of Kings, 33, 196, 208, 221 Welfare, 127 Wilhelm II, Kaiser, 167  Index     Y Yamagata Aritomo, 78, 129 Yasuda Zenjiro, 77 Yawata Iron Works, 140 Yellow Peril, 167 YMCA, 213 Yoikuin, 80, 92, 206, 207 Yoshida Kiyonari, 61, 65, 66 Yu Chen, 95 Yu Dan, 13, 14 Z Zaibatsu, 226 Zhu Xi, 24, 31–33 Zumoto Motosada, 172 245 ... leaders in modern intellectual and business world were looking to the West for inspiration, Shibusawa continued to insist on Confucianism as a foundation for business ethics The topic of business. .. and changes in world economic orders More information about this series at http://www.palgrave.com/gp/series/14632 John H. Sagers Confucian Capitalism Shibusawa Eiichi, Business Ethics, and Economic. .. 1 Introduction: Shibusawa Eiichi and the Idea of Confucian Capitalism    1 2  Economic Change and Intellectual Innovation in Tokugawa Japan   19 3 Government Bureaucrats and Capitalist Institutions