OCR Specification focus:
‘growth of large businesses; naval development the 1889 Constitution’
Japan’s transformation in the late nineteenth century created powerful new industries, expanded military capacity, and forged an imperial navy central to its international ambitions.
The Rise of Large Businesses
The Zaibatsu System
The late Meiji period saw the rise of zaibatsu, powerful family-controlled industrial and financial conglomerates that dominated Japan’s economy.
Zaibatsu: Large family-owned corporate groups that integrated banking, manufacturing, and trade, and became central to Japan’s industrial and economic modernisation.
The most prominent included Mitsui, Mitsubishi, Sumitomo, and Yasuda. These groups enjoyed close ties with the government, securing access to capital, resources, and favourable contracts. They expanded into industries such as textiles, coal mining, shipbuilding, and finance, ensuring Japan’s economic self-sufficiency and global competitiveness.

An overhead view of Mitsubishi’s No. 3 Dry Dock (Nagasaki), part of the industrial landscape that enabled large-scale shipbuilding by zaibatsu-linked enterprises. It illustrates how private heavy industry underpinned naval expansion. Source
Government Support and Privatisation
The Meiji government initially invested heavily in industrial infrastructure such as railways, shipyards, and arsenals. However, from the 1880s onwards, many of these state enterprises were sold cheaply to private investors, often to families that later formed zaibatsu. This privatisation policy strengthened the private sector while maintaining government influence through subsidies and protective tariffs.
Expansion of Industry
Key industries flourished under the zaibatsu system:
Textiles: Silk and cotton production dominated exports, with Japan becoming the world’s leading silk producer by the early twentieth century.
Coal and Mining: Energy resources supported both industrial production and naval expansion.
Shipbuilding: Strategic to both commerce and military needs, supported by close government collaboration.
Finance: Integrated banking arms allowed zaibatsu to control credit and investment, fuelling rapid growth.
Social and Economic Impact
The rise of large businesses reshaped society. Industrial growth generated urbanisation, as workers moved to factory centres. Labour unrest occasionally flared due to poor working conditions, but state policies repressed organised resistance. The concentration of wealth within the zaibatsu created a dual system of economic modernisation and entrenched inequality.
Naval Development
Strategic Importance of the Navy
Japan’s leaders recognised that naval strength was essential for both defensive security and imperial expansion. Surrounded by powerful European empires and the vast Pacific, Japan pursued a naval programme to rival Western powers. The navy became a tool of national prestige and a practical means of projecting power abroad.
British Influence and Modernisation
Japan looked to Britain, the preeminent naval power of the nineteenth century, as its model. British engineers, advisers, and ship designs heavily influenced Japan’s naval programme. British shipyards provided initial vessels, while Japanese yards gradually developed the capacity to construct warships domestically.
Key Developments
Yokosuka Naval Arsenal: Expanded into a major shipbuilding facility, producing modern steel-hulled ships.
Naval Academies: Established to train officers in modern tactics and engineering.
Technological Adaptation: Emphasis on importing cutting-edge gunnery, armour, and propulsion systems.
The expansion of coal supplies and domestic iron production further supported naval modernisation.

IJN Matsushima in Tategami drydock, Nagasaki during the 1890s, showing Japan’s ability to build and service modern steel warships. Drydocking scenes highlight industrial infrastructure—hull, guns, and dock machinery—integral to Meiji naval power. Source
Strategic Victories
The navy’s strength became evident in later conflicts:
The First Sino-Japanese War (1894–1895) showcased Japan’s ability to defeat China at sea.
The navy’s expansion laid the groundwork for success in the Russo-Japanese War (1904–1905), although this lies beyond the scope of this subsubtopic.
These victories legitimised Japan’s naval ambitions and reinforced its status as a major power.
The 1889 Constitution and Military Autonomy
The Constitution of the Empire of Japan
Promulgated in 1889, the Meiji Constitution formalised the political system. While inspired by Prussian constitutional monarchy, it granted significant authority to the Emperor and institutionalised the military’s privileged position.

A contemporaneous ukiyo-e print depicting the public ceremonial promulgation of the Meiji Constitution (1889). It visualises the constitution’s imperial authority, which underpinned the army and navy’s privileged status. The image focuses on the imperial rite; any decorative detail reflects period print conventions, not legal text. Source
Meiji Constitution (1889): The legal framework of the Japanese state, establishing a constitutional monarchy where the Emperor held supreme sovereignty, including control over the armed forces.
Military Independence
The constitution placed both the army and navy directly under the Emperor’s command, independent of the elected government. This ensured that military policy was insulated from civilian control, reflecting Japan’s prioritisation of national defence and expansion.
Connection to Economic Growth
The zaibatsu and naval development were interconnected. Large businesses supplied essential industrial and financial resources, while the state’s focus on naval expansion ensured a consistent demand for shipbuilding, metallurgy, and coal. In turn, the military shielded Japan’s economic interests abroad.
Interrelationship of Business and Naval Power
Industrial-Military Complex
The partnership between zaibatsu and the state can be described as an early form of an industrial-military complex, where economic strength and military power reinforced one another.
Zaibatsu provided funding, resources, and technological innovation.
The Navy secured maritime trade routes and access to overseas markets.
The State mediated between them, fostering both growth and military preparedness.
National Identity and Prestige
Naval victories and economic expansion fuelled Japanese nationalism. The public celebrated the achievements of industrial progress and military success, viewing them as proof that Japan had achieved parity with Western powers. The Constitution underpinned this by reinforcing the Emperor’s symbolic role at the centre of both national prosperity and military might.
FAQ
While the Meiji government relied heavily on domestic revenue, foreign loans and imported technology were essential in the early phases of industrialisation.
Zaibatsu such as Mitsubishi benefited by acquiring government-owned enterprises, often built with foreign expertise and funded by overseas credit. Once privatised, these businesses used their control of finance and banking arms to reduce dependence on external borrowing. By the 1890s, zaibatsu were largely self-sufficient, but their origins were closely tied to global financial links.
Mitsubishi’s Nagasaki shipyard is the clearest example, where private investment and state contracts merged.
The government awarded Mitsubishi exclusive contracts for warship construction.
Shipyards doubled as centres for commercial and military shipping.
Profits from naval contracts funded further zaibatsu expansion into banking, mining, and steel.
Thus, shipbuilding became both a commercial enterprise and a patriotic duty, cementing the zaibatsu–navy partnership.
Britain was the world’s leading naval power and had unmatched expertise in warship design, naval training, and overseas bases.
Japanese leaders valued Britain’s global reach and sought to emulate the Royal Navy’s ability to protect trade routes. Unlike France or Germany, Britain also maintained extensive trade with Japan, strengthening diplomatic and economic ties. This combination of prestige, practicality, and partnership made Britain the natural template.
Naval growth spurred rapid urbanisation and industrial concentration along the coast.
Yokosuka and Kure grew into naval bases and arsenals.
Nagasaki thrived around Mitsubishi’s shipyards.
Employment opportunities drew skilled labour and foreign advisers.
These cities became symbols of modernisation, with ports, factories, and new infrastructure. However, they also experienced overcrowding, labour unrest, and greater state surveillance due to their strategic importance.
The Constitution created tension by making the military directly responsible to the Emperor, bypassing the Diet.
Civilian politicians had little control over defence spending or strategy. Cabinets could be paralysed if the army or navy withheld appointing a minister, as these posts had to be filled by serving officers. This imbalance increased the military’s leverage in politics, ensuring that naval and industrial priorities remained central to state policy.
Practice Questions
Question 1 (2 marks)
Identify two major zaibatsu that emerged in late Meiji Japan.
Mark scheme:
1 mark for each correctly identified zaibatsu (any two from):
Mitsui
Mitsubishi
Sumitomo
Yasuda
(Max 2 marks)
Question 2 (6 marks)
Explain how the 1889 Constitution contributed to the development of Japan’s military power in the late nineteenth century.
Mark scheme:
Up to 2 marks for identifying relevant features:
The Constitution placed the army and navy directly under the Emperor’s control.
It gave the military independence from elected government oversight.
Up to 4 marks for explanation and analysis:
1–2 marks for linking constitutional arrangements to the growth of military influence (e.g. autonomy allowed the navy to pursue expansion and modernisation without civilian restraint).
1–2 marks for showing how this autonomy reinforced Japan’s naval development (e.g. direct imperial command encouraged investment in shipbuilding, gunnery, and naval academies).
Indicative content may include reference to:
The Emperor’s role as supreme commander.
The political elevation of the military within the state structure.
The connection between constitutional authority and Japan’s emergence as a naval power.
(Max 6 marks)