PORTRAITS OF JAPANLESSONS FROMSHIBUSAWAEIICHITHE MAN WHO FORMED THE FOUNDATION
OF JAPANESE CAPITALISMSHIBUSAWA Eiichi—the industrialist who helped build Japan’s new economic system in the late 19th to early
20th centuries and who was involved in the establishment and management of nearly 500 companies. What lessons
are there to learn from this man, who made it his goal to build a fair and inclusive capitalist economy based on hisunwavering stance of placing importance on not only profits, but public interests as well?

The global economy isman who similarly pursued
now at a major turning
not only profits but also
point. Capitalism has long
public interests, aiming tobrought
prosperity
torealize a fair and inclusive
the world, and since theform of capitalism. This
1980s, neoliberalism, with
was SHIBUSAWA Eiichi,
its focus on free-market
an industrialist active fromcompetition, has been thethe late 19th to early 20th
wellspring for growth. Yet,centuries, and who is known
it also has increased poverty
as the “father of Japaneseand social disparities, andcapitalism.” At that time,
made the issue of climate
Japan was confronted with thechange more serious bydaunting task of rebuilding
placing larger burdens on
its political, economic, andA book compiling Shibusawa’s thoughts on various issues,
the natural environment. The Analects of Confucius and the Abacus, is still widely read tosocial foundations in order toAmid such a situation, the this day. Due to his contribution to Japan’s modern economy,
modernize the country after
he has been selected toworld has begun seeking out become the face of thethe end of more than 200a new model for capitalism. new 10,000-yen bill inyears of national seclusion in2024.
Prime Minister Kishida of FROM TOP : GETTY IMAGES,1854.
Japan, who assumed office in THE MAINICHI NEWSPAPERS
A key figure taking up thisOctober of 2021, announced
challenge was Shibusawa.
his determination to realize a “new form of Recognized at a young age for his resourcefulness,capitalism,” stating that the government will generate he was mandated by the government to travel togrowth by solving such issues as climate change, and Europe when he was 27 years old, where he witnessed
will distribute the fruits of this growth to human advanced industrial and economic systems. Upon hiscapital so as to achieve further growth. By creating return to Japan, he quickly climbed the bureaucraticsuch a virtuous cycle of growth and distribution, he ladder to become a high-ranking official in theaims to build a sustainable economy.
Ministry of Finance, but resigned at the age of 33 toMore than a century ago in Japan, there was a promote private-sector business. He then established

Left: June 1878, in the early days after the Tokyo Stock Exchange was opened as Japan’s first official stock-exchange organization. THE MAINICHI NEWSPAPERS
Right: Photo of Shibusawa (front row, third from the left) together with faculty members from Japan Women’s University at the time of its founding. In
addition to serving as president of this university, Shibusawa was the director of Tokyo Jogakkan Schools for Women, which he also helped to found.
JAPAN WOMEN’S UNIVERSITY

Japan’s first bank in 1873 and the stock exchange
in 1878. He applied himself to directing funds to abroad range of new industries, from sectors concernedwith infrastructure to textiles and insurance, and wasinvolved in the establishment and management ofnearly 500 companies.
“Many of the companies that Shibusawa helped
establish in a diversity of fields remain today. Thiscannot be found in any other country in theworld,” says Christina Ahmadjian, professor at
Hitotsubashi University Graduate School of Business
Administration, and the director of the Shibusawa
Scholar Program. Moreover, the world-renowned
economist Peter Drucker mentioned in his book, The
Age of Discontinuity, that “[Shibusawa’s] achievements
were a good deal more spectacular than those ofRothschild, Morgan, Krupp, or Rockefeller.”
Ahmadjian notes, “Rather than on profiting for
himself, his business ideas were always based on
how to create a society in which people are happy.
He believed in the power of business as the engine
to solve social problems and create a better world.”
What Shibusawa advocated was gapponshugi, which
can be defined as the pursuit of profits and theraising of capital through stock—similar in concept
to ordinary capitalism—while also calling for thepursuit of public interests and the distribution ofprofits to all stakeholders. “Shibusawa’s goal was tocreate a fair and inclusive economy that would enrich
the lives of a broad range of people and provide themwith various opportunities,” says Ahmadjian.
Believing that nurturing talent for new businesses
would lead to the creation of a prosperous nation,

Shibusawa also focused on education. He establishedmany schools specializing in business, including theCommercial Training School (now HitotsubashiUniversity), and gave lectures and guidance at variousorganizations and meetings. Additionally, so thatwomen—who make up half of the population—couldcontribute more to society, he also advocated thenecessity of their higher education and supported
the establishment of such schools as Tokyo Jogakkan
Schools for Women and Japan Women’s University.
According to Ahmadjian, “Looking now at the SDGs,
you can see that Shibusawa had already put most ofthem into practice, including gender equality. The
essence of the challenges facing human society is thesame in any era. Shibusawa was able to grasp thatessence.”
How can we create a world that will bring happinessto people? As new ordeals shake the global economy,
now may be the time for us to look to Shibusawa’s
doctrine for new hints on how to address this basicquestion. Christina Ahmadjian, professor at
Hitotsubashi University Graduate
School of Business
Administration, and the directorof the Shibusawa Scholar
Program, which has the goal of
nurturing global leaders. “Now,more than ever, the world needs
leaders like Shibusawa,” she says.
“Shibusawa is a really good rolemodel, not just for his visions butfor his ability to act on them. Theworld has a lot to learn from him.”