Cologne/Bonn Map on As manifested by the example of the textile industry, the institutional system of early Japanese capitalism that made possible this success had very little in common with some widespread notions about it. Until the 1930s, government intervention into the economy was limited. Even the banking system was almost unregulated, and it did not play an important role in financing industrial development anyway. Successful Japanese firms relied on equity issuance to finance investment. Shares were purchased by wealthy people with high reputations in the business community, who personally knew and monitored the management and the engineering personnel of firms they owned. This hands-on style by reputable owners, and the prospect of high dividends, encouraged small investors to also purchase shares, creating the basis for business expansion. The tragedy of narrow nationalism. Cologne/Bonn Map 2016.
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