Japan’s rise as an economic superpower in the 20th century has often intrigued scholars of religion and ethics. Did traditional Buddhist values play a role in shaping the nation’s modern identity? Could Buddhism, long seen as inward-looking and renunciatory, coexist with capitalism and industrial strength?
The answer is complex, but revealing.
During the Tokugawa period (1600–1867), Japan was relatively closed off from the outside world. The country experienced peace after centuries of civil strife, and the shogunate established a rigid social order underpinned by Neo-Confucian ideology. Buddhism was supported by the state, but was often seen as secondary to social and political control. Still, it played a subtle role in shaping public morality and spiritual life .
Following the Meiji Restoration (1868), Japan underwent rapid modernization. The government began to distance itself from Buddhism, accusing it of being otherworldly and outdated. Yet Buddhism adapted. It sought to demonstrate its value to the nation by emphasizing moral education, public service, and spiritual protection. Some reformers within Buddhism also embraced modernization for its own sake, seeing it as a means to renew the tradition’s relevance .
Buddhism’s influence was not always direct. Winston Davis suggested that it contributed to Japan’s modernization not by actively promoting capitalism, but through “passive enablement.” That is, Buddhism didn’t stand in the way of economic growth. Its values of social harmony, frugality, diligence, and discipline were useful in supporting social cohesion during rapid change. In this way, Buddhism became part of the ethical backbone that underpinned Japan’s industrial boom .
One of the most compelling expressions of modern Buddhist engagement in Japan has come through new religious movements, particularly the Sōka Gakkai. A lay-led Nichiren Buddhist organization, Sōka Gakkai dropped many traditional rituals and focused on education, civic engagement, and economic empowerment. It runs schools, a university, art museums, and a national newspaper, while also offering legal advice, advocating social reform, and sponsoring labor and student movements that blend capitalist and socialist ideals .
Through this, Buddhism in Japan has shown an ability to balance traditional values with modern realities. While some urban populations drifted toward secularism, others found in Buddhism a sense of purpose, discipline, and ethical grounding in a competitive world.
Critically, the Japanese case challenges Weber’s thesis that Buddhism lacked the rational, this-worldly asceticism needed for capitalism. Japan’s economic success, supported in part by Buddhist-inspired work ethics and social values, suggests otherwise. Though not always the engine of change, Buddhism has often served as the moral compass helping to navigate it.