Osaka History

Pre 20th Century

Osaka has been a major port and mercantile centre from the beginning of Japan's recorded history. It was also briefly the first capital of Japan (before the establishment of a permanent capital at Nara). During its early days, Osaka was Japan's centre for trade with Korea and China, a role which it shares today with Kbe and Yokohama.

In the late 16th century, Osaka rose to prominence when Toyotomi Hideyoshi, having unified all of Japan, chose Osaka as the site for his castle. Merchants set up around the castle and the city quickly grew into a busy economic centre. This development was further encouraged by the Tokugawa shgunate, which adopted a hands-off approach to the city, allowing merchants to prosper unhindered by government interference.

Modern

The Osaka area industrialised rapidly in the twentieth century and became the driving force behind the country's economic transformation until its pre-eminent position was taken by Tokyo. Previously known for its textile industry, it reinvented itself into a centre for heavy industry and high finance. In 1994, the area's economic prospects received a boost with the opening of Kansai International Airport on a nearby man-made island.

Recent

Tokyo has usurped Osaka's position as the economic centre of Japan, and most of the companies formerly headquartered in Osaka have moved east. Nonetheless, Osaka remains an economic powerhouse and the prefecture has recorded a GDP bigger than the individual GDPs of all but eight countries in the world in the past several years. However, the city has been hard hit by Japan's ongoing recession and many businesses have closed, particularly those that used to cater to businessmen out entertaining clients. On the upside, the city has been revitalized by the spate of new developments in the Osaka Bay area.