Abstract
The governing of urban economic activities in Japan started after World War I. It was the first time that a municipal government in Japan had adopted policies to support urban industries. However, since the main focus of the City of Tokyo in the 1920s was the protection of consumers, it is not really possible to talk of an actual industrial policy. It was not until the end of the 1920s, when steps were taken to relieve smaller retailers and manufacturers hit by the long recession, that an industrial policy worthy of the name began. After that, the need for an industrial policy was clearly recognized by the city authorities and new systems such as semi-official credit co-operatives, credit guarantee associations, and management consulting offices were established in Tokyo. However, since the most important problem for national government during this period was rural poverty, urban relief policies had low priority, and the initiatives of municipal governments did not receive adequate support. With the introduction of a control economy in the late 1930s, smaller managers had to give up their businesses and turn to war production, so there was little justification for policies to support them.
