Eco-Wisdom from the Edo Era: The Circular Economy's Japanese Roots

Imagine we lived on a spaceship traveling across the galaxy. Inevitably, we're forced to find ways to manage and reuse the limited resources we've packed efficiently. Well, this was how Kenneth Boulding, author of "The Economics of the Coming Spaceship Earth", defined the circular economy.

Today, we face the painful consequences of the linear economy where raw materials are extracted, produced, used, and disposed of as waste in landfills. Moreover, the growing trend of overconsumption demands an overwhelming increase in supply, depleting 90 million natural resources annually. In response, businesses view this as an opportunity to maximize profit and extract raw materials at rates faster than it takes to replenish them, making it worse for the future.?

Alarmingly, this rapid exhaustion of resources is projected to increase by twofold in 2050. This trajectory governed by short-term profit-chasing is NOT sustainable. Even if businesses are making a quick buck now, if they don’t integrate waste-to-value models, they will face inflated production costs and stricter government regulations, ultimately making it more challenging to operate resulting in high inflationary pressures on the global economy that will make it more expensive to do business for everyone - no exception.

However, the past holds some lessons for a sustainable society - particularly, the Edo Period in Japan.

The birth of the circular economy

In Japan's history, the Edo Period (1603 until 1868) refers to the Tokugawa family's rule after Tokugawa Ieyasu led Eastern Japan to victory during the Civil War at the Battle of Sekigahara. During the family's rule, there was a restriction against imports from outside countries. At first, the period experienced shortages and famine. However, after two or three generations of effective governance and decision-making, Japan became a model for a self-sufficient and thriving economy, something that has continued to the present day.?

A famous example of this era’s environmentally-pro innovations was their waste-to-resource system with night soil.

Night soil was essentially human waste that would be collected at night by compost merchants from urban areas and sold to rural farmers as fertilizer. This practice cut down on sewage and waste piles in population hotspots (something many other countries struggled with at the time) while revitalizing soils and the overall farming industry.?

The Edo Period in Japan also had a well-organized and regulated system by which government-authorized contractors collected waste and carried it to final disposal sites in order to ensure its appropriate disposal. This practice is still active in Japan today, where you have to pay a specialized contractor to dispose of special waste like old furniture or appliances you wouldn’t normally be able to.

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A culture of sustainability

Sustainability pervaded the Edo period to a degree that they had come to believe that all objects had souls. This led to the rise of rich folklore about yokai or bad spirits. If people mishandled their belongings, the objects would turn to bad spirits that would haunt them. It’s a fascinating psychological development, born out of a culture of sustainability.

This strong focus on objects and sustainability also brought about a strong belief called "mottainai", which translates to shame in throwing away things of potential value.?

Undeniably, the Edo Period is effectively the foundation of the Japanese's deep appreciation of resources and the beginning of the circular economy as we know it.

The Edo Period signifies a simpler time in history, and its many conservative practices were a response to the resource needs of that time and place, a recurring key factor in humanity’s relationship with the environment. Consider the Industrial Revolution, a trend that’s on the opposite end of the spectrum, which emerged in light of new technology, better transportation, a growing market, and strong financial institutes that could invest in new inventions and factories. Each era brought about its own developments and innovations, often emerging out of necessity or the circumstances of their respective era and location.?

So, how will we adapt today, in light of record levels of waste, landfills, and climate change? How will our modern circumstances shape our relationship with the environment? Will we learn from our Japanese ancestors and take a more circular approach, hand-in-hand with public organizations, or will we continue on our journey of excess, consumption, and waste until we reach the point of no return?