The influence of Zen Buddhism on Japanese business model

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Introduction

Organizational structure of company is seen as “a set of relationships among the parts and between the parts and the whole.” These relationships are manifested in interpersonal communications, which is the process of information exchange. Information that we share reflects meaning that, in its turn, constitutes the cultural background. Consequently, we can conclude that every organization is a cultural construct and its relationships with the environment are defined by contextual framework of culture (Trompenaars, F. 2003, p. 21). This emphasizes the relevance of studying cultural impact on the formation of business processes and business culture, in particular.

The term business culture determines a model or style of business operations within a company including specifics of communication between different levels of staff as well as interactions between clients and customers. Peculiarities of business culture are to large extent determined by religious, cultural, historical, and socio-economical contexts of their formation and development. One of the results and reflections of business culture is management that will be at the heart of the following discussion.

In the context of globalization and development of information and communication technologies, companies are facing the necessity to address these changes and develop sources of competitive advantages. Permanent enhancement and development of employees, business and organization can be reached by the formation of organizational culture that, in its turn, might be the result of managerial practices' improvement. However, peculiarities of management practices are influenced by national culture that is determined as “the collective programming of the mind” which distinguishes one nation from another (Hofstede, G. 1980, p. 25). This statement is particularly acute regarding Japanese companies, which international human resource practices are suggested to be “ethnocentric” (Kopp, R. 1994, p. 581).

Nevertheless, in order to improve managerial practices and adapt them to the constantly changing business and economic environments, it is necessary to understand cultural routes and specificities of these practices.

We can distinguish three main layers of culture. The first one is comprised of the language, clothes, food and other elements that form external shape of culture. The second layer refers to norms and values that regulate social interactions within particular group which accept these orientations (values and norms) as something they desire or consider mandatory. However, the third layer is of particular interest for us, since it represents implicit culture, being a result of reconciliation with occurring dilemmas. It consists of basic assumptions and methods developed to handle problem situations (Trompenaars, F. 2003, p. 21). People doing business as well constantly face various obstacles and problems, ways of solving which are determined by these cultural assumptions.

One of the factors, which determines peculiarities of the third layer of culture is religion. The history of Japan is characterized by religious and philosophical syncretism. Even nowadays Japanese people perceive their birth in the context of Shinto, marry and build families according to Christian values and leave this world as Buddhists. Buddhism and, particularly, Zen Buddhism is in the focus of this master thesis.

1. Purpose of the research

The research question here to be studied is how philosophical and religious framework of Zen Buddhism affects the formation of Japanese-style managerial practice. The subject of the investigation is reflection of religious practices in Japanese management, and the object of our exploration is to determine peculiarities of Japanese way of doing business, which formation and development was resulted from the influence of Zen Buddhism.

The main hypothesis to be confirmed is that core principles and values of modern Japanese companies' affairs and managerial practices to a great extent have been developed in the context of Zen Buddhism, that served as a principle guideline of monks' and samurai' economic operations several centuries prior.

Since the VI century when Buddhism was adopted to Japan, Buddhist temples and monks began to perform as economic agents being engaged in trade and legal relationships. Staying at the origins of moneylending and trading, Buddhist temples laid down the principal guidelines of these operations. These guidelines were later accepted and developed by the warrior class samurai, who due to the socio-political reasons were forced to change their primary activity and became the founders of the first enterprise units. Consequently, codes of conduct of these units from the very outset reflected the Buddhist mindset and its attitude towards work. Enshrined business principles being modified over time continued to maintain their original intent and are still preserved by modern Japanese companies as precepts regulating relationships within the company and between company and clients or business partners, which is of particular importance in the framework of present paper.

2. Theoretical framework of the research.

One would like to address to structural-functionalistic school of culture introduced by Radcliffe-Brown A.R. (1952) and later developed into the management theory by Parsons Talcott (1960) and Crozier Michel (1964) as a theoretical framework applicable for the following research. The theory is based on the conception that organization striving to fulfill its goals, purposes and needs has to build its business model in accordance with cultural system of the environment, in which this organization operates. The value system of an organization must be defined by a sub-value system of a higher order. Acceptance of values, beliefs, habits of society serves as an adaptation mechanism aiming at maintaining consensus within the organization and between organization and society. In the light of this theory it is possible to illustrate incorporation of cultural and religious values by Japanese companies into the system of corporate values (Allaire, Y. pp. 200 -201, 217).

3. Time framework of the thesis

Peculiarities of modern Japanese business culture affected by Zen cannot be seen as separate from the history of Buddhism development and formation in the socio-political and economic contexts of Japan. Consequently, one considered it relevant and necessary devoting some parts of the work to these topics and set following timelines applicable to each chapter.

Time framework of the first and second chapters covers period since VIII century till the middle of the Edo period (1600-1868). Despite the fact Buddhism since the very beginning inevitably came to be identified with the state, which adopted it as a tool for cultural advancement and political consolidation, it was during Nara period (710-794) when Buddhist temples began to operate actively as suppliers of goods to market and land owners. In the XIII century Zen was embraced by shogunate as a counterforce in response to influential traditional Buddhist schools that provided economic and military support to the Imperial Court. Zen began to serve as a spiritual and religious justification in support of the samurai' need to shoulder their social responsibilities. Nevertheless, when in the beginning of XVII century changing living conditions in Japan forced samurai to alter their habitual foundations and traditions, principles of Zen were reflected in the codes of conduct of shops and other commercial enterprises recently established by people originated from military class.

Designation of the second boundary was determined by several factors. Firstly, one of the reflections of social thought development in the XVIII century was “religious reformism” characterized by scientific attitude towards religion. Secondly, ideological leaders of anti-shogun movements considered restoration of monarch's power as the only possible alternative to shogunate. They have developed two national ideological schools (school of national science (kokugakuha) and mito school (mitogaku)), which linked the notion of fair governance with Shinto and criticized Buddhism and Confucianism as teachings imposing artificially developed values and ethics. Consequently, since XVIII century and during the Meiji period (1868 -1912) Buddhism has been relegated to second place (Zhukov, A. E. 1998a, pp. 558, 594, 599; 1998b, p. 37).

Time framework of the third chapter covers modernity, illustrating linkages between Zen principles and values embraced modern Japanese large, small and medium enterprises that determine their way of doing business and work organization.

4. The main tasks and research methods

Our immediate objectives are confined to:

1. Identify the scope and tendency of Buddhist monks' engagement in economic operations;

2. Determine the influence of Zen Buddhism on traditional elements of Japanese management;

3. Examine the reflection of principles of Buddhism in corporate values of modern Japanese companies.

One will apply following methods in order to achieve these objectives:

1. Comparative analysis (used in identification of similarities between principles of Zen Buddhism and elements of Japanese management);

2. Descriptive (i.e. illustration of main principles of Buddhist schools);

3. Historical analysis (study of the scope and tendency of Buddhist monks' engagement in economic operations in historical perspective);

4. Case studies (cases of 32 SMEs and large enterprises studied in the third chapter);

5. Qualitative analysis (used while examining corporate values of modern Japanese enterprises depicted in their reports, codes of conduct and other official documents).

6. Literature review

The problem of Zen Buddhism influence on Japanese business model had been dealt by the virtue of primary and secondary sources.

6.1. Primary sources

Nihon Shoki or The Chronicles of Japan is one of the primary sources we rely on while illustrating the scene of presentation of Buddha statue and sutras to the Japanese Emperor. Nihon Shoki contains a vast number of chronical records about ancient rulers, myths, legends and songs devoted to deities. The chronicle follows the movement of life of the nation till the end of the VII century, reflecting socioeconomic and political changes.

With the intention to illustrate interconnection between Zen Buddhism and Confucianism and specify existence of common values and ideas, one referred to The Art of War written by Sun Tzu, The Philosophy of Human Nature (Chu Hsi) and The Doctrine of the Mean. Examination of these records shows that idea of a man occupying a clear position in the society and having a set of obligations and duties prescribed by this position was borrowed by Zen monks from Confucianism. This notion developed in the framework of Zen worldview obtained practical application in the Japanese society, serving as a guideline for samurai, whose profession made them live on the edge between life and death. In order to illustrate philosophical reflections of samurai upon the meaning of life and death and their vision of appropriate lifestyle affected by Zen principles, one relies on Hagakure, The Book of Samurai, The Book of Five Rings and The Unfettered Mind. The latter is constituted from letters of Zen master Takuan Soho addressed to the sword master Yagyы Tajima no Kami Munenori. Documentary source shows that both swordsmen and Zen Buddhists payed specific attention to spiritual training and development aiming at attaining the state of detachment from world affairs.

Nevertheless, shortage of primary sources in English or Russian languages, containing Zen masters' ideas or dialogues with disciples, that would reflect the main principles of Zen, presented a particular source problem. The most interesting material on this subject comes from John Blofeld's translations of ninth-century Chinese Buddhist Text, The Zen Teaching of Huang Po that contains a concise account of teaching of Huang Po (died in 850), whose disciple subsequently laid down the foundations of Rinzai school of Zen in Japan. Moreover, this issue was partially solved thanks to translations of Suzuki D. T., presented in the series of his works that will be analyzed more precisely in the next paragraph.

Primary sources used for practical part of work include codes of conduct, reports, corporate profiles, outlines and brochures of modern Japanese companies that contain descriptions of business values, principles and company instructions, which were analyzed from the point of view of their reflection of Zen principles and ideas.

6.2. Secondary sources

The question of cultural influence on business was repeatedly raised in the literature. It is necessary to give a short review of “5 Dimensions” model of comparative analysis developed by Dutch social psychologist Geert Hofstede. This model includes important determinants of work-related values and attitudes: power distance, uncertainty avoidance, individualism versus collectivism, masculinity versus femininity, and long-term orientation versus short-term orientation. According to the findings of this study, uncertainty avoidance, long-term orientation, collectivism and masculinity are main characteristics of Japanese culture (Hofstede, G. 1980, pp. 111, 149, 176).

Another model of national culture differences was developed by the Dutch-French organizational theorist, author in the field of cross-cultural dimensions, Alfonsus (Fons) Trompenaars, who states that cultural differences should be appreciated, resolved and certain reconciling actions ought to be implemented. Trompenaars criticizes the cultural model developed by Hofstede, stating that such bi-polar scales are not applicable for international context, since they create constraining extremities, limitations and stereotypical descriptions. In order to overcome these limitations, Trompenaars developed an alternative paradigm based on the theory of complimentarity (“no value can flow if it lacks a tension with its opposite”). Furthermore, Trompenaars highlights that it is not enough to recognize cultural differences, it is necessary to develop ways of reducing the differences (Trompenaars, F. 2003, pp. 4-7; Trompenaars, F. 2014).

One would like to highlight following cultural dimensions applied by Trompenaars to Japan: universalism (following general rules and obligations rather than acting according to circumstances and people involved); communitarianism (focus on the group interests and consensus rather than individual performance and creativity); sequential (performing one task at a time rather than in parallel) and internal control (acting according to the inner sense of control rather than adapting to external factors that are beyond our control) (Trompenaars, F. 2003, pp. 31, 32, 47, 77-78, 94).

It is of interest to note that Trompenaars determines religion as the second major variable (after country) that identifies Japanese culture as communitarian. According to him, Buddhism and Hinduism are the most communitarian religions. This cultural dimension explains, for instance, why Japanese managers will be more motivated by team bonuses rather than individual ones. Nevertheless, determination of Japan as a sequential culture with “monochrone” time management also has particular resemblance with Zen Buddhist practices of meditation upon only one koan (question or statement of Zen master addressed to his disciple) at a time. Nevertheless, one deems it necessary to present several assumptions in relation to universalism and internal control. There is no doubt Japanese tend to follow established rules and assume prescribed obligations, however, their behavior is frequently seen to be situational depending on various factors (place, status of other people). Moreover, as we will see later the focus of flexibility and significance of circumstances is maintained by Zen Buddhism. Although Trompenaars makes a reservation that universalism, being the first stage of moral reasoning, rarely serves as exclusion of particularism. Taking into consideration the cultural dimension of internal control specific for Japanese (the score is 63), one would like to specify that according to Trompenaars, this dimension is reflected in customer orientation. This is true for Japan. However, he states that this “inner-directedness” reflects how people are assigned to their natural environment. Internal control is distinctive for people who have mechanistic view of nature and believe that they dominate it. In one's humble point of view, the score of Japan might be even lower in terms of internal control, since due to the geographical and socio-cultural reasons, Japanese people are characterized by high respect towards nature and tender care of it. This disinterested enjoyment and respect of Nature is common for Zen Buddhism and are known as fыryы. According to Zen, nature lives in people and people live in nature, hence, it is perceived as a friendly and well-meaning agent. For this reason, Zen highlights simplicity, virility, frugality and calls for unselfish coexistence with Nature. Consequently, Zen provides philosophical and religious foundation to the Japanese love of Nature. This love has found expression in the Japanese concept mono-no aware or contemplation of the outside world, according to which man is perceived as interim observer, while time and things around the man continue their existence (Trompenaars, F. 2003, pp. 35, 47, 85, 91-92; Senzaki, N. 1953, p. 30; Suzuki, D. T. 1973, pp. 81, 231, 351, 357).

The problem of Zen Buddhism influence on Japanese culture has been dealt with in the investigations of a number of authors. An American academic Charles William Eliot (1834-1926) wrote that Zen had reflected significantly on artistic, intellectual and even political life of China and Japan. However, it was in such an extent adaptable to the life of Japanese people that it has played a specific role in formation of the Japanese character (Eliot, C. W. 1923, p. 396). British diplomat and historian of pre-modern Japan, George Bailey Sansom (1883-1965) in his work Japan, A short cultural history distinguished Zen Buddhism as the essence of finest culture of Japan (Sansom, G. B. 1978, p. 338). However, the most in-depth treatment of this subject is illustrated in the series of works of Daisetsu Teitaro Suzuki (1870-1966) (An Introduction to Zen Buddhism, Zen and Japanese Culture and others). In his works Suzuki D. T. investigates the history of Zen Buddhism adoption and development, its main principles and linkages between Zen and swordsmanship, tea ceremony and landscape design. The works of Suzuki D. T. are of particular value since they contain translations of koans from Chinese and old Japanese languages. Nevertheless, coming to conclusion that the philosophy of Zen Buddhism penetrates the full diversity of activities of Japanese people, author does not pay particular attention to business activities.

A fairly wide acquaintance with the literature of Zen Buddhism has convinced one that the problem of Zen impact on Japanese business model has not been either stated or systematically stated. This problem was partially covered in the work of Gloria Garcia Japanese Cultural values in business relationships. Nevertheless, distinguishing six points of convergence between Zen and Japanese business model, Garcia G. does not specify which Zen values has explicitly determined the roots of business relationships' development. The issue of Zen influence on management culture was also superficially subjected in the article of Didier A. G., who states that Zen is almost nonexistent in modern Japanese corporate culture despite the fact it can contribute into maintenance of the inspirational environment, improve individuals' work satisfaction and increase collective engagement (Didier, A. G. 2016).

Consequently, our knowledge on this subject is limited that underlines relevance of present work that on the contrary to the Didier's statement, is aimed at justifying the significant presence of Zen principles in modern managerial practices of Japanese enterprises.

1. Buddhism at the origins of economic affairs' development in Japan

1.1 The notions and branches of management

organizational company buddhism corporate

The notion management has at least seven meanings. Considering the subject of this master thesis, the word management is used to designate type of work, consisting of consistent actions (forecast of forthcoming activities, goal setting, development of goal achievement tools and analysis of results). The process of management comprises diverse functions, methods and instruments. Functions to be performed include forecasting, planning, formation of organizational structures, commanding, coordination, motivation, control and analysis. Instruments and methods may vary depending on performing functions (i.e. statistical and/or expert methods; internet, means of communication) (Orlov, A. I. 2003, pp. 9 - 10).

Separate branches of management comprise: 1) marketing management (complex of processes of production, promotion and distribution of products or services; and control of customer relationship with benefits for the organization); 2) financial management (planning organizing, directing and controlling the financial activities), 3) human resource management (HRM) (management of human resources with the aim of maximizing employee performance), 4) information technology management, 5) operations management; 6) production management (design and control of the production process); 7) strategic management (identification and description of strategies that can be carried so as to achieve better performance and a competitive advantage); 8) service management:

Table 1. Branches of management

The main emphasize of this work will be mainly on several aspects of strategic management, marketing management and HRM.

However, in different business environments, comprising internal and external factors (laws, government regulations, market competition) that influence company's operating situation, including performance characteristics of any managerial branch, culture acts as one of determining factors. Consequently, without a thorough evaluation of the influence of culture, study of management style specific to a particular country will not be complete.

1.2 Origins and cultural aspects of Japanese-style management

Japanese-style management was seen as a recipe for business global success from the 1970s, however, this period was followed by prolonged economic depression in 1990s, when Japanese companies suffered from slumping revenues, faced the necessity to reorganize their management system and even were asked to learn from managerial practices of new industrialized Asian countries (China and India). Nevertheless, Japanese managers continued to perceive principles on which their management system was based as potential keys for future achievements. One of such traits is community characteristics that distinguish Japanese management system from management systems of other countries (Norio, K. 2015, pp. 1-3).

There are two theories concerning the origin of Japanese management. According to the first one, main changes in Japanese-style management were episodic and occurred mainly after World War Two with introducing and adapting American management practices. This theory claims that history and culture have little to do with this process. The second theory, in its turn, states the opposite, arguing that Confucian philosophy, Buddhism, and rice farming villages defined the roots of development of Japanese managerial practice's characteristics and company's values (respect for elders, obligation, paternalism). In fact, truth lies somewhere in between, emphasizing the importance of taking into account cultural aspects as well as economic ones. It is our purpose on this occasion to analyze cultural aspects of managerial practices' formation (Firkola, P. 1006, p. 116). Namely, the impact of Zen Buddhism on Japanese business culture. Nevertheless, in the hope of bringing some light on various aspects of cultural impact we turn to a brief table illustrating influence of traditional values, philosophical and ethical systems, religion on the management practices:

Table 2. Impact of various aspects of culture on management:

In the subsequent chapters the question of Zen Buddhism influence on Japanese business model will be elucidated.

1.3 Role of Buddhism in Feudal Japan from historical and political perspectives

Buddhism adoption and development during VI-XII centuries

Influence of philosophical and spiritual traditions on Japanese business culture is characterized by syncretism. Since VI century when Buddhism was adopted from Korea, it has been closely interrelated with Confucianism and Shinto. This tolerance of Buddhism towards other teachings is due to the fact it is mainly focused on intuitive experience. However, in order to share this experience with fellow beings, intuition requires content, ideas and intellectual reconstruction that can be borrowed from a distinct system of thought (Garcнa, G. 2015, p. 5; Suzuki, D. T. 1973, pp. 44, 50). This makes it sometimes difficult to distinguish a link between specific cultural value and a certain tradition. As soon as Shinto lacked a well-defined eschatology (religious doctrine of the afterlife) for Japanese people Buddhism became a complementary belief that promises paradise. Furthermore, Buddhism introduced into Japan since very beginning differed from primitive one because it contained philosophical modifications and rituals unknown for the latter (Kim, Y. C. 1973, p. 114; Bunce, W. K. 2011, p. 45).

Buddhism began to attain popularity in the VI century, primarily, because of social and ideological circumstances. There were no beliefs of unified character in the V-VI centuries, and even the term Shinto has not yet come into use. We can identify two main cults in the Shinto beliefs at that time: cult of ancestors and cult of landscape deities. However, far from all the ancestral deities and, hence, families worshiping them, were included in the system of official sacral genealogies. Moreover, most of the families were not satisfied with the position occupied by their ancestral deities in the pantheon. Consequently, at this stage of statehood Shinto served as an ideological basis for local centrifugal tendencies and early Japanese state could not find an ideological support in it. These are factors that predetermined the interest in Buddhism (Zhukov, A. E. 1998a, pp. 78-79).

Nobility, significant part of which were immigrants, was the social layer interested more than others in the spread of Buddhism due to the fact they were beyond the traditional structure of tribal aristocracy which traced it roots from Shinto pantheon (ama-tsu kami or “heavenly deities”). At the same time, Buddhism propagated an idea of equality and personal responsibility for one's own deeds. This ideological framework of Buddhism was believed to ensure the possibility of immigrants' inclusion in the ruling class. Nevertheless, it is of interest to note that the ruling family was as well interested in the Buddhism adoption, seeing in it potentials of Yamato family's legitimation (the Buddhist concept of an ideal universal ruler chakravartin) and its opposition towards centrifugal tendencies of local nobilities (Ibid, p. 79).

The scene of Buddhism's presentation to the Japanese emperor Kinmei (509-571) is illustrated in the historical chronicles Nihon Shoki (The Chronicles of Japan) dated 552. Statue of Buddha and sutras were presented to the Emperor. However, he did not make any unambiguous decision and allowed each of three influential families present at that time (Soga, Mononobe and Nakatomi clans) to make decision on their own. Mononobe and Nakatomi, tracing their genealogies to deities of the Shinto pantheon, refused to accept Buddhism. Whereas, Soga clan, which ancestor was warlord Takeuchi-no Sukune not included in the official “table of ranks” of Shinto, decided to accept Buddhism. One remarkable fact deserving notice at this point is that it was exactly the Soga clan that later defeated Mononobe and Nakatomi and controlled the ruling family till the middle of the VII century. This control was maintained by strengthening of kinship ties via marriages. Thus, a system of priestly and administrative functions' separation was formed: the former was performed by Emperor, while the latter by the clan supplying brides to the ruling dynasty. Period of Soga's dominance was characterized by revitalization of construction of Buddhist temples that were located in vicinities of rulers' residences. Consequently, it is possible to assume that spread of Buddhism depended heavily on the central authority's policy (Zhukov, A. E. 1998a, pp. 80-81; Nihon Shoki, pp. 53-54).

Asuka period (592-710) was characterized by formation and constant reorganization of bureaucracy. One of the key political reforms during this period was implementation of the system of “12 ranks.” However, one thing we have to notice in these accounts is that ranks were not assigned to all officials of state apparatus, but to particular individuals who fulfilled special state assignments. For instance, those who were engaged in the construction of Buddha statues (Zhukov, A. E. 1998a, pp. 88-89).

When the capital was moved to Nara in 710, there were no Shinto shrines there due to the fact Shinto deities were believed to possess magic power only in their initial habitats. However, active construction of Buddhist temples has started, the most grandiose of which was the complex Tфdai-ji. Initially, it served preliminary as the family temple for the imperial family but afterwards became national temple. Construction of Buddhist temples was fulfilled mainly at expenses of the court and donations. For instance, about 51,590 people made donations for Tфdai-ji temple's construction. It is from this number that we can guess about the role and significance of Buddhism in the lives of Nara's inhabitants (Ibid, pp. 115-116).

It is of interest to note in this connection that Buddhist temples performed the role of good suppliers to the markets, where it was possible to purchase not only foodstuffs (fish, rice, milk, vegetables, etc.) but also writing materials and Buddhist sutras. Moreover, since the tax system has not yet been entirely developed, the main form of exploitation was labor duties, which contents were determined not only by the state and administrative institutions' needs but also by Buddhist temples. Buddhist temples were also frequently granted lands and farmsteads (Zhukov, A. E. 1998a, pp. 115-116, 132-133, 139).

Construction of Buddhist temples went beyond the borders of the capital covering different provinces. Prayers in them were believed to ensure security of the state. Turning to the Buddhism as to the defender of the state and sovereign, Japanese rulers surrounded themselves with Buddhist monks who were gaining more power and influence. Nevertheless, together with various encouragements, the state had incentives to establish total control over the temples. All affairs of the Buddhist community on a nationwide scale were controlled by its head sфzu or daisфzu. This was a monk appointed by the Court and responsible to it. Furthermore, in the section of legislative arches dedicated to the monks (“Sфniryф” or Regulations for Priests and Nuns) were prescribed rules regulating monks' way of life (i.e. prohibition of preaching outside the temple) and penalties for their violation. Consequently, it may be suggested that despite the fact ruling family embraced Buddhism as bases for ideological formation and power legitimation, there were concerns about the increasing power and popularity of Buddhist priests and nuns. This led to issuing of several edicts admonishing priests and nuns to adhere to the Sфniryф (in 701, 717, 729, 764). Therefore, the state sought to prevent the transformation of clergy into a social group with independent interests (Zhukov, A. E. 1998a, 140-141).

By the end of VIII century was formed Buddhist tradition that was to some extant independent and self-sufficient from the state apparatus, partially, by virtue of received lands. Nevertheless, the last decade of the Nara period is known for diminution of Buddhism position among the ruling elites that was connected with the name of Dфkyф. Dфkyф was a Buddhist monk, who became the most trusted advisor of Empress Shфtoku (764-770, also known as Empress Kфken during the first period of the reign (749-758)). Empress Shфtoku appointed Dфkyф to the post of The King of Dharma (Hфф) that had not been prescribed by law and bureaucratic system before. However, after the Empress' death Dфkyф made an attempt to ascend to the throne and was resisted by the court nobility and as a result exiled. These events led to the strengthening of anti-Buddhist sentiments at the court. Measures leading to separation of Buddhism and state policy were extended by Emperor Kammu (781-806) (Zhukov, A. E. 1998a, pp. 141, 150-152).

The beginning of the Heian period (794-1185) was marked by alteration of the capital that was moved to Heian-kyф (Kyoto). This measure was to a large extent taken due to the state's aspiration to distance from Buddhist temples and to implement reforms aiming at strengthening of central authority by virtue of political ideology based on genealogy tracing its roots to Shinto deities. However, Buddhist temples still enjoyed number of privileges including private law on land possession and tax immunities on an equal basis with Imperial House and members of the high court. Furthermore, Buddhist temples became patrons of small landowners (ryфshu) who passed to the temples land ownership but retained the right to manage the lands (Zhukov, A. E. 1998a, pp. 141, 175-182).

Buddhism has not yet entered into the complex of beliefs of a great bulk of people. At the same time, it was recognized by the ruling elites as a doctrine of a higher culture. Moreover, significant part of the highest levels of Japanese society was from mainland, hence, Buddhism was an organic part of their worldview. All this required transformation of Buddhism and its adaptation to the Japanese conditions. One of the reflections of these tendencies was emergence of two Buddhist schools: Tendai and Shingon. Founders of these schools made an attempt to assume correlations between Shinto deities and Buddhist pantheon. This allowed preserving traditional ideological basis of Japanese statehood and, simultaneously, to make use of cultural achievements offered by Buddhism. We will explore Tendai and Shingon schools more closely hereafter (Ibid, pp. 207, 210).

Nevertheless, the matter of succession and crisis of ruling clans during the Heian period resulted in a civil war known as Hфgen rebellion (Hфgen no ran, 1156-1160). In the issue, imperial family lost its political power that was intercepted by a new class of warriors, bushi, which by that time already had significant economic and political control. One significant fact I have to mention in connection with economic prosperity of samurai is that it was based to a large degree on income from trade with China (Ibid, pp. 193, 204).

Having described the role of Buddhism in Ancient Japan we must conclude in general that by the time of Zen Buddhism adoption, at least the highest levels of Japanese aristocracy were quiet well acquainted with its main principles and teachings of Buddhism. Being accepted as a religious and philosophical doctrine, Buddhism has significantly contributed into the ideological basis of power legitimation at early stages of state formation. This process of legitimization affected the ruling house, as well as aristocratic families and immigrants from the mainland who had to justify their right to govern. One thing we have to notice in these accounts is that aristocratic clans which accepted Buddhism and preferred the company of Buddhist monks, assumed administrative posts in the state apparatus. Hence, we can suggest that Buddhist worldview to some extent could influence direction and specificity of implemented policies and reforms. Furthermore, from the very beginning Buddhist temples performed as economic agents being engaged in trade, legal relationship (ownership of land) and economic activities (manage granted farmlands). This was exactly the time when Buddhism began to define and influence on specifics of Japanese style of economic operations that is the subject of present thesis.

The role of Buddhism during the Kamakura period.

One of the distinctive features of the Kamakura period (1185-1333) was establishment of multipolar power system (kobu sei ji or “Policy of aristocracy and militaries”). In such conditions bakufu was trying to gain economic influence asserting its own control over the lands that were in private use of aristocracy or temples. Nevertheless, during this period Buddhist temples began to operate as economic agents more actively. In particular, it was due to the emergence of markets that were formed nearby large monasteries and therefore received the name monzenmachi or “Block behind the monastery gate.” It is of interest to note in this connection that a new type of settlements was formed in most of the temples located at the crossroads of waterways and roads in the XIV century (futsuka ichi, their population was around 1,000 people). On the 2nd, 12th and 22nd of each month, these settlements turned into markets assuring economic foundations of their dwellers. Moreover, as a result of intensive economic monetization, a new category of population has appeared - moneylenders (kashiage or kariage). This category was represented either by wealthy merchants of port cities or by monks, who received large incomes from their private lands as well as from congregation's offerings in monetary terms. Furthermore, in 1285 Buddhist and Shinto temples were allowed to transfer their lands to other temples or private persons. It was nothing but legal recognition of the process of purchase and sale of the land (Zhukov, A. E. 1998a, pp. 225-226, 234, 236 -237, 249).

Functioning of administrative, political and judicial bodies of bakufu was managed by Hфjф clan. Being not noble provincial clan of militaries, they were striving to substantiate their dominant position and ensure its security. To meet the first challenge, Hфjф compiled and enacted a body of legislation that was based on the principle dфri (rationality) (Jфei Shikimoku or List of Laws of the Year Jфei or The Jфei Code). As for the second task, it was accomplished at least partially by the acceptance and maintenance of Zen Buddhism. The main point is that temples in Kyoto were closely interrelated with local aristocracy and the Imperial Court. Such Buddhist temples as Enryaku-ji or Kфfuku-ji had well-trained military troops and were ready to take the side of the Court if required. Consequently, Hфjф were deprived of the possibility to control them and faced the necessity to obtain the support of Zen Buddhism (Ibid, pp. 232, 247).

One remarkable fact deserving notice at this point is that by the end of XII century different teachings of Buddhism took deep roots in different sectors of society. For instance, the concept of karma perceived as a set of good and evil deeds, accumulation of which determines the nature of the next birth, was well known and clear for a significant part of Japanese society. However, predetermination caused by karma and inevitability of suffering after reincarnation shaped the sense of hopelessness. This existing mood was as well one of the defining conditions for the emergence of new Buddhist schools and acceptance of Zen Buddhism during Kamakura period. These tendencies were also exacerbated by abstractedness, complexity and expensiveness of Tendai and Shingon schools' rituals. It is also worth to note that Zen has lost its pure religiosity during this period. Abstract religious and philosophical ideas were embodied in concrete forms of the world of nature via carious practices of art (Zhukov, A. E. 1998a, pp. 244, 365).

Policies of the “great unifiers” towards Buddhism (Muromachi and Edo periods).

During the Muromachi period (1336-1600), Zen temples began to function as places for popular education. This system is known as terakoya, the only educational institution during the Feudal Japan. It is of interest to mention in this connection that temples compiled textbooks themselves and these educational courses were available to everyone who wished to improve their knowledge and culture. One remarkable fact deserving notice at this point is that despite strict hierarchical order established during the feudal period, Zen advocated for social equality and fraternity. Consequently, Zen monks approached all people regardless of their social class (Suzuki, D. T. 1964, p. 45; Ibid, 1973, p. 278).

The Muromachi period was characterized by firmly establishment of warriors-buke in all spheres of the state life. Nevertheless, their attitude toward Buddhism was rather contradictory in the sense that, on the one hand, principles of samurai' life to a large extent were determined by Buddhist worldview as we will see later, but at the same time shogunate implemented several measures to limit political and economic influence of Buddhist temples and monks. For instance, according to the political manifesto Kemmu Shikimoku introduced in 1336 along with bans on drinking and bribes it was deemed necessary for the governor not to accept advices from women and Buddhist monks and to study more precisely petitions of Buddhist and Shinto temples. Furthermore, regardless of hierarchical rank of Buddhist monastery, they all had a unified organizational structure, unified charter and were under the control of bakufu laws (Zhukov, A. E. 1998a, pp. 263-264, 271).

Despite this, during the Muromachi bakufu Zen monasteries acquired a special role of knowledge and education hub, having a considerable influence on the formation of aesthetic principles of that era. Shoguns preferred frequently to be accompanied by educated monks rather than by officials during negotiations. Zen monasteries reflected primarily interests of warriors. However, it cannot be said that Imperial Court and aristocracy remained outside the increasing influence of this Buddhism school (Ibid, pp. 271-272, 365).

In XV-XVI centuries Buddhist temples not only possessed extensive areas of land, but also participated actively in all spheres of political and economic life. More progressive forms of agriculture were introduced in these lands; channels, dams, bridges and other structures were built. In addition to the enormous material resources, temples also had large human reserves. Buddhist economic independent communities involved broad sectors of the population: peasants and citizens, craftsmen and merchants and even significant number of samurai. Moreover, Buddhist temples maintained ties with foreign merchants and built customs gates within the country (Zhukov, A. E. 1998a, pp. 286-287, 308, 316).

When Oda Nobunaga (1534-1582), one of the “great unifiers” of Japan, came to power in 1573, he treated with suspicion Buddhist clergy and monasteries, considering them as bulwark of separatism, which withal had at their disposal substantial military forces. He eliminated this system of customs gates striving to create a single economic space. This deprived monks of rich Buddhist temples of high incomes. The second step of Oda Nobunaga directed against powerful Buddhist monasteries was compilation of land cadaster (kenchi), which reflected his plans of complete abolishment of temples' properties. Furthermore, he made significant efforts to remove craftsmen corporations out of control of Buddhist monasticism as far as their products constituted a considerable share among Japanese goods. To a certain extent, he managed to achieve this goal (Ibid, pp. 301, 304, 308, 316, 317).

Such a policy on Buddhist temples was followed by the second “great unifier” Toyotomi Hideyoshi. Under his governance (1582-1598) was compiled the updated land cadaster directed against unreported lands of temples. In 1585 was issued a decree prohibiting carrying of military weapons by clergy. Nevertheless, it is of interest to note in this connection that in the last years of his life, Toyotomi Hideyoshi turned to the philosophical postulates of Zen Buddhism. It was rather typical for Japan of those times, since in conditions of continuous violence and wars philosophical framework of Zen served as a mean of man's reconciliation with surrounding reality (Zhukov, A. E. 1998a, pp. 329, 333-334).

Nonetheless, Oda Nobunaga and Toyotomi Hideyoshi took measures aiming at resurgence of religious prestige of monarchy. This was in line with their policy towards Buddhism based on the desire to minimize the influence of Buddhist clergy, claiming on an independent role in the public affairs. There were allocated special funds for Shinto ceremonies and rituals conducted by the Emperor. These ways shoguns were making an attempt to legitimize their rule, positioning it as a mandate to govern the State received from the Emperor, descendant of Amaterasu (Ibid, pp. 432-433).

When Tokugawa Ieyasu, the third “great unifier” of Japan (1543-1616), came to power he faced the challenge of ideological basis formation. Religious and philosophical system of Buddhism with its idea of reaching the state of complete nonexistence could hardly serve as the basis of ideological doctrine of Tokugawa shogunate, which set concrete political goals. As a result, Tokugawa Ieyasu decided to establish public order in accordance to Neo-Confucian model adopted from Chinese practice and modified based on Japanese peculiarities. Consequently, Neo-Confucianism was accepted as an official ideology of the Edo period (1600-1868) (Ibid, pp. 416, 550).