How Japan dismantled its feudal past to build a modern centralized state

How Japan dismantled its feudal past to build a modern centralized state
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In short: In 1871, Japan executed a radical transformation, dissolving centuries-old feudal domains in favor of a centralized prefecture system. This transition, known as the abolition of the han system, forced powerful lords to surrender their hereditary authority, effectively ending the era of the samurai and reshaping the nation's political foundation.

The abolition of the han system was the definitive conclusion of the Meiji Restoration, which began in 1868. Following the defeat of the Tokugawa shogunate in the Boshin War, the new Meiji government moved to consolidate power. Initially, the state confiscated lands previously held by the Shogunate and its loyalists, reorganizing them into government-controlled prefectures. By 1869, reformers like Kido Takayoshi pushed for a broader surrender of domains. Most daimyo, fearing for their status, voluntarily returned their lands to Emperor Meiji, though 14 domains required a direct order from the Court to comply.

To manage this transition, the government appointed former lords as non-hereditary governors of their former domains. While they were permitted to retain ten percent of tax revenues, their actual power was severely curtailed. The central government established strict qualification requirements for their subordinates and took over the payment of samurai stipends, intentionally severing the traditional feudal bonds between lords and their retainers. Despite these changes, the former daimyo retained significant fiscal and military independence, which the Meiji oligarchy—led by figures like Ōkubo Toshimichi—viewed as a persistent threat to national stability.

In August 1871, an Imperial Edict finalized the reorganization, transforming 261 domains into three urban prefectures and 302 smaller ones, a number later consolidated to the modern structure by 1888. To secure this change, the state assumed the debts of the domains and converted local currencies into national tender. The financial burden of these promises proved unsustainable, leading the government to replace stipends with interest-bearing bonds in 1874. This move effectively ended the feudal class structure, allowing Japan to build the centralized state that Makino Nobuaki later identified as the bedrock of the modern nation.

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