Japan had a very centralized government in the beginning so that they could mount a strong resistance in the event of an invasion. Shitoku Taishi was a key figure in doing so and called for the creation of the centralized government. After his death, his successors reformed the government to make it more efficient. Even though he died, the idea of centralized government never changed. Around 794 CE decentralization was occurring because of the fail of taxation. A law code was introduced so that taxes went right to the central government and the farmland belonged to the state.
Japans economy started out as an agricultural society much like all places do. Although the land lacked the many they made it