section_path: History/Meiji to Heisei period
section_name: Meiji to Heisei period
paragraph_text: Meiji to Heisei period
  
  With the enormous changes that characterized the country after the Meiji Restoration (1868), and the relocation of the capital from Kyoto to Tokyo, Osaka entered a period of decline. From being the capital of the economy and finance, it became a predominantly industrial center. The modern municipality was established in 1889 by government ordinance, with an initial area of 15 square kilometres (6 sq mi), overlapping today's Chuo and Nishi wards. Later, the city went through three major expansions to reach its current size of 223 square kilometres (86 sq mi). Osaka was the industrial center most clearly defined in the development of capitalism in Japan. It became known as the " Manchester and Melbourne of the Orient". In 1925, it was the largest and most populous city in Japan and sixth in the world.
  
  The rapid industrialization attracted many Asian immigrants (Indians, Chinese, and Koreans), who set up a life apart for themselves. The political system was pluralistic, with a strong emphasis on promoting industrialization and modernization. Literacy was high and the educational system expanded rapidly, producing a middle class with a taste for literature and a willingness to support the arts. In 1927, General Motors operated a factory called Osaka Assembly until 1941, manufacturing Chevrolet, Cadillac, Pontiac, Oldsmobile, and Buick vehicles, operated and staffed by Japanese workers and managers. In the nearby city of Ikeda in Osaka Prefecture is the headquarters of Daihatsu, one of Japan's oldest automobile manufacturers.
  
  Like its European and American counterparts, Osaka displayed slums, unemployment, and poverty. In Japan it was here that municipal government first introduced a comprehensive system of poverty relief, copied in part from British models. Osaka policymakers stressed the importance of family formation and mutual assistance as the best way to combat poverty. This minimized the cost of welfare programs.
  
  During World War II, Osaka came under air raids in 1945 by the United States Army Air Forces as part of the air raids on Japan. On March 13, 1945, a total of 329 Boeing B-29 Superfortress heavy bombers took part in the raid against Osaka. According to an American prisoner of war who was held in the city, the air raid took almost the entire night and destroyed 25 square miles (65 km 2) of the city. The U.S. bombed the city again twice in June 1945 and again on August 14, a day before Japan's surrender.
  
  In the decades following World War II, Osaka's reconstruction efforts and the industriousness of its residents brought the city even greater prosperity than before the war. Its population surpassed three million in the 1960s, initiating large-scale suburbanization within the prefecture, and eventually doubled to six million by the 1990s. With factories rebuilt and trade revived, Osaka rapidly developed into a major multicultural and financial center from the 1950s through the 1980s. Osaka Prefecture was chosen as the venue for the prestigious Expo '70, the first world's fair ever held in an Asian country. Since then, numerous international events have been held in Osaka, including the 1995 APEC Summit.
  
  The modern municipality, which when it was established in 1889 occupied an area of just 15 km 2 including the districts of Chūō and Nishi, following three successive expansions has reached an area of 222 km 2. It was one of the first cities in Japan to obtain designated city status in 1956.