In The Last Samurai, the emperor is trying to modernize Japan and catch up with Western culture. This actual event was the Meiji Restoration, and began in 1867.
Since the 1600s, the Japanese islands had been run by the Tokugawa shogunate. "Shogun" was the title of the supreme military leader in Japan. While the Emperor always had power in name, during the warfare of the 1500s the samurai had gained control. The Shoguns took power and refused to let go.
In 1867, followers loyal to Emperor Meiji helped him stage a coup and retake full control of the government. In the 200+ years since the last wars, the samurai had become bloated, wealthy landowners who lived on the work of the peasants they ruled. The new government focussed on building railroads, putting in tax reform and educational reform, and easing the strict class system that had forced children to work the same jobs as their parents. While many rejoiced at these new freedoms, the samurai resisted, not wanting to give up their long held power.
Japan had been forced into very one-sided arrangements with European and US powers because of their weak military state. Part of their aim in modernization was to gain a more equal standing with the other world powers. They began a policy of military conscription to build up their army.
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