The world works on policy. Therefore, what the first did is not only stupid, but it makes you think that he may have a mental problem.
Making a parallel with his previous world, it is true that the fact that nuclear weapons exist prevented, in a way, wars from reaching global scales for fear of destroying the world, but there are very big differences. Simply put, the first is because there are several and they are easy to launch, the most powerful countries can have thousands of these, all you had to do was mount them on an airplane and you could bomb several points of the planet at the same time, there is nothing to say about the most advanced systems that emerged later.
On the other hand, there is the radiation that these weapons left behind, which did not allow life to thrive in the collision sites. Bijuu pumps were much gentler in that aspect, in the event that you survived you would not end up suffering from any serious illness.
The third point was that the economy since the second world war began to globalize, which meant that if a country suffered damage it would not only affect it, but many more other nations. That's why many would object, even to the mere mention of war. The ninja world, on the other hand, was simpler, the economy was not as developed, so wars were more common, in fact, war was a good business for arms manufacturing and logistics companies.
The last point is in the individual power of the inhabitants. In the shinobi world, people can achieve incredible destructive power, these are precisely the kages of each village, which makes their mandate firm. But in the previous world of Lite this was not the case and politics was much more present, which meant that even if a leader wanted to go to war, he had to meet a series of requirements, even dictators could not do it lightly.
All these points are basic, but key to understanding the difference between one world from another. Sure, it's actually a lot more complex, but Lite summed them up so they can easily understand.
The distribution of the bijuus by the first, therefore, was one of the stupidest acts anyone could have done in the history of the ninja world. It is no exaggeration to say that he is one of the causes of the three ninja wars, if not the major one.
On the other hand, there is no need to say more about not making sure to kill Madara.
Naruto's manga is full of contradictions, so Lite can't understand how Madara used izanagi to save herself without losing an eye, so all Lite can do is not to think about it. There may be another answer, but that's not important now.
— I see... (Mito)
Mito listened attentively to everything Lite had to say, and with every word that came out of, her fase grew paler. Certainly, there are points in which Hashirama was not directly involved, but that is all, the truth was that they were wrong, and a lot. It was painful that they were the cause of what they wanted to avoid.
— I ask you not to feel so bad, I came to this conclusion because I am able to see the world from the perspective of a third party. I think it would have been very difficult to live in that time when there was no day where there is no death. (Lite)
— *Sigh* You don't need to say any more, you're actually right. The proof of that is that Tobirama thought the same way and believed that handing over the beasts was a fatal mistake. Mito
— … (Lite)
Lite knew that what hurt her the most was not having made the mistake. As he put it, it was very difficult to live in that era, and Mito understood that very well. So even if there were mistakes, she could accept them. The worst thing was to know that everything could have been avoided but they still walked that path.
— *Sigh* Well, there's nothing I can do now. It only remains to leave everything in the hand of al lof you. Now, tell me boy. What do you need me for?" Mito
— Yes, I already told you that Tsunade gave me her fuuinjutsu techniques. (Lite)
— Oh, yeah. But I didn't expect that girl to give you the secret techniques too. (Mito)
— Huh? (Lite)
— So, you don't know about it. Among what Tsunade gave you was also the legacy of the Uzumaki clan, as you may have seen, there are not many techniques, but there are the bases. (Mito)
— Hold on. Shouldn't that be hidden somewhere in Uzushiogakure? I always believed that these legacies would be hidden in some secret room that only true descendants could access. (Lite)
— Haha. When my village was destroyed, I'm not going to lie and say that I didn't resent Konoha for not helping us, but I also understand their position and that they had their own problems. However, that doesn't mean I didn't feel some grudge. I am the wife of the first, the founder of the village, and lived most of my life there. When my village was destroyed, they obviously knew that I would have certain techniques. But I have no reason to hand them all over. Although it's another thing if they thought I did. So the safest thing to do was to hide everything in plain sight. (Mito)
— …*Swallow* Women are scary. (Lite)
— I feel you, bro... (Minato)
Lite always had doubts about the destruction of the Uzumakis. At that time Mito was still alive, so it was almost impossible for Konoha not to send help. On the other hand, the one in power at the time was the third. He was still young and full of motivation, so if he could help such a powerful ally, then he wouldn't hesitate to do so. Konoha was still very powerful at that time, and the price to pay for saving them was much less than losing them completely.
Many always blamed that on Danzo and his machinations to achieve power. But he is a smart person, if he had taken the opportunity to save the Uzumaki and prove that Hiruzen was incompetent, then the Kage's position would have been much easier to achieve. He always found it funny how they blamed that guy for everything bad in the world. Well, he indeed was a scum, but not everything was his fault.
Lite wanted to continue the topic, but curiosity won her over.
— Danzo, now he may be the way you've described to me. Or maybe it's been that way ever since. But don't blame him for things he didn't do. Let me ask you a question. Why do you think Konoha remained the strongest village even until now? (Mito)
— Huh? Obviously that's because... (Lite)
That's when Lite realized that Konoha didn't have any advantage as in the past. The Senju were gone, many of their talents were dead, the clans, including the Uchihas, no longer had the same power as before. On the other hand, the other villages were much closer together due to the danger posed by Konoha, so their development was much faster, after all, the growth of four villages would be much greater than that of Konoha, no matter how strong it was at the beginning. All that and yet they were still the strongest, maybe not so much to dominate the world as in the past, but they were the leaders.
What was the reason?
— The attack came out of nowhere, three entire villages came together with extreme coordination. They feared our sealing abilities, as we practically rendered their junchuurikis useless. So for that time they put aside their differences in a precise attack. But it is precisely that what damaged them so much that it halted their progress, even until now. (Mito)
It was not necessary for her to go into detail for Lite to get an idea of the situation. As for why, Konoha didn't help. With three villages united, even though it was difficult to interrupt Konoha's communication and intelligence work, it was not impossible. All this was evident in Mito's pride, that despite the fact that her village was destroyed, they were the cause of doing damage that lasted for decades.
They were silent for a moment so they could process all the information.
— But if the damage was so great, then it should be public knowledge. (Lite)
— Obviously, no one wants that. *Sigh* I guess Sarutobi hid what he could so as not to look bad for not being able to do anything and the other villages would obviously not say anything about how a single clan left them in such a bad state. (Mito)
Lite was at a loss. At a time when the transmission of information is so rare, it is not surprising that such movements are possible. In fact, he wouldn't be surprised even if ninja wars were eliminated from history by making people believe that everyone is a good ruler. The only reason why that is not possible is that the time that has passed is very short.
— But shouldn't Tsunade know that too? (Lite)
— Well... (Mito)
— When I was left alone I lost interest in everything. (Tsunade)
— I understand... (Lite)
Lite was satisfied to have heard the explanations to many doubts he had, but he had not forgotten his main objective.
— *Sigh* Well, back to the topic. We need your help. Not Hashirama, nor any other. You can say that you are the key to making this a better world. (Lite)
— Oh… Tell me boy. What plans do you have? Mito
— *Take a deep breath * Here goes… (Lite)
Lite spent the next few hours explaining everything he had in mind to Mito. For every word that came out of his mouth, Mito asked a new question.
It was not for less, since the system he wanted to implement was extremely complex, for the people of this time at least.
He started with how the basis for everything was to create a commercial empire that encompasses the five great nations and more, thereby gaining political power and making people unable to live without them anymore. Above all, the nobles, since having them under his influence meant that it would be much easier to seize the power they possessed.
After that, they were going to use that influence to implement antitrust laws everywhere. That might seem counterproductive to someone who wants to make money, but that was never Lite's goal, ta least not the most important. If those laws were implemented in commerce, that meant that because of the protection time at the beginning, Lite could developed without any problems, the obstacles it would face against other companies would decrease, since in the end they would also get those technologies, so they would see it more prudent to avoid conflicts at the beginning. In fact, the smartest would even support them to be the first to make a profit.
Apart from that, other companies that emerge little by little would also begin to spread between different countries. Little by little a network of interests would be formed from which it would be difficult to get out. At the same time, that would cause normal people to start gaining more rights and nobles to lose their influence, of course, with a little help from the shadows so that the history of Lite's previous world doesn't repeat itself, imperialism.
At the same time, they would also give a boost to the entertainment industry. There Lite would do his best to involve the ninja villages.
The reason he wants ninjas to get more involved in entertainment than manufacturing is because of the chakra. This is too convenient and could end up hogging all the labor, leaving all the normal people out of work.
When the nobles begin to lose power, there he would use his influence to force them little by little to gradually hand over power to people who are not noble. Creating administrative positions that, at first, would be under the direct command of the nobles, but little by little they would become independent.
These positions would be rotating and based on the vote, with no possibility of re-election to avoid corruption as much as possible.
Thus, without them realizing it, the system of democracy would become a space in the consciousness of the population, not only of ordinary people, but also ninjas's.
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:D