Economic miracles have occurred in the recent histories of a number of countries, often those undergoing an economic boom, or described as a tiger economy. In 1945, when the war ended and the united states had control over japan, douglas macarthur. Although miti was not the only important agent affecting the economy, nor was the state as a whole always predominant, i do not want to be overly modest about the importance of this subject. Japans development has been described as an economic miracle. The postwwii japanese economic development was a process of catchup to the other industrialized economies. Most economists argue that declining average economic growth rates are commensurate with a maturing 1 economy.
Japanese economic miracle by ramtanu maitra according to the latest report of the keizei koho center japan institute for social and economic affairs, japan i99ian international comparison, the gap in per capita income between japan and the united states has widened further in favor of japan. A note on the japanese trade policy and economic developmentsecrets behind an economic miracle junichi goto kobe university three key messages japan achieved a miraculous economic development to become one of the richest countries in the world, although the world war ii almost killed the japanese economy. Demystifying japanese business behavior, by noboru yoshimura and. Problems of japan s economic miracle usa as a cause of problems of the global economy. Starting with an economy drastically disrupted by world war ii and more dependent on foreign rawmaterial sources than that of any other major power. Myths and realities in strategy and development kwan s. The files below are selfmade notes that i used for my revision before the a level examinations in 2012.
Understanding the japanese economic miracle the popular image of japan has changed from that of a struggling country requiring u. Economic miracle is an informal economic term for a period of dramatic economic development that is entirely unexpected or unexpectedly strong. Japan s economic performance since world war ii is one of the truly dramatic trends in recent world economic history. Occupation of japan 610 from reform to recovery 10 the dodge plan in 1948 1011 the korean war boom 1112 economic miracle 12 factors for growth. Japan is the purest example of what has become known as a producer economic state, and many of its economic practices are now familiar. Pdf the miracle of japanese economy after the second world. This general goal was shared by all economic agents as a national consensus. Pdf the miracle of japanese economy after the second. Japanese economic miracle after wwii linkedin slideshare. Japan1 1 japans economic miracle underlying factors and.
A reflection point during the era of the economic miracle. During the economic boom, japan rapidly became the worlds second largest economy after the united states. By the 1990s, japan s demographics began stagnating and the workforce was no longer expanding as it did in the previous decades, despite per. The japanese economic miracle refers to a period from postwwii to the end of the cold war where japan s economy still recorded positive growth. The postwar japanese miracle has lost much of its luster since the 1990s, when the economy fell into a protracted postbubble slump. The post second world war japanese economic miracle saw the gap between the two countries close rapidly hayashi and prescott, 2008.
Japan emerged from wwii as a broken nation with burnt cities and a collapsed economy. The postwwii japanese economic development was a process of catchup to. Over this entire period of rapid economic growth, the average annual growth rate was 9. Japan s gdp growth rates japan experienced impressive, though declining, economic growth rates in the postwar era. The end of the cold war has allowed the west to get beyond what had been a confining and oversimplified view of japan. Birth of japanese economic miracle in this time the unemployment rate was low. Innovations in intellectual property systems and economic.
Japans recovery is the greatest economic success story. In the socioeconomic sense, 1968 was a reflection point of japans high growth period. The focus of this book is on the japanese economic bureaucracy, particularly on the famous ministry of international trade and industry miti, as the leading state actor in the economy. Furthermore, when analyzing the cause and effect of the world war on japan, a period of rapid economic growth post world war was observed. Its hardly a knock on japan that its 70yearolds arent producing a lot of economic output. This postwar economic miracle was regarded with a mixture of awe and alarm by some western observers and occasioned a flood of books with titles suc ahs how japan s economy grew so fast 27, asias new giant 126, japan as number one 169, and the emerging japanese superstate 69. This paper which is a pdf draft copy of ongoing research traces the origins of the major world economic miracles through their 20th century incidences in the japanese colony of the south. Helen macnaughtan this book shows how, during the period of the japanese economic miracle, a distinctive female employment system was developed alongside, and different from, the better known japanese employment. I then note some of the similarities and differences between the japanese economy and the east. Gruben, the role of intellectual propert y rights in economic growth, j.
The asian miracle and modern growth theory richard r. Before the defeat in 1945, all of japan s strength. The japanese economic development was generally supported by the. If the consolidation of the us japan alliance was a key factor behind japan s economic miracle, then this consolidation should coincide with the start of japan s growth acceleration. Japan focused on producing car rather than other things as it has signed a security pact with usa. We find that japan s per capita gross domestic product gdp grew much faster than the synthetic japan s from 1958 to 1968. A reinterpretation, by patrick smith, and inside the kaisha. After wwii, japan s economy continued growing partly due to measures laid down by the government and also due to financial aid from the us. Miti and the japanese miracle the growth of industrial policy 19251975.
In the early 1990s, it lost its status as an economic juggernaut and found itself a beleaguered nation in its worst recession since world war ii. The war had major effects on japan s infrastructure, finance and resources. In explaining japan postwar economic miracle, there is no single factor that embrace all the necessary elements in driving the economic growth. Two new books help explain why the country has been struggling. In 1968, japan s gnp reached about 152 billion dollars. Kim is professor of economics and departmental fellow of the kellogg institute at the university of notre dame. One east asian country after another has taken off from a stagnant state to achieve an annual economic growth rate of 10 percent or more. Economic policies and corporate strategies were geared to this utmost mandate in our mindsto catchup.
Japan experienced rapid growth in the 1950s and 1960s while following a set of policies that differ from current policies in fashion. The japanese economic miracle is known as japan s record period of economic growth between the postworld war ii era to the end of the cold war. Besides that, the internal factors triggered by government incentives and. There were external factors in the form of military protection and financial aid, thus enable the country to recover rapidly. In this section, we test this observable implication with a nonparametric approach known as the synthetic control method abadie and gardeazabal 2003. So, to adjust for the graying of its population, you need to look at its gdp per workingage adult. The japanese economic miracle is known as japans record period of economic growth between the postworld war ii era to the end of the cold war. The korean miracle 19621980 revisited kellogg institute. Japanese economic success as a result, by 1982 japan s annual deficit amounted to nearly 30 percent of its budget, and interest payments on the national debt accounted for14. Underlying factors and strategies for the growth introduction japan s reconstruction of its nation to become the great economic power in less than forty years after the defeat of world war ii has been a somewhat remarkable exception in modern economic history. The japanese economic miracle refers to the dramatic growth of the japanese economy after world war ii and till the end of the cold war. The reality of change has been even more dramatic than the perception.
Although some observers believe that japanese growth occurred in spite of the policies rather than because of them, several countries have looked to japan s approach during this period as a way to accelerate their own growth. For nearly 40 years, the country subordinated other goals in. From 19601970, japan averaged an annual real adjusted for inflation gdp growth rate of 11. Francks draws out the historical roots of the institutions and practices on which japan s postwar economic miracle was based and provides a comparative framework within which the japanese case can be understood and related to development in the rest of the world. Japan s government is a constitutional monarchy where the emperors power is limited to mainly ceremonial duties.
Japanese economic success industrial policy or free market. The fact that such high economic growth rates are being. It was brought to an end by the international oil and stagflation crises of the 1970s. Growth in japans per capita gdp between 1870 and 1940 replicates the success of the economy of this movement, that continued throughout. This book shows how, during the period of the japanese economic miracle, a distinctive female employment system was developed alongside, and different from, the better known japanese employment system which was applied to male employees. We substantiate these results with indepth historical analyses on how the united states facilitated japan s economic miracle.
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