The reasons for this include high rates of both personal savings and private sector facilities investment, a labor force with a strong work ethic, an ample supply of cheap oil, innovative technology, and effective government intervention in private-sector industries. Between andthe percentage of Japanese living in cities rose from 38 percent to 72 percent, swelling the industrial work force. Web-Japan, Ministry of Foreign Affairs, Japan] The competitive strength of Japanese industry increased steadily, with exports growing, on average,
The distinguishing characteristics of the Japanese economy during the "economic miracle" years included: Governmental contributions[ edit ] The Japanese financial recovery continued even after SCAP departed and the economic boom propelled by the Korean War abated.
The Japanese economy survived from the deep recession caused by a loss of the U. By the late s, Japan had risen from the ashes of World War II to achieve an astoundingly rapid and complete economic recovery. The economical miracle can be divided into four stages: However, after three decades, Japan had experienced the so-called "recession in growth", as the United States had been imposing economic protection policy in oppressing Japanese production and forcing the appreciation of the Japanese yen.
In preventing further oppression, Japan greatly improved its technological advances and raised the value of the yen, since to devalue, the yen would have brought further risk and a possible depressing effect on trade.
To alleviate the influence of recession, Japan imposed a series of economical and financial policy to stimulate the domestic demand. Nevertheless, the bubble economy that took place in the late s and early s and the subsequent deflationary policy destroyed the Japanese economy.
After the deflationary policy, the Japanese economy has been through a time of low increase period which has lasted until today. For more detailed information regarding this period, see Economic history of Japan and Lost Decade Japan. For instance, during the wartime, "the Japanese cotton industry was brought to its knees by the end of the Second World War.
Two-thirds of its prewar cotton spindles were scrapped by wartime administrators, and bombing and destruction of urban areas had caused a further loss of 20 percent of spinning and 14 percent of weaving capacity".
By and large, every country has experienced some degree of industrial growth in the postwar period, those countries that achieved a heavy drop in industrial output due to war damage such as Japan, West Germany and Italy, have achieved a most rapid recovery.
In the case of Japan, industrial production had fallen in to The government body principally concerned with industrial policy in Japan is the Ministry of International Trade and Industry.
The "Inclined Production Mode" refers to the inclined production that primarily focus on the production of raw material including steel, coal and cotton. Textile production occupied more than By enhancing the recruitment of female labour, Japan managed to recover from the destruction.
The legislation on recruitment contains three components: The Korean Peninsula is distant from US territory, so the logistics soon became a significant problem.
As one of the major supporters of the United States in Asia, Japan stood out, providing ample support to logistical operations, and also benefitting from the production of firearms. The order of mass firearms and other material by the United States greatly stimulated the Japanese economy, enabling Japan to recover from the wartime destruction and providing Japan the basis for the upcoming high increasing stage.
The High Increasing Stage [ edit ] After gaining support from the United States and achieving domestic economic reform, Japan was able to soar from the s to the s. Furthermore, Japan also completed its process toward industrialization, and became one of the first developed countries in East Asia.
The Japanese Economic Yearbooks from to witnessed the significant increase. Inthe year book said: The reasons for Japan to complete industrialization are also complicated, and the major characteristic of this time is the influence of governmental policies of the Hayato Ikeda administration, vast consumption, and vast export.
Influence of Governmental Policies: Ikeda administration and keiretsu[ edit ] Inthe economic system MITI had cultivated from to came into full effect.
Prime Minister Hayato Ikedawho Johnson calls "the single most important individual architect of the Japanese economic miracle," pursued a policy of heavy industrialization. Since there was a shortage of capital in Japan at the time, industrial conglomerates borrowed beyond their capacity to repay, often beyond their net worth, causing city banks in turn to overborrow from the Bank of Japan.
This gave the national Bank of Japan complete control over dependent local banks. Led by the economic improvements of Sony businessmen Masaru Ibuka and Akio Moritathe keiretsu efficiently allocated resources and became competitive internationally. The keiretsu spurred both horizontal and vertical integrationlocking out foreign companies from Japanese industries.
Keiretsu had close relations with MITI and each other through the cross-placement of shares, providing protection from foreign take-overs. Keiretsu also fostered an attitude shift among Japanese managers that tolerated low profits in the short-run because keiretsu were less concerned with increasing stock dividends and profits and more concerned about interest payments.
Approximately only two-thirds of the shares of a given company were traded, cushioning keiretsu against market fluctuations and allowing keiretsu managers to plan for the long-term and maximize market shares instead of focusing on short-term profits.The Economic Effect on Japan during Post World War II Japan’s economy was greatly affected by the atomic bombs dropped on both Hiroshima and Nagasaki.
Japan’s economic recovery as a result of this incident transformed Japan’s economic growth which has become known as the “Economic Miracle.”.
The Japanese economic miracle was Japan's record period of economic growth between the post-World War II era to the end of the Cold War. During the economic boom, Japan rapidly became the world's second largest economy (after the United States).
Chapter 7 World War I and the s: This book contains lectures on the Economic Development of Japan which was delivered in English by the author at the National Graduate Institute for Policy existing academic literature on Japanese economic history, I also added dis-.
japan's post-world-war ii economy and the economic miracle of the s and 60s JAPANESE ECONOMY AFTER WORLD WAR II The Japan’s postwar economy developed from the remnants of an industrial infrastructure that suffered widespread destruction during World War II.
Chapter 7 World War I and the s: This book contains lectures on the Economic Development of Japan which was the rest of the world cannot uncover Japan’s position in the world history. In preparing the website and lecture notes which I used to compile this book, I. The Japanese economic miracle was Japan's record period of economic growth between the post-World War II era to the end of the Cold War.
During the economic boom, Japan rapidly became the world's second largest economy (after the United States).