The japanese economy was devastated after world war ii. How did japanese succeed in its economy after world war 2. In that time, japan has established itself as a global economic and political power. With the energy crises of the 1970s, the japanese economy went into an era of transition. This essay talks about the postwar economic redevelopment of japan with emphasis on the successful reforms, implemented by the government. Alone among nonwestern peoples, the japanese maintained full political independence during the golden age of imperialism. We are definitely at war with japan, says john connor, the venerable. Government publication, national government publication. The occupation of japan was a strange and unique time. The japanese economy first showed signs of serious strain when the bubble.
Over 500 military officers committed suicide right after japan surrendered, and many hundreds more were executed for committing war crimes. The economic history of japan is most studied for the spectacular social and economic growth in the 1800s after the meiji restoration, when it became the first nonwestern great power, and for its expansion after the second world war, when japan recovered from devastation to become the worlds second largest economy behind the united states, and from 2010 behind china as well. Reading them out of order, however, will not throw on off. The americanwritten postwar constitution was enacted on november 3, 1946 and became effective may 3, 1947. Japan was to cling to its universal welfare, and rather than inhibiting japans economic growth it was to develop into one of the fastest growing economies in the world.
The reason japan succeed in developing its economy after world war ii to is partly because of the industrial strategies. The allied occupation of japan at the end of world war ii was led by general douglas macarthur, the supreme commander of the allied powers, with support from the british commonwealth. During the economic boom, japan rapidly became the worlds second largest economy after the united states. The postworld war ii economic expansion, also known as the golden age of capitalism and the postwar economic boom or simply the long boom, was a broad period of worldwide economic expansion beginning after world war ii and ending with the 19731975 recession. He might say that the japanese were aggressive militarists who wanted to take over the world, or at least the asia. She was left with a lot of damages, especially the two cities hiroshima and nagasaki which suffered serious atomic bombing. In the late 1950s, however, the nation reemerged as a major industrial power. Because of the chinese and communist threat we began to help rebuild japan and forgave their war debt. Japan is also the worlds biggest creditor with the leading public debt ratio overview of the economy of japan. During the mid of year 1970, global recession made a diminish abruption in economic development and a most unpleasant world war turned up at the same time. It shaped japanese foreign policy throughout the cold war era and beyond. In this book, aaron forsberg presents an arresting account of japans postwar. After the nazi attack on russia in 1941, the japanese were torn between german urgings to join the war against the soviets and their natural inclination to seek richer prizes from the european colonial territories to the south.
The european war presented the japanese with tempting opportunities. Even so, these two first world powers have kept good relations since the end of world war ii. Japan is still important ally, and friend to the united states. On august 6th, 1945, america dropped an atomic bomb on hiroshima, japan. Owing to successful transformation of japan economy, the country is currently among the worlds largest economies with constantly growing economy. Elements of the japanese postwar development system that were competitionrestricting in nature functioned well during her catchup process. What a bitter pill, then, that when usled occupation forces landed just over three.
The last chapter surveys japans economy in the three postwar years under the occupation. Total output failed to reach 1939s level until 1955. Japans economy began to grow and to industrialize rapidly. Even though after the war, japan was led by an american written constitution, they were still able to exert a stance.
I highly recommend this book on this very important topic. The material loss mounted to about 25% of national wealth excluding military stock economic stabilization board report of 1949. The united states, soviet union, western european and east asian countries in particular experienced. Japans undergo a perpetual growth of gnp after that while the economy improved again at the end of 1970s. Economic development of japan after world war ii essay. After achieving miraculous growth rates since world war ii, the japanese economy slowed down from 1990. This effectively was the definitive end to world war ii. The emperor lost all political and military power, and was solely made the symbol of the state. What happened to japans economy after world war i and how did people respond. This economic miracle was the result of postworld war ii japan and west. Japans economy was the envy of the world before succumbing to one of the longestrunning economic crises in financial history that would come to be known as the lost decade.
More than that, as the twentieth century opened, japan was experiencing the industrial revolution and advancing to the status of a great power, a full if unwelcome participant in the struggle for imperial position. Three charts sum up japans fortunes over the past seven decades. Macarthur, enacted widespread military, political, economic, and social reforms. What happened to japans economy after world war i and how. They rebuilt their industrial base by taking advantage of the opportunity to begin clawing their way out of the pit they had fallen into. Introduction to the japanese economy economics essay.
Prime minister shinzo abe announced that the country will push to stimulate its slowing economy and help some of the areas affected by typhoon hagibis. 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. Few people may realize that japans longest postwar boom took place over a 73month period from 2002 to 2008 when japan was deemed mired in its lost decades of economic doldrums that. By engaging in international trade, however, the japanese had built a moderately advanced industrial economy by 1941. A strategy named after japans first prime minister after world war ii shigeru yoshida that declared the reconstruction of japans domestic economy with security guaranteed by an alliance with the united states. Japans economy, at war with itself foreign affairs. When the catchup process was over, however, those competitionrestrictive elements became harmful. Japanese economy during the world war 2140 words bartleby.
The miracle of japanese economy after the second world war. When the british economy began to sag at the beginning of this century. The miracle of japanese economy after the second world war ww2. 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 war remained undeclared until december 9, 1941, and ended after allied counterattacks during world war ii brought about japans surrender.
Economic warfare provoked japans attack on pearl harbor, the. They assume, for example, that the united states went to war against germany and japan only after its declarations of war against these nations in december 1941. After world war 1 japan looked to expand their empire where they ended up with territories like taiwan, korea, manchuria, and parts of northern china. Friction between the united states and japan over trade and investment. The era before and during world war 2 was the most decisive and eventful of japanese history. I have located over 35 recent books in this genre many with bellicose titles. Occupation and reconstruction of japan, 194552 after the defeat of japan in world war ii, the united states led the allies in the occupation and rehabilitation of the japanese state. Politics and the economy in prewar japan professor richard j smethurst, university of pittsburgh takahashi korekiyos economic policies in the great depression and their meiji roots p. That makes it impossible to judge japans economy by its gdp, at least in comparison to others, because you wouldnt expect it to be growing very much, if at all, when its workforce isnt. It allows you to compare the gross domestic product of countries that use different exchange rates. Two families emigrate to a new nation, both bring no material possessions with them apart from the clothes on their backs. This foreign presence marks the only time in japan s history that it has been occupied by a foreign power.
Japan is the second most advanced economy in the world, the third largest by nominal gdp, and the 4th by ppp. It is a wellwritten, lucid and attractive book, and should be recommended reading for all students of japans economy and business. A common purpose shared by business, household and the government. John dowers combination of socioeconomic, cultural, political and diplomatic. However, after that point, japans economy took off in an unprecedented fashion. After war by chris coyne is a very powerful application of economic reasoning to help explain why it is so hard to export liberal democracy to failed nations states either after a war or after the collapse of an existing regime. Japans recovery is the greatest economic success story. World war ii, the japanese economy demonstrated considerable momentum after the meiji restoration. Development of the japanese economy after world war ii. This 1940 system was developed as a rational way to put japans economy on a wartime footing, and it served that purpose well. How did japan rebuild itself and become an advanced nation. Structural bifurcation was over and japan entered into a new socioeconomic structure.
Japan saw world war 1 as an advantage to take advantage of european countries destroyed from the war. Japans economy collapsed after the defeat in world war ii, and its merchant marine, one of the worlds largest in the 1930s, was almost totally destroyed. World war ii wasnt the only war that boosted japans economy. In the short span of three decades after the end of world war ii, japan went from being an economic basketcase in the eyes of the world, its industries largely reduced to rubble by wartime bombing, to being one of the wealthiest nations on the planet and an exemplary success story of economic development. In the 1970s, japan produced the worlds secondlargest gross national product gnp after the united states and, by the late 1980s, ranked first in gnp per capita worldwide. Phase i of the economic development after wwii was from 1945 through the 1960s. The united states, although their occupation has ended, never truly left japan, keeping military bases within the country. The economic history of japan is one of the most studied. The country is one of the worlds most innovative economies having the largest electronic goods industry and patent filings. Its the worlds fifth largest economy after china, the european union, the united states, and india. Calmly and compassionately rendered, realistic and romantic, after the war is over is a wonderful testament to its survivors. The outbreak of the korean war boosted japans economy as japan became the supplier of goods needed for war. I first became convinced of this view when, as one of the navys japanese. After the deflationary policy, the japanese economy has been through a time of.
Japan has established itself as a global economic and political power. Japan s postwar economy developed from the remnants of an industrial infrastructure that suffered widespread destruction during world war ii. Japans industrial economy would have ground to a halt. Second sinojapanese war 193745, conflict that broke out when china began a fullscale resistance to the expansion of japanese influence in its territory. The real situation after world war after the world war ii ended, japan was one of the defeated countries. List of books and articles about japan, postwar period. Postoccupation japan is the period in japanese history which started after the allied occupation of japan that ended in 1952. If the knowledge and knowhow gap with the west was a persistent feature of the japanese economy before and after world war ii, why did the catchup process accelerate so dramatically in the. After the end of world war ii, japans economy was in a shambles, and its international economic relations were almost completely disrupted. Japans economy in war and reconstruction by jerome b. But its not on pace to catch up because it only grew. After suffering devastating casualties at each others hands during world war ii, the u. The amount earned over 500 yen had to be deposited and blocked. Following various causes given below after the ww2, japan showed the.