Japan At The Crossroads

Chapter 12: Japan at the Crossroads
After World War II, Japan developed and important economic rise that led them be the second largest economy in the world. This chapter talks about how japan managed to be a wealthy country after military defeat and economic devastation.
Japan employed a version of “developmental capitalism” that allowed to promote their international competitiveness. Japantoday is at the crossroads because its bureaucrats and large businesses are old and rusty. Japan has changed in the last years from being a xenophobic isolated country to a pacifist commercialist in one of the best economical positions in the world.
The Japanese had always had a perception of the world on hierarchy basis, even on companies, countries, and races. Japanese corporatism gives them asense of identity because of the homogeny status among Japanese. The have a mercantilist view of the world, they have made great sacrifice on behalf of their nation and they have large cultural inventive to cooperate.
History: from isolation to imperialist
European traders found out when the arrived to Japan´s shores that they had social and political structure similar than the one Europe had 300years ago, the most powerful feudal lord was able to name its successive patriarchs or dominant overlord of Japan. Their policy was of almost total seclusion and cut off any foreign trade. Two and a half centuries of total seclusion ended with the arrival of U.S commodore Mathew Perry with a mandate to open trade negotiations. Japan accepted to set some treaties for foreign trade. Years later agroup of forward looking reformers made the feudal system crumble and established a new revolutionary government in 1868 with Meiji Emperor.
Mercantilism
A group of samurai bureaucrats promoted a mercantilist national policy and a strong army to be protected from western economies. Industrialist succeeded on counts of its national policy establishing capitalist economy on the first non-westernindustrial capitalist economy and first non-western imperialist power. Japan established a Postal saving bank where citizens kept their money and the bureaucrats made sure this money was used for infrastructure, this is the perfect example of Japanese political economy, it was learned from the British bank and it is a key link in the iron triangle that connects politicians, bureaucrats and bigbusinesses. Just to compare, The Postal saving bank had 6 times the deposits of Citibank.
The 1940 System in war and peace
In less than 50 years japan went to a position of total isolation to the first non-western world power, is was being industrialized at a quick pace defeating China and Russia and began expanding throughout Asia. Japan founded the “Greater East Asian co-prosperity sphere” thathelped improving its relationships with China and U.S, but in 1920, Japan gave away militarism, propelling Japan into a war first with China and the with U.S.
Some of the distinctive aspects of Japan’s political economy are high saving rates, trade barriers, lifetime employment, and close government ties with industry. These policies began in 1940 when Japan was preparing for war. The 1940 systemmaximized military and industrial resources. This system has survived nowadays.
Japan’s 20th century imperial expansion ended as a result of foreign pressure because of the military invasion of U.S for seven years. In this case it was general Mac Arthur who launched changes in the political system, breaking up the 1940’s system. He also considered rewriting Japanese constitution guaranteeing civilrights such as the vote for men and women. The political policy hat first prepares Japan to win the war was all changed to help Japan to win peace. Japan became favored client of the United Stated and with this was prepared for the economical catch up. Japan at first was believed to fall into communism, so U.S occupied Japan’s territory and this helped Japan regain their economy.
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