Japanese Economic Miracle

Japanese economic miracle
The Japanese post-war economic miracle is the name given to the historical phenomenon of Japan's record period of economic growth following World War II, spurred mainly byUnited States investment but partly by Japanese government economic interventionism in particular through their Ministry of International Trade and Industry. The distinguishing characteristics of theJapanese economy during the "economic miracle" years included: the cooperation of manufacturers, suppliers, distributors, and banks in closely knit groups called keiretsu; the powerful enterpriseunions and shuntō; cozy relations with government bureaucrats, and the guarantee of lifetime in big corporations and highly unionized blue-collar factories.
ELEMENTS OF JAPANESE MIRACLE
Partnershipbetween government and private corporations (some are zaibatsu);Slow down population growth; frees up capital to invest; Economy is based initially on exports, and eventually turns to consumer goods fordomestic market; Government and companies agree to focus on certain areas of industry: electronics, automobiles and other vehicles, cameras, shipbuilding; Emphasis on quality through team approach;job security for those in good corporations
American contributions: In the mid- to late-1940s, wartime expenses threatened economic ruin in Japan. Post-war inflation, unemployment and shortages in allareas seemed overwhelming. Japan’s immediate economic improvement was not achieved on its own. The American government, under the auspices of the Supreme Commander of the Allied Powers (SCAP), playeda crucial role in Japan’s initial economic recovery, although Japanese government measures fostered rapid postwar growth. SCAP officials believed economic development could not only democratize Japanbut also prevent the reemergence of militarism, and forefend communism in Japan. The United States also insisted that Japan be admitted to GATT as a "temporary member" – over British opposition....