The Japan’s ‘Economic Miracle’ refers to the postwar period in which Japan rose from a war torn nation to the world’s second biggest economy. This transition period covers between 1950s and 1970s. However, this high economic growth reached its maximum in the 1960s. The origin of this tremendous economic flourish can be trace from the country’s positive and hard working population, good governance, strategic location and the Korean War effect.
The governments great input into this economic revival propelled the economic miracles witnessed in Japan. The government policy supported industrial growth by expanding business expansion as from 1950s. For instance, the 1952 Business Rationalization Promotion Act availed a special scheme for modernizing equipment in major industries. The government developed a financial policy that created banks like Japan Development Bank and Exlm Bank. Besides, small and medium business facilities were also established under this policy. These financial reforms in the banking industry created a reliable long term source of finance for investors especially in the business sector. This government’s financial support was coupled by the absorption of foreign technology in steel making, chemical industry and the electric and electrical industry.
The United States dream of seeing an economically strong Japan was actually fulfilled during this economic miracle. During the Korean War, a very favorable environment was created for the Japan’s economy to grow. This war created a very high demand for the Japanese products a move which greatly restored the real 1935 level of Gross Domestic Product. Even after the end of this era, Japan’s economy still remained strong.
In conclusion, Japan experienced a supernormal economic growth that turned it into one of the world’s leading economic powers from the war torn country. The government’s contribution was very significant in this achievement. However, this great economic growth would not become a success without the Japanese hard work.
Works cited
Rowthorn, Chris. Japan. Tokyo: Lonely Planet, 2010.
