Stages of Japanese Post-war Economic Growth Case Study

Stages of Japanese Post-war Economic Growth - Case Study Example Economic Recovery Phase: 1946-1950 The first phase implying the recovery of Japanese economy from the adverse effects of World War II started soon after the year 1945. Teranishi propounds that in the wake of the Second War, the Japanese economy confronted with an arrant economic disaster in the form of declining GNP, mounting inflationary pressures, and collapsing production. However, soon after the downturn in the year 1946, the economy caught the track of recovery. In 1948, the inflation was cut down significantly and production was steadily improved. This recovery and stabilisation period lasted during 1945-50 (139). This period is crucial in the study of the rapid growth of Japanese economy in the post-war era because this phase started a couple of years after the war. Also, a study of these years' economic activity suggests major changes made to the industrial structure that impacted on its growth. Japan was fortunate in the sense that although it had lost its economic and industrial vivacity as a consequence of the World War II, yet its efficient and effective human resource was still there to bring the country out of the disaster caused due to war. Seldon propounds that, "it was not that Japan was building from Scratch True, industry and the industrial cities had been devastated. But there existed large resources of well-educated manpower with a strong determination to survive" (271). The country's human resource played a great role in lifting the country from economic downturn to the recovery period. Seldon illuminates that the "'long-term achievement was to steer the pre-war economy in new directions move slowly away from cotton to heavy industry such as iron, steel, shipbuilding, and chemical production" (272). No doubt, the... This paper describes the rapid economic development in Japan after the year 1945 in the context of various phases it experienced while travelling to the unprecedented levels of growth. This paper identifies several economic phases in the development of post-war Japan, each with some specific characteristics. Japanese economic growth in the post-war period is considered to be an example for countries struggling against their economic disasters. It has also been termed as a ‘miracle’ owing to the spectacular effort demonstrated on the part of a nation that had just suffered from war, yet that leaped rapidly towards the economic boom. The first phase implying the recovery of Japanese economy from the adverse effects of World War II started soon after the year 1945. In the wake of the Second War, the Japanese economy confronted with an arrant economic disaster. Soon after the downturn in the year 1946, the economy caught the track of recovery. This recovery and stabilisation period lasted during 1945-50 This period was successful enough to curb the inflationary pressures as well as restore the production level nearly to the pre-war period. In this period, industries were strengthened by means of demilitarisation and amendments to the labour laws. The boom of Japanese economy from mid 50s to the early 70s was very well manifested in the growth of the manufacturing capabilities in the country. Not only that, the economic growth even rose above the pre-war level during the 1960s and this rapid growth lasted till the early 1970s.