Essays academic service


The growth of japans economy after the korean war

The average economic annual growth in East Asia from 1973 to 2003 was 8. Growth has continued at a healthy clip despite the Asian financial crisis in 1997-98 and the Lehman Brother shock in 2008-2009. Emerging Asia's average growth rate of almost 8 percent over the 1990s and 2000s---three times the rate in the rich world. According to the Asian Development Bank: Much of the growth has been fueled by exports.

Efforts to break up the zaibatsu---the the large industrial conglomerates that provided the hardware for Japan's military expansion---after World War II were resisted not only by the zaibatsuthemselves by conservative elements in the MacArthur headquarters. Other economic reforms included the passage of Deconcentration Law and the establishment of the Fair Trade Commission. Government policies shifted vast amounts of wealth to the middle class. Labor was absorbed into corporate governance with an emphasis on employment security.

The revolutionary land reform bill that MacArthur pushed through the Diet allowed America-backed government to seized land and abolished the titles of the extensive aristocracy. The bill literally ended feudalism in many parts of Japan overnight and allowed many Japanese to own land for the first time.

The Japanese aristocracy was stripped of its land, wealth and status according to the terms of the post-war constitution. Large landowners were forced to sell their land to the tenants who worked it at a very reasonable price. The zaibatsu were stripped of the powerful families that ran them but continued to exist.

Junichi Maruyama economic news editor of the Yomiuri Shimbun wrote: Instead, the world economy shifted to the Bretton Woods system of monetary management, with reduced tariff barriers and free trade as its foundations. Japan achieved remarkable reconstruction and rapid economic growth as a trading nation in the postwar years, chiefly due to the major changes in the framework of the international economy.

People were still dying of starvation. Photographs at Yasukina Shrine from the mid 1940s show families standing in front of shop windows "looking longingly" at toasters and refrigerators. In the 1950s, U. After securing energy supplies around the 1950s the national goal shifted to strengthen export capabilities. In the the growth of japans economy after the korean war and 1960s, Japanese bought black and white televisions, washing machines with ringers and ice candy from vendors roaming the streets on bicycles.

The mass production of radios began soon after the first radio broadcasts in 1925. Televison mass production began in 1953.

Japanese economic miracle

Birth of the Japanese Economic The growth of japans economy after the korean war A recovery program for Japan set up by the United States restricted imports, provided loans and encouraged personal savings and capital investment. Japan expert Ian Buruma wrote in Newsweek that U. Secretary of State George Marshall decided that instead of setting up a Japan Marshal plan "Japan should be allowed to export is way out of trouble, and given the tools to do so.

Vast amounts of U. Japanese welfare spending was reduced, worker's wages cut and raw materials allocated to promote export jurisdiction over domestic consumption. And the task of rebuilding Japanese industry fell to those who knew best how to do it, the same bureaucrats and politicians who ran the Japanese war economy. Japan as an economic superpower, monopolized by an elite of conservative politicians, bureaucrats and industrialists.

American ships were serviced in Japanese ports, machines were repaired, support facilities were established. The growth of japans economy after the korean war who made a lot of money were fairly good at letting their wealth trickle down so that it improved the lives of ordinary Japanese not just the elite. Rise of the Japanese Economy With Washington taking care of security, Japan was able to focus its energy on becoming an economic powerhouse.

By 1951 the Japanese gross national product had revived to pre-war levels, and Japanese businessmen had begun roaming through American factories with little supervision, picking up technical knowledge.

Japan's economic ascension had three distinct stages. The first stage was guided by the "priority production system" of the 1950s that stressed increasing coal and steel output and developing heavy industries like shipbuilding and timber making. In the second stage in the 1960s and 70s Japan focused on producing consumer products and automobiles for export markets. The third stage was the development of knowledge-based products like computers and electronics.

Ian Buruma, Newsweek] The Japanese went through a stage similar to the one that China is going through now in terms of copying and piracy. In the early stages of their development Japanese companies copied many American and European products. These companies and the Japanese government became more concerned with intellectual property concerns when Japanese companies needed laws to protect their patents and copyrights.

Many businesses got their start in one room neighborhood factories, relying on cheap labor, that made textiles, toys, tools and cheap electronic items. The first Sony portable transistor radio appeared in 1955 and the first Barbie dolls were produced in Japan in 1959. Early Japanese products were ridiculed as cheap imitations and many companies made awful mistakes. Datsun, for example, named its first American cars the "Bluebird," as in the "bluebird of happiness.

Prime Minister Shigeru Yoshida 1878-1967 led Japan during the postwar period. Through the 1960s, Japan had a growth rate of 11 percent compared to 4. Between 1965 and 1970 the number of households that owned a car jumped from 1 in 20 to 1 in 5. By 1970, 19 out of 20 owned a television. Protectionism by the United States allowed Japanese companies stop focusing on producing consumer goods and concentrate more on making big things like cars. By 1970, Japan was the third largest industrial nation in the world after the United States and the Soviet Union.

Oil Embargo and Growth in Japan in the 1970s and 80s Japan went into a severe recession in 1974 and 1975 after the Arab oil embargo. In 1973 the Japanese economy was suffering an inflation spiral caused mainly by surging land prices triggered by a nationwide development boom. In October of that year, war broke out in the Middle East and Arab oil-producing nation cut supplies to countries that supported Israel. Oil prices quadrupled, consumption declined and high raw material costs hit companies hard.

Again in 1980 Japan suffered from high inflation and recession mainly due to large hikes in the price of imported oil. The exchange rate reaches 360 yen to the dollar in the 1970s.

  1. By 1951 the Japanese gross national product had revived to pre-war levels, and Japanese businessmen had begun roaming through American factories with little supervision, picking up technical knowledge.
  2. People rarely ate meat and few could afford sewing machines, shoes, bicycles or tractors. Through below-cost exports to the US market, the Japanese firms were able to drive most of their US competitors out of business.
  3. The welfare society in Japan In Japan, a welfare society rather than welfare state exists, characterized by total employment, including cartels of small and medium sized companies to prevent them from bankruptcy in order to maintain total employment. When this export driven economy first started in the 1950s, Japan had a favorable international environment.
  4. Many people thought Japan was poised to dominate the world economically and Japan bashing became a popular conversation topic in the United States and elsewhere. The government also bailed out troubled chaebols by supplying money or transferring assets to another chaebol.
  5. The mass production of radios began soon after the first radio broadcasts in 1925.

Even so economic growth continued at a robust rate through the 1970s and 80s, with the growth in the 1980s about 5 percent a year, about half the growth rate that China experienced in the 2000s.

With the help of the oil embargo Japan captured 21 percent of the world's automobile market by the mid 1970s. By the 1980s, Japan had built up such huge trade surpluses and the yen had become so strong that Japanese businessmen were buying up properties all over the world and Japanese tourists were fanning out to every corner of the globe.

Navigation menu

Many people thought Japan was poised to dominate the world economically and Japan bashing became a popular conversation topic in the United States and elsewhere. Indonesia, Malaysia and Thailand tripled their income levels in the same period. In 1953 industrialized North Korea was richer than largely agricultural South Korea.

  1. Pyle, 250 The following is an example of a keiretsu.
  2. The Japanese economy survived from the deep recession caused by a loss of the U. American ships were serviced in Japanese ports, machines were repaired, support facilities were established.
  3. In the case of Japan, industrial production had fallen in 1946 to 27. Since the oil price rose tenfold, the cost of production also soared.
  4. Instead, the state promoted a welfare society through legislation. When this export driven economy first started in the 1950s, Japan had a favorable international environment.

In 1960, South Korea was still one of the poorest countries in Asia. Pakistan, Nigeria and Ghana were richer. Now South Korea has a per capita income many times higher than these countries and many children attend university. Before 1962, 80 percent of foreign investment in South Korea was foreign aid, mostly from the United States.

Peace Corp workers were sent to Korea.

ECONOMIC HISTORY AFTER WORLD WAR II IN JAPAN, SOUTH KOREA AND SOUTHEAST ASIA

In the 1960s, South Korea made wigs and false teeth mainly for export. At that time South Korea was still emerging from the Korean War. There were some textile factories but basically no manufacturing, no banks, no real businessmen and no people who spoke foreign languages other than Japanese.

The Vietnam War was a big boost. Industries were launched to supply the American military. Through export-led industrialization, South Korea transformed itself rom a poverty-stricken nation into an economic powerhouse faster than perhaps any other country.

The road to development in Japan, Hong Kong, Singapore, Taiwan and South began with sweatshops that produced garments and shoes and light assembly plants that produced toys and cheap electronics. He decided that South Korea could prosper on a policy of export-driven growth with heavy investment in technological-intensive industries such as shipbuilding, steel, petrochemicals and electronics.

Within weeks after taking office he established a government body to provide direction for the economy. When Park Chung-hee became the leader of South Korea in 1961, the country was among the poorest in Asia. It suffered from rising unemployment decreasing growth and dwindling U. Many houses at that time then had no electricity, running water or bath tubs.

People rarely ate meat and few could afford sewing machines, shoes, bicycles or tractors. People walked around in cold weather with rice straw wrapped around their feet. In some places women were only rarely allowed to leave the house and those that did wore veils like Muslim women.

Park laid out a five year plan and put knowledgeable and able economists in charge. Under a kind of centrally-planned capitalism, the government decided which companies would produce what products and provided investment money in the form of low interest-loans. The government often made decision about pricing, wages and machinery purchases and protected the chaebols large industrial conglomerates from high labor costs, foreign competition, and even "excessive" domestic competition.

The government also bailed out troubled chaebols by supplying money or transferring assets to another chaebol.

Guaranteed government assistance, the chaebols leaped into a plethora of industries in which they had little experience. This is how the chaebols developed into huge conglomerates with divisions in industries as diverse as construction, chemicals, electronics, cars, newspapers, shipbuilding and cars.

With such strong bonds between government and industry, payoffs and bribes became an accepted part of doing business in Korea. The move prompted huge demonstrations in Seoul and Park reacted by imposing martial law.

In 1965, he agreed to send troops to Vietnam to help the Americans fighting there. This was generously rewarded with more economic aid and military contracts. Revenues from the Vietnam War were th single largest source of foreign exchange in South Korea and this money laid the cornerstone for growth that would continues almost unabated for three decades. Textiles was the first industry to develop. During the period of economic expansion in the 1960s and 70s, many factories hired country girls, who lived in dormitories and worked for low wages.

Howard Sochurek visited one factory that turned human hair bought from India and Indonesia into wigs.

  • As one of the major supporters of the United States in Asia, Japan stood out, providing ample support to logistical operations, and also benefitting from the production of firearms;
  • People were still dying of starvation;
  • After the deflationary policy, the Japanese economy has been through a time of low increase period which has lasted until today.

The hair arrived in large bags and the girls sorted it according to length and texture and then dyed, washed, and combed it.