The Japanese economic miracle is a unique phenomenon of the remarkable growth of the economic sphere of Japan, which began in the mid-50s of the 20th century and was observed for more than 20 years. During this period, the Land of the Rising Sun demonstrated the highest growth rates to the world, ahead of even the most developed countries of the world.
Leading economists and historians include the following as the main reasons for growth and development:
- mastering and developing advanced technologies in the field of electronics and technology;
- government support for domestic producers by minimizing tax pressure;
- state control of export activities;
- political stability;
- reduction of military items in the expenditure side of the state budget and gradual demilitarization of the country’s economy;
- Profits from the sale of US military equipment.
Features of the Japanese Economic Miracle
The heyday of the economic sector in the Japanese state was significant not only for the country itself, but for the whole world. Among the peculiarities of this phenomenon, the merger into large holdings and corporations not only manufacturers of products and suppliers of raw materials, components, but also the distributors of finished products together with financial institutions – banks is particularly prominent.
The total ban on imported goods stimulated the development of local industries industry. A total ban on speculative activity that does not bring significant revenue to the state budget.
In addition, during this period there were extremely mutually beneficial relations between the government and businessmen. Large corporations have begun to guarantee life-long employment (life-long employment) at their enterprises. Thereby increasing not only the competitiveness among workers, but also the overall productivity of labor. The active movement of trade unions contributed to the protection of the rights and interests of workers not only at the labor level, but also at the level of socio-economic relations.
The agrarian reform, which gave land ownership to the peasants, was another progressive step in the development of the economy.
Due to the small area of the country, raw materials were purchased in other states. At the same time, the full cycle of their processing by the manufacturer exclusively in Japan.
Results of the Japanese Economic Miracle
And let such a phenomenon as the “Japanese economic miracle” to exist for just over 20 years, but a powerful economic impetus allows the country to still hold a leading position in the global market.
Among the major achievements are the following:
- A significant excess of economic growth over the economies of the leading world powers (USA, France, Germany, Italy).
- GDP allowed Japan to become second in the world.
- The country has become the world leader in the industry of shipbuilding, automotive, metallurgy, electrical engineering, electronics, radio engineering.
- a significant increase in capital accumulation.
- production formation with high efficiency indicators.
- forming a highly qualified field of high-tech professionals.
- the economy and industry began to differ not only by high growth rates, but also by the saving of energy resources and material resources.
Thus, the Japanese economic miracle is a whole period in the history of the Land of the Rising Sun, which contributed to the complete restoration of the war-torn country and the withdrawal of the economy and industry to the world level.