Devastating Effect On Japan And Its Economy example essay topic

To understand Japans economic boom and rise as a global superpower after the war one must also look at their history. Without the creation of the industrial economy during the Meiji Japan this economic growth after the World War Two could have not happened. To look even closer, we should examine the period before, called the Tokugawa period, from 1630's until the 1860's. Smith explains that "during this period Japanese economy experienced unparalleled growth and structural change" (Smith, p. 4). The system was set up based on rules and obligations in all sections of society. These systems of control helped rapid urbanization.

Education also was a factor in the economic development during Tokugawa period. Tokugawa Japan adapted Confucianism belief system from China. This became important because "one of the distinctive traits of Confucianism was reverence for education and learning" (Smith, p. 5). This spread of education was dramatic.

During this period up to forty percent of boys and ten percent of girls were educated. These are great numbers compared to other societies. In 1869 the Tokugawa shogun ta was brought down and Meiji restoration began. Japan was under great change. Meiji Japan began to industrialize.

This was due to the western countries that have already industrialized. It was through private investment and enterprise that Japan began this process. The backbone of industrialization were zaibatsu. (Begley, p. 86) Zaibatsu were industrial and financial conglomerates. They were given government support including benefits from government subsidies and sell-off of government factories. The first of these zaibatsu were Mitsui, Mitsubishi, Sumitomo, and Yasuda.

Growth of industrialization began slowly. In the beginning they still depended largely on United States and Europe for most specialized and worldly machinery and manufactured goods. It was not till the 1915 that industrialization began to take off for Japan. Why did this happen? The reason is the beginning of World War I. During World War I Japan was cut off from most European manufacturer goods. This was the needed opportunity for Japanese manufacturers.

Now they were able to broaden what they manufactured and move into the markets that were normally dominated by Europe. The demand for these manufactured goods ended up resulting in a net domestic product growth by 61.5 percent between 1910 to 1920. By the 1920's the wartime boom was over and Japan's economy went into a recession. Yet the 20's were important to economic development. Important changes in industry began to take place. One was a more efficient source of electric power.

This was called the hydroelectric plant. Hydroelectric plants took better advantage of Japanese geography then their pervious source of electricity. It also developed relatively cheap electrical power. With cheaper power now new industries began to develop (including aircraft and radio and electrical appliances). Smith says that beneath corporations are subcontractors and beneath them "are front parlor factories - households where parts are assembled, stamped, or cut and packed off up the production ladder".

(Smith, p. 114) As a result of the Great Depression of 1929 Japan became a more militarized state. The economy soon began to shape around miniaturization. As a result "the growing demand for goods and services from the military stimulated a growth in manufacturing industry, both in the production and in technology". (Smith, p. 11) Yet over half of the manufacturing was in heavy industries. Japan soon became an allied force in World War Two.

After the war Japan had been defeated and there were large costs. World War II had a devastating effect on Japan and its economy. At the end of the war 8,000,000 Japanese were either dead or wounded (K osaka, 1972). The United States occupied Japan from 1945 to 1952. During the occupation the United States initial "instructions were to take no undue measures to revive the Japanese economy" (Smith, p. 64). Other policies of the occupation were aimed breaking up the zaibatsu.

They were accused of being the driving force behind militarism in the 1930's to the 1940's. Yet the zaibatsu were the center of the Japanese economic development. In 1947 there was a change in course in the United States policies in the occupational period. This was largely due to changes in the decision-making structure of the US. (Weidner, p. 79) No matter what policies were put into motion by the occupation it was not till the Korean War that Japanese economy started to take off. It was then that the dodge line was put into effect and began to help the economy.

The Korean War began in June 1950 and ended July 1953. The reason for this boost in the economy was that "Japanese became a vital source of supplies for the US forces fighting in Korea" (Smith, p. 86). This resulted in contributing "$930 million to the Japanese economy between 1950 and 1955". (Smith, p. 86) The war put Japan's automobile industry in motion. This was due to their responsibilities in repairing US military vehicles.

Japans export values also began to increase on the international market.