Japan's postwar economic development Essay Example | Topics and Well Written Essays - 2000 words

Japan's postwar economic development - Essay Example Although there are different opinions about the fiscal policies that it has been following, this paper would make a positive evaluation of Japan’s economic past. Taking in to account the extraordinary economic growth that the nation has accomplished one can state that the nation’s transformation process was highly appreciable and unparallel to any other nations since the Second World War. As Duss rightly puts it, ‘The Japanese model of economic growth’ has become one of the most discussed topics among scholars and public officials (Duus, 1998, p.17). The economic growth of Japan after the World War II is often termed as a postwar miracle. Number of factors could be considered as the contributing forces behind the miracle including the United States’ investment. One can notice that it was the innovative economic policy of Japanese government on international trade and industry that paved the way for the nation’s rapid industrial and economic growth. The commercial and financial burden caused by the war remained a threat to Japan’s economy. Inflation, poverty, unemployment and related miseries reached their peak soon after the Second World War. The American government under the supervision of the allied powers played a pivotal role in Japan’s economic recovery. The SCAP (Supreme commander of the allied powers) official with an intention to prevent militarism as well as communism undertook the developmental programs. Military aggression in the Korean cape also boosted the economy in 1950 because the US g overnment contributed huge amount of special procurements for the nation. Today, Japan has become a potential competitor to USA and China with regard to the export of consumer goods and industrial products, and has proved to be one of the leading industrial powers among world nations. The initial target of postwar Japan was to enhance its production capabilities and become a self sufficient economy in