Reasons for Japan’s Success in 20th Century (post-war Period)

Reasons for Japan’s Success in 20th Century (post-war Period)
by admin on January 4, 2010
Reasons for Japan’s Success in 20th Century (post-war period) Japan was on the losing side in the Second World War. This circumstance, however, did not prevent it from scoring spectacular success in the post-war period. Japan’s economic recovery and its advance to the forefront of global economic development have bee hailed as a miracle. This miracle is nevertheless rooted in important factors that spearheaded the nation’s progress.
One of the factors was Japan’s commitment to export-oriented manufacturing that would provide the world with high-quality goods. The export drive had “humble beginnings” in the Meiji Era (1868-1912) when “raw silk was a major foreign-exchange earner” . This progress continued with the manufacturing of textiles, and at this point Japanese goods were notable for low added value and a perception of low quality. This perception disappeared after the war as Japanese enterprises “churned out a dazzling array of consumer and industrial products” that won a reputation for low incidence of defects, easiness in use, incorporation of cutting-edge technologies, and moderate prices .
In particular the introduction of advanced research and progressive technologies made Japan one of the leading producers of hi-tech goods and consumer durables including all kinds of electronic appliances and electronic components such as semiconductors. Recently, Japan has become a pioneer in the production of digital products and today’s best-sellers including “flat-panel TVs, cell phones, digital cameras and DVDs” . Japanese goods that rely on advanced technologies allow the nation to include high added value in its products and to sell goods in a variety of markets, despite high labor costs .
Another reason why Japan was able to become one of the leaders in the industrialised world is the traditionally high savings rate of the nation. Thus, in 1987, according to the data from Bank of Japan Comparative International Statistics 1989, the Japanese savings rate was 15. 1% in comparison to the US rate of only 6. 6% . Private savings created a stream of funds for financing business ventures, which Japanese capitalists were able to transform into business projects. Most analysts would agree that “private savings, which banks and other financial institutions in turn lend to expanding businesses, are extremely important for economic growth” . The Japanese are also hard workers, a fact that has contributed to economic growth. On this, they outstrip even Americans, traditionally assumed to be among the world’s most industrious nations. Thus, according to the 1987 report from Japanese Ministry of Labor, an average worker in a Japanese plant spends 2168 hours annually in the workplace as opposed to the US average of 1949 hours . Willingness to work hard and to put in extra hours has contributed to the high output of Japanese factories.
The development of the capitalist state in Japan and rebuilding of the economy in the post-war era was greatly assisted by the blending of state and government institutions. In Japan, the tradition of margining government and free-market structures dates back to the 1870s when the government, in an effort to resist the advent of the Western large business, undertook a more decisive role in “determining what is produced and allocates capital through control of the financial system” . Rejecting the laissez-faire capitalism of the West, the Japanese, earlier than in the Western states, adopted strong government regulation of the economy.
This regulation to a great degree determined the strategic development of the nation. The Japanese government, for instance, targeted economic development at a few key areas that received great state assistance, helping the nation lead the world in the production of aluminum, ship building, and rayon . The practice of favoring certain industries before others continued in the post-war times, giving Japanese companies competitive advantage over others, whose governments did not seek to promote these industries. The promotional policies were combined with strong protectionist trends that shielded domestic industries from foreign competitors, including tariff and non-tariff barriers including environmental or consumer legal regulations . The political stability that was caused by the continuous election of the members of the Liberal Democratic Party in the years accompanying the recovery contributed to political stability that helped growth .
Close involvement of the state in economic development allowed Japan to prepare a highly skilled pool of bureaucratic employees who could exercise power with authority and competence. This skilful pool of educated administrative workers allowed the nation to hone in policies to the changing environmental conditions. In most market economies, for instance, in the US relatively low-paid public service fails to attract a pool of talented applicants, while most talented people go to the private sector. In contrast, in Japan, officials of the elite economic ministries and agencies are vested with prestige and authority . As a result, “these official agencies attract the most talented graduates of the best universities in the country, and the positions of higher-level officials in these ministries have been and still are the most prestigious in the society” .
Japan did not only seek to promote its position by relying on high-profile knowledge workers and bureaucrats to advance the most sophisticated industries. It also became prominent as modern industrialized society that relies on fast and efficient mass production of standardized goods. This was partly made possible by the Japanese culture that promotes cooperation in output of fast and reliable goods. Since the 19th century, the national school system “was built up to foster highly patient and cooperative people with minimal originality and creativity, perfectly suited for working in standardized mass-production industries” . Tokyo became the hub for research and development activities as well as information sharing, while these developments were quickly transported to the provinces where they were translated in large-scale mass production projects . Efficient flow of information secured the production of products to virtually identical standards across the nation . In the production of automobiles and electric appliances, Japan was able to achieve unprecedented efficiency.
The success of Japan was also aided by the favourable demographic situation that supplied Japanese employers with a supply of well-trained young workers in the 1950s-1960s. High growth rates in Japan’s farm population that accounted for half of the nation’s population created a surplus of farm workers willing to relocate to urban environments and find employment in factories. High education level at Japanese schools ensured adequate preparation level of these high school graduates. One more factor in the success of the Japanese economy is the national practice of Idokotori, which means “to take or copy what is best for one (without hesitation)” . The Japanese haws always been alert to whatever achievements appeared in other nations and willing to copycat those achievements, transplanting them into the Japanese soil. An example can be the automotive industry that was born in the West and then was adopted in Japan and developed to a point where the Japanese are nearly global leaders in auto production . Idokotori was a mindset that allowed the Japanese to propel their economy in a short while.
In conclusion, the Japanese economy made significant advances in the twentieth century. The nation became a leader in many technological, advanced industries, leading the world in electronics, high-tech industries, production of home appliances and auto making. Although at the moment, the Japanese economy is in a state of decline, peculiarities of the national mindset and sound economic base can help Japan make a comeback.
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