economy explaining the economic miracle. reverse course: a precondition? or betrayal? zcontext of...
Post on 15-Jan-2016
215 views
TRANSCRIPT
![Page 1: Economy Explaining the Economic Miracle. Reverse course: a precondition? Or betrayal? zContext of deepening “cold war” zFear of left in Japan zFrom about](https://reader035.vdocuments.us/reader035/viewer/2022062804/56649d695503460f94a478da/html5/thumbnails/1.jpg)
Economy
Explaining the Economic Miracle
![Page 2: Economy Explaining the Economic Miracle. Reverse course: a precondition? Or betrayal? zContext of deepening “cold war” zFear of left in Japan zFrom about](https://reader035.vdocuments.us/reader035/viewer/2022062804/56649d695503460f94a478da/html5/thumbnails/2.jpg)
Reverse course: a precondition? Or betrayal?
Context of deepening “cold war”Fear of left in JapanFrom about 1947:Crackdown on laborRetreat from zaibatsu dissolutionPurge of communists, 1950De-purge of some of “old guard”
![Page 3: Economy Explaining the Economic Miracle. Reverse course: a precondition? Or betrayal? zContext of deepening “cold war” zFear of left in Japan zFrom about](https://reader035.vdocuments.us/reader035/viewer/2022062804/56649d695503460f94a478da/html5/thumbnails/3.jpg)
Explaining “stabilization”
Stability ≠ stagnation or lack of changeHybrid result: mix of promoting,
managing, resisting, change SCAP mobilizes existing constituencies,
shifts balance among them Effectively: land, labor cases Less effect: zaibatsu dissolution,
education, policing Economic recovery also critical
![Page 4: Economy Explaining the Economic Miracle. Reverse course: a precondition? Or betrayal? zContext of deepening “cold war” zFear of left in Japan zFrom about](https://reader035.vdocuments.us/reader035/viewer/2022062804/56649d695503460f94a478da/html5/thumbnails/4.jpg)
Revival to Miracle [to Lost Decade]
•Low expectations, and devastation, 1945-50
•Economic miracle, 1950-75
•Economic mess [deferred]
![Page 5: Economy Explaining the Economic Miracle. Reverse course: a precondition? Or betrayal? zContext of deepening “cold war” zFear of left in Japan zFrom about](https://reader035.vdocuments.us/reader035/viewer/2022062804/56649d695503460f94a478da/html5/thumbnails/5.jpg)
The Record of Growth
Bleak era through 1947; modest gains at best through 1950
•priority production: one harbinger of recovery1947, targets iron/steel & coal
•light machinery: cameras, watches, radiosand sewing machines
![Page 6: Economy Explaining the Economic Miracle. Reverse course: a precondition? Or betrayal? zContext of deepening “cold war” zFear of left in Japan zFrom about](https://reader035.vdocuments.us/reader035/viewer/2022062804/56649d695503460f94a478da/html5/thumbnails/6.jpg)
![Page 7: Economy Explaining the Economic Miracle. Reverse course: a precondition? Or betrayal? zContext of deepening “cold war” zFear of left in Japan zFrom about](https://reader035.vdocuments.us/reader035/viewer/2022062804/56649d695503460f94a478da/html5/thumbnails/7.jpg)
Toward Recovery
•1949-50:Dodge line and Korean War
Considerable impact on inflation, but no recovery in sightWould it have worked, alone?
Program of radical retrenchment
•1950 Korean war: gift of gods?"special procurements." Worth 590 million dollars in 1951, 800 million each in 1952, 1953. 60% to 70% of all export revenues, 1951-53
![Page 8: Economy Explaining the Economic Miracle. Reverse course: a precondition? Or betrayal? zContext of deepening “cold war” zFear of left in Japan zFrom about](https://reader035.vdocuments.us/reader035/viewer/2022062804/56649d695503460f94a478da/html5/thumbnails/8.jpg)
The Record of GrowthThe high growth miracle: 1950-90
•10 percent annually, through 1974
•continued moderate, strong growth --> 1990/91
![Page 9: Economy Explaining the Economic Miracle. Reverse course: a precondition? Or betrayal? zContext of deepening “cold war” zFear of left in Japan zFrom about](https://reader035.vdocuments.us/reader035/viewer/2022062804/56649d695503460f94a478da/html5/thumbnails/9.jpg)
Explaining Growth
international factors
•high international growth
•tripling of international trade
•cheap energy
•accessible new technologies
![Page 10: Economy Explaining the Economic Miracle. Reverse course: a precondition? Or betrayal? zContext of deepening “cold war” zFear of left in Japan zFrom about](https://reader035.vdocuments.us/reader035/viewer/2022062804/56649d695503460f94a478da/html5/thumbnails/10.jpg)
Explaining Growth
domestic factors
•entrepreneurship
•human capital-- well-educated
•state role: economic bureaucracy MITI Ministry of International Trade and Industry
![Page 11: Economy Explaining the Economic Miracle. Reverse course: a precondition? Or betrayal? zContext of deepening “cold war” zFear of left in Japan zFrom about](https://reader035.vdocuments.us/reader035/viewer/2022062804/56649d695503460f94a478da/html5/thumbnails/11.jpg)
Explaining Growth
•climate of confidence
•protecting/nurturing
•bailing out
•state role: economic bureaucracy MITI
![Page 12: Economy Explaining the Economic Miracle. Reverse course: a precondition? Or betrayal? zContext of deepening “cold war” zFear of left in Japan zFrom about](https://reader035.vdocuments.us/reader035/viewer/2022062804/56649d695503460f94a478da/html5/thumbnails/12.jpg)
The Record of Growth
•state role: economic bureaucracy MITI
example: iron and steel industry
•targeting
•capital access
•Joint development and cost sharing:example of BOF license
![Page 13: Economy Explaining the Economic Miracle. Reverse course: a precondition? Or betrayal? zContext of deepening “cold war” zFear of left in Japan zFrom about](https://reader035.vdocuments.us/reader035/viewer/2022062804/56649d695503460f94a478da/html5/thumbnails/13.jpg)
The Record of Growth
Sum up: the Managed Miraclea convergence of factors
•favorable international environment: US sponsorship and global growth.
•domestic endowments: human capital, entrepreneurship
•and an activist but not oppressively interventionist state, as orchestrator.