JAPAN’S ECONOMIC JAPAN’S ECONOMIC MIRACLEMIRACLE

U.S. MILITARY OCCUPATIONU.S. MILITARY OCCUPATION1945-19551945-1955

General Douglas MacArthur pushes new General Douglas MacArthur pushes new Constitution.Constitution.

Eliminates military influence in governmentEliminates military influence in government Land reform eliminates large landowners, Land reform eliminates large landowners,

makes Japanese farmers middle class.makes Japanese farmers middle class. Emperor becomes largely ceremonial, no Emperor becomes largely ceremonial, no

longer considered divine.longer considered divine. U.S. troops and bases stationed in Japan.U.S. troops and bases stationed in Japan.

Douglas MacArthur with Hirohito – Douglas MacArthur with Hirohito – who urged Japanese people to who urged Japanese people to

cooperate with occupation.cooperate with occupation.

WAR CRIMES TRIALS WAR CRIMES TRIALS PUNISHED JAPANESE PUNISHED JAPANESE

WARTIME MILITARY LEADERS WARTIME MILITARY LEADERS Over 20,000 Japanese Over 20,000 Japanese

officers and soldiers officers and soldiers accused of war crimes accused of war crimes against civilians.against civilians.

Over 900 executed in trials Over 900 executed in trials throughout Asia after war.throughout Asia after war.

US tribunal in Tokyo tried US tribunal in Tokyo tried the highest leaders – Gen. the highest leaders – Gen. Tojo (left), Admiral Tojo (left), Admiral YamashitaYamashita

US didn’t seek publicity like US didn’t seek publicity like Nuremberg Trials or put Nuremberg Trials or put Hirohito on trial because Hirohito on trial because they needed his cooperationthey needed his cooperation

JAPAN’S ECONOMIC MIRACLEJAPAN’S ECONOMIC MIRACLE

JAPAN’S ECCONOMIC GROWTH IS HIGHEST JAPAN’S ECCONOMIC GROWTH IS HIGHEST IN WORLD DURING 1950s and ’60s.IN WORLD DURING 1950s and ’60s.

BY 1970s, JAPAN HAS THIRD LARGEST BY 1970s, JAPAN HAS THIRD LARGEST ECONOMY IN THE WORLD.ECONOMY IN THE WORLD.

BECOMES THE MODEL FOR OTHER EAST BECOMES THE MODEL FOR OTHER EAST ASIAN ECONOMIES, incl. CHINA ASIAN ECONOMIES, incl. CHINA

FULFILLS US GOAL OF A STRONG FULFILLS US GOAL OF A STRONG COUNTERWEIGHT TO COMMUNIST COUNTERWEIGHT TO COMMUNIST INFLUENCE IN EAST ASIA.INFLUENCE IN EAST ASIA.

ELEMENTS OF JAPANESE ELEMENTS OF JAPANESE MIRACLEMIRACLE

Partnership between government and private Partnership between government and private corporations (some are zaibatsu)corporations (some are zaibatsu)

Slow down population growth; frees up capital to Slow down population growth; frees up capital to invest.invest.

Economy is based initially on exports, and eventually Economy is based initially on exports, and eventually turns to consumer goods for domestic marketturns to consumer goods for domestic market

Government and companies agree to focus on certain Government and companies agree to focus on certain areas of industry: electronics, automobiles and other areas of industry: electronics, automobiles and other vehicles, cameras, shipbuildingvehicles, cameras, shipbuilding

Emphasis on quality through team approach; job Emphasis on quality through team approach; job security for those in good corporations security for those in good corporations

W. EDWARDS DEMINGW. EDWARDS DEMING

Business management Business management expertexpert

Ideas ignored in USIdeas ignored in US Credited by Japanese Credited by Japanese

for helping create for helping create economic miracleeconomic miracle

Basically, makes Basically, makes everyone responsible everyone responsible for quality of a product for quality of a product

AUTOMATIONAUTOMATION

Japan became first Japan became first major user of industrial major user of industrial robots in manufacturing.robots in manufacturing.

These were first These were first developed in developed in ConnecticutConnecticut

Honda’s firstHonda’s first

robots (right)robots (right)

MINIATURIZATIONMINIATURIZATION

Japanese take new Japanese take new

American technologyAmerican technology

like transistors andlike transistors and

can manufacture morecan manufacture more

cheaplycheaply

SLOWDOWNSLOWDOWN

JAPAN’S ECONOMY SLOWS IN THE 1990s JAPAN’S ECONOMY SLOWS IN THE 1990s PROBLEMS OF INFLATION, HIGH OIL PRICES, PROBLEMS OF INFLATION, HIGH OIL PRICES,

“CRONY CAPITALISM.”“CRONY CAPITALISM.”

THE “FOUR TIGERS”THE “FOUR TIGERS”

South Korea, Singapore, Hong Kong and Taiwan South Korea, Singapore, Hong Kong and Taiwan follow Japan’s formula for successfollow Japan’s formula for success

Their economies also grow rapidly. Their economies also grow rapidly. Today Malaysia and Thailand are following similar Today Malaysia and Thailand are following similar

routes to development.routes to development. Vietnam is following China’s mix of capitalism and Vietnam is following China’s mix of capitalism and

communismcommunism Indonesia is a mix of Tiger-style development along Indonesia is a mix of Tiger-style development along

with selling off its natural resources, esp. forestswith selling off its natural resources, esp. forests

PLUSES OF PACIFIC RIM PLUSES OF PACIFIC RIM DEVELOPMENTDEVELOPMENT

Successful alternative to communismSuccessful alternative to communism Better way of life for huge part of earth’s Better way of life for huge part of earth’s

populationpopulation More trading partners for the US and Western More trading partners for the US and Western

worldworld

CRITICISMSCRITICISMS

TOLERANCE FOR AUTHORITARIAN TOLERANCE FOR AUTHORITARIAN REGIMES – e.g. SingaporeREGIMES – e.g. Singapore

COMPETITION AND TRADE DEFICIT COMPETITION AND TRADE DEFICIT WITH US. WITH US.

LOSS OF AMERICAN INDUSTRIES LOSS OF AMERICAN INDUSTRIES ““CRONY CAPITALISM” – CorruptionCRONY CAPITALISM” – Corruption Global economic collapse and bailout - 1998Global economic collapse and bailout - 1998