IB HL History PP3 – The Reasons for Japan’s Economic Miracle
Bullet Point Information:
- Reasons for Japan’s “economic miracle”; social, cultural and economic impact of globalisation
Definition:
- The Japanese economic miracle should be understood as Japan’s stellar economic growth since the end of World War 2, until the
late 1980s.
- Annual growth rate of more than 10%
- Japanese GNP totaled just $11 billion in 1950, but by 1955, it had increased to $25 billion. By 1973, it totaled at $320 billion
Factors Details/Evidence
Global infuences Japan’s global infuences – especially the USA, contributed significantly to Japan’s rapid economic growth by
allowing Japan to experience technological improvements. Such technological improvements led to the trickle-down
efect where technologies in one industry infuenced the growth of many other industries.
- USA: direct transfers and aid in the sum of $12 billion from 1945 to 1952 provided the necessary seed fund
for the rapid expansion of Japanese businesses
- US assumption of the responsibility of Japanese defence through the Security Treaty of 1951, had freed
Japan of an annual budget of 3-5 % of its GDP to be reinvested into their economy, allowing Ikeda to focus on
his election promise of doubling the income of the Japanese.
- The creation of a political monopoly by SCAP for the LDP had resulted in conditions that allowed early leaders
to put into place economic policies that allowed for economic restructuring, without accompanying the
political backlash from disgruntled voters.
- American transfer of technology and management techniques had given Japan tools to compete with the US
in terms of exports within a matter of 2 decades.
- For e.g. Japan’s steel industry successfully improved the quality of the special steel used in automobiles and
as a result of technological progress in the casing of parts, the automobile industry too, grew into an industry
to be able to compete in international markets for the first time.
- The improvements and modifications of technologies stimulated industries to develop more productive ways
to grow, and this trend led the Japanese economy to compete in international markets.
- Such improvements must be credited to the USA’s contributions to technological development in Japan!
Cultural The Japanese education system was CENTRAL to shaping the cultural aspects in their economy:
infuences - Rapid expansion and commonality of education led to induced competitiveness and dedication to hard work
1
Bullet Point Information:
- Reasons for Japan’s “economic miracle”; social, cultural and economic impact of globalisation
Definition:
- The Japanese economic miracle should be understood as Japan’s stellar economic growth since the end of World War 2, until the
late 1980s.
- Annual growth rate of more than 10%
- Japanese GNP totaled just $11 billion in 1950, but by 1955, it had increased to $25 billion. By 1973, it totaled at $320 billion
Factors Details/Evidence
Global infuences Japan’s global infuences – especially the USA, contributed significantly to Japan’s rapid economic growth by
allowing Japan to experience technological improvements. Such technological improvements led to the trickle-down
efect where technologies in one industry infuenced the growth of many other industries.
- USA: direct transfers and aid in the sum of $12 billion from 1945 to 1952 provided the necessary seed fund
for the rapid expansion of Japanese businesses
- US assumption of the responsibility of Japanese defence through the Security Treaty of 1951, had freed
Japan of an annual budget of 3-5 % of its GDP to be reinvested into their economy, allowing Ikeda to focus on
his election promise of doubling the income of the Japanese.
- The creation of a political monopoly by SCAP for the LDP had resulted in conditions that allowed early leaders
to put into place economic policies that allowed for economic restructuring, without accompanying the
political backlash from disgruntled voters.
- American transfer of technology and management techniques had given Japan tools to compete with the US
in terms of exports within a matter of 2 decades.
- For e.g. Japan’s steel industry successfully improved the quality of the special steel used in automobiles and
as a result of technological progress in the casing of parts, the automobile industry too, grew into an industry
to be able to compete in international markets for the first time.
- The improvements and modifications of technologies stimulated industries to develop more productive ways
to grow, and this trend led the Japanese economy to compete in international markets.
- Such improvements must be credited to the USA’s contributions to technological development in Japan!
Cultural The Japanese education system was CENTRAL to shaping the cultural aspects in their economy:
infuences - Rapid expansion and commonality of education led to induced competitiveness and dedication to hard work
1
