Question

What contributed to Japan GDP growth after world war 2, like economy policies and works events? How Japan acted after the war that make them the giant the are now in world economy, especially for the GDP growth. Please help with as much information as you can. Thank you

Answer 1

The second world war brought great havoc to japan as it was completely destroyed by USA. Thousands of human lost their lives along with many injured and crippled. The economy of the country was also affected worst which was preceded by shortages, inflation, currency devaluation and unemployment. Though the country was destroyed heavily by the nuclear bombardment in Hiroshima and Nagasaki, it revived its own spirit to bring back the country's old flourishing economy with successful economic reforms by the government. The best policy implemented at the recovery stage of Japan's economy was  'Inclined production mode' which stressed on the production of raw materials like cotton, steel and coal etc. Shortages of fund made government to mobilise their funds to key industries like textile industries, iron industries etc and stimulated the production system by devising new recruitment policies where females were more inducted in these industries at lower wages. The revival of the economy was of utmost importance of the government which made them to the introduction and development of new technology and management skills from the existing ones. Many of the wartime companies and technologies used in the war were converted for the development of the economy. For eg. Sewing factories were built up on the place of factories which were earlier used for the production of machine guns, optical weapons factories were converted to produce cameras and binoculars. Besides, funds received from USA and many countries were used to update and upgrade their technologies for greater production at lower costs. Private companies were emphasised to expand in order to generate employment and huge revenues for the growth of the country's GDP. Westernisation in the Japanese society was also a reason for the country's economic miracle as it converted itself to a open economy from closed one leading many nations to open their doors for Japan to carry out free trade in those countries in order to revive the economy of Japan immediately.

Japan also became the super power of technology with the conversion of many to new ones and developing many with the domestic innovation which helped in increasing the production capacity at cheaper costs raising the demands for their products in the domestic as well as in foreign markets. Besides its import of scrap irons to build automobiles, ship etc touched the higher point with their spectacular designs making the country as the industrial hub for iron industries.By 1970, Japan excelled in their iron industries that FDI in the country grew to 10 folds. The perseverance of Japanese people to rebuild their nation and economy led them to occupy second position in terms of economy in the world after USA after the war.