Learning From The Japanese Economic

Miracle:
What Factors Lead To Economic Growth?
The Japanese economy was devastated after World War II ended in 1945. The
Japanese had lost much of their productive capacity; factories were destroyed
and about 3 million Japanese had died. Yet amidst this dire situation, the
Japanese economy, between 1950 and 1975, had the world's most impressive
record of economic growth ever seen at the time. Incomes for the average
Japanese were rising rapidly, and soon many of Japan's goods became the best in
the world market, especially cars, cameras, and electronics. Shortly after this
"economic miracle" began, Japan had the second largest economy in the world
after the United States.

Questions for Discussion: How do you think these factors contributed

to Japan's rapid economic growth?
1) Japan had and continues to have one of the world's best educated
workforce, and the Japanese workforce dedicated themselves to hard
work, organization, and group effort.
2) The Japanese were saving a high percentage of their incomes, which
provides banks and other financial institutions with cheap money to lend
to businesses for investment.
3) Japan embraced global trade, and their high-tech and industrial goods
became popular throughout the world, due to their high quality.
4) The Japanese made large investments in research and development, and
applying efficient production techniques.
5) Within Japan, competition in such industries as motorcycles, automobiles,
and consumer electronics was fierce.