Asian Miracle

The Asian Miracle refers to the extraordinary economic growth in Southeast and East Asia, beginning
from Japan followed by the neighboring economies of South Korea, Singapore, Taiwan, and Hong Kong also
known as the “Asian Tigers”. It is the dynamic economic growth and development Japan and the Asian tigers
has achieved throughout the postwar period. It is all about the rapid industrialization and development of
selected South East or East Asian nations prior to the Asian financial crisis.

From the mid-1950s until 1970s, Japan’s unexpected high-rate of growth was a topic explored by many
studies at the time. Several authors believed that Japan’s economic institutions and policies were unique and
that its success offered fresh case studies for development economics and growth theory (Weinstein, 1996).
During the mid-1960s, Japan rapidly became the world's second largest economy (after the United States). One
of the main reasons or causes of Japan’s rapid development was the successful economic reform by the
government. Moreover, marker forces, especially the sharp appreciation of yen had forced rapid structural
changes in industry. The development process begun in Japan when it opened its economy to increased trade
and investment and soon after, neighboring economies followed. Additionally, Japan has been
expanding resources towards economic development. Political unity and stability, agricultural development
(both area and productivity), development of transportation, escalation of commerce, rise of pre-modern
manufacturing (food processing, handicraft, etc.), and high level of education were some of the key aspects that
caused the rapid growth of Japan which inspired other nations and led to their economic development as well.