POLI 342 Lecture Notes - Lecture 8: Korean War, Economic Nationalism, Yoshida Doctrine
11 May 2018
School
Department
Course
Professor
Political economy of development: JAPAN
Class discussion:
How did Japan achieve growth between 1960 and 1990?
How was it related to politics?
• Adopted export led growth due to fast industrialization
• How does this happen?
o Lower prices in compared to the US
o Low currency (Yen compared to US$)
o Government investment in manufacturing
o Presence of a market (the US market)
• Prime minister - 5 year economic plans in the 1950s
• Relaxation of monopoly laws (anti-monopoly law was in place and it was relaxed)
• Protectionist policy
o Set high rates for imported goods
o Subsidies for domestic product
o Tariff + Subsidies
The economic miracle
• Increase in GNP from 100 billion yen in 1951 to 664 billion in 1971
• For three decades, Japan's overall real economic growth:
o 10% average in the 1960s
o 5% average in the 1970s
o 4% average in the 1980s
o 1.5% average between 1991-1999 (lost decade)
• Western countries and scholars were aware of the rapid economic growth
Explaining the miracle:
The Reconstruction and Take-off (1946-1960)
• Free Ride (International Context)
o Korea ar as a ajor ecooic stiulus. Yoshida call it the gift fro the Gods
o Low defense expenditures (US-‐Japa Defese Treaty
• Depending on US for military allows Japan to save
o Ready access to major export market (the US
o Relatively cheap transfers of technology
• not the first group of countries to develop, some of the big expensive technologies
have been made and used so you can have them for cheap price
Miracle began (Post-‐6
1. Culture and the national character
o Some cultural norms conducive to success in economy
• High saving
▪ Gives the state more money to work with and invest rather than having to
borrow from overseas
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