Added: 12/20/2005 |
Economic growth in Japan originates from human developmentCommonly, an economic growth comes in two main forms. One meaning is that a nation or a country acquires resources that are more productive, more labor or more land for its further use. This economic growth is called an "extensive growth" and we can observe the extensive economic growth in Japan before World War II, when it conquered new territories. Another kind of the economic growth, which is more important for the nation's development, is called an "intensive economic growth", when the amount of output that workers can produce is expending everyday. The more products the workers produce, the more goods are available for the nation. The matter is that if a single worker begins to produce two pairs of jeans instead of one a day, there will be a lot more jeans available at lower prices. The intensive economic growth in Japan is observed both: before and after World War II. Certainly, the economic growth suggest the rise in the average standard of living, human development, unemployment reduction and many other factors that influence the nation's flourishing.
Actually, the economic growth in Japan started long before 1945 and its beginning dates back to 1867, when the emperor Meiji took power and the government began the program, aimed at the economic growth and development. In a short period before World War II, the economic growth in Japan comprised five percent annually, which was one of the highest growth rates in the world. After World War II Japan's economy was ruined, though it grew much faster than the economies of the countries that won the war.
Although Japanese macroeconomic policies still make wonder for world economists and there are fat volumes and numerous papers on the subject impossible to review in one article, here are some explanations and points of interest.
1) As the leading power of the intensive economic growth is the amount of output, the primary goal should be the growth of productivity. The productivity does not depend only on an ability of a man to produce more things in a limited period. Education and training help workers do complicated jobs more efficiently. Education is the source of a human capital; therefore, the country makes profits if it provides an affordable education and training. In fact, the Japanese work force, prior to World War II, was highly educated and a top-quality education still comprises one of the major economic policies of the country.
2) In the period 1945-1950, Japan underwent a major structural transformation from a semi-industrialized country towards a leading member of the world's top industrialized nations. It has increased exports with a high quality and inexpensive goods, which has gradually turned Japan into one of two greatest exporters of advanced machine tools in the world.
3) There is such an important factor, called a competitive market environment, which implies continuous births and rebirths of small firms that have been maintained in Japan since 1945. The support of the generations of new firms suggests trying out new ideas and maintaining a high employment or a low unemployment and, as a result, the poverty decrease. It also provides the encouragement of growth-oriented industries and corporations that maintain the general economic growth of the country to a considerable extent.
Summing everything up, the following outcome can be stated. Although Japan's economic "miracle" is only partially guessed today, it provides many ideas and paths that many European countries choose to follow. Having many problems unsolved, Japan will never stop impressing outsiders with its growth, inventions and discoveries. The main idea is neither complicated nor surprising, it is simple: the major goal of the country has always been the human development.
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