View From Outside: What is the Secret of Japanese Economic Miracles?

In the history of civilization, many countries experienced both an unprecedented economic rise and a rapid decline. There are plenty of such examples. But I will give just one vivid example of how a small country in its history was able to make an incredible economic leap.

Meet Japan – an amazing mysterious country in which wonderful people live. A country with a rich history that holds many surprises. One of which, for me personally, is the “Japanese economic miracle”.
Let’s try to understand how the Land of the Rising Sun in a short time has become a leader in terms of the economy and living standards of the population.

There are actually two reasons for this. The first is hidden at the genetic level of the Japanese and their mentality, and the second is organizational. Both of these reasons are inextricably linked.
But first, everything comes from the Japanese national character. For example, common ethnic features of the Japanese are known, such as hard work, love of nature, adherence to traditions, a tendency to borrow, ethnocentrism and practicality.
The inhabitants of the Land of the Rising Sun are very clearly disciplined, devotion to authority and a sense of duty. And they, which is very important, are the courtesy of the Japanese, their accuracy, self-control, frugality and curiosity. It is these qualities that make the inhabitants of the Land of the Rising Sun, a kind of unique and help them achieve success in many areas of activity.
Japan is a very densely populated country, with just over 127 million inhabitants living on its relatively small territory. For comparison, for example, in Russia, which is huge, the population is 143 million people. The dense population on a small piece of land gave rise to a sense of solidarity among the Japanese, according to the principle: “one for all and all for one.”
The second reason for the grandiose leap in the economic development of Japan is organizational. Thanks to the Japanese ethnic traits of the national character and the leadership of the country, they managed to unite after the Second World War and together overcome the devastation, restore the country, using the best of the experience of other world powers, and achieve incredible heights in a short time.
For a long time, the country adhered to an exclusively militaristic policy. Before and during the Second World War, the Empire of Japan waged wars of conquest. All because of the lack of territory and the lack of minerals. But having received a defeat and capitulating, it was necessary to somehow live on. After the war, the damage from the fighting amounted to 1.3 trillion yen. Then there was a large-scale unification of the people for the good of their country.
The economic experience of the United States has always aroused considerable interest among the Japanese, and when the former enemy came out as one of the winners of the bloody conflict, Japan adopted the American experience. Militancy was replaced by industriousness and sanity, and so began the successful process of restoring the Japanese economy. After the end of the war, the country’s economic system changed radically; in 1947, after the adoption of a new Constitution, a course was taken towards pacifism and liberalism. The first stage was the land reform, as a result of which the peasants became the owners of land plots, and not tenants, as before. In addition, the country’s authorities abolished large landholdings. In the Japanese economy, a plan for its resuscitation began to be implemented. It is also known as “shock therapy”. As a result of the reforms, various countries of the world began to trade with Japan again, a deficit-free state budget was adopted, and the national Yen recovered from inflation. Then came the “golden time” and the standard of living of the Japanese population was one of the best in the world.

Measures that made Japan an economic leader in the world:
• Introduction of the latest technologies and methods borrowed from other countries;
• Peasants became land owners as a result of the Land Reform of 1947;
• Low taxes that allow businesses to develop in all industries;
• Protection of workers in enterprises through the activities of trade unions;
• Regulation of currency within the state;
• Strict quality control of manufactured products.

This stimulated the technological rise of Japan, strengthened partnerships between the government and entrepreneurs. The close connection between the state and business played a huge role in the development of the country. Then there were new jobs, the level of wages increased annually. And trade unions actively fought for the rights of the working population of Japan. A real economic breakthrough occurred in the life of the country, which was later called the “Japanese Economic Miracle” (高度経済成長). It lasted from 1950 to 1973. But then there was a sharp economic downturn, due to a sharp rise in the price of oil, which was one of Japan’s main imports. In addition, in 1971 there was a devaluation of the dollar, the United States introduced a tax on the import of goods from Japan.
All this significantly weakened the economy and was the beginning of the completion of the “Japanese economic miracle.” The Japanese assumed that the period of prosperity of the country would last for a long time, but the aforementioned external economic factors made their own adjustments to the life of the country. After that, the government of the country took additional measures to boost the economy, the Japanese even have such a thing as “abenomics” (アベノミクス) in honor of the reforms aimed at getting the country out of the crisis, which was previously introduced by the former Prime Minister of Japan Shinzo Abe (安倍晋三).

But, against the backdrop of the current global economic crisis, Japan is still among the leading countries. Therefore, perhaps soon the Land of the Rising Sun will again take first place in the world in economic development and in terms of the standard of living of its citizens.
The “Japanese Economic Miracle” is the best page in the history of Japan. Then its inhabitants showed maximum diligence and patience on the way to the restoration of the country.
Studying the history of Japan, one is amazed at how quickly the country created its own petrochemical industry during the period of the “economic miracle”. Became the first in the world in shipbuilding. She has developed a space program and launches her own research vehicles into interplanetary space. It has developed electronics, robotics and other high technologies to an unprecedented level. Japan is a highly developed country in many ways.

The desire to do better, deliberately, creatively is an important manifestation of the national traits of the inhabitants of Japan. No Japanese will do anything without thinking through everything to the smallest detail. As a result, he will achieve excellent results.
Japan is a beautiful country with rich traditions and nature. The love of beauty is instilled in the Japanese from an early age. They build any creation with a certain grace. This indicates a developed national trait of refined taste. Everything that comes out of the hands of the Japanese is worthy of respect. As a result, it is quite clear why the Land of the Rising Sun has been at the peak of economic success for a long time.