Introduction
Japan as a country constitutes of 3000 islands and has the 10th largest population in the world, standing at 128 million people. Archeological research indicates that their initial cultural practices were mainly influenced by the Chinese, and then this was later followed by a long duration of isolation from any external influence. Before the adoption of the new constitution in 1947 (courtesy of Americans), their system of governance was that of Shogunate style. But since then, they have maintained a unitary constitutional monarchy with a ceremonial emperor and highly powered upper house parliament (Reischauer, 200-205). Japan’s Tokugawa Shogunate which literally means “military dictatorship” was established in the year 1603. This period saw the ushering of a very prolonged period of Japan’s isolation from foreign influence for more than two centuries. During that time, Japan in turn secured a powerful kingdom that enjoyed stability both in the political realm and traditional cultural sense.
In 1854, Japan signed a treaty with the United States (the Kanagawa Treaty) which saw it open up its ports for business with the rest of the world as well as an outlet to their modernization and industrialization strategy (Sugimoto et al, pp. 50-54). By the late 20th Century, Japan had grown into a powerful region such that countries like Russia and China were no match to it. The superiority attitude got into them, took a toll and they decided to invade Korea, Taiwan, and South Sakhalin Island which they all occupied. Japan surged with the inversion trend undeterred, in 1937, it launched a large-scale inversion of China and four years later in 1941, it attacked the US, triggering the entry of America to the Second World War.
The US-led bombing of Hiroshima and Nagasaki cities of Japan led to a great economic slump in Japan. The attack brought the country to a point of near extinction. In order to revive themselves and be once again on their feet, Japan decided to form an ally with the US…the results were positive, as they eventually recovered their economy, their emperor retained a powerful status more than ever before (this stability became a symbolize national unity), they elected political leaders and established a strong input of bureaucracy and business executives. Though the Japanese economy experienced a great slowdown towards the end of the 20th Century, as a result of unprecedented growth for thirty years, it still remains a major economic power not only in Asia but Globally.
Post War Period
As a common saying goes, “I might be down, but not out”. The Japanese knew this so well that they could make it practical and revive their economic survival…but this success highly depended on how they had to treat themselves after the war. The damage had been done, and there was no point wailing, agonizing, or crying over “spilled milk”. They had to do something, and time was of the essence. That is why the Japanese swallowed their pride and got into an alliance with the same people (US) who had brought them to their knees…the government put into use all the available resources that they had within their reach into use to help revive the staggering economy.
The countries industrial cooperation, mastery of strong technology, and strong work ethics coupled with relatively small defense allocation (1 percent of their GDP) helped it to rapidly advance to be the second most powerful economy technologically in the entire world after the United States. By measure on a Purchasing Power Parity (PPP), Japan can boast of having an economy that is the third-largest in the world after the US and China (Flath, pp. 339-340).
Another notable aspect that has worked well for Japan is the way manufacturers suppliers together with distributors have worked as a unit in a closely-knit group referred to as “keiretsu”. The Japanese government after seeing that their economy was at least picking up, embarked on the system that guarantees lifetime employment to a good portion of the urban labor force, but this policy has since been abolished.
Only 11.64% of the entire Japanese land is arable land and by only having fish (they account for nearly 15% of global fish catch, second to only China…World Factbook; Japan-Economy, 2006) as their natural resources, they are left to import a lot of items. Japan has no energy resource and is the world’s largest importer of coal and the world’s second-largest importer of LPG to drive their industrial sector. With the tiny agricultural sector, the Japanese government greatly subsidized and protected their crops so much that their yields are among the highest in the world, but they still have to import at least 55% of their food on a calorific basis.
In the index of Economic Freedom, it scoops the number five position of the most laissez-fair out of a total of 30 Asian countries. It is very easy to do business in Japan. Among the 128 developed countries, it falls at position 12 in 2008.
The steps that Japan put in place have achieved greater results than no economist would have imagined just after WW II. Research findings reveal that out that apart from being the second-best economy in the world, Japan since 1956 has been a member of the United Nations (UN), G8 OECD, and OPEC, it is number five in the world in the defense budget and the 4th largest exporter in the entire Globe.
When it comes to the living standards for her citizens, Japan has overcome all the post-war huddles and crises to give her citizens the best living standards (8th Highest HDI). Modern Japan is the world’s leader in technology, robotics, and machinery (Jesse Arnold, pp. 61-63).
The post-war situation of Japan though was fragile was handled with a lot of caution and tactics especially in foreign and military relations. Together with their key ally, the US, Japan has established a strong security alliance to serve as a foreign policy cornerstone. (Michael Green, 240). The latest reports have it that Japan is currently seeking to be Security Council permanent member . Modern Japan is very much of a contrast to what has been torn into pieces just a few decades ago, instead, it is presently trying to get involved in several diplomatic ties with partners around the world as well as resolution of political disputes in countries that were hardly affected by the war. Japan is officially the third largest donor of Development Assistance after the US and UK. In 2004 alone the Japanese government parted with over US$8.86 billion.
Though things seem to be okay with the war dust having settled, not all is well with the now, prosperous country. There is still no peace between Japan and its neighbors like Russia, China, and PRC. Japan is involved in a territorial dispute with the People’s Republic of China and Taiwan over the Senkaku Islands, with PRC over EEZ situated around Okinotorishima and with Russia over South Kuril Islands, and lastly with South Korea over Liancourt Rocks. Japan is still technically at war with Russia since no peace treaty has ever been officially signed between the two countries. These disputes are not giving Japan peace at all, thanks to their historical dealings with their neighbors. But it is very hard for them to get involved in any inversions presently owing to the strict military regulations that they have put in place. In article nine (9) of the Japanese constitution, Japan is forsaken from declaring any military action on any country or state as a measure of settling international disputes. They have instead used their forces (Japan Ground Self Defense Force-JGSDF and Japan Maritime Self Defense Force-JMSDF) to promote Global peace in the troubled countries.
Conclusion
When Emperor Meiji, in 1868 initiated a model of the free market by adopting the American and British of Enterprise Capitalism, there was an instant economic expansion that saw Japan emerging as the most developed nation in Asia. Overall, the growth rate in Japan has been spectacular. Reports indicate that a shrewd trade policy placed Japan at a more advantageous level than the other countries in the Western markets. This form of imbalance did not go well with the United States. The said policy led to a great overall growth “The Japanese Miracle” in Japan’s GDP. In the 1960s the average growth was 10%, and in the 1970s it was 5% and 4% in the 1980s. Overinvestment and bubble in the asset prices in the 1980s led to a significant drop in growth in the 1990s (at 1.7%) (Jansen, 2000).
Factors that have been suggested to be challenging to Japan’s economic growth are varied. While the life expectancy of the overall population of Japanese is given to be an average of 82.07 years, their population growth rate is -0.139% which makes things appear worse if the status quo remains. Something has therefore to be done to improve the population growth, failure to which we will witness the people’s extinction and no one living to enjoy the good investments in the land (Hood, Shinkansen, pp. 312-355).
The Japanese literacy level stands at 99% is a clear plus to the growth (George Sansom, 42). On the other hand are serious growth milestones to the Japanese intended economic growth. This is the huge government debt (182% of GDP) and rise in taxes as well as the aging population. These two factors bundled together put a lot of strain on the economy because more is demanded from it than can realize with the declining workforce. But better still, it still enjoys the status of being one of the countries with the least unemployment rates, at 4%. By 2006, her worker’s GDP per hour worked fall at number 18 in the world, only 30% behind USA or France.
Work Cited
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