Transcript Japan since World War II

Japan
Japan: the basics
• Area
– Germany < Japan < California
• Population
– 127 million (~ 4 times California)
– life expectancy: 84 (87 for female)
– 24% are 65 or above
• Constitutional monarchy (like England)
– Emperor: ceremonial leader
– Prime Minister: gov’t leader
– Diet: Parliament (legislature)
Japan in history
• Oldest continuous monarchy
• Feudal rule (Samurai) under Shogun
(1192 - 1867)
• U.S. Commodore Matthew Perry
– forced Japan to open to trade (1853)
• Meiji Restoration (1868)
– centralized government under Emperor
– Transition from samurai to civilian control
• “Last Samurai”
• Westernization of military and economy
– industrialization and trade (Asia’s Imperial Power)
Japan in World War II
• Invasion and annexation of Northeast
China (Manchuria) (1931-1932)
• full-scale aggression in China (1937-1940)
• alliance with Nazi and fascists (1940)
• Pacific War (1941-1945)
– every country and colony in East and
Southeast Asia was invaded
The Occupation
• 1945 - 1952
• Supreme Commander of the Allied Powers
(SCAP) - General Douglas MacArthur
• Two main tasks:
– demilitarization
– democratization
Demilitarization
• Purged almost all wartime officers and
politicians
• Disbanded almost all militaristic
associations and parties
• Prosecuted almost all war criminals
• Dismantled almost all war industries
The "Peace Clause"
• Article 9 in the 1947 constitution:
• “the Japanese people forever renounce
war as a sovereign right of the nation
and the threat or use of force as means
of settling international disputes”
• “land, sea, and air forces, as well as
other war potential, will never be
maintained”
Korean War (1950 - 1953)
• Economic turning point for Japan:
– war supplies to Korea
– industrial resurgence
– foreign currency
• 1945 - 1950 growth rate: 9.4%
• 1950 - 1955 growth rate: 10.9%
• 1952 Japan’s GDP matched prewar high
Korean War (1950 - 1953)
• Political turning point for Japan
• U.S. started to regard Japan as a vital link
in the “arc of containment” against
communism
• Demilitarization gave way to reconstituting
a military force
– Self-Defense Force
U.S. Strategic Change
• General peace treaty in San Francisco in
September 1951
– China and Soviet Union were excluded
– formally ended the Occupation in 1952
• U.S.-Japan Mutual Security Treaty
– Japan: Self Defense Forces 250,000
– U.S. troops/bases 30,000
– U.S. responsible for Japan’s defense.
“Arc of Containment”
High Growth of 1955-1962
“Post WWII Economic Miracle”
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Meiji Era social discipline leads to success
Large investment in heavy industry
Imports of energy and raw materials
Government’s economic goals:
– achieve economic self-sufficiency
– achieve full employment
– improve export competitiveness
– keep domestic demand high
High Growth of 1963-1973
• Government’s “doubling income” plan
– Large-scale infrastructure construction
• Labor-intensive to capital-intensive
– Technological improvement and facility
modernization under government protection
• Aggressive export strategy
– Businesses compete with foreign counterparts
under government protection
Jan-07
Jan-05
Jan-03
Jan-01
Jan-99
Jan-97
Jan-95
Jan-93
Jan-91
Jan-89
Jan-87
Jan-85
Jan-83
Jan-81
Jan-79
Jan-77
Jan-75
Jan-73
Jan-71
JPY/USD Exchange Rate 1971-2007
360
330
300
270
240
210
180
150
120
90
60
30
0
Bubble burst
More shocks in 1990s
• Large and rising government deficit and
public debt (now more than 200% of GDP)
• Aging population (median age now at 45)
• Banking crises and non-performing loans
• Asian financial crisis (1997-1998)
• “Hollowing out” of industry
• Natural disasters and terrorist attacks
Japan's Top Trade Partners (Total Volume, in trillion yen)
USA
Mainland China
Hong Kong
30
25
20
15
10
5
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Japan’s Economy Today
• Japan’s economy dropped 2008 as a result of
the U.S. financial meltdown
• 2010 rebounded as fastest growing economy of
G-7 (China’s not a member)
• 2011-economy ruined by earthquake / tsunami.
• 2012 3rd greatest GDP (U.S./China)
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Auto: (2) Toyota, (4) Nissan, (8) Honda, (10) Suzuki, (14)Mazda, (16) Mitsubishi,
Electronics: Sony, Sharp, Hitachi, Casio, Seiko, NEC