Japan's Postwar Economic Miracle
When the American Occupation ended in 1952, Japan was a ruined, occupied country dependent on American military bases and Korean War procurement contracts for its industrial revival. Within two decades it had become an economic superpower. GDP grew at an average annual rate of more than 10 per cent through most of the 1955–1973 period. By 1968 Japan had overtaken West Germany to become the world's second-largest economy. MITI allocated capital to strategic industries — steel, shipbuilding, chemicals, electronics, automobiles — protecting them from foreign competition while pushing export discipline. Companies like Toyota (which developed just-in-time production), Sony, Honda, and Mitsubishi became global brands. The Ikeda government's 1960 Income Doubling Plan achieved its targets ahead of schedule. Japan urbanised rapidly, a car-owning middle class emerged, and the Tokyo Olympics of 1964 were broadcast live to the world. Japan's economic model became the template for South Korea, Taiwan, Singapore, and eventually China.
- Year: 1955 CE
- Category: Economic
