What this lesson teaches
I can judge which factors did most to transform the economies of Japan and China over time.
Syllabus 9174, Paper 1, Theme II, Learning Outcomes. evaluate the factors that contributed to the economic transformation of Japan and China over time
Make a guess
Government, business groups, society and the world economy all helped Japan grow. Do you think one factor explains its growth from 1947 to 1991?
- No, American aid and military orders explain most of it.
- Yes, government planning by MITI explains it.
- No, the factors worked together, and their weight shifted.
Show the answer
No, the factors worked together, and their weight shifted.
International help led early recovery, all four drove high growth, and outside shocks shaped later decades.
Government, keiretsu, society and the world economy worked together, but their importance shifted between periods.
1947 to 1955: recovery owed most to international developments, through occupation reforms, the Dodge Line and the Korean War boom.
1955 to 1973: high growth came from all four factors together. Government chose industries, keiretsu banks lent them household savings, workers moved into factories, and the world economy was open and stable.
1973 to 1985: growth slowed to about 4 per cent a year. Firms and workers adapted to the oil crises, while the state's direct control declined.
1985 to 1991: international pressure and government decisions combined to create the bubble and its collapse.
Historians debate the role of the state. Chalmers Johnson called Japan a "developmental state" led by MITI. Others stress market competition and private firms. A strong essay shows how the factors depended on each other.
- High growth
- 1955-1973, about 10 per cent a year.
- Stable growth
- 1973-1990, about 4 per cent a year.
- Debate
- Developmental state versus market forces.
Real examples to use
Chalmers Johnson, 1982
MITI and the Japanese Miracle made the case for the developmental state: officials, not just markets, drove growth.
The lost decade, 1990s
Slow growth after the bubble burst weakened the claim that Japan's system could not fail.
Worked example: Building an argument
Which factor was most important?
- Criterion: which factor made the others work?
- Case for government: it channelled savings to chosen industries.
- Case for keiretsu: they turned that credit into competitive firms.
- Judgement: government was key in high growth, but relied on society and the world economy.
Watch out for this
One factor explains Japan's growth from 1947 to 1991.
The balance changed. International help mattered most in recovery, domestic factors in high growth, and international pressure again after 1985.
Check your understanding
Which period saw Japan's fastest growth?
- 1955-1973
- 1986-1991
- 1973-1985
Show the answer
1955-1973
Right. Growth averaged around 10 per cent a year.