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Japan in the 1960s

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Title: Japan in the 1960s


1
Japan in the 1960s
  • conservative politics
  • economic growth

2
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4
The Occupation
  • August 1945 - April 1952
  • Supreme Commander of the Allied Powers (SCAP) -
    General Douglas MacArthur
  • Two main tasks
  • demilitarization
  • democratization

5
Korean War (1950-3)
  • Economic turning point for Japan
  • war supplies to Korea
  • industrial resurgence
  • foreign currency
  • economic reconstruction
  • 1945 - 1950 growth rate 9.4
  • 1950 - 1955 growth rate 10.9
  • 1952 Japans GDP matched prewar high

6
High Growth of 1955-62
  • Large investment in heavy industry
  • Imports of energy and raw materials
  • Governments economic goals
  • achieve economic self-sufficiency
  • achieve full employment
  • improve export competitiveness
  • keep domestic demand high

7
High Growth of 1963-73
  • Governments plan to double the national income
    in ten years
  • scheduled 9 annual growth rate
  • large-scale infrastructure construction
  • Shinkansen (bullet train)
  • Olympic Games
  • port, road, and rails
  • human infrastructure

8
High Growth of 1963-73
  • labor-intensive in decline
  • agricultural subsidies
  • textile bankruptcies and excess capacity
  • coal industry in serious decline
  • capital-intensive on the rise
  • large firms had 10- and 20-fold growth
  • electronics and automobile

9
Government response
  • government responded to some sectors decline
    with reorganization and subsidization
  • technological improvement and facility
    modernization under government protection
  • Ministry of International Trade and Industry
  • constant and critical role in developing the
    computer industry

10
The Iron Triangle
bureaucrats
big business executives
LDP politicians
11
High Growth of 1963-73
  • Aggressive export strategy
  • businesses compete with foreign counterparts
    under government protection
  • domestic market sealed off from competition
  • Strict limitations on governmt expenditures
  • 1965 Japanese exports exceeded imports for the
    first time in two decades

12
Government policies
  • Macroeconomic success through internationally
    competitive firms
  • reduce the reliance on agriculture and small
    industry
  • capital-intensive industries
  • technically sophisticated products
  • improve national economic infrastructure
  • improve human infrastructure

13
Protection of domestic market
  • U.S. products and capital dominated world markets
    to an unprecedented extent in 1950s and 1960s
  • Japan remained virtually unpenetrated by
  • foreign firms
  • foreign products
  • or foreign capital
  • Bretton Woods system (1949 - 1971)

14
Japans Economic Growth
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17
Political economic institutions
  • Japan compared with other industrialized
    democracies
  • economic institutions dramatically different
  • economic performance was superior
  • longest dominance by one political party
  • far greater egalitarianism in political economy
  • foreign and security policy tied to that of US

18
Golden age of LDP Politics
  • Liberal Democratic Party
  • 1963, LDP won 55 of vote and 60 of seats in
    lower house elections
  • LDP benefited from
  • the economys stellar performance
  • internal leadership coherence
  • fragmentation of political opponents
  • compensation of economically disadvantaged

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Evolution of party system
  • Combination of multiparty system with sustained
    dominance of one majority party
  • Chaotic political party system 1946-55
  • 2 conservative parties, 2 socialist parties,
    communist party, and micro-parties
  • Party merges in 1955
  • One-and-a-Half Party System

21
Major Political Parties
  • Liberal Democratic Party (LDP)
  • conservative catch-all party
  • single largest party
  • Japan Socialist Party (JSP)
  • Japan Peace Party
  • Japan Communist Party (JCP)
  • anti-emperor, anti-capitalism, anti-military
  • only party untainted by money politics

22
National Vote Share
23
Suggested Readings
  • http//www.kantei.go.jp/foreign/index-e.html
  • Journals in the UM library
  • Japan Echo
  • Japan Quarterly
  • New books in the UM library
  • Japan in Transformation, 1952-2000
  • Japan's Emergence As A Global Power
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