From the desk of the Editor of August 2018
Mohammed Amir Khan (B&F)
Japan’s Rise after destruction
August 6, 1945, during World War II (1939-45), an American B-29 bomber dropped the world’s first deployed atomic bomb over the Japanese city of Hiroshima. The explosion wiped out 90 percent of the city and immediately killed 80,000 people, thousands more lately died of radiation exposure. Three days later, a second another bomb dropped on Nagasaki, killing an estimated 40,000 people. Japan’s Emperor Hirohito announced his country’s unconditional surrender in World War II in a radio address on August 15, citing the devastating power of “a new and most cruel bomb.”
War wiped out many of the gains which Japan had made since 1868. About 40% of the nation’s industrial plants and infrastructure were destroyed, production reverted to levels of about fifteen years earlier. The people were shocked by the devastation and swung into action.
Japan is the 3rd largest economy after US & China, I wonder, how they came this far after such an economic fall.
I decided to point out few post war policies of japan that helped them in survival and growth.
- New factories were equipped with the best modern machines.
- Millions of former soldiers joined a well-disciplined and highly educated workforce to rebuild Japan.
- Japan’s highly acclaimed post-war education system contributed strongly to the modernizing process.
- The world’s highest literacy rate and high education standards led to Japan’s success in achieving a technologically advanced economy.
- Japan’s labour force significant contribution in terms of availability and reasonable wage demands.
- Transfer of numerous agricultural workers to modern industry resulted in rising productivity and only moderate wage increases.
- Benefits from economies of scale, although medium-sized and small enterprises generated much of the nation’s employment, large facilities were the most productive. Many industrial enterprises consolidated to form larger, more efficient units.
- Product diversification became an essential ingredient of the growth patterns of many keiretsu.
- Japanese companies added plant and human capacity ahead of demand. Seeking market share rather than quick profit was another powerful strategy.
Conclusion – Economic policy over the past several quarters in Japan has been influenced by the ‘Abenomics’ debate, with the government pursuing aggressive government infrastructure spending hikes and significant yen devaluations.
Japan stood strong after huge fall. Our country is having young energetic minds, we can also rule the economies of world with such structural reforms.
August was the month that changed japan forever, Hope you enjoyed reading some notes from the vault of history…