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US occupation and post war
Reconstruction
-Japan was under the command of SCAP
[McArthur]
-joint force set up the Far Eastern
Commission in Washington and convey the
Decisions through the US government to
The SCAP
Political Reforms:
1. Demilitarization and democratization
-militarists (Tojo Hideki) were tried &
The right wing organizations were disbanded.
-Shintoism was denationalized.
- “renunciation of divinity” of emperor
- Freedom to people
- Labour organizations & liberalism in
education
2. The proclamation of new constitution
-”Showa Constitution”
-reduced the power of the emperorSymbolic emperor
-guaranteed the sovereignty of peopleHuman rights and equality before the law
-promoted the Diet centrism-key legislative
Body –House of Representatives & SenateCabinet held the administrative rightsPrime minister was nominated by Diet and
Elected by Diet’s members.
Economic Reforms:
1. The dissolution of Zaibatsu 1945
-only 4 major financial groups survived
& other small medium sized zaibatsu
Were dissolved.
-established free competition between the
Enterprises
-financial groups still monopolized
Banking business enterprises.
2. Agricultural Reform 1946
-most successful
-”Owner Farmers Establishment Special
Measurement Law” abolished the ownership
Of landlords.
-Purchase of the farmlands owned by
Absentee landlords or those exceeded the
Reserved land under legal protection.
-price of land was close to 0.
-contributed to land opening up for farming.
3. Labour reform
-encouraged the Labour movements,
Modern employer-employee relationship,
Systematic employment system,etc.
Factors for economic growth since
1945:
Internal Factors
SCAP Period (1945-52)
1. Favourable SCAP policies
-new constitution
-agricultural reforms
-anti-monopoly policies
-stabilizing Japan’s economy
-education policy
-birth control policy
2. Favourable effects of the Cold War
-from punishment to assistance
-special procurement of the Korean War
3. Special relationship between US
And Japan
•Arranging the signing of San Francisco
Treaty
•Assisting Japan’s industrial development
•Reducing Japan’s military expenses
4. Policies of the Japanese Government
•Emphasis on education
•Emphasis on economic development
•Implementation of economic plans
•establishment of legal and management
System
•support to small to medium companiesGovernment give startup support to them
-
5. Customs and habits of the Japanese
-willingness to acquire new knowledge
-obedience and sacrifices
-savings and investments
-japanese style of management
6.Cooperation between employers and
Employees
-New “family run” business
-life time employment system
-seniority based wage system
-enterprise union-one union for one
Enterprise
-“Japanese employer-employee relationship”
[rules]
7. Provision of stable business environment
-Liberal Democratic Party (LDP) held
Many seats and became the ruling party.
-regardless of factions within the party,
They had fundamental beliefs, viewpoints,
Standpoints and policiesconsistency
-most were private enterprisesstable
Amid political changes.
External Factors
1. International Instability
-Cold War: US shifted the policy of
Weakening Japan to putting Japan as
Defense against communism in E. Asia.
-Korean War 1953: Japan provided
War supplies to the US –industries bloomed
2. The signing of the San Francisco
Peace Treaty 1951
-ended US occupation and
Restored Japan independence.
-attracted capital and techniques from
Europe and N. America—economy
Bloomed.
3. Favourable international circumstances
-Japan importer of food and raw materials
exporter of industrial products
-Procurement of the Vietnam War
Economic reconstruction and
Recovery 1945-52
-experienced crop failure til 1947
-due to Cold War, the US stabilized
Japan’s economy and political situation.
-Dodge as economic advisor –Nine
Economic Principles-implementation of a
Single currency, establishment of a
Balanced budget, importation of American
Supplies for revenue to build Japan
Economic growth 1952-64
1. “The first economic peak” 1955-57
-investment of fiscal funds and bank loans
On special needs, e.g. electricity, shipping
-five year plan for electricity-petroleum
(from crude oil) was on demand- oil refining
industry bloomed.
-more independent and active economy
“Jinmu”boom.
2. The second economic peak 1958-64
-mass production of car and other home
Appliances
-“Iwato Boom”
-Olympic Games held in Tokyo in 1962.
Continuous development and
Instability 1965-79
3. The third economic peak 1965-70
-heavy and chemical industries
-”Izanagi boom”-catch up with Europe
And US.
4. The period of transformation 1971-79
-slowed down due to environmental pollution,
International sentiment against Japanese
Export, conflict between the US and Europe,
International oil crisis 1973.
-needed to reform industrial structure
5. Economic slowdown 1980s and
Recession 1990s
-1980 internationalization-conflict with
International economy
-1990 economic bubble burst-political
corruption
Japanese Economic, Cultural
and Political Relations with
Other Asian Countries
Post War Diplomatic Policies
-to view the United Nations as the centre
-to collaborate with liberal states
-to uphold the idea of “a member of Asia”
1950-60s-following US foreign
Policy
1970s-regaining diplomatic
Independence
1980 and after-becoming a great
power in Asia
1950-60s-following US foreign
policy [LK]
1. Establishing diplomatic relations with
South Korea
2.limiting contact with PRC
3. Developing pure economic relations
With Southeast Asian countries
-why?
a. Japan had lost Chinese market, she
Needed to find a replacement.
b. Rich resources from SE Asian to develop
The chemical industries and SE Asian
Countries were economic partners.
1970s-regaining diplomatic
Independence
Background:
1.By 1970, Became 2nd largest
Economic power after USA.
2. USA setback in Vietnam
Japan wanted to fill up vacuum.
1. Establishing diplomatic relations with
PRC
2. Strengthening relations with Southeast
Asian countries-only limited to economic
Aspect.
Why be friendly with SEAsia?
-raw material, e.g. tin
-investment opportunity
-oil crisis 1973
-ocean in SEAsia important to Japan
Sea transport
-“Fukuda Doctrine” in 1977
-ASEAN
1980 and after-becoming a great
power in Asia
“Nakasone Yasuhiro’s foreign policy”
-increased diplomatic activities
-exceeded military expenditure
-export Japanese culture and tradition to
Other parts
Nakasone’s “four principles for AsiaPacific cooperation”(ED.)
1. To respect the spirit of ASEAN
2. To promote the spirit of nonGovernmental organizations to collaborate
In a leading role with NGO.
3. To confine the cooperative scope
Into economic, cultural [exclude military]
4. To establish an open collaborative system
1980 and after-becoming a great
power in Asia
1.improving relation with South Korea
2. Strengthening economic relations with
PRC
3. Taking part in political and economic
Affairs of Southeast Asia
4. Spread of Japanese popular culture
Relations between Japan and other
South Asian countries (ED.)
-1950s, peace treaties with India and
Pakistan
-1984, prime minister visited India
& Pakistan
-1990, Japan proposed “three directions”
For development of Japanese relations
With the South Asian countries.
1. Provide aid to maintain stability and
Peace.
2. Expand and strengthen economic
cooperation.
3. Enlarge the scope of cultural interflow
[preserve cultural heritage]
Unfavourable factors for Japan to
improve her relations with other
countries:
1. Denials of aggression and falsification of
History books
2. Official visits to Yasukuni Shrine
3. Denials of Asian people’s quest for war
Compensation
4. Territorial disputes with other Asian
Countries
END