Rebuilding Japan After World War II

Reasons for Rebuilding Japan

Reasons for US Rebuilding Japan Stop the spread of communism throughout Asia Promote democracy in the region by reforming Japan’s monarchy into a constitutional monarchy Improve Japan’s economy in order to trade with Japan and sell US products to Japan’s market Devastation of dropping atomic bombs on Japan

MacArthur General Douglas MacArthur, the American commander of the occupied forces, was given the job of putting Japan back on its feet. He was expected to create a Japan that would guarantee it would not pose a military threat to other countries in the future. MacArthur wanted Japan to have a democratic government, but he also appreciated the important place the Japanese emperor occupied in the Japanese culture.

The Occupation 1945 - 1952 Supreme Commander of the Allied Powers (SCAP) - General Douglas MacArthur Two main tasks: demilitarization democratization

Reforms Made to Japan

JAPANESE CHANGES

Demilitarization and War Criminal Reforms

Demilitarization Purged almost all wartime officers and politicians Disbanded almost all militaristic associations and parties Prosecuted almost all war criminals The issue of Yasukuni Shrine Dismantled almost all war industries

Article 9 Controversy Renunciation of war Aspiring sincerely to an international peace based on justice and order, the Japanese people forever renounce war as a sovereign right of the nation and the threat or use of force as means of settling international disputes. In order to accomplish the aim of the preceding paragraph, land, sea, and air forces, as well as other war potential, will never be maintained. The right of belligerency of the state will not be recognized. Renunciation of war No possession of military forces Denial of the state’s right of belligerency

Political Reforms

Government Choices MacArthur decided to Japan would be a constitutional monarchy. A constitutional monarchy is one where… He wrote a constitution for the country, still referred to as The MacArthur Constitution, that created a two –house parliament called a Diet.

Japan’s New Constitution The constitution created a two-house parliament called The Diet. Everyone over the age of 20 could vote for members of the Diet. The constitution also included a Bill of Rights and guaranteed basic freedoms. The emperor remained as a symbol of the country, but was stripped of his power.

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US ENDS OCCUPATION OF JAPAN 1952 US ends their occupation of Japan in 1952. Japan is granted membership into the United Nations in 1957.

Economic Reforms

US REBUILDS JAPAN’S ECONOMY 1955 U. S. financial support, along with the Japanese values of hard work lead to a period of great economic growth for Japan.

Growth of Japanese Car Industry The Japanese automotive industry is one of the most prominent and largest industries in the world. Japan has been in the top three of the countries with most cars manufactured since the 1960s, surpassing Germany. The automotive industry in Japan rapidly increased from the 1970s to the 1990s (when it was oriented both for domestic use and worldwide export) In the 1980s and 1990s, overtook the U.S. as the production leader with up to 13 million cars per year manufactured and significant exports.

Growth of Japanese Car Industry The demand for domestic trucks was greatly increased by the Japanese military buildup before World War II, causing many Japanese manufacturers to break out of their shells and design their own vehicles. In the 1970s Japan was the pioneer in robotics manufacturing of vehicles. The country is home to a number of companies that produce cars, construction vehicles, motorcycles, ATVs, and engines. Japanese automotive manufacturers include Toyota, Honda, Daihatsu, Nissan, Suzuki, Mazda, Mitsubishi, Subaru, Isuzu, Kawasaki, Yamaha, and Mitsuoka.

Passenger cars Manufacturer 2007 2008 2009 2010 2011 2012 Toyota 3,849,353 3,631,146 2,543,715 2,993,714 2,473,546 3,170,289 Nissan 982,870 1,095,661 780,495 1,008,160 1,004,666 1,035,726 Honda 1,288,577 1,230,621 812,298 941,558 687,948 996,832 Suzuki 1,061,767 1,059,456 758,057 915,391 811,689 896,781 Mazda 952,290 1,038,725 693,598 893,323 798,060 830,294 Daihatsu 648,289 641,322 551,275 534,586 479,956 633,887 Subaru 403,428 460,515 357,276 437,443 366,518 551,812 Mitsubishi 758,038 770,667 365,447 586,187 536,142 448,598 Other 25 30 Total 9,944,637 9,928,143 6,862,161 8,310,362 7,158,525 8,554,219

Growth of Japan’s Economy Known as the Japanese Miracle!

Korean War (1950 - 1953) Economic turning point for Japan: war supplies to Korea industrial resurgence foreign currency 1945 - 1950 growth rate: 9.4% 1950 - 1955 growth rate: 10.9% 1952 Japan’s GDP matched prewar high

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

High Growth of 1963-1973 Government’s “doubling income” plan Large-scale infrastructure construction Labor-intensive to capital-intensive Technological improvement and facility modernization under government protection Aggressive export strategy Businesses compete with foreign counterparts under government protection

High Growth of 1963-73 Government’s 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

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

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

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

More Shocks in 1990s Large and rising government deficit and public debt (now more than 200% of GDP) Aging population (median age now at 45) Banking crises and non-performing loans Asian financial crisis (1997-1998) “Hollowing out” of industry Natural disasters and terrorist attacks Economic position now taken over by China and India

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