1. The Rise of Pacific Rim Economies
Preview
Main Idea / Reading Focus
Postwar Japan
The Pacific Rim
The Asian Tigers
Visual Study Guide / Quick Facts
Video: The Impact of Vietnam’s Location

2. The Rise of Pacific Rim Economies
Main Idea
The nations of the Asian Pacific Rim underwent remarkable economic growth in the years after World War II, but significant challenges remain.
Reading Focus
How did Japan change during the postwar years?
How did the nations of the Pacific Rim change after World War II?
How did the Asian Tigers develop?

3. Postwar Japan American Occupation Demilitarization
Japan suffered terrible destruction during World War II. After the war, the nation needed to rebuild its government and economy.
American General Douglas MacArthur controlled Allied efforts to rebuild nation
Rebuilding process had three basic steps
Demilitarizing Japan
Building democratic government
Establishing economy to support peaceful, democratic Japan
American Occupation
MacArthur’s first job, demilitarize Japan
Removed all wartime political, military, business leaders from power
Many tried as war criminals
MacArthur also dismantled armed forces, shut down Japan’s military industries
Demilitarization

4. Next Steps Building Democratic Government Human Rights
Second step began with new constitution for Japan, went into effect in 1947
Gave more power to Japanese people, established parliamentary democracy, gave all Japanese adults right to vote for Japan’s Diet
Human Rights
Emperor no longer sacred being, simply symbol of the state
Great emphasis placed on importance of human rights, greatly expanded civil rights, including freedom of speech, assembly, religion
Political Parties
New constitution forbade Japan from building military capable of attacking other countries, guaranteed right to organize political parties
Most important new party, Liberal Democratic Party (LDP), conservative party with pro-U.S. foreign policy

5. Third step, rebuilding Japanese economy
Final Step
Third step, rebuilding Japanese economy
MacArthur made many economic changes
Sought to break up large organizations known as zaibatsu that had dominated Japanese industry
Established land reform program to give farmland to farmers who had previously rented land

6. Foreign Trade, Consumer Goods
Economic Recovery
U.S. economic aid flowed freely; biggest boost came with outbreak of Korean War, 1950
During conflict Japan served as key source of supplies for U.S., UN forces fighting in nearby Korea
Foreign Trade, Consumer Goods
After Korean War, Japan built economy around foreign trade, production of consumer goods
Constructed modern factories, quickly rebuilt heavy industry, including steel, automobile manufacturing

7. Rising Economy Industrial Growth Stunning Success
Strong work ethic, good relations between management, labor contributed to industrial growth
Exports rose quickly
1970s, Japan began to focus on electronics, computer technology
Industrial Growth
Even compared to postwar growth of most western democracies, Japan’s success stunning
1952, U.S. occupation ended
By 1968, Japan had world’s second largest economy, is still major economic power
Stunning Success

8. Social Changes From Rural to Urban Culture, Family Life
The postwar economic growth led to an improved standard of living for Japanese workers and brought Japan many other social changes.
New urban industries attracted workers from agriculture, small business
Population of cities grew rapidly
Late 1800s, only 15 percent of Japanese lived in urban areas
By 1970, more than 80 percent urban population
From Rural to Urban
Japanese culture, family life changed as well
Many young people adopted American customs, music, movies, food
Gender roles changed—more women attended high school, college, won new freedoms
Importance of extended family began to decline
Culture, Family Life

9. How did Japan change in the postwar years?
Summarize
How did Japan change in the postwar years?
Answer(s): standard of living improved; economy grew; culture adopted some American elements; gender roles changed

10. The Pacific Rim
The Pacific Rim refers to the countries bordering or located in the Pacific Ocean. Like Japan, other nations in the Asian Pacific Rim worked to rebuild economies and support democracy after the war.
The Philippines won independence from U.S. control in 1946
Established democratic government, kept close ties with U.S.
By 1970s, President Ferdinand Marcos became dictator
The Philippines
Marcos imposed martial law, arrested opponents, stole millions from nation
Chief rival, Benigno Aquino assassinated
Killing led to anti-government riots
Pressured, Marcos allowed elections
Martial Law
Voters elected Aquino’s widow, Corazon Aquino as new president
Philippines returned to democracy
1990s, economy began to improve
Many Filipinos still live in poverty
Corazon Aquino

11. North Korea and South Korea
Korea remained divided nation after end of Korean War in 1953
North Korean dictator Kim II Sung formed Soviet model government; state controls much of economy, spending on heavy industry, military
North Korea made significant gains with Soviet, Chinese aid
Poverty, food shortages spread across nation as foreign aid decreased
1994, Kim Jong II took power
Under his rule, North Korean economy has continued to deteriorate; however North funded expansion of military programs
2006, North Korea tested nuclear weapon for first time
Nuclear Nation
With U.S. aid, nation’s industries built up, emphasizing foreign trade, consumer goods
Little freedom, political stability until reform began late 1980s
Nuclear testing has led to more tension between North, South
South on Different Path

12. Movement Toward Democracy Continues
Taiwan
1949, Guomindang nationalists settled on Taiwan
With U.S. economic, military aid, Taiwan built successful economy based on international trade, consumer goods
1980s, ended martial law, allowed other political parties to form
Movement Toward Democracy Continues
Movement toward democracy continued in later years
Today, China views Taiwan as integral part of China
Insists two areas eventually will be reunited
Taiwan resists pressure from China

13. How did most of the Pacific Rim nations move toward democracy?
Summarize
How did most of the Pacific Rim nations move toward democracy?
Answer(s): with U.S. economic aid

14. The Asian Tigers Spectacular Growth Industrial Expansion
While Japan was building one of the world’s strongest economies in the years after World War II, other Asian nations were also making great economic gains. Because of economic successes, South Korea, Hong Kong, Taiwan and Singapore became known as the Asian Tigers.
Asian Rim entered 1960s as poor, undeveloped region
Over next few decades, Asian Tiger economies performed spectacularly
Growth higher than that of similar economies in Latin America, Africa
Spectacular Growth
Countries followed pattern similar to one used by postwar Japan
Ample education, training for citizens; skilled workforce necessary for industrial expansion
Also received U.S. economic aid
Industrial Expansion
The nations further benefited from their access to the major shipping routes of the Pacific Ocean.

15. As in Japan, Asian Tigers focused on growth
Manufacturing
As in Japan, Asian Tigers focused on growth
Growth came through exports of consumer goods, primarily to United States
Low costs for labor, production, as well as loyal, dedicated workforce allowed manufacture of low-cost products that could sell in U.S.

16. An Economic Crisis Success Led to Failure Thailand’s Banks Failed
1997, economies of Japan, Asian Tigers suffered shock when severe financial crisis hit region, partly due to region’s great success
Superior performance led foreign companies to invest heavily in economies
Thailand’s Banks Failed
Lack of government regulations allowed Asian Tiger banks to borrow more than they needed
Crisis began when banks began to fail in Thailand
Financial Panic
Financial panic quickly spread through region; foreign investors sold holdings
Stock, real estate prices collapsed, currencies lost value
Region overwhelmed by debts it could not pay; collapse undid years of progress

17. An Asian Century Economic Recovery Economic Powers Asian Miracle
Over the following decade, region began to recover from economic disaster
Economic Powers
Nations like Indonesia, Malaysia, Thailand, Philippines began to emerge as economic powers
Asian Miracle
Great success of many Asian economies had many observers celebrating so-called Asian miracle
An Asian Century
Some predicted 2000s would be “Asian Century”
Asia to surpass Europe, North America as dominant economic region in world

18. How did the Asian Tigers follow Japan’s model of economic growth?
Find the Main Idea
How did the Asian Tigers follow Japan’s model of economic growth?
Answer(s): provided education and training for workers; focused on exports

20. Video The Impact of Vietnam’s Location
Click above to play the video.