1. Japan in the 1960s conservative politics economic growth

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: Japan’s GDP matched prewar high

6. 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

7. 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

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 LDP politicians big business executives

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. Japan’s Economic Growth

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 economy’s stellar performance –internal leadership coherence –fragmentation of political opponents –compensation of economically disadvantaged

20. 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