The miracle economic period of Japan (1950-80)
The Japanese economy is the most dynamic economy in the world. Their world class business etiquettes and principles are very much capable of reviving it's economy from any negative extent that is evident from their revival post second world war. After having lost the second world war which came to end by 1945, many eminent organizations were formed to maintain harmony in the world. Since then all the countries started working on building their economies and Japan was on the frontline. America was and still an unavoidable super power. Japan started to resuscitate it's economy from 1950, as a result of which Japan was able to become the world's second largest economy for a consecutive period of more than four decades from 1969 to 2011 before losing the second spot to China. We should not forget that Japan also faced one of the most fierce economic stagnation post the second world war starting from 1980’s continued through the start of this millennium. It was also termed with several terms like the lost economy, the bubble economy and so on. Let’s take a look at the ups and downs of the dynamic Japanese economy as it would be useful because many of the Japanese are concerned about the economic status and are used to discuss about the economy at work during leisure time.
The glory period of economy of Japan was 1950-80 when Japan had a rapid growth economically which even drew the envy of other countries. Such intensive was their plan to revive the economy of the country. First there was a sharp growth shown in the automotive sector as they had Automatic assembly line which reduced the error to a considerable amount meeting the expectations more than expected. The 1970’s period saw an enormous growth in the electronic industries which paved way for what they are today. Their counterparts in the field of electronic industries was their neighbouring countries China and South Korea. Japan products had quality and innovation which lured the market. Automotive firms such as Mitsubishi and Toyota were not recognizable before the second world war but had a huge growth since the war ended that they emerged as top competitors in the world. No other countries, even America didn’t have a robotic assembly line in the field of Automotive then. Moreover, Japanese had a good insight of the market and the demand. During the oil crisis of 1973, there was demand for those economic vehicles produced by Japanese companies like Honda and Nissan. The economic growth was 4% on an average in the 1980’s. There were many other reasons stated for the boom in the economy over this period like low yen to dollar value which supplemented exports and thus Toyota, Sony, Honda became global brands, the defensive support from the United states that reduced Japan's expenditure on the defence force, the close relationship between the industries and the government and the stable political conditions. They had a productive economy until they faced the economic crisis in the later half of the 1980’s. The plaza accord signed in 1985 within the G5 countries has been seen as the reason for Japan's economy to face a decline. Since then they had an economic crisis that lasted nearly for two decades which was the first of it’s kind and the biggest ever after the second world war. This period was called as the lost decade and even Bubble economy of Japan. The second biggest crisis was the 2008 crisis in the United states. Having came through the bubble economy, Japan is still the third largest economy in the world with 4.9 trillion USD only next to the U.S and China.