Japanese

Success in
1960s.

Sumit Dhingra
101304111

The Decision To Use

the Atomic Bomb.
When we didn't need to do it, and we knew we
didn't need to do it, and they knew that we knew
we didn't need to do it, we used them as an
experiment for two atomic bombs.
~~~BRIGADIER GENERAL CARTER CLARKE

Scenario During World

War II

Atomic bombings of Hiroshima and Nagasaki.

Japan was devastated.

Killed at least 129,000 people.

Japan announced its surrender.

Benefits from War

Assistance from America
America was Supreme Commander of Allied
Powers (SCAP).
America wanted to slow down SOVIET influence.
To prevent militarism.
Special procurement .

Benefits from War

Technical foundation
of aviation industry
survived the war.

The magic of keiretsu

Co-operation in closely knit group
Included set of companies
Long term planning
Innovative

Governmental
Contributions
Guarantee of lifetime employment
Encouraging private sector
Instituting regulations
Concentrating on trade expansion

Ikeda administration
and keiretsu

Prime Minister Hayato Ikeda,the single most

important individual architect of the Japanese
economic miracle.

Pursued

Industrialization in
Japan.

Ikedas Policies

Emergence of 'over-loaning

Keiretsu prevented foreign take overs

strategic industries

Long term profits

Foreign Exchange Allocation Policy

Fruits of Ikedas Policies

By the late 1960s, Japan had risen from the

ashes of World War II to achieve an
astoundingly rapid and complete economic
recovery.

In 1965, Japan's nominal GDP was estimated

at just over $91 billion

Fifteen years later, in 1980, the nominal GDP

had soared to a record $1.065 trillion.

The low-cost Nissan Sunny became a symbol of Japanese

middle class in 1960s.

Japanese made TV sets

"Golden Sixties" and

shift to export trade

Lowered interest rates and taxes

Income-doubling plan."

Trade liberalization

41 percent liberalized as compared to 22 percent

in 1956 ,planned 80 percent in next 3 years.

Always secured Japanese market and product

under liberalization policies also.

Conclusion

Japanese stock market hit its all-time peak at

the end of 1989.

The period of growth came to an end with the

bursting of the Japanese asset price bubble in
1991.

This was followed by the "Lost Decade"

(19912000).

Thanks for your kind

attention

You may ask any question

regarding my presentation.