Economic Development of Japan after World War II Essay

Economic Development of Japan after World War II - Essay Example This essay presents a comprehensive historical analysis of the reasons behind the Japanese post-war economic miracle. Japan was among the few countries that suffered the brunt of the Second World War. The atomic bombs that hit Japan’s cities of Hiroshima and Nagasaki did not just leave rubbles but also typified the effect of the war in the country. Nevertheless, after the war, Japan experienced a rapid economic boom. Soon after the war, the Japanese government implemented effective foreign relation policies, which enhanced the country’s interaction with various countries. Key among the countries was the United States. The expenses of the war threatened to cripple the economy of Japan. The post war inflation coupled with its inherent unemployment threatened the stability of the country. However, the United States formed friendly ties with the country by setting base in the country with the view to maintaining the spreading influence of the Soviet Union. The US provided the country with colossal amounts of money to help it restock and reinforce its military thus protect its borders from the Korean aggression. The money revamped economic activity in the country as the country made large-scale purchase of military equipment from both local and foreign companies. Such government spending enhanced the liquidity of the economy thus cushioning the country from the post war inflation. The US facilitated the inclusion of Japan into the GATT though as a temporary member, which enhanced its relationship with other western countries.