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Question
Write five-page paper on the reforms that allowed China and Japan to so rapidly industrialize in the Post WWII period. What was unique about their development models? What role did the state play and what relationship did international trade play in the development strategy? Relevant information can be found in two specific textbooks if you have access to them:
“The Globalization Paradox: Democracy and the Future of the World Economy” (Go to the chapter on “Poor Countries in a Rich World”)
and
“Global Economic History: A Very Short Introduction” (go to the chapter on the “Big Push Industrialization”)
You are not limited to these sources, nor are they necessary if you do not have access to them. Use whatever sources necessary to accomplish the objective of the paper.
Answer
China and Japan Industrialization Post WW2
The world experienced a significant economic transition after World War II. Most of the countries that had engaged in warfare saw a window of opportunity for growth. As they rose to power, different economic growth strategies were implemented. These strategies were the major foundation pillars behind some of the economic superpowers we have today. China and Japan were among the countries involved in World War II. Given the economic ruin that the war had left, both countries tried their level best to clean the aftermath and experience positive economic growth. Based on the economic rationale theory, an individual, in this case a state, makes the most informed decisions that can fully benefit its people given the choices available for them. Therefore, both countries took advantage of the choices laid out for them after World War II and made the best out of them. This paper is a discussion of the industrialization era of Japan and China after World War II.
China’s economic growth that led to industrialization took place in phases. The first phase, the great leap industrialization, took place in the years 1959-1961. During this period, China had a vibrant leader by the name Mao Zedong. Mao put great effort to make sure that the country was focused more on industrial production other than agricultural production. During his era, he insisted that all the people in China should abandon crop farming and engage in the small-scale melting of steel. According to him, this move was supposed to outsmart the British in the production of steel and upgrade the military capability of China. However, the steel produced was of inferior quality and could not be used for industrial or military purposes (Cheong,421). The project was rendered a failure. However, it created small industries within the rural areas of China. These small industries would later boost the rural areas and facilitate the access of electricity, improvement of infrastructure and growth of other industries such as chemical plants, and cement manufacturing industries. Mao’s policy, however, had dire consequences. Due to lack of agricultural production, the country experienced massive deaths that were as a result of starvation.
The Japanese had different reforms other than those of the Chinese. After the world war, Japan used domestic investment as an approach to economic growth. They mainly invested in industries and infrastructure such as roads, and it became the driving force of the country’s economic growth. The country incorporated a collaboration between the private and the public sector that facilitated heavy investment in infrastructure. The local governments and the national government helped a lot in creating an atmosphere where the public and private sector could invest in. Japan encouraged the locals to have saving schemes and plans and therefore increased the domestic savings. This was a key foundation pillar for the country’s economic independence. They saving culture enabled the country to accumulate a lot of capital needed for infrastructure. Therefore, the country did not rely on outside help for economic growth. The manufacturing industries were left under the management of the private sector. The economy was mostly investment based rather than export based.
The two countries have lots of unique qualities regarding development models. The Chinese used a development model that aimed at increasing the industrial production rather than depending on the agricultural sector. The Chinese administration encouraged everyone to be a part of the economic growth by making the locals engage in industrial manufacturing processes such as melting of steel (Lin, 260). The economic development model was aimed at the general reduction of poverty and eradicating the rise in unemployment of the youth. Mao Zedong made sent that the high school graduates that were in the urban areas back to the rural areas so that they could implement their knowledge to the villages and help in peasant education. This helped the rural dwellers develop more ideas about economic development and come up with ways to reduce the levels of poverty that they dwelled in. In addition, the sending of the youth to the rural areas decongested the cities and eliminated the levels of unemployment and homelessness in these urban areas. The Chinese economic development model is one that made the country see a significant rise in the GDP and as from the year 1978 to 2oo7 the annual domestic gross product stood at 9.8% (Allen,282). As a result, China is considered as among the world’s powerful economies.
The Japanese used the investment approach as their economic development model. This model is unique in the fact that it empowers the private sector to invest in the country’s resources thereby encouraging growth (Lockwood, 59). After the World War II, Japan readily invested in all the means necessary to assist in the country’s economic growth. The country started prioritizing on the production system. Unlike China, Japan did not ignore the agricultural sector. Therefore, her people were well fed and did not suffer from starvation. The private investors, in collaboration with the government, then focused on the production of consumer goods for exports, therefore, imitating the western economies. This was another unique model that facilitated the rapid growth of Japan’s economy.
The states and the international trade had roles that they both played in the development strategies both nations. Starting with the state, which played the major role in development, the two countries had unique types of governance. The Japanese state, for instance, created the infrastructure that facilitated in the rise of industrialization. The country committed her efforts to building the best machinery and having the best and most productive industries in the world. The Japanese took it upon themselves to come up with a strong military so that they could defend themselves from external attacks. The strong military included a modern army and a navy, and they put a protective territory defense zone that further enhanced protection from the North East Asia. This move gave the Japanese a stable ground at which they could face the western nations comfortably.
Aside from that, the Japanese took advantage of the international trade. They emulated the western economic development. They embraced ideas from the western nations and incorporated them in their economy. Hence they had a positive economic growth. The Japanese harnessed the western techniques for energy production; they intensified on renewable sources of energy rather than the non-renewable. The country intensified in training its people so that they could get employment from the factories. These improved the social capability of the people to raise a livelihood hence positive economic growth. The Japanese intensified their production of manufactured goods such as electronics and cars thereby increasing their exports and gaining a stronghold spot in the international trade.
The Chinese chose to follow a completely different route. The state shifted the development strategy from one that is self-sufficient to an export-oriented strategy. The shift was to facilitate the growth rate of the country’s gross domestic product. The state did not invest in heavy militia like the Japanese and the western countries. Instead, it chose to focus on energy exports which fetched the country quite a significant amount of returns. The state also focused on financing infrastructure projects. This assisted the country to climb up to the top places in the international trade. Aside from that the country empowered her people, and therefore there was local growth, and it supported the local models of development. In regards to westernization, the Chinese somewhat disregarded the western economic growth strategies and chose to focus on what their founding fathers came up with. They took a few points from the Soviet Union and implemented in their system of governance, for instance, communism.
In conclusion, the post-World War II was an era that many nations experienced significant growth in the economy. The situations improved, and the economy of most countries around the world healed from the scars inflicted upon as a result of warfare. This was an era that the Chinese and the Japanese took a full window of opportunity to advance in their technology and improve the infrastructure in their countries. They made dramatic changes to their economies that helped shape the economic stability that they enjoy today. Although the changes were for a positive course, some of them left devastating marks on the citizens. For instance the millions of deaths that the Chinese faced as a result of neglecting the agricultural sector. The whole process of industrialization and the steps that the two countries took to build their economy should be used as a model of example to improve the economy of the third world countries.
Works cited
Allen, Robert C. Global economic history: a very short introduction. Vol. 282. Oxford University Press, 2011.
Cheong, Jiawen. “The Globalization Paradox: Democracy and the Future of the World Economy.” ASEAN Economic Bulletin 28.3 (2011): 420-422.
Lin, Justin Yifu. “Demystifying the Chinese economy.” Australian Economic Review 46.3 (2013): 259-268. Lockwood, William Wirt. Economic Development of Japan. Princeton University Press, 2015
