Japan Post-War Occupation to the Economic Miracle

Japan Post-War Occupation to the “Economic Miracle”

“Endure the unendurable” • Small pockets of protest among junior officers, some committed suicide • Surrender officially signed on battleship Missouri in Tokyo Harbor 9/2/45 • General Douglas Mac. Arthur made Supreme Commander for Allied Powers (SCAP) ruled Japan until ’ 51 (occupation ended ’ 52)

Mac. Arthur as Shogun?

Japanese Reaction • First fear, then appreciation/admiration (1945 -48), then boredom (1948 -50), then resentment (1950 -1952) • Japanese shared goals of peace and democracy with Allied occupation to root out causes of war and authoritarianism

Reforms in Japan Created by SCAP: New Constitution • Political equality for women • Civil rights including freedom of speech, press, assembly, religion, academic freedom, and collective bargaining • Emperor only ceremonial power • Article 9: disarmament (meaning NO armed forces!)

Government Reform • House of Peers replaced by elected House of Councilors – 6 yr term • Lower House remained the same – 4 yr term • Diet (two houses) holds political control • Cabinet members have to be Diet members • Prime Minister is head of majority party • Military banned from running for office

Other Reforms • Educational: co-ed system based on US model • Break-up of zaibatsu until ’ 48 b/c of growing fear of USSR caused SCAP to abandon policy • Land Reform

War Crimes Trials • Tokyo War Crimes Trials: – 7 leaders sentenced to death, 18 were imprisoned – 200, 000 fired from jobs in gov’t (based on type of work, not personal accountability – Emperor Hirohito not held accountable • Other trials took place all over Asia – 5000 Japanese convicted of inhumane treatment of prisoners/civilians – Over 900 executed

The Cold War And Occupation • Fall of China (1949) to communists and the Korean War (1950) turned Japan from enemy to needed ally • Japan rearmed by SCAP (it’s not an army, it’s a police force!) – Development of Self-Defense Force – Resisted by Japanese • Defense and rapid economic recovery replaced demilitarization and democratization as primary goals

End of Occupation • 1951 San Francisco Treaty & Security Pact – War officially ends w/ occupation – Japan lost all territory outside Japan, but granted self-determination – USA to protect Japan but encouraged Japan to “increasingly assume responsibility for its defense”

Economic Recovery & Growth • US Aid averaged $400 m a year during occupation, invested in rebuilding industry • Economy expanded based on exports in 50 s and 60 s – Exports prioritized over domestic consumption – 1951 Japan resumed pre-war GNP – Growth rate averaged 10% 1950 -1965 "Japan should be allowed to export is way out of trouble, and given the tools to do so. ” – US Sec. of State George Marshall

Japan’s Second Economic Miracle: Japan Inc. • Rebuilding of Japan’s economy in the hands of the elites – Run by bureaucrats and industrialists who worked to build the wartime economy

Fundamentals for Success • Lifetime Employment – Symbiotic work relationships: loyal workers & paternalistic management – Advancement based on seniority – Birth of “salariman” (1950: 30% to 1995: 70% of workforce) – All employees benefited in success of the company • Labor Unions: ensured shared hardships, shared rewards

Fundamentals for Success • High rate of personal savings (1973: 17% of GNP in JP vs. 6% in USA) – Banks (not stock market) channeled investments to companies, backed by the gov’t • National cooperation (ie “iron triangle”) of politicians, big business, and bureaucracy – Careful gov’t planning, aggressive expansion in foreign markets, protection of the domestic economy

Economic Success Led to… • Advanced industries in science & technology • Thriving consumer culture • Spread of Japanese pop culture

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