By a Japanese miracle, the economic growth experienced in Japan since the end of World War II is known. This warlike conflict left the country quite affected and its serious effects lasted until the end of the 70s.
Japan was one of the first countries in Asia to recover after the defeat by the war, and years later it was established as an attractive nation for investments and equally interested in investing; Along with the United States, Japan fostered industrial development in the well-known Asian tigers.
India is one of the world economies that has experienced remarkable growth. Source: pixabay.com
On the other hand, there is talk of an Asian miracle since Japan was not the only country in the region to experience improvements in its economy. China has also positioned itself in the international market as a great power with a stable economy; India, in turn, has performed well economically after emerging in the 1990s.
The new generation of industrial countries consisting of Taiwan, Singapore, South Korea and Hong Kong (belonging to China) are known as Asian tigers. These countries have experienced extensive economic growth since the late 1980s and have increasingly entered international markets.
Japan
Japan was devastated economically and socially after World War II. Its plants, machinery and equipment had been destroyed, as well as a quarter of the houses in that country.
To recover from the crisis, Japan relied heavily on the knowledge of the rest of the world economies and their experience, which gave it a significant advantage.
In 1948 the Dodge Plan was introduced to end hyperinflation and lead to the stabilization of the Japanese economy. This plan was based on three main reforms: a balanced budget, reducing and progressively ending subsidies, and suspending loans linked to the Bank for Financial Reconstruction.
The goal of such a plan seemed a bit elusive, but after the Korean War in 1950 the Japanese economy began to emerge through its own work and effort. The Japanese began to economize and save their capital to be able to face the international market.
Individual effort
The economic growth enjoyed by the Japanese economy was due to the effort and work of the Japanese, in addition to government policies and events; they were characterized by their ability to learn and improve skills, as well as to acquire technological knowledge abroad and apply it in their systems.
Likewise, the technological improvements that were achieved not only benefited the technology industry, but others that depended on it, in which production processes were improved.
On the other hand, another factor that contributed to Japan's economic growth was the change in trading conditions. The dissolution of the Zaibatsu, which were commercial conglomerates, allowed companies to be more flexible and increase their speed of change to align with their environment.
China
After the Second World War until the beginning of the 1980s, the Chinese economy did not show a very outstanding growth; this remained close to the world average at that time. However, from that time to the present it has presented an economic growth that has broken the expectations that were had of that country.
In 1978 reforms were initiated aimed at boosting economic growth through opening up to foreign investment, concessions to private companies, and decollectivization of agriculture.
Economic growth in that country has been due to several factors, such as the amount of labor at low cost and high productivity, its high savings rates, policies that seek to promote exports, its high investment rates and the abundance of foreign investment.
Currently China is considered a power in the world and is one of the main exporting countries. However, the growth of its economy has slowed in recent years and today it presents some challenges, such as the trade war with the United States and the increase in its debt.
India
India also plays a fundamental role within its continent. Its economy, as well as China's, has experienced rapid growth since the 1990s, when both economies were stalled by state policies.
However, India is projected as one of the power countries by 2040, projecting itself as the second largest economy in the world, according to PwC reports.
The economic growth of this country has accelerated in recent years and, according to data from the International Monetary Fund, it is already growing at a slightly higher rate than the Chinese economy.
Among the factors that have contributed to its economic growth, the population of India stands out, whose increase has also been accelerated. This means a large amount of labor available for production, as well as a boost to consumption by the Indian middle class.
On the other hand, the technological revolution and the number of professionals dedicated to engineering, mathematics and programming who study in that country has also influenced. This has allowed India to boost technology industries, accompanying the process of policies that promote domestic production.
Asian tigers
Asian tigers have stood out in their region for having followed in the footsteps of the aforementioned countries in terms of economic growth; for example, Japan served as a model for Taiwan and South Korea.
The countries that make up this group (Taiwan, South Korea, Singapore and Hong Kong, formerly an English colony but now part of China) focused their efforts on promoting the growth of their economies and exports by reducing imports.
The success of these countries is due to several factors: both the development and implementation of technology that has allowed improvement in production processes, as well as their abundance in labor, their training, investment by the State and the creation of free zones that have promoted international trade.
References
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- Rodríguez, E. (2015). Some aspects of the economic development of Japan and Asian tigers. Retrieved on June 2 from the Red Universitaria de Aprendizaje: rua.unam.mx
- (2017). Why India will be the second largest economy in the world, surpassing the US, in just two decades. Retrieved on June 2 from BBC News World: bbc.com
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