ECONOMIC PLANNING IN JAPAN

Abstract

The reco~ery and growth of the Japanese economy after the destruction o~ World War 11 have been rem~rkable. The volume of industrial production, which had been reduced to only one-third of prewar level, re~ained the 1934-36 Ievel as early as in 1951, and in 1962 it was flve times as high. Today the Japanese economy is approaching the level of some of the West Eurdpean countries, both in scale of production and in the living standard of the people. Japan is now the fifth biggest industrial producer in the world, following the U.S., U.S.S.R., U.K., and West Germany. In respect to several industries such as shipbuilding, transistors, T.V. sets, and camera manufacturing, she is the biggest producer in the world. National income per head of population in 1961 was just over $ 400, only twenty per cent lower than that of Itaiy, although it is a long way to reach the level of the U.K. or West Germany where it is around $ 1,000. With such growth of production and improvements in living, Japan is now accepted as one of the advanced nations i~l the international community. In the summer of 1963, she joined the Organization for Economic Cooperation and Development. This is the first time a country outside North America and Western Europe was admitted to membership in the organization of advanced n.ations. It was already decided that Ja~an would be transferred to the Article 8 status in the IMF Agreement. In August 1963, her ratio of import liberalization reached 92 per cent, which is comparable with most West European countries. Needless to say, a number of factors have been responsible for the remarkable achievements of the Japanese economy. Since these factors have been already analysed by competent economists, I shall confine myself here to mentioning only two features pertinent to the subject of this paper.l One of them is the very positive attitude of Japanese business firms under the competitive market system. They are confident of the future growth of the national economy, eager to adopt the latest techniques, and enthusiastic to expand their own business activities in spite of severe competition at home and abroad. For instance. Japa~rese businessmen imported and utilized advanced foreign technology to the fullest extent possible. Tremendous amounts of resources have been invested in the most modern equipment, with a resultant rapid rise in productivity and increased competitiveness in