Analysis of Japan's high economic growth period - Lessons for India in the post-COVID-19 era

Abstract

World War II (1939-1945) left Japan devastated with a heavy loss to its economy. Despite this setback, the country not only improved its economic base, but also grew tremendously to become a global giant in the next few decades. This paper focuses on the period of high economic growth in Japan, which broadly ranges from 1950s to early 1970s and analyses the reasons which led to its so-called “economic miracle”. Using the existing literature and body of work available on the subject, the paper presents the key features of this period and deep dives into the industrial policy and the transformation of Japanese economy during these years. It also discusses the impact of this growth on the society of Japan. Finally, the paper highlights some important lessons which India can learn to tide over the challenges posed by the Covid-19 pandemic. The paper finds out that Japan was able to achieve the high economic growth due to the synergy between the government and the corporate, unique industrial structure and a high reliance on increasing the potential of small and medium enterprises. Further, India can replicate many of these policies owing to its huge human resource capital.

Keywords

• japan’s high growth era
• indian economy
• covid-19 pandemic
• small and medium enterprises
• kaizen