Essay about Japan's Economic Slump

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Japan's Economic Slump

1. Introduction

In only fifty years, Japan has moved from poverty to the highest
levels of income, from economic insignificance to leadership from the
import of technology and capital to being a major source of their
export, from less developed status to the lead of economic position
after the United States. After being the best performer in the
Organisation for Economic Cooperation and Development (OECD) during
the forty years, Japan has experienced economic stagnation since the
beginning of the 1990s.

The revival of the Japanese economy is of great importance not only to
Japan but also to the well being of global economy. Therefore, the
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The reasons for this include high rates of both personal savings
and privates-sector facilities investment, labour force with strong
work ethic, ample supply of cheap oil, innovative technology, and
effective government intervention in private sector industries
(Asianinfo). Japan was also a major beneficiary of the swift growth
attained by the post-war world economy under the free trade advanced
by the International Monetary Fund and the General Agreement on
Tariffs and Trade. The industry sector was and still is the main
contributor to the Japanese economy.

By the late 1960s, Japan became the first post-war era nation
classified as "less-developed" to achieve "developed" status
(Asianinfo). In 2000, Japan's gross domestic product (GDP) was $4.648
trillion, which represent approximately 15% of the world GDP. Its
percapita GDP income in 2000 was $36,634, which is one of the highest
in the world (Japan Finance ministry). Apart from the above, the real
economic growth between 1960s and 1980s had been excellent. The
average real economic growth during the 1960s was 10%. In the 1970s,
the average rate was 5% at which time the Japanese economy was
considered as a matured economy and followed by 4% during the 1980s
(Bigsten, 2004, p.3). Then in 1991, the…