State Business Relations During The Postwar Period

3529 Words15 Pages
Sarah Tai
IR 520 The State and Public Purpose in Asia
Professor Grimes
1 May, 2015
State-Business Relations in Japan in the Postwar Period In the economic history of contemporary Asia, governments in many countries have played very important role to lead economic developments of their nations. The rapid economic growth of Japan after the Second World War has been widely acknowledged and is dubbed as “the Economic Miracle.” Some theorists attempt to explain this economic phenomenon with Japan’s geography, international involvement, historical experiences and contemporary experiences. Some theorists focus on the role of the state as the major actor to drive and direct economic success. Recently, many studies and concepts have been
…show more content…
The state has power and autonomy to manipulate and achieve the goals it consciously set. Consequently, the developmental state is influential in economic and national development, and marks as a distinctive feature in Asian experience. In every other country, the state has to constantly work with a number of private groups, particularly big businesses, political group and labor unions. In order to implement industrial and economic policies efficiently and effectively, the state has to put them under its control and ensure they all work towards the same direction. Therefore, in reality, the state has to maintain and legitimize its power and autonomy over different spheres of a society. By imposing influences or putting pressure on business groups who have substantial financial power and economic status, the state can achieve its goals. Thus, the state-business relation is a controversial factor in pushing economic development. In this paper, the state of Japan and its domestic big businesses will be the main focus for the analysis of economic development in postwar Japan. The paper serves to explore the phenomenon of and the reasons for the economic growth of Japan in the postwar period as the state became committed to pursuing economic development when the big businesses grew and contributed to a large portion of GNP and national wealth. This paper will raise the following research questions: What is the state-business relation in Japan? How was
Get Access