Key Factors for Japan’s High Rate of Economic Growth

Abstract

Japan has enjoyed a comparatively high rate of economic growth throughout the post-war period—despite the bursting of its bubble economy several years ago. However, it wasnot until about 1955, ten years after the end of the second world war, that a dramatic economic recovery began. In 1960 the government adopted a development policy known as the Income Doubling Plan. The ambitious goal set in this plan of doubling people’s income within ten years was actually achieved in a mere seven years. How did Japan come to enjoy such rapid economic growth? For an answer, we should focus our attention on two crucial factors: finance and the public sector.