The economy of a nation is a major indication of its success. One aspect of a nation's economic success or failure is the system of government. Whether a nation is socialistic, communistic, ruled by absolute sovereignty, or based on capitalistic principles can be a key factor in a country's economic success or failure. Government is the foundation of an economy but it is not what determines its success. Issues that determine a nation’s economic success include growth strategies, improved or increased resources, investment and savings, government policies, trade, foreign direct investment, income distribution, labor allocation, innovations in technology, and several other economic issues. I feel that economic growth is the main indicator of economic success. Additionally, innovations in technology, improving human capital, and improving foreign direct investment (FDI) are three issues that can lead to economic growth.
In the following essay I will try to compare two highly developed economies, Japan and The United Kingdom. I will emphasize the success of their economies and how human capital, advancing technology (innovation), and FDI have contributed to their current success or failure. I will briefly discuss the contemporary history of each country, thoroughly cover their current conditions, and end with expectations for their future.
Introduction: Comparison of Japan and the United Kingdom
The U.K. and Japan seem natural subjects for comparison. British and Japanese observers alike have long been fascinated by the many parallels (and the even more numerous divergences) in the histories of these two island nations. Particularly interesting about these two was the "economic role reversal” which occurred between Japan and Britain over the course of the twentieth century. In 1900, the United Kingdom was the world's dominant colonial, financial and naval power, as well as a center of industrial production and technological innovation. Japan was a mere up-start, a precocious and aspiring, but still unthreatening, economic competitor in East Asia. The beginning of the twentieth century, and more accurately the 1950s, saw Japan and Great Britain’s economic “role” reverse. Although Britain has enjoyed healthy growth rates and rising standards of living over the past 100 years, it has been progressively eclipsed by Japan as an economic superpower and an international model. Indeed, Britain's accomplishments have paled in comparison to Japan's meteoric rise: while Japan has emerged as the outstanding economic "success story" of the twentieth century, Great Britain's relatively modest performance has been both discouraging and confounding.
Brief Contemporary History:
Japan led a ruthless assault in the Pacific for fifteen years. This small island was able to spread imperialism and terror to neighboring countries through means of force and brutality. Japan even attempted to combat and overcome European and Western countries such as Russia and the United States. Even with an extreme militaristic government, Japan was unable to achieve the glory it was promised and hoped for. The Pacific War analyzes Japan’s part in the war and what the country could have done to prevent such a tragedy.
In the early 1800’s, Japan had blocked off all trade from other countries. Foreign whaling ships could not even reload or repair their ships in Japan territory. This offended many other countries. In 1852, Matthew Perry was sent to Japan to negotiate open trade. Japan felt threatened by the United States, and gave in to their demands. Japan was frightened by their stipulations, and immediately began to reform. They developed a new education system that was similar to America and Europe’s. They also developed a Western style judiciary system.
In 1900 Britain was in many respects the world’s leading nation, enjoying a large share of world trade, a dominant position in the international money market, and possessing a far flung empire supported by the world’s most powerful navy. Japan was a complete contrast, sharing with Britain only the fact that it too was a nation of islands lying off the shore of a major continent. Until the 1860s it had possessed a social and economic structure more akin to that of feudal, rather than twentieth century, Europe. By the 1990s, the positions were almost reversed. This paper sets out to examine the contrasting democratic political systems of the two nations and to explore the social and democratic consequences of the changes that have occurred.
Within a short period of time, Japan had caught up with many Western technologies; having established universities, founded telegraph and railroad lines, as well as a national postal system being created. Shipping and textile industries were a huge success an exports rose.
...feat of Japan in World War 2). With the changes of the nature of power, Japan by balancing out aggressive economic policies and a quiet military buildup, was able to build herself up to become a prominent player in the international sphere today. In closing, while Japan’s policies today in general have been skewered towards the arguments of the ‘Gentleman’, increasingly Japan has considered more realist concerns of security in the escalation of tensions of the East Asian geopolitical sphere. Chomin’s Discourse has nonetheless served as a prophetic blueprint for more than a century of Japan policy-making.
Seeking an ally to counter the emergent threat, Britain formally concluded the Anglo-Japanese Alliance in 1902. Its attitude to regard Japan as a supporter to match opposing power in Europe continued until the First World War. In contrast, sudden Britain’s alliance with Japan “without any consultant with Australia” gave the sense of being betrayed and hurt its pride, because Australia thought they had had special relation with Britain tied by
economy is one of the major things that determines the power and the strength of a country.
63). This not only increased the Japanese people’s nationalism but also their imperialistic journey because of the samurai having military leadership roles; this stressed the importance of their loyalty to society. British roles that already existed in Japan had affected their education— “For a long time, Japanese naval cadets had been sent to Great Britain for training. British experts and officers had worked in Japan in advisory and instructing roles, and most of the Japanese fleet had as built in British yards” in which Japan resulted with multiple strategies for way (Roberts, p. 62 and 212). Another thriving element was Japan’s environment; it provided support through trading with other countries by being a “…semi-developed, diversifying society, with a money economy, large commercial cities and the beginnings of a quasi-capitalist structure in agriculture.” Therefore, they were able to compete and trade not only with Britain but with
So, if Japan does not “belong” to Asia, does it belong to some other amorphous collection of nations, namely Europe or the West? Certainly in the modern post-WWII era Japan has seen phenomenal economic growth, even to the point of threatening the US as the primary global economic power during the height of the “bubble economy.” Some credit this success to the changes implemented during the US occupation. Undoubtedly without US assistan...
...high power status, Japan had to have a self-reliant industrial common ground and be able to move all human and material resources (S,195). Through the Shogun Revolution of 1868, the abolition of Feudalism in 1871, the activation of the national army in 1873, and the assembly of parliament in 1889, the political system of Japan became westernized (Q,3). Local Labor and commercial assistance from the United States and Europe allowed Japan’s industry to bloom into a developed, modern, industrial nation (Q,3). As a consequence production surplus, and food shortage followed (Q,3). Because of how much it relied on aid of western powers, Japan’s strategic position became especially weak. In an attempt to break off slightly from the aid of the west Japanese leaders believed that it would be essential for Japan to expand beyond its borders to obtain necessary raw materials.
Japan has very significant characteristics in terms of their economic power either in the Asia- Pacific region or around the world. After World War II the Japanese economy was deeply affected by shortages, inflation, and currency devaluation means that Japanese economy was bankrupt position. Therefore, Japan passed under the control of US in the post- Second World War period. From this point, economic transformation or recovery or development has started in Japan with the impacts of US and Japanese governments. Besides this economic aid, US also guided Japan in democratization and demilitarization whereas Japanese government had direct role dealing with those developments different from what happened in Germany at that time. What it means that is Japanese government had played interventionist role into economy. On the other hand, one of the significant reasons of why US needed to help former enemy is the fact that after the WWII was the beginning of the Cold War and Russian presence was in the region. That’s why US made their contribution in order to revive Japan.
O'Bryan, Scott. 2009. Growth Idea : Purpose and Prosperity in Postwar Japan. University of Hawaii Press, 2009. eBook Collection (EBSCOhost), EBSCOhost (accessed December 4, 2011).
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
Throughout the chapter the text exerts more emphasis on the economical evaluation of a country's development rather than the alternative method. It begins to branch off quickly into the classification of countries deriving new topics all relating back to the economical approach. Beginning this discussion is the topic of underdevelopment.
Why Nations Fail takes an in depth look into why some countries flourish and become rich powerful nations while other countries are left in or reduced to poverty. Throughout this book review I will discuss major arguments and theories used by the authors and how they directly impact international development, keeping in mind that nations are only as strong as their political and economical systems.