'Japan's recovery after the Second World War was not without its associated problems.' How far do you agree with this view?

After the Second World War Japan was the fastest recovering nation. This would not have been possible without USA’s financial aid and opening their markets for import of Japanese goods. But the recovery was associated with some problems that are as follows:

  • Japanese felt inhibited due to interference in Japan. They felt that Japan was forced to join American camp by exaggerated fear of China.
  • There were strikes when Japan renewed the Defence Treaty with USA in 1960.
  • With industries expanding at a very high rate, the migration of workers to industrial areas increased such that only 20% of population was living in rural areas in 1970 as compared to 50% in 1945. Congestion and pollution increased and overcrowding led to more difficulties.
  • During 1970s, Japan suffered two recessions due to increase in oil prices.
  • With the increasing share of Japan’s exports in the world, other countries placed restriction on Japanese imports.

With all these problems Japan’s Gross National Product was one-tenth of the world’s output. It had trade surplus as consumption was less and production was more. Unemployment was low at less than 3 % and inflation was also below 3%. In 1990s, Japan started setting up factories in USA, Britain and western Europe.


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