The Future of Japanese Economy Essay Example | Topics and Well Written Essays - 2250 words

The Future of Japanese Economy - Essay lessonof economic crisis like financial panic of 1927 and the oil color shock, include the invasion of Manchuria in 1931, the attack on Capitalism during 1930s, war with China from 1937 to 1941, Pacific war in 1946, the Dodge line of 1949, recession of 1965 argon the common examples of depression that Japan encountered other than World War II2. Though, very soon they recovered it with 10% average of economic growth in 1960s, 5% during 1970s and closer to 4% in 1980s, except later that, growth slowed down remarkably3. Strong working mentality, good government-industry relationship and implementation of advanced engineering were the most favorable reasons responsible for making Japan stand on to the platform of one of the largest scrimping in the world from post WWII till 80s. Resultant of overinvestment in late 80s and crisis in world oil supply brought a nonher challenge to their economy4. It became necessary for Japan to switch from mobili zed productionism to more substantial welfare economy. However, the wheel between successful drive of the export in late 80s and bang in economy after 80s hazed that requirement and mobilized economic system disappeared very soon5. After the fading away of stock inflation and kingdom prices, an excess of production capacity remained. This factor lowered the profitability of the production and on the other hand, corked loan weakened the financial activity. Governments effort in recovering that downfall was not up to that level and its clear from the statistics of economy for the duration of 2000-20016. Hence, it is inferred that Japan is in a responsibility of distorted industrial policy and in urgent need of a revolution. The main aim of this motif is to address the main obstacles that Japan is face up and then to state the possible solutions to overcome them.Japan is facing resistances now-a-days that it had never encountered before. Growth rate which used to be in two digit figure ripe after war, now expectation growth is below 1% which is too