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

The Future of Japanese Economy - Essay Example of economic crisis like financial panic of 1927 and the oil 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 are 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, but after that, growth slowed down remarkably3. Strong working mentality, good government-industry relationship and implementation of advanced technology were the most favorable reasons responsible for making Japan stand on to the platform of one of the largest economy in the world from post WWII till 80s. Resultant of overinvestment in late 80s and crisis in world oil supply brought another challenge to their economy4. It became necessary for Japan to switch from mobilized productionism to more substantial welfare economy. However, t he oscillation 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 land prices, an excess of production capacity remained. This factor lowered the profitability of the production and on the other hand, bad loan weakened the financial activity. Government’s effort in recovering that downfall was not up to that level and it’s clear from the statistics of economy for the duration of 2000-20016. Hence, it is inferred that Japan is in a state of distorted industrial policy and in urgent need of a revolution. The main aim of this paper is to address the main obstacles that Japan is facing 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 just after war, now expectation growth is below 1% which is too