Japan Economy, Industrialization and Growth after World War II

II. After the destruction of World War II, Japan's spectacular economic rise is often attributed to the development of a uniquely active Japanese corporate culture. However, there is little known fact that the seeds of the Japanese administration and the numerous variations of the 1950s have been planted by an American statistician. The most closely monitored Japanese companies in the automotive and electronics sectors, while maintaining the quality, increased productivity, making it possible for a generation of management schools and companies to be a source of inspiration outside Japan.

Japan has achieved a steady growth in per capita income between 1880-1970 through industrialization. It is not very unique to act in a revenue growth orbit through the expansion of manufacturing. Indeed, Western Europe, Canada, Australia and the United States have reached high-income per capita, moving from agricultural production to manufacturing and technologically advanced service sector activities.

The development of Japan through industrialization has four distinctive features;

Proto-industrial base
Japan's agricultural productivity was high enough to sustain craft (proto-industrial) production in both rural and urban areas of the country before industrialization.

Investment-oriented growth
Domestic investment in industry and infrastructure has been the driving force behind growth in Japanese production. The infrastructure, which coordinates intermediaries for the construction of infrastructure for both the private and public sectors, has invested in national and local governments.

The investment in production capacity is largely left to the private sector.
Increasing domestic savings made it possible to increase capital accumulation.
Japanese growth was not export oriented, but focused on investment.
The total factor efficiency increase was faster to achieve more output per unit input.
On the supply side, the increase in total factor productivity was extremely important. Economies of scale - reduction in unit costs due to increased production levels - contributed to the increase in total factor productivity. Economies of scale have existed due to geographical concentration, growth of national economy and growth of individual companies. In addition, it has reduced unit costs due to companies pulling down the ası learning curve ın, increasing their cumulative output and increasing product demand.
Social capacity has developed to import and adapt foreign technology and this has contributed to the growth of total factor productivity.

At the household level, investing in the education of children has developed social ability. At the firm level, he created socially-oriented labor, giving workers a strong incentive to flexibly adapt to new technology by creating internalized labor markets that connect companies to workers and workers. At the state level, industrial policy, which reduced the cost to private firms to secure foreign firms, strengthened social capacity. Passing from low-yielding agriculture to high-efficiency manufacturing, mining and construction areas contributed to overall factor productivity growth.

After 1910s, sharp segmented labor and capital markets emerged in Japan. The capital-intensive sector with high capital labor paid relatively high wages and labor-intensive sector wages received relatively low wages.

The duality led to income inequality and thus to social unrest. After 1945, a number of publics addressed the inequality of policy reform and Japan II. He wiped out the social suffering of the demolishing dichotomy before World War II.

The victory of Japanese companies lay in the development of a detailed and practical management philosophy. The move was launched by W. Edwards Deming, who worked on the 1949 US census and then on the 1951 Japan census. During the war, he accepted an application called Statistical Process Control (SPC) and a series of conferences were held for the best Japanese executives in statistical quality control (SQC). Deming convinced the Japanese executives that the most lucrative way to reduce production costs is to protect quality, while earning gains in the market. Under his influence, a significant number of senior executives and business owners in Japan considered the production lines and management teams as a bunch of separate events rather than systems.

Statistical Quality Control
The basic application of the SQC is to test the product samples randomly to ensure compliance with a narrower range of optimum values, not the limitation of consumer tolerance. The smallest change in product, or addition, is the most inevitable in terms of small wear to the machines engaged in the production of variables as size or ratio. These changes accumulate over time, and eventually the device does not enter the consumer tolerance parameters. SQC standards define a much smaller optimal range of widget values. Testing hard random product samples beyond that also detects the widget variation patterns and allows the production process to be adjusted, so that the limits of consumer tolerance are never attained. This means the long-term savings due to continuous awakening, efficient production, and consistent quality awards ensure long-term loyal customers. Changes in statistical quality control are the basis for certain applications associated with Japanese companies such as Toyota's Kanban or Just-In-Time. Excellence is seen as a goal where companies and practices are always developed.

W. Edwards Deming
Deming's contribution to Japan's economic miracle was noticeably noticeable until the 1980 NBC for the Japan Nuclear Weapon Force. Why can't we? After a long time, Deming returned to the US and started working as a consultant in one of the first American companies in 1960. In his interviews, he praised him and the Japanese nation at great length to revive the Japanese industry. After the documentary was published, Deming was in great demand, and after his death in 1993, he was awarded both the Japanese Association of Science and Engineers and the Total Quality Management award he was awarded and a think tank called his country. Washington DC. a few companies in the Japanese economy model have tried and successful.

Trade is moderately important for the Japanese economy; The value of exports and imports is equal to 37 percent of GDP. The average tariff rate applied is 1.2 percent. Many agricultural imports have been restricted and foreign investments made to some sectors of the economy are screened by the government. The financial sector is competitive, but state participation continues. Banks are well-capitalized and the share of unsuccessful loans is low.

After the early 1970s, Japan continued to cut its per capita income gap between itself and the US, while most scientists believe that major Japanese manufacturing enterprises entered international competition in the early 1970s. In this sense, it can be said that Japan completed its adaptation to international competition for nine years by industrialization until the beginning of the 1970s.

There is no doubt that social capacity has been greatly improved to import and adapt foreign technology after the Pacific War. Compulsory education to achieve social reconciliation with land reform and agricultural incentives.
One of the important issues examining Japan's post-1880 economic development is the abundance of quantitative data documenting the growth of Japan. The Japanese income and production, capital and labor, sector, capital and labor forecasts date back to the 1880s, when Japanese income per capita was low. As a result, it is possible to investigate the long-term growth of Japan from relative poverty to abundance statistically. And behind this success comes production and long-term investments.


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