|
|
|
|
Beginning with the Korean war, the Japanese economy rose with spectacular speed. Between 1950 and 1970 the real growth rate of Japan's economy (adjusted for inflation) averaged a breathtaking 10% a year, almost 3 times that of the U.S. In 1952 Japan produced only one-third as much as France or Britain, by the 1970's it already produced as much as France and Great Britain combined. In 1986 the average per capita income in Japan exceeded that in the U.S. for the first time.
Japan's emergence as an economic superpower was troublesome for many Americans and Europeans. They accused "Japan, Inc." of an unholy alliance between government and business. Industries and workers hurt by Japanese "unfair competition" called on their governments for aggressive countermeasures. The reasons for Japan's success include American aid, cheap labor, and freer international trade. Other factors include, Governmental concentration on economic development and Japanese businessmen replaced bombed-out factories with the latest technology.
In addition, Japanese history, culture, and national character also influenced Japanese economic development. Japan was political unified and culturally homogeneous. Japanese society puts the needs of the group ahead of the individual. Their was a National Consensus to build its economy and compete efficiently in world markets as well as improve its standard of living. ("Double your income" target for the 1960's was ultimately surpassed by 50%). Finally, society stressed co-operation and compromise.
Government and Big Business shared a leading role in economic growth. Government decides which industries were important then made loans and encouraged mergers to create powerful firms. The Antitrust policy was scrapped. (It had been based on the un-Japanese values of individualism and unrestrained competition). Big Business was valued and respected because it served the national goals and mirrored society. Workers were generally hired for life immediately after school. Employees were never fired and seldom laid off- in return they were loyal and obedient. In most cases business firms were big, well disciplined families. The workday began with the company song and social life revolved around the company. Wages were based on age (discrimination against women remained severe- wages and job security were strikingly inferior); unions were moderate and wage differences between workers and management were slight. Factories were quick to retrain workers- secure in the knowledge that they would not take new skills elsewhere.
These factors- not "unfair competition" were most important in accounting for Japanese economic success.
McKay, John et. al. A History of Western Society. Boston: Houghton, 1995. (pp. 1169-1170)
|
|
World War II resulted in an economic boom for Mexico. From 1940 to 1945, the national income almost tripled. The boom continued even after the war. Transportation systems, cheap power, and new factories helped transform the country and its capital. Mexico City took on the characteristics of a great metropolis, with tall buildings and streets jammed with traffic.While industrial progress continued, land reform slowed. The government was committed to building an industrial economy. To speed this process, the government encouraged foreign companies' to invest in Mexico. United States companies responded enthusiastically. From 1946 to 1958 the production of goods in Mexico doubled. In 1958 Adolfo Lopez Mateos was elected president of Mexico. He promised to return to the revolutionary goals of the past and proceeded to do just that. During his six-year tenure, he distributed more land to peasants than had any previous president except Lazaro Cardenas. He nationalized the power industry, paying United States and Canadian owners for their loss. In addition, he built low-income housing, expanded health care, and increased government aid to education. By 1964 Mexico had become self-sufficient in the oil, iron, and steel industries. While industrialization continued, many felt that the gap between the rich and the poor was increasing. In 1968 student protests against the government turned violent, requiring police and soldiers to restore order. In one encounter, army troops opened fire on demonstrators. Two hundred people were killed, thousands were wounded, and about 20,000 were arrested. This action ended the student demonstrations but not the growing discontent.
In the 1970s discontent continued. Corruption in government and the PRI (Institutional Revolutionary Party), coupled with a declining economy, created hard times for many workers. The growing need for agricultural imports gave rise to an unfavorable balance of trade. Simply put, more money was being spent outside the country than was coming into the country. Further complications were created when government spending on social programs (health, education, and housing, for example) also continued. This spending compounded the economic problems as government borrowing increased the national debt. The discovery of huge oil reserves in 1978 raised the country's hopes. These discoveries placed proven oil and natural gas reserves at 37 billion barrels, almost triple the previous estimates. But in 1982 oil prices fell sharply as a result of the worldwide recession. As demand for oil decreased and prices dropped, Mexico's expected revenues also tumbled. Without the revenue, Mexico had trouble making the payments on its foreign debt, which had skyrocketed as the interest mounted up. Mexico was essentially bankrupt. The government severely cut back on spending and began selling off government businesses and properties. The government also ended price supports that had kept the prices of food and other basics low. Mexico's poor were again economically hard hit.
Paralleling the economic turmoil was the political crisis that erupted in 1994. The PRI presidential candidate was assassinated in March, and in September a high party official was murdered. The PRI won the 1994 presidential election by only a slight margin. The new leader, President Zedillo, set about reforming both political practices and the PRI. As a result opposition parties began to compete for power. In 1995 the PRI was again the dominant party, but in 1997 it was defeated. PRI candidates were unable to gain a majority in the Congress. For the first time in the party's history, the establishment of a multiparty system based on democratic principles seems a real possibility.
Lloyd, James H. (ed) Comparing Nations: Case Studies. Los Angeles: West Publishing, 1999. (pp. 62-63)
HISTORY-SOCIAL SCIENCE CONTENT STANDARDS
10.10 Students analyze instances of nation-building in the contemporary world in at least two of the following regions or countries: the Middle East, Africa, Mexico and other parts of Latin America, and China.
For additional information see the California Department of Education web site at: http://www.cde.ca.gov/be/st/ss/documents/histsocscistnd.pdf
ADDITIONAL RESOURCES CHECK THESE LINKS:
