Underlying factors of the economic miracle of Japan after the Second World War

Japan has undergone four significant phases in the post-war period: reconstruction in the late 1940s of the war-induced economic downturns, stability period in the 1950s, fast growth in the 1960s and early 1970s, and ending fast growth triggered by the first oil crisis in 1973. The aim of this thesis is to determine the factors related to the evolution of Japan's economic development called as Japanese miracle after the Second World War and until the oil crisis of the 1970s.In the post-war era, following the occupation and influence of the United States along with the increased intervention of the Japanese government in the economy, enhancing its capacity to foster sustainable growth through exports and investment, Japan experienced an economic miracle and became one of the most flourishing industrial economies in the world. A series of reform policies have been set out by the U.S. occupation of Japan aimed at rebuilding and restoring the ruined nation and ultimately creating an opportunity for Japan to become an industrial superpower. These reform policies have had a significant effect on the democratization and transformation of the nation which affected the capacity of the nation to evolve. Furthermore, Japan as a 'developmental state' set out policies aiming to achieve fast growth through promoting and protecting the key industries from foreign competition under the guidance and control of the state. In order to understand the Japanese economic miracle, the key concepts of political, social, and economic shifts accompanied by the impact of the state's capacity during the 20th century will be examined. Additionally, this thesis also seeks to contextualize the mechanism of Japanese growth under the state's intervention in a country of a different culture and that has been experiencing ongoing economic growth. Keywords: Japanese Government, Reforms, Economic Growth, Developmental State, Policies, State Capacity.