We then conclude that such an investment scenario does exist in Japan and give recommendations for the investment.
Japan was a much maligned nation during the World War II (WW2) and prior to that. It was only after the end of WW2 did Japan began to consolidate its economic progress more seriously. Although the bombing at Nagasaki and Hiroshima did bring the WW2 to an end, the economy of Japan was shaken to such an extent that it had to restart from scratch. From the formation of its constitution, in 1947,1 Japan it has made rapid strides in the field of science and technology. With the current scenario on globalization of economy and with many countries opening up, the world economy is poised for a rapid change.
Before we embark on the current scenario let us delve into Japan's past to see how Japan became a global power. It is widely assumed that the promulgation of Charter of Oath in 1868 2 provided the impetus for the growth of modern Japan. The then Meiji emperor emerged to be a major unifying factor promoting a series of radical reforms aimed at improving the conditions of Japan. 3 The Meiji rulers emphasized on improving the basic infrastructure of Japan and strengthened their foreign policies with the US and other European countries. These reforms laid the foundation for Japan to emerge a global power in subsequent years.
The emergence of WW1 saw Japan b...
4 The interim period between the two World Wars saw Japan go through a major political upheaval and the economy was in shambles. Nevertheless the Japanese export increased despite the Depression in the US. 5
The WW2 saw, once again the emergence of Japan was a major military power. The atomic bombings reduced Japan to shambles and the Japan surrendered to the mighty Allied Forces on 2nd September 1945 on board the U.S.S. Missouri in Tokyo Bay. 6 "Throughout the postwar period, Japan's economy continued to boom, with results far outstripping expectations. Japan rapidly caught up with the West in foreign trade, gross national product (GNP), and general quality of life. These achievements were underscored by the 1964 Tokyo Olympic Games and the Osaka International Exposition (Expo '70) world's fair in 1970." 7
Foreign policy of Japan
Major foreign policies were drafted in Japan as early as mid-nineteenth century until the Tokugawa seclusion 8 was breached by the US Navy in 1853-54. This prompted the Japanese to embark on a policy of rising on par with the Western economy. "Beginning with the Meiji Restoration of 1868, which ushered in a new, centralized regime, Japan set out to "gather wisdom from all over the world" and embarked on an ambitious program of military, social, political, and economic reforms that transformed it within a generation into a modern nation-state and major world power." 9 In 1952, Japan became a sovereign nation and wanted to pursue economic goals and establish itself as a peace loving nation within the world community. These were the initial foreign policy goals during the early 50's. Gradually, with the passing of the Cold War era, the Japanese concentrated on its economic goals rather than