Does the Japanese state deserve most of the credit for Japan's Essay

Does the Japanese state deserve most of the credit for Japan's development - Essay Example During Japan's postwar economic miracle, it was the Japanese state that deserves most of the credit for successful industrial development. The state's use of industrial policy was the single most important cause of the transformation and growth of the economy. All factors, including external environment, political leadership, and the role played by the private sector, are insignificant when compared to industrial policy. Without the industry-specific interventionist policies followed by the MITI, the economy would not have developed at the pace or in the direction it ultimately did. At the outset, those who answered the question affirmatively can point out that the roots of Japan's successful post-war industrialization and economic development can be traced to efforts of the Japanese state as early as the period of the restoration of imperial rule in Japan. Prior to the restoration of Japanese imperial rule, the Tokugawa Shogunate after its experience with Commodore Matthew Perry's gunboat diplomacy in 1853 had accepted many unequal treaties leading to dissatisfaction among the country's samurais and feudal clans. For example, Japanese tariff rates were kept low and a system of extraterritoriality was established. Restoration of imperial rule through the installation of the political rule of Emperor Meiji became the rallying point of a significant portion of the country's ruling elite and leading warlords in expressing opposition to foreign encroachments. Japan is one of countries of Asia that started early in modernizing their banks. As early as 1872, Emperor Meiji established four national banks in Tokyo and other cities of Japan.