Felix Chan Professor Jari Eloranta History 1400-102 19 July, 2013 Japan/China Japan’s economic growth started in the Meiji Restoration in 1868. The Meiji Restoration is the rapid industrialisation of japan and after that the rise of service economy. China’s economic growth started after the reversal of Mao Zedong policies in 1978. This open the economy to the world and introduce market supporting institutions. The issues we will discuss in this paper about japan modern economic growth in the following: Gerschenkronian, the change in the international environments (in commodity and capital markets), the role of industrializing the country, and investment in infrastructure and human capital. Secondly, China modern economic growth is discussed …show more content…
They saw that in the west they are more advanced and industrialize then japan. One ambassador comment “‘It is since 1800 that Europe has attained its present wealth; and it is only in the last forty years that it has achieved the truly remarkable level of prosperity we now see”(Kume 57). The author knew that his country is in a primitive age but Kume thought that japan will catch up to them later. The Meiji leader saw that ‘iron and coal’ is the material that bring the West wealth. The Meiji enlightened leader Yukichi Fukuzawa implies that the lack of factory and its manufacture system was the cause japan to be in a primitive state. Western material culture are moveable and Japan took effort to industrialize the country with more factory and thus increase the growth of GDP and promoting the successful industrialized country.( Gerschenkron …show more content…
And before that China in the Ming Dynasty close itself off from the rest of the world. Thus abandon exploration which destroyed any chance of pre-modern growth in that time period. The only thing that China want in Europe before eighteenth century was silver for silk and tea. (Morrison) In 1949 China have a foundation to build a modern economy, but the foundation have been obscured by political turmoil. Communist won the war in China and unified all of China except for Hong Kong and Taiwan. The taxes increase by the new tax system and it is enforced. Communist took over of industry and commerce without much disruption. The Soviet teach Communist how to run the new Soviet command system. The recovery from the war destruction was quick and swift. In 1953 - 57 China was at its stable and even growth but that was short lived. In 1958 - 76 China was back where it have started because of the large political power of Mao Zedong. The problem with the modern economic growth is not the Soviet command system because the system in time will sustain high economic growth. The system was very successful in Soviet union and Eastern Europe. It is not that China did not have powerful leaders but the problem is Mao Zedong himself. The Revolutionary leaders often have poor management of modern economic growth. Mao skill to lead and/or inspire a revolution to fight for independance is different