International Economic History Since 1870 Essay

International Economic History Since 1870 - Essay Example The industrial and manufacturing base was strengthened with electrification and military expansion contributing towards strengthening the country’s economy through the development of a strong domestic base. The strength of Japan’s institutions played a significant role in the strength of its economy, so that even after the Second World War and subordination to the Supreme Commander of the Allied Powers, Japan was able to re-emerge as one of the strongest economies of the world (Allen 1981). Japan’s economy has demonstrated a remarkable rise as compared to other countries, and the period of significant economic growth has been marked by three spurts in growth in the 1910s, the 1930s and 1960s. There have been several reasons that have been proffered for the meteoric economic rise of Japan. Perhaps this can best be summed up in the words of one Japanese economist, â€Å"Japan is an example of a fantastically creative response to defeat†¦.[which] brought about †¦.a far greater scale of devastation in the economy of Japan, necessitating a fresh renovating start in almost every aspect.† (Tsuru, 1993, p 67) The long period of Tokugawa rule could be viewed as an isolationist state, or as some researchers have postulated a period of peace and stability that fostered initiatives by the State to improve economic conditions within the country (Ohkawa and Rosovsky, 1973). During the period of enforced isolation, the economy of Japan was inextricably linked with politics and the culture of the shogun and daimyo ensured that a strictly regulated internal system flourished within the country, which enabled sustained domestic growth. The role of the State in fostering economic growth has also been supported by Mosk(2001) and Minami (1994), who have highlighted the achievements of the Togukawa era , when there was a high level of urbanization