Japan's economy continued to expand rapidly from the mid-1950s through the 1960s, experiencing only two short recessions, in 1962 and 1965. The annual growth rate averaged close to 11% in real terms for the decade of the 1960s. This compared with 4.6% for the Federal Republic of Germany and 4.3% for the United States in the period from 1960 to 1972. And it was well above twice Japan's own average prewar growth rate of about 4% a year. “It is generally agreed that the rapid expansion of Japan's economy from the late 1950s through the 1960s was powered by the vigorous investment of private industry in new plant and equipment. The high level of saving of Japanese households provided banks and other financial institutions with ample funds for heavy investment in the private sector. The upsurge in capital spending was associated with the introduction of new technology, often under license from foreign companies. Investment for modernization made Japanese industries more competitive on the world market, created new products, and brought Japanese enterprises the benefits of mass production and improved productivity per worker” (Abe, 1995). Another factor behind Japan's economic growth during this period was the availability of an abundant labor force with a high level of education. Reasonably large numbers of young people entered the labor force every year, and there was also a heavy migration of agricultural workers to manufacturing and service jobs located mostly in the larger cities. As best exemplified in the 10-year Income-Doubling Plan announced in 1960, the Government's economic policies at the time aimed to encourage saving, stimulate investment, protect growth industries, and promote exports. Japan benefited from an expansionary world economic climate and the availability of an abundant supply of relatively cheap energy from abroad throughout this period. After a short recession in 1965, the Japanese economy enjoyed a long period of prosperity until around the summer of 1970, with the real growth rate during this period averaging close to 12%. The main factor behind this growth was rising capital investment, used for major outlays designed to bring about economies of scale, build additional facilities to increase export capacity, and acquire equipment needed to respond to changes in the economic and social environments, such as labor-saving tools and pollution-cutting devices. Increases in exports due to the stronger price competitiveness of Japanese products also supported the sustained rise in business activity.

ese General Wealth was 65 302 million Yen. However, the Japanese found a way to recover its economy within ten years, despite numerous problems. Overall, the Japanese economy was the highest growth rate in the world after World War II. With astounding facts like this, one should consider why and how the Japanese were able to recreate a booming and wealthy nation despite all of its adversities. There are 2 competing views which can explain the successful of Japanese capitalism: the first one is the influence of culture and the latter is a universalistic view which includes several factors such as industrialisation, economic and sociology. Japan's success is not just a case of good technique and technology in business, but a real recognition and development of the necessary human skills. In the shape and size of this essay (limited by 2500 words), I am going to discuss about the influence of culture on the development of Japanese capitalism and to what extent culture impinge upon this development.

Some topics in this essay:
North American, Bank Japan, Income-Doubling Plan, Today's Japanese, Republic Germany, War II, War Japanese, , Europe United, Pacific War, growth rate, japanese capitalism, senior management, village communities, abe 1995, western world, pacific war, world war, destroyed world war, war japanese, system japanese, share limited space, management system japanese,