America and the Japanese Miracle: The Cold War Context of Japan's Postwar Economic Revival, 1950-1960 (Luther Hartwell Hodges Series on Business, Society, and the State)

Drawing on a wealth of recently released American, British, and Japanese archival records, Forsberg demonstrates that American Cold War strategy and the U.S. commitment to liberal trade played a central role in promoting Japanese economic welfare and in forging the economic relationship between Japan and the United States. The price of economic opportunity and interdependence, however, was a strong undercurrent of mutual frustration, as patterns of conflict and compromise over trade, investment, and relations with China continued to characterize the postwar U.S.-Japanese relationship.

Forsberg's emphasis on the dynamic interaction of Cold War strategy, the business environment, and Japanese development challenges "revisionist" interpretations of Japan's success. In exploring the complex origins of the U.S.-led international economy that has outlasted the Cold War, Forsberg refutes the claim that the U.S. government sacrificed American commercial interests in favor of its military partnership with Japan.

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Excellent Treatment, 2007-05-24
There have been several prominent books and journal articles on Japan's postwar economic success (my personal favorite is The Misunderstood Miracle: Industrial Development and Political Change in Japan (Cornell Studies in Political Economy)). However, understanding the true nature of this flourishing is a somewhat different matter. While Friedman addresses the ECONOMIC aspects, Fosberg ably addresses the political and diplomatic aspects.

Prior to the War, Japan had been a major industrial power, and while a stupendous amount of plant and materiel had been physically destroyed by Allied bombing, it was clear that Japan possessed the trained personnel and deepened industrial institutions to recover. What was not clear, however, was if the US political establishment had the will or vision to help out.

Political establishments are heterogenous things, with complicated networks of competing and colluding interests; and while this is something so obvious it ought to be vapid, it's a point usually overlooked by ideologically zealous historians. For those interested in a serious, well-documented treatment of how the network of myriad US interests coalesced towards a strategy of helping Japan develop, and then integrate into the US economic sphere, this is a good beginning.

Students of economics will possibly be perturbed because Forsberg does not strictly adhere to neoliberal economic orthodoxy. This book tends towards neutrality on controversial issues in development economics, and rather, deals with what actors expected to happen as a result of the policies they pursued. So, for example, for much of the period covered the US Congress wavered between accommodating Japanese home markets protection (for the purpose of defeating Communism in the region) and demanding that the Japanese authorities open their market to US goods. An orthodox economist might object that protecting domestic markets was a stupid "payout" for either Japanese or US constituencies generally, but the point is that in 1950 very few political actors anywhere thought such things.

In general, the account tends to be fairly favorable to the US polity in terms of "generosity" (in this case, willingness to sacrifice short-term regional preferences for long-term success in the project of Japanese development), and emphasizes the success of Japanese industry interests in protecting specific markets. At the same time, the difficulty of getting the US polity to support Japanese economic recovery is not ignored. The terms of the bilateral agreements with Japan were sometimes one-sided, allowing the USA bases without commitments to actually defend Japan. Partly this was an ugly byproduct of the fact that Japan had become a US client by virtue of defeat in a war; but it also reflected internal divsions in the Japanese polity over the relationship with the USA.

In any respects, the book is an outstanding companion to the above-mentioned Friedman book on the economics of Japan's development. While Friedman emphasizes the overlooked entreprenuerial aspect, Forsberg explains the institutional and diplomatic aspect that actually prevailed. Readers of varing ideological or economic dogmas may draw their own conclusions based on what actually followed.


1 of 2 people found the following review helpful:

excellent source of information, 2000-06-12
in my world history class i was doing a project on the japanese economic miracle after world war ii. this was the main source of information i used. i thought that this book was full of information involving the japanese and their sturggle to gain economic success. this book also taught me a lot about how the americans felt about the japanese. although in war they were enemies, after the war, since the US occupied Japan, due to their help, the japanese were able to get the success they wanted. if you are working on a project or just want to know about the japanese economic miracle, then i strongly suggest this book.

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