Understanding the Economic Miracles in Germany and Japan
What are the two arguments about the "economic miracles" in Germany and Japan?
The German and the Japanese economic history of the post-war years is considered to be an "economic miracle" for two main reasons:
- The two countries quickly recovered and began to grow economically at a spectacular pace.
- Some cities had to be reconstructed almost from scratch, and this made it harder to prosper economically.
Understanding the Economic Miracles
Define Economic Miracle: The term "economic miracle" is used to describe a period of rapid economic growth and development that exceeds expectations, especially after a significant crisis or disaster.
The German and Japanese post-war economic recoveries are often referred to as "economic miracles" due to the astounding pace at which they rebuilt their economies after the devastation of World War II.
Background: Both Germany and Japan were considered losing countries after World War II. They had to surrender unconditionally to the allies and were left with cities, countryside, and infrastructure that were bombed and destroyed. The need to rebuild almost from scratch posed significant challenges to their economic prosperity.
Rapid Recovery: Despite the challenges they faced, both countries quickly recovered and began to grow economically at an impressive pace. By the 1960s, just 15 years after the end of the war, Japan was experiencing annual growth rates of over 10%, while Germany was not far behind. This rapid economic growth, achieved in a relatively short timeframe after the devastation of war, played a crucial role in transforming Germany and Japan into developed nations within two decades.