Readiness for Modern Economic Growth

Abstract

Why was Japan the first country outside the west to accomplish modern economic growth? To answer this is no simple matter, but an attempt to do so will we hope provide some lessons for present-day developing countries. Some economists assert that it was mainly because of traditional elements — the inheritance from pre-modern society — others emphasize the Meiji government’s policy of introducing modern elements from the west. In this chapter we discuss the contribution of these two elements to political and economic organization, human resources and social overhead capital in Section 2.1, and to agriculture, manufacturing industries and commerce in Section 2.2. Finally in Section 2.3 we attempt to evaluate the state of Japan’s readiness for modern economic growth.