Institutional Characteristics of Japanese Capitalism

nal characteristics of Japanese capitalism, it is worth going back to history and defining the main reasons for the development of the peculiarities of Japanese capitalism.However, Japan made a miraculous recovery. It left behind its empire and the military. It turned instead to democracy and to developing its business strength. The United States made loans to help Japan rebuild. The resource that Japan used was its most proven one – a united people willing to work and save for the good of Japan. (A.D.Chandler,1990)The savings of individual Japanese supplied money to Japanese banks. They worked in cooperation with the government to rebuild Japan’s damaged factories. They modeled their new industries after the best the world had and then improved them. They trained people to work in the industries.Using resources from overseas, factory workers processed them into well-made products. Their steel industry began to complete with the world leaders. Cameras, stereos, television sets, and calculators streamed off modern assembly lines. By the 1970s Japan was the world’s third-ranking industrial power. By the 1980s it’s automobile industry had become the largest in the world.Today the Japanese people have a prosperous economy. Their major cities of Yokohama, Osaka, and Nagoya each have populations of more than two million. Tokyo has more than 8 million people. Within its borders, Japan has more universities than all of Western Europe.Japan has not reached its level of success without problems. In such countries as the United States, people worry about Japanese competition. Many American business leaders have watched profits fall as shoppers buy Japanese goods. In some cases, American factories have closed, and workers have lost their jobs. The Japanese government has had to work hard to persuade other countries not to place trade restrictions on its goods. (Fruin, W. Mark,1992)Masahiko Aoki states that Japanese growth was not an application of American technology and the organization of production.