Japan is one of the world's leading powers, second only to the United States in terms of economic and technological advancement. It is also a fascinating country with a long history, rich culture and a keen sense of global citizenship. Japan is a country that has evolved from an agricultural, sub-standard industrial society to one of the world's most advance, industrial and technological countries in the world. It is also one of the closest allies and most important economic partners of the U.S. The scale of Japan's growth is easy to demonstrate but understanding the reason is much more difficult, especially when this country was completely destroyed after the Second World War. The end of the Pacific War in 1945, should have economically and psychologically spelled doom for Japan. "By the end of the Pacific War the volume of Japan's industrial production was less than thirty per cent of her output in 1936. Tokyo was literally three quarters flattened. The Japanese Navy was at the bottom of the sea and so was most of the merchant marine" (Yoshihara, 1939).The Japanese had no exports, no foreign trade, and inflation destroyed all of Japan's private savings. The total estimate of damage caused by the Pacific War to the Japanese 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.
