Runaway inflation, shortages of raw materials and lack of capital blocked economic recovery. There was large difficulty for Japan to pay for import resulting in deficit, which situation did not stop until 1960s. From 1950s to 1970s, Japanese economy recovered very fast because of various policies devised by the government. Among those policies, there was a system of industrial policies established during that time, whose goal was to improve and promote the industrial development, shifting resources to specific industries to get international rival benefit for Japan. Japanese government adopt an “Income-Doubling Plan” which called for heavy investment in science and technology, tax breaks and loans to high-growth industries ; they also planned to promote exports through developing world-class industries for a place in international market and provide incentives for firms to export. Industries and firms strengthened the producing and exporting, which caused both economy recovery and environmental problem such as water pollution that furtherly caused social issues such as
Runaway inflation, shortages of raw materials and lack of capital blocked economic recovery. There was large difficulty for Japan to pay for import resulting in deficit, which situation did not stop until 1960s. From 1950s to 1970s, Japanese economy recovered very fast because of various policies devised by the government. Among those policies, there was a system of industrial policies established during that time, whose goal was to improve and promote the industrial development, shifting resources to specific industries to get international rival benefit for Japan. Japanese government adopt an “Income-Doubling Plan” which called for heavy investment in science and technology, tax breaks and loans to high-growth industries ; they also planned to promote exports through developing world-class industries for a place in international market and provide incentives for firms to export. Industries and firms strengthened the producing and exporting, which caused both economy recovery and environmental problem such as water pollution that furtherly caused social issues such as