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How Japan Became a SUPERPOWER? | World's Greatest Comeback | Dhruv Rathee

Dhruv Rathee · 4,404 words · 21 min read

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0:00Japan is considered one of the most developed countries in the world today.

0:03Its clean roads, bullet trains, technological advancements, robots, disciplines,

0:09are all of the level that everyone praises today.

0:13But can you imagine,

0:16just 80 years ago, in this very Japan, people were starving.

0:23And in the newspapers, government experts were teaching people

0:27how they could eat the wood and mouse as food.

0:31People were selling their clothes, watches and jewellery for food.

0:35In the Second World War, 66 big cities of Japan were burned to ashes.

0:4090 lakh people did not even have a home.

0:43After defeating Japan, America took over the entire country.

0:46And the situation was so bad that at that time,

0:49American General Douglas MacArthur announced to the world

0:53Japan had now become a fourth-rate nation.

0:58But then, only 23 years later, Japan became the third largest economy in the world.

1:04This journey from the ashes to the top economy of the world is considered the biggest comeback in modern history for any country.

1:13And it is called the Japanese miracle.

1:18Hello, to understand this, we will have to go back in time, to the year 1945.

1:23In the Second World War, Japan's 1 4th National Wealth was destroyed.

1:2965% of the houses in Tokyo were burnt to ashes.

1:3257% in Osaka.

1:3489% in Nagoya.

1:35This was the situation in all major cities.

1:38And then came the nuclear bombs.

1:45America dropped the first one on Hiroshima.

1:48And then on Nagasaki after 3 days.

1:50Only these two bombs caused more than 2 lakh people

1:54But the biggest disaster was Japan's economic destruction.

1:58Industrial production fell to only 20% at the peak of the Second World War.

2:03The government had only three days left of rice in Tokyo.

2:06And the finance minister himself said that about one crore people could die from hunger.

2:12The situation was that the government experts in the newspapers were teaching people how to eat rice, peanut shells and wood.

2:20to eat.

2:21For protein, silkworms, rats and snakes were being given advice.

2:26The whole country was alive on the black market, where rice was selling 30 times more expensive

2:30than the official price.

2:31It was called the bamboo shoot existence at that time, because just like the layers of

2:36bamboo fall one by one, people were selling their life layers one by one just to eat.

2:43All decisions were made by an American general, Douglas MacArthur, who was called the Japanese

2:48People called him Blue-Eyed Shogun.

2:52Emperor Hirohito, who was considered a god in Japan a few days ago,

2:57when he met MacArthur, he was so down that he was shaking his hands.

3:03This was the moment when the pride of this country was completely broken.

3:07The most shocking thing was that the cost of this occupation was also being paid by Japan.

3:12On one hand, people were starving and on the other hand,

3:15only 1 third of the country's budget was going to the American forces

3:20in the name of ending the war.

3:22America's plan was simple.

3:24To weaken Japan so much that it would never be in danger again.

3:28So in 1947, he introduced a new constitution on Japan.

3:33In Article 9, it was written that Japan would always

3:36abandon its right to fight

3:39and would never have any kind of army.

3:43But then came March 1947

3:45With the American Soviet Union

3:48They were entangled in a Cold War.

3:50They readied their armies to fight what would prove to be one of the most abstract conflicts in history.

3:56The Cold War.

3:57Look at the map once.

3:59Look at the location of Japan.

4:01On one side was the Soviet Union, which was already Communist.

4:04And on the other side was China, where the Communist army was winning.

4:08Now America was afraid that if Japan also became Communist, then the whole of Asia would be taken by them.

4:13America's top strategist, George Cannon, also published a report in 1948.

4:17that MacArthur's policies and the ruined economy

4:20made Japan vulnerable to communism from the inside.

4:24America could not take this risk.

4:27So it changed its policy overnight.

4:29On 9th October 1948,

4:31President Harry Truman approved a document called NSC 13-2.

4:36It stated that America's primary objective in Japan

4:40would be its economic recovery.

4:42But the problem was that Japan's economy was on two sides.

4:46One was government subsidies and the other was American aid.

4:50Apart from this, there was another big problem,

4:52the cost, which had reached 195% in 1947.

4:57Can you imagine such inflation?

4:59So for this, in 1949, America brings a new policy called the Dodge Line.

5:04In this, all subsidies are stopped and government loans are also suspended.

5:09In April 1949, a single exchange rate of the currency was also fixed.

5:13$1 equals to 360 yen

5:16It was deliberately kept a little more

5:18so that Japanese exports would remain cheap in the world's markets

5:22And after a few years, it stopped being expensive

5:25But it also caused a loss

5:27Companies started to lay off

5:28Now people neither had a job nor money

5:31If there was no money, there was no demand

5:33And if there was no demand, there was no production

5:34The entire economy of Japan stopped

5:38And in the beginning of 1950, the Japanese economy stopped

5:42was heading towards depression.

5:44Japan needed demand from somewhere.

5:46And then, suddenly,

5:48this demand came.

5:50And the whole story changed.

5:55Where did this demand come from?

5:56Before you know this, you need to understand that

5:58fortune favors the brave.

6:00Japan's factories, its engineers, its workers,

6:03were ready before the time came.

6:05And if that day, luck would have been with another country

6:08instead of Japan,

6:09then we wouldn't have seen this result.

6:12And, this rule hasn't changed even today.

6:14We are also facing a similar situation,

6:17which is called AI Revolution.

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7:29Or you can scan this QR code.

7:32Now let's get back to our topic and understand on which occasion

7:36North Korea's army attacked South Korea on June 25, 1950 and the Korean War began.

7:43North Koreans launched a full-scale, well-prepared drive on the capital of the South, Seoul.

7:50America also joined the war in support of South Korea.

7:56We are united in detesting communist slavery.

7:59We know that the cost of freedom is high, but we are determined to preserve our freedom no matter what the cost.

8:05Now America needed trucks, uniforms, machine parts, weapons, and Japan was the closest country to Korea.

8:14At this point, America started buying war supplies from Japan on a large scale.

8:18From June 1950 to the end of 1953, about $2.3 billion was bought.

8:25This number was so large that from 1945 to 1951, Japan received more financial aid than America.

8:34And this money proved to be a lifeline for Japan.

8:38The Japanese economy was back on track.

8:41The production of factories began.

8:43Jobs came and people started getting money.

8:46In just two years, industrial production increased by 70%.

8:50And exports increased by more than 2.5 times.

8:52The stock market also calmed down by more than 80% by December 1951.

8:58The trucks that America bought for the war,

9:00revived the automobile industry of Japan.

9:03Toyota, which was about to close down and was taking out the workers from their jobs, was suddenly ordered by America to make more than 4,600 trucks.

9:13And the company was re-opened.

9:15The president of Toyota later said that he was feeling two things at the same time.

9:20Joy for his company and guilt that he was happy at the war of another country.

9:26And this was actually true for the whole country of Japan.

9:30Millions of people were dying in neighboring Korea

9:32And Japan's factories were making profits by making trucks and bombs for that war

9:38The governor of Bank of Japan called it Divine Aid

9:42And along with Prime Minister Yoshida Shigeru, many leaders also called it a gift of the Gods

9:48Gifts given to God

9:50The country whose economy was destroyed by a war, was revived by another war

9:56On 8th September 1951, Japan signed peace treaty with most of the countries that fought against it in World War II.

10:04Under which, in 1952, the American occupation of Japan was ended.

10:09Before the San Francisco Peace Conference comes Premier Shigeru Yoshida.

10:13Accepting the treaty terms, he pledges that Japan is a new nation dedicated to peace, democracy and freedom.

10:19At that time, India's Prime Minister Jawaharlal Nehru had opposed this treaty.

10:23He believed that this treaty would not fully restore Japan's sovereignty.

10:28The treaty was a guarantee that some islands of Japan would still be in the control of America,

10:33and some occupation forces could still live in Japan.

10:37Later in 1952, India signed a separate treaty with Japan.

10:42Now, the help of the Korean War and America did kickstart Japan's economy.

10:47But no government aid made Japan a superpower.

10:50It was made a superpower by the passion, hard work and stubbornness of the people there,

10:57who refused to bow down to the system and the circumstances.

11:01After the bomb dropped in Hiroshima, 15 out of 49 citizen schools in the city were completely destroyed.

11:07Only one out of 30 middle schools was left and seven colleges were destroyed.

11:12But even then, the education of the children did not stop.

11:15in May 1946

11:17in a burning school field

11:19under the open sky

11:20the first class was set

11:22next month another

11:24In the burnt down building of the former school, three teachers started teaching 37 children.

11:29There was no bench, no blackboard, no books.

11:32A defeated country was sitting in a ruins and teaching its children from a new start.

11:38The same inspirational story is of the villages.

11:40Before the war, about 70% of Japan's farmers would not own their land, but someone else's.

11:46And 50-70% of the crops were given to the landlord.

11:50In 1946, the Land Reform Law was introduced.

11:52The law stipulated that the government would buy land from the landlord,

11:56and sell it to the farmers who worked hard on it.

11:59But can you guess who implemented it?

12:02The farmers themselves.

12:03More than 11,000 village land commissions were formed in the country.

12:07The farmers of the villages themselves would select them.

12:09And these committees decided which land belonged to whom.

12:13This encouraged the farmers.

12:15The country's Finance Minister had predicted the death of 1 crore people,

12:20by 1950, the food shortage had ended.

12:24The changing symbol of Japan's place in the Far East.

12:27Once it was a symbol of destruction,

12:29today, we look upon it with hope,

12:31as a symbol of stability.

12:33And the same stubbornness was seen in the automobile industry,

12:37which is still known as Japan.

12:39After many years of the Second World War,

12:42Japan's car production was stopped.

12:44In 1950, America produced 66 lakh passenger cars.

12:48Whereas in Japan, only 1,600 cars were produced.

12:52In the 1950s, most people in Japan believed that the country didn't need its own automobile industry.

12:58The government said that Japanese car companies couldn't compete with foreign companies.

13:03But some people refused to believe it.

13:06One of them was Toyota's founder, Kichiro Toyoda.

13:11In the 1940s, when there were restrictions on making cars in Japan,

13:15at that time, Kichiro Toyoda said that

13:18factory on the road, will keep moving forward until it falls.

13:23And will make products that will not be inferior to anyone.

13:27In 1957, Toyota sent its two best cars, Crown and Crown Deluxe, as an experiment to America.

13:34But when these cars were tested on the highways of America at high speed,

13:38the engine started making strange noises, vibrations occurred and parts broke down.

13:43The quality control was so bad that in June 1958, 30 Crown cars were sent to America without headlights.

13:49Toyota's official history itself believes that the performance of the initial cars was not worth selling in America.

13:55In America, Toyota's cars were seen as a joke, they were laughed at.

14:00But Toyota also learned from this defeat.

14:03A new production system was started and today it sells the most cars in the world.

14:13smaller numbers of parts to be used when it needed them, allowing the company to operate

14:16on a tighter budget.

14:17By the way, the story of this company is so interesting that a separate video can be made

14:22on it, that what laws the company implemented within itself that made it possible.

14:28But there is another similar story of Masuru Ibuka.

14:31Masuru Ibuka started in 1945 in a burnt building of a department store in Tokyo, from a radio

14:36repair shop.

14:37Later in 1946, along with Navy Lieutenant Akio Morita, he started a new company with a capital of only 1.9 lakh yen.

14:47His first product was an electric rice cooker, which was so bad that Ibuka named it as failed prototype number one.

14:55Let's call this failed prototype number one.

14:58And then in 1952, they went to America and found out that the Western Electric Company

15:04was selling its new invention, the transistor's production rights.

15:12Transistor is a small electronic component made of silicon

15:18which boosts electrical signals to increase their power

15:22Nowadays, it is used in every device from phones to laptops

15:26Ibuka was a small company, they didn't have that much money

15:30The Japanese government had already refused to help them

15:34The government had said that this would be foolish

15:36that advanced technology like a transistor

15:39is not the same as a small factory bus.

15:42But still, somehow,

15:43Ibuka succeeded in getting the rights to make transistors.

15:46And for the first time, Ibuka made a radio out of this transistor.

15:50In September 1955,

15:52their company launched Japan's first transistor radio,

15:55TR-55.

15:57And after 2 years,

15:58the world's smallest transistor radio,

16:01TR-63, came.

16:03This radio could fit in the pocket of a shirt.

16:06That's why it was also called pocketable radio.

16:08You won't believe it, this radio hit America so hard that to meet the Christmas demand, the company had to book charter planes.

16:16And at the same time, a watch company in America offered them an order of one lakh radios.

16:20But on the condition that the brand name of the radio would be on it.

16:23Because no one knew about this company.

16:25It was a huge offer for a small company.

16:28But Akio Morita rejected this offer.

16:31, can you guess which company this was?

16:36This was Sony.

16:39The same Sony that is one of the world's largest electronics companies.

16:43Now, a question will come to your mind.

16:45Whether it is Toyota or Sony,

16:47these are the examples of individual companies.

16:49The owners of these companies must have done something that made them successful.

16:53What is their connection with the story of Japan?

16:56, the connection is that this story is not only of these two companies.

17:00This is the story of the entire Japan at that time,

17:03which refused to accept defeat.

17:06Toyota and Sony are just two examples, there are no shortcomings in many such examples.

17:11Honda's founder Soichiro Honda, a son of a iron man and a mechanic himself,

17:16who started a garage in a wooden hut in 1946.

17:22In fact, the government wanted to limit car manufacturing to only a few big companies.

17:26But Soichiro Honda refused to follow the government's instructions.

17:31Now, it is not that the Japanese government did not want to help these people.

17:34The problem was that in the 1950s, Japan had very little foreign exchange, i.e. dollars.

17:40So the government only gave dollars to some selected industries and companies to import goods.

17:46But as Japanese companies progressed, they also brought in foreign exchange with them and the shortage of dollars began to increase.

17:53Apart from this, there was a high growth rate and jobs were created.

17:57The situation was that by the mid-1950s, Japan's economy had exceeded the level of the Second World War.

18:04But at this point, Japan's infrastructure was still insufficient.

18:09And Japan could not grow much further without fixing it.

18:13And at this time, the man who was the most important person in the growth story of Japan entered the picture.

18:20A man who made economic growth the national consensus of the country.

18:26He was Japan's Prime Minister, Ikeda Hayato.

18:30He came up with an income doubling plan in December 1960.

18:34The target of this plan was to double Japan's income in the next 10 years.

18:39And to do this, the most powerful infrastructure was given to increase it.

18:43Which Japan needed.

18:44The country was home to expressways, monorails, bullet trains and highways, and the public

18:52infrastructure was also strengthened.

18:54The most important step here was to focus on education and training.

19:00Increasing science and technology is the first condition for the development of any country.

19:06In the 1950s and 60s, Japan spent 21-22% of its total government spending on education alone.

19:14It was the most in America, Britain, the Soviet Union, and India at that time.

19:18And as time went by, this spending increased.

19:20In 1960, Japan spent 612 billion yen on education.

19:25Whereas in 1973, this amount had exceeded 5 trillion yen.

19:30In other words, in 13 years, their education budget increased by 8 times.

19:34This had a direct impact on the children there.

19:37In 1950, only 42.5% of the children in Japan could reach high school.

19:42In 1975, this amount reached 91.9%.

19:47And in education, their focus was mostly on science and technology.

19:51After World War II, it was decided that the government should focus on science and technology.

19:57That's why in 1951, the government introduced the Industrial Education Promotion Law.

20:02And in 1953, the Science Education Promotion Law.

20:06Both these laws aimed at teaching students skills that would be useful in the industry.

20:11And to promote science education.

20:13In schools, science was taught through practicals and experiments.

20:17the central government would take half the cost of these equipments.

20:21In 1957, Japan made 8,000 student plans.

20:25According to which, the 8,000 seats of science and technology

20:28were increased in the next 4 years.

20:30After that, in 1961, 20,000 student plans were brought.

20:34In which the seats of science and engineering were decided to be increased by more than 20,000.

20:38And here again, the target was of 4 years,

20:42but Japan completed it in 3 years.

20:44Compare it with your country,

20:46There are not enough seats in colleges, and government schools are closing down.

20:54In the last 12 years, the government schools have been decreasing in India.

20:59Meaning, we are doing the right thing in the wrong way.

21:02And the gas that was coming out of the gutter, we used the same gas to make tea.

21:07And what happened in Japan?

21:09In 1955, the number of students studying science and technology in Japan was 80,000.

21:14In 1975, it increased to 4 lakh.

21:17These graduates had such a high demand that in the 1960s, many years came when every graduate of engineering got a job in Japan.

21:26And the Japanese government did not leave any trace here.

21:29In addition, changes in trade policies also liberalized the entire economy, which helped the private industry.

21:35And while doing all this, Japan did not forget its poor people.

21:39Social security and social welfare were invested so that government help could be delivered to the needy.

21:46The Japanese government and people worked so hard that the income doubling plan that critics were calling fantasy,

21:52was achieved in just 6-7 years instead of 10.

21:57Imagine, on one side there are our politicians who show dreams of $5 trillion.

22:03They say that they will achieve it by 2022.

22:06In the next 5 years, we can become an economy of $5 trillion.

22:11We are not able to achieve it even after many years of delays.

22:14and there, the target set by Japan was completed in half the time.

22:18The target was of 7.8% growth,

22:20but Japan's economy increased by 10% every year.

22:24Only this one plan supercharged Japan's economy.

22:28That country where there were no jobs after the Second World War,

22:31and the income was very low.

22:32There were so many jobs that people became poor.

22:35There was a shortage of workers.

22:37Young people from the villages were filling up in special trains

22:39and coming to the factories of the cities,

22:42which were called golden eggs.

22:43But one question here is that all these factories, highways, and bullet trains were built by

22:48How did they get the money? Japan had neither oil nor colonies.

22:52The answer to this is the common people there.

22:56From 1947 to 1949, the Japanese family's budget was negative.

23:01People were not saving but were eating their savings.

23:05But what happened after that was shocking.

23:08From 1961 to 1986, for 25 years, every year a family was saving more than 15% of its income.

23:17And by the mid 1970s, this figure had reached 23%.

23:22Which means that an average family,

23:25was saving 23% of the money they were earning.

23:29This was the highest number in all the developed countries of OECD.

23:33And this savings did not live in the vault of the house.

23:35It went to the banks and post offices.

23:38And from there, it was loaned to the factories that were building Japan.

23:42And this saving was being taught to people since childhood.

23:46In the 1950s, more than 30,000 schools and 80 lakh children were taking part in children's banks.

23:52That is, Japanese Miracle was not funded by a foreign investor, but by the common people there with a domestic budget.

23:59This was a turning point in the Japanese story.

24:01This country was uprooted from the ashes of the Second World War.

24:04And it announced it in front of the world in 1964.

24:09On 1st October 1964, a train leaves Tokyo's railway station.

24:17Tokaido Shinkansen.

24:20It was the world's first bullet train, running at a speed of 210 kmph.

24:25The Japs call it the bullet.

24:27They're super express that thrusts aside all existing ideas of train speed.

24:30Europe's first high speed train, France's TGV, arrived after 17 years.

24:35After the Second World War, the country where homeless people were forced to live in train boxes,

24:42made one generation ahead of the technology.

24:45The effect of increasing science education was now clearly visible.

24:49And just nine days after the start of this train,

24:51on 10 October 1964, the Olympic Games began in Tokyo.

24:56The first Olympics in Asia.

24:58October 10, 1964.

25:00The first nation to ever hold Olympic competition.

25:03An interesting fact here is that the face of these Olympics

25:06was made by Yoshinori Sakai, 19 years old.

25:09which was born on 6th August 1945 in Hiroshima,

25:15the day the atomic bomb fell.

25:17The city of Hiroshima,

25:19which was said to have been a place where grass would not grow for 70 years,

25:24was again under attack by the bomb after 3 days.

25:29It took only 3 days for a dead city to start again.

25:35Hiroshima was reconstructed as a peace symbol.

25:39by 1958, the population of Hiroshima had reached its pre-war level.

25:44Hiroshima had returned to its former glory, like a phoenix.

25:53And this is the story of Japan.

25:55By 1968, after Japan, America and the Soviet Union,

25:59the world's third largest economy had been formed.

26:02Between 1946 and 1976,

26:05that is, within just 30 years,

26:07Japan's economy had increased by 55 times.

26:10How mind-blowing is this?

26:12You can guess from this,

26:14that Japan has only 0.3% of the world's land.

26:17And 3% of the population.

26:19But its share in the global economy was 10%.

26:23The Japan that was ridiculed for its cheap cars,

26:2622 years later, in 1980,

26:28the same Japan left America behind,

26:30and became the world's number one car producer.

26:336 years later, in 1986,

26:36left America behind in the modern industry like semiconductors.

26:39And became number one in the market share.

26:42In memory chips, Japan's share remained 80% for a long time.

26:45And it had become Japan's specialty.

26:48In 1955, the per capita annual income of the country increased from $217

26:53to $24,000 in 1988.

26:56It was perhaps the highest in the world at that time.

26:59The America that had once occupied Japan,

27:02started writing books about it.

27:04that he should learn from Japan.

27:07There is a saying in Japan,

27:08Nana korobi ya oki

27:10means, fall seven times,

27:12get up eight times.

27:14Japan didn't fall seven times,

27:15it fell more than that.

27:17But every time,

27:18it got up more than once.

27:20This was Hiroshima,

27:22immediately after the atomic bomb.

27:24People stir and strive for the normal living they once knew.

27:27There is hope in the air.

27:29Perhaps the path from defeat will lead to a better way of living

27:32than they have ever known before.

27:34If you want one lesson from this video, be stubborn like the Japanese people.

27:44Learn to fall and rise again and again.

27:46Invest in yourself.

27:47Educate yourself.

27:49And if you want to upskill yourself in the field of AI,

27:52don't forget to join the AI Masterclass.

27:54You can click here to join.

27:56Or you can find the link in the description below.

27:58And if you liked this video and want to watch more videos like this,

28:01then the story of Singapore is also very interesting.

28:04Singapore was once a very poor country.

28:07But its turnaround was as miraculous as Japan's.

28:11But there, more credit goes to a politician than the people.

28:16You can find out more about it by clicking here.

28:19Thank you very much.

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