This book is concerned with the development of iron and steel industry
in Japan after Second World War (WW2). This industry was a basic,
fundamental industry, which was the key ingredient of the
modernization of Japan. Understanding the Japanese development is
important for several reasons: First, Japan became leading nation in
production of iron and steel although it is a resource scared country.
Japan took leading position because of the technological advancement
in that industry, as well as due to the various government protectionist
interventions that provided the time for technological improvements.
Second, it is very important for the society to cope with the internal and
external environment and provide for the welfare of their people.
Japan’s economic development remains a model for many developing
countries proving that there is no meaningful and sustainable
industrialization and economic development without the development
of some basic industry. Therefore, it is extremely important to
understand how Japan achieved what it has been able to.
After WW2, Japanese government has played an important role in
nurturing, supporting and developing certain industries and creating the
industrial structure of the country. Government played the crucial role
in development of economic and technological infrastructure, in
providing exchanges of information between private agents, as well as
protecting certain industries from foreign competition and enabling
Japanese companies to acquire the time to learn and gain the
experience, adopt technologies and become competitive, not just at
domestic, but at the international market.
In the economic literature, there are a lot of arguments for and against
the government’s protection.
However, all economists agree that there is a need for the evaluation of
the protectionist measures. In that sense, this book will provide an
explanation for the protection in Japanese iron and steel industry, as
well as the evaluation of the protection.
Japanese economic development after WW2 has been, and still is, a
topic of major interests in the economic literature. Knowing what
happened in Japan gives the contribution to our understanding of the
economic growth, in modern era, as well. This book, therefore, can be
seen as a major contribution to the economic development theory.