In postwar economic development, Japan has chosen a different way to neoliberalism. The government did not “step back” from the market or rely on the action of the “invisible hand”; it played an...Show moreIn postwar economic development, Japan has chosen a different way to neoliberalism. The government did not “step back” from the market or rely on the action of the “invisible hand”; it played an important role itself in economic development. Under the guidance and intervention of the state, Japan became an economic miracle and the most successful industrialized economy in the world, then experienced a collapse followed by great stagnation. Simultaneously, while Japan used to have the role of driver and leader of the regional economy before the collapse, it lost its advantageous position when it became stuck in great stagnation. Japan’s economic status changed drastically accompanied with its changing economic power. For an economy like Japan that cooperated highly with the state, the capacity of the state would have a huge impact on the economy, on both economic power and economic status. Japan’s changing economic power and status in the region became a mirror to reflect the changing state capacity in Japan.Show less
