How did Japan succeed in developing their economy after World War 2?
The Japanese people set about rebuilding their country and by the middle of the 1950s Japan was getting back on track! Japan had to rebuild itself from scratch and so all of its new factories were made using the latest technology. They were very modern and this made them very competitive in the world markets. Japan also began to mass produce things, getting twice as much work done as any other country in the world with half as many workers.
Like other countries, Japan benefitted from the long postwar boom. Without wishing to detract from the achievements of the Japanese I think it's worth pointing out that since 1945 the country's miliary expenditure has been extremely low, which has been a big bonus for the economy.
The Japanese benefitted from General McAuther's forming of trade with America. He suggested that lower export taxes and even subsidized trade with the U.S. would help Japan compete and even thrive. Japan gave Japanese corporations as much as 30 percent of the selling price back to the companies,gauranteeing them a profit as long as they were selling the product in the U.S.A.