Presentation on theme: "The Rise of Pacific Rim Economies"— Presentation transcript:
1The Rise of Pacific Rim Economies PreviewMain Idea / Reading FocusPostwar JapanThe Pacific RimThe Asian TigersVisual Study Guide / Quick FactsVideo: The Impact of Vietnam’s Location
2The Rise of Pacific Rim Economies Main IdeaThe nations of the Asian Pacific Rim underwent remarkable economic growth in the years after World War II, but significant challenges remain.Reading FocusHow did Japan change during the postwar years?How did the nations of the Pacific Rim change after World War II?How did the Asian Tigers develop?
3Postwar Japan American Occupation Demilitarization Japan suffered terrible destruction during World War II. After the war, the nation needed to rebuild its government and economy.American General Douglas MacArthur controlled Allied efforts to rebuild nationRebuilding process had three basic stepsDemilitarizing JapanBuilding democratic governmentEstablishing economy to support peaceful, democratic JapanAmerican OccupationMacArthur’s first job, demilitarize JapanRemoved all wartime political, military, business leaders from powerMany tried as war criminalsMacArthur also dismantled armed forces, shut down Japan’s military industriesDemilitarization
4Next Steps Building Democratic Government Human Rights Second step began with new constitution for Japan, went into effect in 1947Gave more power to Japanese people, established parliamentary democracy, gave all Japanese adults right to vote for Japan’s DietHuman RightsEmperor no longer sacred being, simply symbol of the stateGreat emphasis placed on importance of human rights, greatly expanded civil rights, including freedom of speech, assembly, religionPolitical PartiesNew constitution forbade Japan from building military capable of attacking other countries, guaranteed right to organize political partiesMost important new party, Liberal Democratic Party (LDP), conservative party with pro-U.S. foreign policy
5Third step, rebuilding Japanese economy Final StepThird step, rebuilding Japanese economyMacArthur made many economic changesSought to break up large organizations known as zaibatsu that had dominated Japanese industryEstablished land reform program to give farmland to farmers who had previously rented land
6Foreign Trade, Consumer Goods Economic RecoveryU.S. economic aid flowed freely; biggest boost came with outbreak of Korean War, 1950During conflict Japan served as key source of supplies for U.S., UN forces fighting in nearby KoreaForeign Trade, Consumer GoodsAfter Korean War, Japan built economy around foreign trade, production of consumer goodsConstructed modern factories, quickly rebuilt heavy industry, including steel, automobile manufacturing
7Rising Economy Industrial Growth Stunning Success Strong work ethic, good relations between management, labor contributed to industrial growthExports rose quickly1970s, Japan began to focus on electronics, computer technologyIndustrial GrowthEven compared to postwar growth of most western democracies, Japan’s success stunning1952, U.S. occupation endedBy 1968, Japan had world’s second largest economy, is still major economic powerStunning Success
8Social Changes From Rural to Urban Culture, Family Life The postwar economic growth led to an improved standard of living for Japanese workers and brought Japan many other social changes.New urban industries attracted workers from agriculture, small businessPopulation of cities grew rapidlyLate 1800s, only 15 percent of Japanese lived in urban areasBy 1970, more than 80 percent urban populationFrom Rural to UrbanJapanese culture, family life changed as wellMany young people adopted American customs, music, movies, foodGender roles changed—more women attended high school, college, won new freedomsImportance of extended family began to declineCulture, Family Life
9How did Japan change in the postwar years? SummarizeHow did Japan change in the postwar years?Answer(s): standard of living improved; economy grew; culture adopted some American elements; gender roles changed
10The Pacific RimThe Pacific Rim refers to the countries bordering or located in the Pacific Ocean. Like Japan, other nations in the Asian Pacific Rim worked to rebuild economies and support democracy after the war.The Philippines won independence from U.S. control in 1946Established democratic government, kept close ties with U.S.By 1970s, President Ferdinand Marcos became dictatorThe PhilippinesMarcos imposed martial law, arrested opponents, stole millions from nationChief rival, Benigno Aquino assassinatedKilling led to anti-government riotsPressured, Marcos allowed electionsMartial LawVoters elected Aquino’s widow, Corazon Aquino as new presidentPhilippines returned to democracy1990s, economy began to improveMany Filipinos still live in povertyCorazon Aquino
11North Korea and South Korea Korea remained divided nation after end of Korean War in 1953North Korean dictator Kim II Sung formed Soviet model government; state controls much of economy, spending on heavy industry, militaryNorth Korea made significant gains with Soviet, Chinese aidPoverty, food shortages spread across nation as foreign aid decreased1994, Kim Jong II took powerUnder his rule, North Korean economy has continued to deteriorate; however North funded expansion of military programs2006, North Korea tested nuclear weapon for first timeNuclear NationWith U.S. aid, nation’s industries built up, emphasizing foreign trade, consumer goodsLittle freedom, political stability until reform began late 1980sNuclear testing has led to more tension between North, SouthSouth on Different Path
12Movement Toward Democracy Continues Taiwan1949, Guomindang nationalists settled on TaiwanWith U.S. economic, military aid, Taiwan built successful economy based on international trade, consumer goods1980s, ended martial law, allowed other political parties to formMovement Toward Democracy ContinuesMovement toward democracy continued in later yearsToday, China views Taiwan as integral part of ChinaInsists two areas eventually will be reunitedTaiwan resists pressure from China
13How did most of the Pacific Rim nations move toward democracy? SummarizeHow did most of the Pacific Rim nations move toward democracy?Answer(s): with U.S. economic aid
14The Asian TigersWhile Japan was building one of the world’s strongest economies in the years after World War II, other Asian nations were also making great economic gains. Because of economic successes, South Korea, Hong Kong, Taiwan and Singapore became known as the Asian Tigers.Asian Rim entered 1960s as poor, undeveloped regionOver next few decades, Asian Tiger economies performed spectacularlyGrowth higher than that of similar economies in Latin America, AfricaSpectacular GrowthCountries followed pattern similar to one used by postwar JapanAmple education, training for citizens; skilled workforce necessary for industrial expansionAlso received U.S. economic aidIndustrial ExpansionThe nations further benefited from their access to the major shipping routes of the Pacific Ocean.
15As in Japan, Asian Tigers focused on growth ManufacturingAs in Japan, Asian Tigers focused on growthGrowth came through exports of consumer goods, primarily to United StatesLow costs for labor, production, as well as loyal, dedicated workforce allowed manufacture of low-cost products that could sell in U.S.
16An Economic Crisis Success Led to Failure Thailand’s Banks Failed 1997, economies of Japan, Asian Tigers suffered shock when severe financial crisis hit region, partly due to region’s great successSuperior performance led foreign companies to invest heavily in economiesThailand’s Banks FailedLack of government regulations allowed Asian Tiger banks to borrow more than they neededCrisis began when banks began to fail in ThailandFinancial PanicFinancial panic quickly spread through region; foreign investors sold holdingsStock, real estate prices collapsed, currencies lost valueRegion overwhelmed by debts it could not pay; collapse undid years of progress
17An Asian Century Economic Recovery Economic Powers Asian Miracle Over the following decade, region began to recover from economic disasterEconomic PowersNations like Indonesia, Malaysia, Thailand, Philippines began to emerge as economic powersAsian MiracleGreat success of many Asian economies had many observers celebrating so-called Asian miracleAn Asian CenturySome predicted 2000s would be “Asian Century”Asia to surpass Europe, North America as dominant economic region in world
18How did the Asian Tigers follow Japan’s model of economic growth? Find the Main IdeaHow did the Asian Tigers follow Japan’s model of economic growth?Answer(s): provided education and training for workers; focused on exports