The two countries defeated in World War II (1939-1945) rose again thanks to economic, political and even cultural factors. Contrary to what many people think, the German and Japanese economies were not completely devastated after the war. Most of the factories, for example, remained standing – and they were already modern and well-developed industries.
In addition to taking advantage of these facilities, the two countries also relied on great foreign aid to rebuild. “Japan and Germany received substantial aid from the victorious capitalist powers, concerned with preventing the advance of socialism across Europe and Asia”, says historian Anderson Batista de Melo, from the University of Brasília. Between 1949 and 1952, West Germany received nearly $30 billion from the United States in current values.
Much of that money was part of the Marshall Plan, a US-sponsored program to rehabilitate Europe’s economy after the war. Japan, on the other hand, received aid of 16 billion dollars. Another important point in the recovery is that the two countries already had excellent educational systems, capable of training qualified technicians and scientists to help nations rebuild after defeat.
different rhythms
Germany recovered faster but was overtaken by Japan
Evolution of GDP*
1946 – BRUTAL RECESSION
Defeat in World War II knocked out the German and Japanese economies: between 1943 and 1946, Japan’s GDP dropped by 48% and Germany’s by 65%. From the end of the 40s, the two begin to receive financial aid, mainly from the USA.
1950 – GERMAN STRIKE
The German economy grew by 85% between 1946 and 1950! Japan grows “only” 45%. It’s just that US financial support for Germans is almost twice as much. Blame it on the Cold War: West Germany is surrounded by socialist countries, rivals of the Americans
1970 – THE OVERCOMING
Between 1960 and 1970, German growth entered a rhythm of 5% a year, against the mind-boggling 17% a year of Japan. The export of innovative and cheap products led Japanese industry to conquer the world. With that, the Japanese GDP surpasses the German one
1960 – JAPAN ACCELERATES
The two nations continue to grow at a strong pace, but Japan accelerates more thanks to several economic reforms that modernize the economy. Between 1950 and 1960, Germany grew about 11% a year against 13% for Japan
* The GDP (Domestic Product) is the sum of all the wealth produced by the country. Data calculated at current dollar value. Source: Economist Intelligence Unit (EIU) research
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