Section 4
Asia
The Rise of Pacific Rim Economies
Preview
• Main Idea / Reading Focus
• Postwar Japan
• The Pacific Rim
• The Asian Tigers
• Visual Study Guide / Quick Facts
• Video: The Impact of Vietnam’s Location
Section 4
Asia
The Rise of Pacific Rim Economies
Main Idea
The nations of the Asian Pacific Rim underwent remarkable
economic growth in the years after World War II, but significant
challenges remain.
Reading Focus
• How 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?
Section 4
Asia
Postwar Japan
Japan suffered terrible destruction during World War II. After the war,
the nation needed to rebuild its government and economy.
American Occupation
• American General Douglas
MacArthur controlled Allied
efforts to rebuild nation
• Rebuilding process had three
basic steps
– Demilitarizing Japan
– Building democratic
government
– Establishing economy to
support peaceful, democratic
Japan
Demilitarization
• MacArthur’s first job,
demilitarize Japan
• Removed all wartime political,
military, business leaders from
power
• Many tried as war criminals
• MacArthur also dismantled
armed forces, shut down
Japan’s military industries
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Next Steps
Building Democratic Government
• Second step began with new constitution for Japan, went into effect in 1947
• Gave more power to Japanese people, established parliamentary
democracy, gave all Japanese adults right to vote for Japan’s Diet
Human Rights
• Emperor no longer sacred being, simply symbol of the state
• Great emphasis placed on importance of human rights, greatly expanded
civil rights, including freedom of speech, assembly, religion
Political Parties
• New constitution forbade Japan from building military capable of attacking
other countries, guaranteed right to organize political parties
• Most important new party, Liberal Democratic Party (LDP), conservative
party with pro-U.S. foreign policy
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Final Step
Third step, rebuilding Japanese economy
• MacArthur made many economic changes
– Sought to break up large organizations known as zaibatsu that
had dominated Japanese industry
– Established land reform program to give farmland to farmers
who had previously rented land
Asia
Section 4
Economic Recovery
• U.S. economic aid flowed freely; biggest boost came with outbreak of
Korean War, 1950
• During conflict Japan served as key source of supplies for U.S., UN
forces fighting in nearby Korea
Foreign Trade, Consumer Goods
• After Korean War, Japan built economy around foreign trade,
production of consumer goods
• Constructed modern factories, quickly rebuilt heavy industry,
including steel, automobile manufacturing
Section 4
Asia
Rising Economy
Industrial Growth
Stunning Success
• Strong work ethic, good
relations between management,
labor contributed to industrial
growth
• Even compared to postwar
growth of most western
democracies, Japan’s success
stunning
• Exports rose quickly
• 1952, U.S. occupation ended
• 1970s, Japan began to focus on
electronics, computer
technology
• By 1968, Japan had world’s
second largest economy, is still
major economic power
Section 4
Asia
Social Changes
The postwar economic growth led to an improved standard of living
for Japanese workers and brought Japan many other social changes.
From Rural to Urban
• New urban industries attracted
workers from agriculture, small
business
• Population of cities grew
rapidly
• Late 1800s, only 15 percent of
Japanese lived in urban areas
• By 1970, more than 80 percent
urban population
Culture, Family Life
• Japanese culture, family life
changed as well
• Many young people adopted
American customs, music,
movies, food
• Gender roles changed—more
women attended high school,
college, won new freedoms
• Importance of extended family
began to decline
Section 4
Asia
Summarize
How did Japan change in the postwar
years?
Answer(s): standard of living improved; economy
grew; culture adopted some American elements;
gender roles changed
Section 4
Asia
The Pacific Rim
The 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
• The Philippines won
independence from
U.S. control in 1946
• Established
democratic
government, kept
close ties with U.S.
• By 1970s, President
Ferdinand Marcos
became dictator
Martial Law
Corazon Aquino
• Marcos imposed
martial law, arrested
opponents, stole
millions from nation
• Voters elected
Aquino’s widow,
Corazon Aquino as
new president
• Chief rival, Benigno
Aquino assassinated
• Philippines returned
to democracy
• Killing led to antigovernment riots
• 1990s, economy
began to improve
• Pressured, Marcos
allowed elections
• Many Filipinos still
live in poverty
Section 4
Asia
North Korea and South Korea
• Korea remained divided nation after end of Korean War in 1953
• North Korean dictator Kim II Sung formed Soviet model government;
state controls much of economy, spending on heavy industry, military
• North Korea made significant gains with Soviet, Chinese aid
• Poverty, food shortages spread across nation as foreign aid
decreased
Nuclear Nation
• 1994, Kim Jong II took power
• Under his rule, North Korean
economy has continued to
deteriorate; however North funded
expansion of military programs
• 2006, North Korea tested nuclear
weapon for first time
South on Different Path
• With U.S. aid, nation’s industries
built up, emphasizing foreign trade,
consumer goods
• Little freedom, political stability until
reform began late 1980s
• Nuclear testing has led to more
tension between North, South
Asia
Section 4
Taiwan
• 1949, Guomindang nationalists settled on Taiwan
• With U.S. economic, military aid, Taiwan built successful economy
based on international trade, consumer goods
• 1980s, ended martial law, allowed other political parties to form
Movement Toward Democracy Continues
• Movement toward democracy continued in later years
• Today, China views Taiwan as integral part of China
• Insists two areas eventually will be reunited
• Taiwan resists pressure from China
Section 4
Asia
Summarize
How did most of the Pacific Rim nations
move toward democracy?
Answer(s): with U.S. economic aid
Section 4
Asia
The Asian Tigers
While 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.
Spectacular Growth
Industrial Expansion
• Asian Rim entered 1960s as poor,
undeveloped region
• Countries followed pattern similar
to one used by postwar Japan
• Over next few decades, Asian Tiger
economies performed spectacularly
• Ample education, training for
citizens; skilled workforce
necessary for industrial expansion
• Growth higher than that of similar
economies in Latin America, Africa
• Also received U.S. economic aid
The nations further benefited from their access to the major shipping
routes of the Pacific Ocean.
Section 4
Asia
Manufacturing
As in Japan, Asian Tigers focused on growth
• Growth came through exports of consumer goods,
primarily to United States
• Low costs for labor, production, as well as loyal,
dedicated workforce allowed manufacture of low-cost
products that could sell in U.S.
Section 4
Asia
An Economic Crisis
Success Led to Failure
• 1997, economies of Japan, Asian Tigers suffered shock when severe
financial crisis hit region, partly due to region’s great success
• Superior performance led foreign companies to invest heavily in economies
Thailand’s Banks Failed
• Lack of government regulations allowed Asian Tiger banks to borrow more
than they needed
• Crisis began when banks began to fail in Thailand
Financial Panic
• Financial panic quickly spread through region; foreign investors sold holdings
• Stock, real estate prices collapsed, currencies lost value
• Region overwhelmed by debts it could not pay; collapse undid years of
progress
Section 4
Asia
An Asian Century
Economic Recovery
• Over the following decade,
region began to recover from
economic disaster
Asian Miracle
• Great success of many Asian
economies had many observers
celebrating so-called Asian
miracle
Economic Powers
• Nations like Indonesia,
Malaysia, Thailand, Philippines
began to emerge as economic
powers
An Asian Century
• Some predicted 2000s would
be “Asian Century”
• Asia to surpass Europe, North
America as dominant economic
region in world
Section 4
Asia
Find the Main Idea
How did the Asian Tigers follow Japan’s
model of economic growth?
Answer(s): provided education and training for
workers; focused on exports
Asia
Section 4
Section 4
Asia
Video
The Impact of Vietnam’s Location
Click above to play the video.