Japan, when looked at from the perspective of geography and location, is considered one of the worst places on Earth for human exploitation.
Half of its land is unsuitable for any use due to mountains and volcanoes, and most of its 6,852 islands have little to no natural resources except for some fish and pearls.
Earthquakes happen frequently, with the last major one in 2011 causing a nuclear disaster after a tsunami destroyed four nuclear reactors. In other words, Japan is a country entirely of natural challenges.
Yet today, Japan is the third-largest economy in the world, with a total national output of $4.843 trillion, surpassing most countries worldwide.
This raises the question: how did this nation succeed despite its harsh natural conditions?
The Story from the Beginning:
Around 400 years ago, Japan was under the rule of the "Edo period," a feudal era where the emperor, or the shogun acting as regent for the emperor, ruled the country with a class of warriors (samurai) and nobles and priests who benefited from the labor of the lower classes.
Japan was isolated entirely during this period and did not interact with the outside world, leading to widespread poverty and ongoing rebellions.
Then came the "Meiji period," where the emperor succeeded in overthrowing the feudal lords (shoguns) and established a new era based on military armament and colonial expansion.
With the spirit of the samurai, the Japanese built an army that defeated the Russian Empire and took control of Korea at the beginning of the 20th century.
Expansion and Colonization:
Over time, Japan expanded to large parts of Asia, but it faced a devastating end in World War II when the United States dropped two atomic bombs on it. After the war, Japan was occupied by the United States and managed by General Douglas MacArthur, who decided not to prosecute Emperor Hirohito to maintain stability.
Economic Transformation:
After the war, Prime Minister Hayato Ikeda led an economic transformation plan focused on supporting small businesses and encouraging easy-access loans, which helped build a strong economy.
The total quality management system became a standard for Japanese industries, and they focused on heavy industries and then technology.
Japan was able to buy technology contracts worth $17 billion from the U.S., one of the first being the transistor radio technology, which Sony developed into a global leader.
Crisis and Recovery:
In the 1980s, Japan began to suffer from high production costs due to the rising value of the yen, and challenges increased with the emergence of new competitors like China and the Asian Tigers.
Despite economic challenges, Japan resisted and maintained its position as a significant economic power, even overcoming several crises, such as the financial bubble in the 1980s.
Challenges and the Future:
Japan faced significant challenges, such as the Japanese mafia (yakuza) and losses by major companies, but despite all of this, it handled these challenges with wisdom and intelligence.
Japan has always found ways to avoid collapse and achieve sustainable growth.
Today, despite the challenges of economic stagnation and competition with other countries, Japan remains one of the largest economies in the world, thanks to its creativity and continuous development.
Conclusion:
Japan's economic experience is unique because it did not rely solely on natural resources but on willpower, strategic planning, and respect for work and education. Japan was able to turn challenges into opportunities, which is the most important lesson we can learn from.
If there is any doubt about the ability to apply Japan's experience elsewhere, it's enough to remember that Japan is constantly facing natural risks, yet it continues to invest in education, infrastructure, and innovation, making it one of the strongest economies in the world.