Contemporary history of Japan and UK
Japan is the first Asian country to industrialise its economy and become on par with the advanced west. This is all down to a very strong and determined work ethic and their technological aptitude. They place very high emphasis on education and with a comparatively small defence allocation (1% GDP) they have one of the most technologically advanced economies in the world. Japan enjoyed real economic growth for three decades with a 10% average in the 1960s, 5% in the 1970s and 4% in the 1980s. However, growth slowed markedly in the 1990s to an average of 1.7% due largely to inefficient investment and an asset price bubble in the late 1980s. In March 2011, Japan was hit with their strongest-ever earthquake, and a subsequent tsunami, which caused major devastation, killing thousands and damaging several nuclear power plants. The catastrophe disrupted the country's economy and its energy infrastructure, and severely strained its capacity to deal with the humanitarian disaster (http://www.cia.gov/library/publications/the-world-factbook/geos/ja.html). The UK was the first nation to industrialise by the mid nineteenth century she was considered the most advanced economy in the world. The British industrial revolution was founded on the basis of the market or capitalist economy. Adam smith is the father of the capitalist economy, he identified some key features of this system in his book “The Wealth of Nations” 1776, the features were: private ownership of resources; the price mechanism allocating scarce resources; laissez faire; competition; profit motive; and consumer sovereignty the Prior to 1979 the British approach to macroeconomic policies was very Keynesian. Britain joined the European Rate Mechanism (ERM) of the European Monetary System (EMS) which meant that the British pound was tied to the EU exchange rate (Woodward, 2004). Britain’s financial policies were influenced by the collapse in oil prices during the early part...
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