What happened
From the mid-1950s to 1973 (c. 1955–1973), Japan’s economy grew at roughly 10% a year on average, rebuilding from wartime ruin into the world’s second-largest capitalist economy by GNP in 1968. Symbols of the era included the “three sacred treasures” of home appliances, the Tokaido Shinkansen and the Tokyo Olympics (both 1964), and Expo ‘70 in Osaka.
Background
The Korean War procurement boom (1950–53) provided the initial spark. Growth was driven by postwar reforms, technology imports, extraordinary rates of saving and investment, an able workforce, industrial policy under MITI, and cheap oil.
Consequences
Growth came at the cost of severe industrial pollution — the Minamata disease cases among them — forcing environmental legislation and a new Environment Agency in 1971. The 1973 oil shock closed the high-growth era, and stable growth followed; the period built the prosperous consumer society and infrastructure of modern Japan.