Businessmen watch falling stock prices (Photo: Christopher Jue)

(Writer: Chris Gould)

The rigorous training systems which refused to promote managers unless they had gained several years’ experience in various sections of the company was also applauded, as were the Just in Time and Kanban manufacturing practices of Toyota. Americans, meanwhile, took particular issue with the effectiveness of motor car protectionism, and persistently urged Japan to further open up its internal markets.

Japan got rich very quickly, with annual GDP increasing 12-fold between 1965 and 1980, ultimately creating the second largest economy in the world. The 1980s and early 1990s were known as ‘the Bubble,’ when car, electronic and trading companies generated huge profits and poured ridiculous sums into ‘customer entertainment budgets.’

Those who remember this period firmly regard it as party time, with long and expensive nights out in Roppongi and Ginza frequently mentioned. Companies spent millions on artwork – simply because the money was available to do so.

But then tragedy struck. Firms and banks somehow believed that growth would continue forever, and that land prices would always rise 3% per annum. Questionable investments in the property market led firms to make huge losses and cause strife for the banks who supported them. The economic miracle was thus too spectacular, and left Japan ill-prepared to deal with what happened when things went wrong.