[Group 11] Japan's overcoming severe pollution in the period of 1950s-1970s and experiences for V

Nevertheless this dramatically fast development came

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and caught up with developed Western countries. Nevertheless, this dramatically fast development came a high price, which was the worse off of the environment. We will pointed out Japan’s situation at that time, which at first, wowed every member in the group, since no one knew a now clean and developed country like Japan could once went through such dark days. The whole group dedicated time and effort to complete the task, however, mistakes are unevitable and any of your comment or suggestion would be indeed appreciated. 4
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III. THEORICAL BASIS Needless to say the importance of environment to humaity in particular and the Earth in general. Environment is the most common political issue to people and it is never a out dated topic. Studying about the relationship between the nature and the economy helps us take advantage of resources as well as building a substainable economy. In the model you can see that, there is a situation when people do not take into account the actual cost. Producers do not want to add the cost of the environment when they produce and the consumers do not know or care about this, too whent they purchase the prosuct. The soceity as a whole will bear this. However, before that, the price is too low, thus more are produced and worsen the situation. The solution to the problem is applying Coase Thoerem, however, this measure has certain disadvantages like the assignment, holdout, free rider and negotiating cost problems. Another method is imposing tax, subsidy, regulation, which we take example through Japan’s solutions in part 3. 5
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IV. JAPAN’S MIRACLE ECONOMIC GROWTH: 1950s-1960s Japan's economic ascension could be divided into three distinct periods. The first stage followed "priority production mechanism” of the 1950s which focused on increasing coal and steel output along with developed heavy industries such as shipbuilding and timber making. In the second stage in the 1960s and 70s Japan stressed on producing utility products and automobiles for exporting. The final stage was dedicated to knowledge-condensed products like computers and electronic equipments. The chart below shows the scale of economic booming in Japan, 20 years of miracle and unpreceeded growth. From 50s of 20 th century, Japan experienced an economic growth process with positively reinforcing development such as: demand expansion; production expansion; increases in income; consumption expansion; further income expansion; increases in savings - investment growth and an expansion of production capacity. 6
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This cycle repeated over and over again, this created a continuous growth period from the late 1950s to 1960s. From 1955 to 1972, the Japanese real GDP grew by an average rate of 9.3% annually. The cycle particularly benefited large enterprises in heavy industries such as metal, chemicals, energy and machinery. Resources in shortage were prioritized to be allocated to industries with a lower capital cost. In additions, although lower prices of capital goods was a result of the massive investment in machinery industries partly
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