<P> Though heavily destroyed by the nuclear bombardment in Hiroshima and Nagasaki, and other Allied air raids on Japan, Japan was able to recover from the trauma of WWII, and managed to become the second largest economic entity of the world (after the United States) by the 1960s (Soviet Union excluded). However, after three decades, Japan had experienced the so - called "recession in growth", as the United States had been imposing economic protection policy in oppressing Japanese production and forcing the appreciation of the Japanese yen . In preventing further oppression, Japan greatly improved its technological advances and raised the value of the yen, since to devalue, the yen would have brought further risk and a possible depressing effect on trade . The appreciation of the yen led to significant economic recession in the 1980s . To alleviate the influence of recession, Japan imposed a series of economical and financial policy to stimulate the domestic demand . Nevertheless, the bubble economy that took place in the late 1980s and early 1990s and the subsequent deflationary policy destroyed the Japanese economy . After the deflationary policy, the Japanese economy has been through a time of low increase period which has lasted until today . For more detailed information regarding this period, see Economic history of Japan and Lost Decade (Japan). </P> <P> Japan was seriously harmed in WWII . For instance, during the wartime, "the Japanese cotton industry was brought to its knees by the end of the Second World War . Two - thirds of its prewar cotton spindles were scrapped by wartime administrators, and bombing and destruction of urban areas had caused a further loss of 20 percent of spinning and 14 percent of weaving capacity". Nonetheless, the ability of recovery astonished the world, earning the title of "Japanese Economic Miracle". By and large, every country has experienced some degree of industrial growth in the postwar period, those countries that achieved a heavy drop in industrial output due to war damage such as Japan, West Germany and Italy, have achieved a most rapid recovery . In the case of Japan, industrial production had fallen in 1946 to 27.6% of the pre-war level, but regained this pre-war level in 1951 and reached 350% in 1960 . </P> <P> The first reason for Japan to recover from war trauma swiftly was the successful economic reform by the government . The government body principally concerned with industrial policy in Japan is the Ministry of International Trade and Industry . One of the major economic reforms was to adopt the "Inclined Production Mode" (けい しゃ せいさん ほう しき). The "Inclined Production Mode" refers to the inclined production that primarily focus on the production of raw material including steel, coal and cotton . Textile production occupied more than 23.9% of the total industrial production . Moreover, to stimulate the production, Japanese government supported the new recruitment of labour, especially female labour . By enhancing the recruitment of female labour, Japan managed to recover from the destruction . The legislation on recruitment contains three components: the restriction placed on regional recruitment and relocation of workers, the banning of the direct recruitment of new school leavers, and the direct recruitment of non-school leavers under explicitly detailed regulations issued by the Ministry of Labor . </P> <P> The second reason that accounts for Japan's rapid recovery from WWII was the outbreak of Korean War, as Japan was favored by the Special Procurement . The Korean War was fought on the Korean Peninsula, and the United States eventually participated in the war, providing an opportunity for the Japanese economy . The Korean Peninsula is distant from US territory, so the logistics soon became a significant problem . As one of the major supporters of the United States in Asia, Japan stood out, providing ample support to logistical operations, and also benefitting from the production of firearms . The order of mass firearms and other material by the United States greatly stimulated the Japanese economy, enabling Japan to recover from the wartime destruction and providing Japan the basis for the upcoming high increasing stage . </P>

Following world war ii what factors led to japan's economic success