<P> The early post-war years were devoted to rebuilding lost industrial capacity: major investments were made in electric power, coal, steel, and chemicals . By the mid-1950s, production matched prewar levels . Released from the demands of military - dominated government, the economy not only recovered its lost momentum but also surpassed the growth rates of earlier periods . Between 1953 and 1965, GDP expanded by more than 9% per year, manufacturing and mining by 13%, construction by 11%, and infrastructure by 12% . In 1965 these sectors employed more than 41% of the labor force, whereas only 26% remained in agriculture . </P> <P> Japan's highly acclaimed post-war education system contributed strongly to the modernizing process . The world's highest literacy rate and high education standards were major reasons for Japan's success in achieving a technologically advanced economy . Japanese schools also encouraged discipline, another benefit in forming an effective work force . </P> <P> The mid-1960s ushered in a new type of industrial development as the economy opened itself to international competition in some industries and developed heavy and chemical manufactures . Whereas textiles and light manufactures maintained their profitability internationally, other products, such as automobiles, electronics, ships, and machine tools assumed new importance . The value added to manufacturing and mining grew at the rate of 17% per year between 1965 and 1970 . Growth rates moderated to about 8% and evened out between the industrial and service sectors between 1970 and 1973, as retail trade, finance, real estate, information technology, and other service industries streamlined their operations . </P> <P> Japan faced a severe economic challenge in the mid-1970s . The 1973 oil crisis shocked an economy that had become dependent on imported petroleum . Japan experienced its first post-war decline in industrial production, together with severe price inflation . The recovery that followed the first oil crisis revived the optimism of most business leaders, but the maintenance of industrial growth in the face of high energy costs required shifts in the industrial structure . </P>

What two resources was japan after during their expansion