ABSTRACT
At the beginning of the 1990s, summary comparisons of Japanese and British economic statistics played up the sharp contrasts in the economic fortunes of the two countries since the 1950s. No matter how one looked at the growth of the Japanese economy-whether at the whole economy, the manufacturing sector, the share of manufactures in world trade, the size of banks, or the strength of the yen as an international currency-Japan had made remarkable progress since the 1950s. The figures could still stimulate the admiration of British observers. Despite the more bullish claims about the revival of the economy under the Thatcher governments, there was still a strong preoccupation with long-term economic decline in Britain. Comparisons with Japan over a hundred years of industrialisation provoked even sharper contrasts. So where did the British start to go wrong and where did the Japan start to get it right? It was understandable that questions about economic development were put in these terms, even if they are very contentious. The sense of gloom about Britain’s economic position was often overdrawn (Brown 1998:3). Moreover, the more recent headlines on Japan and protracted recession through much of the 1990s suggest that economic fortunes (or perceptions of them) can change quite quickly in fickle fashion. Yet, despite the many problems in selecting appropriate economic indicators, the crude question provides a convenient starting point for unravelling the picture over the course of the twentieth century.
