Japan’s postwar economy may be divided into four periods.  In the first, postwar economic reconstruction got under way, followed by the promotion of a self-sustaining economy under the Dodge Line policy of 1949, and Japan’s return to the international economy with the establishment of a fixed exchange rate of Y360 to the dollar.
 
The Dodge Line, named after Joseph Dodge, the economic adviser to the General Headquarters of the Allied Occupation Forces, was a set of drastic anti-inflation measures based on the belief that a prerequisite for economic independence was stability of currency values, which was necessary to obtain economic aid.  Under the plan, the government carried out such a strict policy of austerity that its budget for fiscal 1949 registered a surplus of revenues.
 
The second period from the latter half of the 1950’s to the first half of the 1960’s was marked by full-scale technological progress and rapid growth of the economy, a period which started with the Jinmu Boom of 1956, followed by a recession in 1958, then the Iwato Boom of 1959-1961, and an adjustment phase from 1962 to 1965.
 
The longest postwar period of prosperity was the third, which followed the recovery from a recession in 1965 and witnessed the clearing of the ceiling on the balance of payments that had until then been a major obstruction to economic expansion.
 
The fourth period began in 1970, after which the Japanese Economy underwent a major crisis amid the turbulent world economic situation and coped with a series of knotty problems, including the upward revaluation of the yen and worldwide spiraling prices for primary products, the petroleum in particular.
 
What factors enabled Japan to accomplish a rapid recovery?
 
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Network of East Asian Think-Tanks

The Network of East Asian Think-tanks

     
Officially recognized at the “10+3" summit meeting, Network of East Asian Think-tanks (NEAT) is a mechanism for research and academic exchange, and a platform for the second-track diplomacy in the regional cooperation among “10+3" countries in East Asia. It aims at integrating the research resources in East Asia, promoting the academic exchanges and providing intellectual support for East Asian cooperation. To be more specific, by establishing a network among East Asian think-tanks, governments and enterprises and promoting the interaction of these three circles, it intends to study the key issues related to East Asian cooperation, work out strategic ideas and concrete policy suggestions for the regional integration and submit research reports to the “10+3" summit meeting.
 
In 2002, East Asian Studies Group (EASG), the second-track in the mechanism of East Asian cooperation, suggested 17 short-term measures to be taken for closer cooperation among East Asian nations, among which was establishing “Network of East Asian Think-tanks" (NEAT) within the framework of “10+3" regional cooperation. The suggestion was adopted at the informal meeting of “10+3"leaders held in Phnom PenhCambodia in September 2002.
 
The activities of NEAT fall into the following categories: 1) Hold annual conferences of NEAT members to promote exchanges among East Asian think tanks and submit an annual work report to the informal meeting of “10+3" leaders on the basis of the research of the key issues in East Asian integration process; 2) Set up a website of NEAT, bridging the governments with the academic circles, promoting the academic exchanges among scholars about East Asia, and educating the masses in the region; 3) Hold irregular international seminars on East Asian cooperation so as to facilitate the theoretic research on the integration and community building of East Asia and help to shape the theoretic framework, strategies and specific policies conducive to the regional cooperation in East Asia. 4) Cooperate in the research of the key issues in regional cooperation and figure out the solutions.
 
The founding as well as the first annual conference of NEAT was held in Beijing from September 29 to 30, 2003. There were delegates from the think tanks of all the member states at the conference. The three topics discussed were “Towards East Asian Cooperation", Important Steps Leading to East Asian Cooperation" and “Key Areas in East Asia Cooperation". The conference report was not only published, but also distributed at the “10+3" leaders meeting in 2003.