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Sunday 18 March 2012

An Economic Pearl Harbour



In December 1941, during the Second World War, 
the U.S.A.’s top naval base, Pearl Harbour, on the 
Pacific island of Hawaii, was attacked without prior 
warning by the Japanese. So severe was the 
bombardment that, of the hundred odd naval 
vessels anchored there, only a handful survived. 
This had the immediate effect of bringing America 
into the war as one of the Allied Powers. Up till that 
point, the U.S.A. had had no direct involvement in 
hostilities save as a supplier of armaments to the 
enemies of Japan. The Japanese attack had been 
uncalled-for and ill-considered, but they did not 
realize the magnitude of their error until 1945, when 
America finally took its revenge by dropping the 
first ever atom bombs on two of Japan’s major 
industrial centres, Hiroshima and Nagasaki, thus 
annihilating Japan as a military power. The 
Americans then kept a tight military and political 
hold over Japan. But the latter country, 
astonishingly, recuperated from the horror of largescale
atomic devastation, and proceeded to adapt 
itself to an entirely new set of circumstances. Before 
the Second World War, it had relied on the power

of weapons. But after witnessing the destruction 
they caused, it relinquished their use and set about 
reconstructing the country along entirely peaceful 
lines. Having once adopted this course, the 
Japanese showed great versatility resilience and 
assiduity and their success has been such that Japan 
is now considered the second greatest industrial 
power in the entire world today. Its trade surplus is 
37 billion dollars, more even than that of the U.S.A. 
In the field of industry the victors have been 
defeated by the vanquished. Simply by accepting 
the fact that aggression could not pay dividends 
and then channelizing its potential within the field 
of industry, Japan has managed quite miraculously 
to supersede all the other nations of the world.  
The Americans are greatly upset at this state of 
affairs and refer to the present ‘invasion’ of 
Japanese goods as an Economic Pearl Harbour. A 
book recently published in America, under the title 
of “Japan-Number One”, has become a best-seller. It 
clearly shows that Japan has far outrun the U.S.A. 
in business and will soon supersede Britain. So far 
as foreign exchange is concerned, Japan is the 
wealthiest country in the world, its foreign 

exchange reserves totalling 74 billion dollars in 
1984. (The Times of India, 13-14 June 1985).  
How did Japan turn its military defeat into an 
economic victory? By encouraging patience and 
perseverance and avoiding provocation, it 
concentrated its energies on peaceful (and, of 
course, remunerative) fields, rather than indulge in 
retaliatory violence. It initially accepted the military 
and political supremacy of other nations, quickly 
adapting itself to new scales of values, then set 
about the economic rehabilitation of the country 
without wasting a single moment on bewailing lost 
opportunities, blaming others for its misfortunes or 
on pointless nostalgia. Rather than make further 
mistakes—Pearl Harbour having been the worst—it 
concentrated all of its attention on seizing existing 
opportunities. In short, Japan accepted the blame 
for its own destruction, and, once having done so, 
was able seriously to launch itself on its own 
economic uplift.  
We must never lose sight of the fact that we are not 
lone travellers on this earth. There are always others 
who are trying to race ahead of us in this world of 

competition. The resulting situation can be 
approached in two entirely different ways. One is to 
collide with anything which obstructs our path. The 
other is to circumvent obstacles and then to go on 
our way. Clearly, the first is self-destructive, while 
the second, in avoiding confrontations, is much 
more likely to prove advantageous. A ship which 
sails straight at a rock or an iceberg is doomed to 
disaster. It is the ship which veers temporarily off 
its course to avoid the reefs which will eventually 
sail safely into harbour. Similarly, Japan, by giving 
up ideas of military supremacy, has reached a much 
more worthwhile objective—economic supremacy.  
It is worth remembering that Hiroshima and 
Nagasaki, once Symbols of Japan’s total 
annihilation as a military power, are now symbols, 
forty years later, of Japan’s stunning economic 
success. 

                                                                  Ref - The Moral Vision
                                                                                                       - by Maulana Wahiduddin Khan 





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