Question

In the 1970s, Frank Gibney had called Japan "The Fragile Superpower", which was confirmed with the crisis of the 1990s. In his new appraisal, Gibney writes that Japan has become the victim of ____________.

Answer 1

In his reassessment, Frank Gibney suggests Japan has suffered from its own banking crisis since the 1990s, which was part of a global trend of financial inaction. Japan, having evolved into an economic superpower since World War II, now faces additional challenges like labor shortages and demographic decline.

Step-by-step explanation:

In his assessment of Japan's post-1970s economic status, Frank Gibney indicated that Japan had become the victim of its own banking crisis that arose in the 1990s. This crisis was part of a broader pattern of inaction in the face of financial adversity not just in Japan, but across other regions such as East Asia, Latin America, Eastern Europe, and Russia. Despite a strong post-World War II economic recovery that was significantly aided by U.S. investments and preferential access to U.S. markets, Japan's economy faced substantial challenges with its banking institutions. The inaction towards the struggling banks reflects a global hesitation to address economic issues of this nature.

Japan's historical economic growth transformed it into Asia's economic superpower post-1945, setting global manufacturing standards, particularly in automobiles. However, Japan's vigorous ascent has been threatened by internal economic challenges, including a decade-long banking crisis and more recent concerns like the labor shortage and negative population growth patterns due to reduction in workforce entrants and an aging population.