Publication Date


Document Type


First Advisor

Miller, George L. (Professor of finance)||Bishop, George W. (George Wesley), 1910-

Degree Name

M.S. (Master of Science)

Legacy Department

Department of Finance


World Bank; Loans; Foreign--Japan


During the period from 1953 to 1967, Japan secured from the World Bank thirty-one loans totaling over 857 million dollars, causing Japan to rank as the second largest borrower among the 107 World Bank member nations. The purpose of this thesis was to study why Japan borrowed so much money from the World Bank by analyzing her domestic capital situations and economic expansion of the field financed by the World Bank. The problem was analyzed with primary data from the World Bank and Japan Development Bank in Japan, and with secondary data from United Nations publications, World Bank publications, and other sources. World War II resulted in the destruction of most of Japan's productive capacity. After the termination of World War II, Japan's domestic investment in plants and equipment and in other productive facilities was heavily needed and had been rapidly increasing to meet all the demands of consumers and producers. In particular, an urgent consumption demand to meet bare subsistence needs, a large backlog of pent-up consumer demand, and needed material construction was present. Moreover, Japan's economic growth rate in the postwar days had been unprecedently rapid and required more capital investment to meet the rapidly expanding economic expansion. S1H/E/(; the domestic investment was limited by the shortage of domestic savings especially in the early postwar days. The shortage of domestic savings, or capital, necessitated that Japan tap the World Bank, as well as other foreign capital markets. High interest and tax rates in Japan also led Japan to secure World Bank loans in the postwar years.


Includes bibliographical references.||Includes illustrations.


xi, 135 pages




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