Japan’s role as a merchant nation brought astonishing results. Staying on the sidelines of the Cold War, it recovered rapidly from wartime devastation to become the world’s second-ranked economic power. Through its widely envied choice of avoiding the military spending and involvements that encumbered other nations, Japan was able to make the long-term investments in science, education, and technology that would speed its advancement. Japan’s financial markets garnered massive wealth and influence. Its mastery of the skills of organizing a modern industrial society provoked universal admiration as foreign observers grasped for superlatives to describe its achievement. In 1979, a Harvard sociologist ranked Japan simply “number one” in the world. Two years later, a popular French writer regarded it as “a model to all the world.”2
