Solving bottlenecks is important for economic development. Similar to today’s
LDCs, Japan faced a serious shortage of human capital, economic infrastructure,
and other adverse economic and social conditions with respect to economic
development. Japan was not completely unprepared, as some development
experience had been accumulated even prior to the Second World War. However,
the level of preparation was far from adequate for a newly industrializing
economy to jump to full-scaled industrialization. Compared with the devastation
of the war and the strong hostility from foreign countries confronting Japan, most
of the LDCs today are in a much better external environment, where it will be
easier to obtain support from the international community. The current level of
international higher education is also completely different than in the past.
Furthermore, development of financing infrastructure can now be conducted
much more efficiently due to the recent innovation of financial instruments,
including public-private partnerships.