Under SCAP orders, the Japanese government encouraged democratic practices, the decentralization of business cartels, and thf formation of free labor unions. The ancient system of tenant farming was broken up, and extensive land reform instituted.

Assistance from the United States helped Japan rebuild and modernize its industry and agriculture. An economic boom began in the mid-1950's and living standards steadily rose to equal those of Western Europe. By 1970 Japan had become the world's third largest industrial power and a leading exporter of industrial goods.

Japan's standing in the world community was enhanced when it played host to the 1964 Olympic Games at Tokyo and 1972 Winter Olympic Games at Sapporo.