Economic recession in Japan1. Introduction===============In just fifty years, Japan went from poverty to top income levels, from economic insignificance to leadership, from imported technology and capital to become a major source of their exports. , from the status of a less developed country to that of first economic position after the United States. After having been the best performing country in the Organization for Economic Cooperation and Development (OECD) for forty years, Japan has experienced economic stagnation since the early 1990s. The revival of the Japanese economy is of great importance not only for Japan but also for the well-being of the country. global economy. Therefore, the question now is: "What happened to Japanese economic supremacy?" » In order to answer this question, my task is to identify the factors and causes that contributed to Japan's economic supremacy and the slowdown that followed. At the same time, I will identify the reform processes initiated by the government to address economic difficulties. This article begins with a presentation of the dynamic Japanese economy. The following sections introduce the Japanese model and the Japanese management style, respectively. Economic crises and reforms will be presented in consecutive sections leading to a conclusion. 2.0 The Dynamic Economy The rise and decline of the Japanese economy has been an important feature of the global economy over the past decade. By 1945, Japan was completely ruined but grew to become the world's second largest economy over a 50-year period. Japan's rise from the devastation of military defeat to the world's second largest economy reduced public investment to more productive areas (Bigsten, 2004, p. 10). Specific elements of the Japanese model that require reform include labor market structure and industrial relations, financial structures, and industrial conglomerates. This structure may once have given Japan a considerable advantage, but it is likely that it has now outlived its usefulness (Bigsten, 2004, p. 14). The global economy is changing rapidly today. To keep pace with other leading countries, Japan must be able to adapt more quickly than before. Japan is trying to increase the flexibility of its economic system through deregulation and market reforms. If the country succeeds in these reforms while managing to maintain the social discipline of the old system, the economy should be able to make a comeback..