Beggar Thy Neighbour: On Economic Miracles and Political Judgement

Economic “miracles” are often evaluated through aggregate outcomes, with emphasis placed on long-term growth while overlooking the political conditions, short-term disruptions, and normative foundations that enable such outcomes. This paper examines the Japanese post-war industrial expansion as a reference case to reassess the relationship between economics and politics within the narrative of a miracle. Structured around three analytical components- facts, limitations, and norms, the argument highlights how favourable historical circumstances, state capacity, and policy coordination contributed to Japan’s growth, while also drawing attention to frequently neglected social, environmental, and distributive costs. By extending the discussion to contemporary policy experiences in India, the paper illustrates how short-term resistance, moral legitimacy, and public perception constrain economic decision-making. It argues that political economy must move beyond structural and institutional analysis to incorporate cultural and moral conditions under which political authority can legitimately complement economic growth. Without such normative grounding, policies risk destabilization not due to economic miscalculation, but due to a moral and political deficit.