Characteristics of the Okinawan economy
Okinawa's economic conditions can be roughly divided into two era or periods. The post-war period, which includes US military occupation from 1945, through to US administration after the Peace of 1951 till 1972 when Okinawa was handed back to Japan. The second period is post 1972 till the present.
Post-war Economy
After World War II Okinawa's economy can be summarized as being heavily dependent on the US Military bases. This system of dependency was established US military authorities. The contrast is more apparent when comparing the economic conditions on mainland Japan immediately after the war and to those in Okinawa. For example, the Japanese yen was introduced at a rate of 360 yen to one American dollar. The low value of the yen was to encourage Japan to become an export orientated economy, particularly to the US in order to build it up as a buffer against Soviet expansion. In order to protect local markets, a system of tarrif protection was introduced, giving Japanese enterprises opportunities to establish themselves in domestic markets and exporting surplus manufactures to the US. Part of the miracle of the Japanese economy post-war can be attributed to these conditions. In Okinawa on the other hand, the B yen was introduced. The B yen was valued at 140 yen to one American dollar, substantially higher than the Japanese yen. The strategy here was to create an economy that was more import focused. With a higher currency it was difficult for exporters to sell their products overseas, while the higher yen, allowed the local population to buy more foreign goods at a cheaper rate. To make matters worst, no system of tariffs were introduced to protect the local manufacturing or producing businesses. Much of the economy became base reliant, focusing on services maintaining the bases and servicing its US military personnel. There was a common saying during this time that one US marine kept four Okinawan civilians alive. In other words the amount one US marine spent on services sustained four Okinawan civilians. Incidentally, the boom years for this period can be found during the Korean War (1950-1953) and the Vietnam War (1965-1972), supporting the claim that the Okinawan economy was a "one crop" economy.

Post Reversion Economy
After 27 years of US military Administration, Okinawa was handed back to Japan in 1972. This initiated a construction boom, where Japan invested in infrastructure development, peaking in 1975 with the Ocean Expo. Today, 30% of the Prefecture budget comes from the National Government, without this, the Prefecture would go bankrupt. Attempts to build export orientated industries still continue today, however, they lack the years of advantage that mainland Japanese manufacturers and producers had during the 1950's, 1960's and 1970's with a low yen and access to markets. Today US military bases contribute to less than 6.5% of the total Prefectural revenue, which is made up of rent for military held land, salaries for workers and expenditure on goods and services of military personnel and their dependants.
Much of the investments from mainland Japan continue to be pumped into construction, mainly infrastructure projects, and interestingly enough, most of the building contractors come from mainland Japan. The economy has since reversion been shifting from an agricultural base to one gearing to catering for the tourism industry, and residential development. Large tracks of land are continually being cleared for development, degrading the natural environment of the island.
Today tourism is a key industry in Okinawa and generates ¥500 billion a year in revenue for the Prefecture.

How have military bases influenced Okinawan society?
Military bases have affected Okinawa in numerous ways. The most visible is the destruction of the natural environment. There are various types of military facilities; these include exercise areas, firing ranges, airfields, military seaports, military storage sites and communication facilities. Of these, firing ranges appear to do the most damage to the natural environment. In 1995-1996 over 1,500 bullets containing depleted uranium were fired in the training areas of Bird Island, contaminating the soil, ground water and surrounding seawater. It has been suggested by some researchers that the radioactivity of depleted uranium ammunition can cause cancer and leukaemia. With the prolonged use of firing ranges, much of the vegetation is cleared and in many parts of Okinawa a red soil is exposed. This soil, when washed down into the sea by heavy rains kills coral, and large sections of reef have destroyed due to exposure to these red soils. This is a major problem for Okinawa, and not only are the bases responsible for exposing red soils, but quarries also contribute to loss of coral life. To compound the situation, the US Military are under no obligation to clean up unexploded shells that remain in the ground, as they do not come under the jurisdiction of the Federal US Environmental Policy, and Okinawa has no legislation or leverage to impose on controlling unexploded shells.
Communication facilities appear as unobtrusive areas, and their affects on the environment are difficult to discern. However, hazardous chemicals such polychlorinated biphenyls (PCBs- which are well-known cancer causing agents) and mercury are used to maintain communication equipment and contaminate the soil and ground water. In 1995, when the Onna Communication and training center was returned to Japan, the soil and ground water was found to be polluted with high concentrations of PCBs and mercury. The Air bases also pollute the soil and ground water with jet fuel and detergents used to polish jet planes and engines. Other effects of the US base Okinawan society include their impact on the infrastructure of some Okinawan cities. For example Futenma Air Field occupies the middle of Ginowan Village. The town itself is shaped like donut, with the military base in middle; pipelines, communication and roadways going around US base facilities, as do civilians travelling from one side of the village to the other. There are a few towns and villages like this in Okinawa.

What sort of problems do Okinawans have with US military bases?
The most widely recognized problem associated with the bases is noise pollution. In 1982, about a 1,000 lawsuits were filled against the Japanese government by residents around Kadena airbase. Though the court acknowledged the noise was beyond acceptable levels, forcing the Japanese government to pay residents compensation, the court declared it had no jurisdiction over US military affairs. From my own experience living in Naha, we heard everything from jet fighters, to attack helicopters and large transport helicopters flying over the city, and sometimes after midnight. While most adults might be able to cope with the affects of this type of noise pollution, one can only wonder about its impact on children.
Military accidents occur every year. Whether a plane crashes, or a shell is fired in the wrong direction by accident away from the firing range, or a missile goes haywire, it impacts the densely populated civilians on Okinawa. In the past there have been incidents where military jets have crashed into elementary schools killing and injuring school children (this has happened on more than one occasion). Other accidents include a trailer being dropped by parachute landing on a school, and an imitation bomb landing on a boat out at sea killing a crew member, splinters of shells or stray bullets hitting local residents and hit-and-run car accidents caused by drunken soldiers.
Incidents involving murder, rapes, injuries and thefts are also frequent. There were 4,790 criminal charges brought against US military personnel between 1972 and 1995. That works out to about one criminal charge every two days or three every week, and these are only reported ones.
Among the worst cases, 12 murders, 355 thefts and 111 rapes. Keep in mind, Japanese Self Defense Personnel have also been responsible for various crimes against civilians, however, they are directly answerable to Japanese civil law. Prior to revision (1972) Okinawans did not have any right to sue or arrest suspects if they were American soldiers. After Reversion, US authorities possess the right to hold trials if the case occurs while a soldier is on duty and Japanese authorities have the right to hold trial if the incident occurred off duty. However, when a crime occurs, it is the offender's supervising officer who decides whether the crime is committed off or on duty. If the officer signs an official duty sheet, then the Japanese legal system cannot do anything. Moreover, Japanese authorities do not have the right to enter US military facilities, and if a suspect remains on base he or she is in effect untouchable by Japanese police.

(Reference; Profile of Okinawa 100 Questions and Answers, Arasaki, M. et al. 2000)