The State’s Vital Role in Modernization
This chapter examines the interaction of the state and market in the modernization of Japan and Russia/USSR with an emphasis on the special role played by the state. Modernization is not simply industrialization; it is a very complex process which involves a multitude of socioeconomic and political changes. Russia and Japan had a tradition of strong political control ova society even before modernization. Economic expansion by Stalinist industrialization spurred growth of the Soviet leviathan. While some Japanese militarists worshiped the traditional and rural life, Stalinists admired modern industrialization and urbanization. Science and technology are central to modernization in general and industrialization in particular. Most Russian and Japanese reformers realized that it was absolutely critical for their nations to catch up with advanced Western states. Japan and Russia/USSR were able not only to learn modern science and technology from the West but also to make substantial changes in their state-market relations.