ABSTRACT
As global economic conditions deteriorated in the late 1920s and early 1930s, the United States, Great Britain, France and the Soviet Union adopt policies to promote domestic recovery at the expense of other countries. In these nations, the political balance of power shifted away from advocating liberal economic policies and national salvation through foreign conquest. The Foreign Minister Gustav Stresemann describes Germany as "dancing on a volcano". By the end of 1932, the economy shows some signs of improvement which accounts for the declining fortunes of the national socialists in the November elections. The Manchurian economy, planned by the government operates through publicly owned enterprises or state-controlled entities such as the South Manchuria Railway. Smaller enterprises would be allowed to remain in private hands, but subject to stringent state controls. The army's ultimate goal was to create an economy without capitalist oppression. The shift from liberalism to ultranationalism could also be seen in the country's economic policies.
