Modernization of Russia and Japan

Modernization of Russia and Japan

Russia and Japan, were among the only dominant powers in Asia, still were states with declining feudal economics and feudal survivals in the middle of 19th century. Feudal system of relations prevented countries from a gradual and progressive development, made unable the development of market relations and establishment of equal opportunities for international trade. The growing class of businessmen or bourgeoisie in both countries felt those limitations and wanted to break outdated system of relations. The contradictions of monarchic governments with the interests of bourgeoisie and common people came to the turning point nearly at the same time in both countries: in Japan in 1867-1868 and in Russia several years earlier in 1860-1861. The Crimean war of Russia against Turkey and coalition of France and Britain showed its inability to resist to the main European powers, showed the failure, bankruptcy and great crisis of the state's government and economical system in general.

In comparison to Japan, where the changes where achieved by the revolution, Russia's modernization was a result of progressive and urgent reforms. Both countries reformed land owning legislature, court system, and executive government system, which gave opportunities for progressive and rapid development of economy and industrialization.

The revolution of 1868 in Japan paved the way for the capitalist development of the country. But the reforms that were held only strengthened the positions of nation's elite, big business and landowners. Peasants got no land and had to pay rent to the landowners, which consisted of 50-80% of their harvest. New taxation system allowed huge investments into the countries economics and the development of the infrastructure of new Japan and it's possession of Korea. Japanese government created favorable conditions for the development of industry supporting national production. In fact, government subsidized the development of industry, construction of plants and factories that were later handed into the possessions of bureaucratic elite, mainly family clans of Mitsui and Mitsubishi. Government took care of development of internal market and stimulated development of goods production for internal markets as well. By the following practices they achieved economical prosperity and rapid growth of national capital, as the country did not depend upon foreign imports. Japanese widely used technological achievements of European countries and the U.S.A. And learnt from their experience of capitalist form of production. Another approaches in stimulation of economical growth were achieved through the export of capital, capture of markets of raw materials and sales mostly in Korea and South Pacific. In some 50 years Japan turned into a powerful industrial state ready for the future expansion. As the leader of concern Mitsui said "Japanese expansion has no future if it won't rely on the curtain powers. This power is strong navy and strong army. We would freely make true our expansion abroad if we would rely on military that would support us."

The development of capitalism in Russia was rapid as well. In fact Russia achieved nearly the same results as "old Europe" but in several decades, while for European states it took centuries. The reforms that occurred in state's system had liberalized the country, made it open for foreign investors and established civil liberties. Still peasants didn't get any advantages from the reform, if not taking into consideration personal liberty, but still they were dependent as their land belonged to landowners, former serf-owners. Feudal survivals in agricultural sphere prevented developed of farming, and progress in agriculture was not so obvious as it was in industry. In fact, Russia, which was known as "granary" of Europe, lost its positions, as it had to compete with cheap wheat of Argentina, Canada and the U.S.A. From another side rapid development of industry was not gradual, as it divided country into predominantly industrial regions and predominantly agricultural. Southern part of Russian Empire (Ukraine) and coastal regions of the Black sea were rapidly industrialized as they were rich in coal and iron. The development of metallurgy, machine building was the main article of country's export, industry was developed in St. Petersburg region and Moscow as well. In all the rest regions the development of industry was not observed in such rapid temper. Russia's capitalism was different from Japanese, as import of foreign capital to the country dominated over capital's export; most of Russian objects of industry belonged to German, French and English businessmen. The lack of effective means of communications and transportation system also prevented from general country's development, making Siberia and eastern borders of empire outdated and economically backward. Russian government didn't assist national business, which resulted Russia's dependence on European super-states, turning it into developing state, a raw materials supplier of the West.