Hostname: page-component-586b7cd67f-t7czq Total loading time: 0 Render date: 2024-11-25T03:51:18.680Z Has data issue: false hasContentIssue false

Gerschenkron, Amsden, and Japan: The State in Late Development

Published online by Cambridge University Press:  22 May 2018

GREGORY J. KASZA*
Affiliation:
Professor Emeritus of Political Science at Indiana [email protected]

Abstract

The concept of late development is ubiquitous in political science. Scholars generally use the term to explain the state's role in the economy based upon the timing of a country's industrialization. Many consider Japan a quintessential example of state-driven late development. This article surveys the late development theories of Alexander Gerschenkron and Alice Amsden. It then appraises these theories based upon Japan's experience, demonstrating that neither accurately describes the state's role in Japan's industrialization.

To be clear, the argument is not that the state played no part in Japan's economic development. The question is whether late development offers an effective conceptual tool for explaining the causes, content, and timing of state action. There are many possible explanations of Japan's industrialization. Late development is only one of them, and not a very good one.

Type
Research Article
Copyright
Copyright © Cambridge University Press 2018 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1 Magnusson, Lars, Nation, State and the Industrial Revolution: The Visible Hand (London: Routledge, 2009), p. 64CrossRefGoogle Scholar.

2 Sylla, Richard and Toniolo, Gianni, ‘Introduction’, in Sylla and Toniolo (eds.), Patterns of European Industrialization: The Nineteenth Century (London: Routledge, 1991), p. 5Google Scholar.

3 Some examples: Calder, Kent, Strategic Capitalism: Private Business and Public Purpose in Japanese Industrial Finance (Princeton, NJ: Princeton University Press, 1993), p. 3CrossRefGoogle Scholar; Cole, Robert E., ‘The Late-Developer Hypothesis: An Evaluation of Its Relevance for Japanese Employment Practices’, Journal of Japanese Studies 4 (2) (Summer 1978): 260Google Scholar; Dore, Ronald, British Factory – Japanese Factory: The Origins of National Diversity in Industrial Relations (Berkeley, CA: University of California Press, 1973), pp. 415–17Google Scholar; Hirschmeier, Johannes and Yui, Tsunehiko, The Development of Japanese Business, 1600–1980, 2nd edn (London: George Allen & Unwin, 1981), p. 88Google Scholar; Ishii, Kanji, Nihon Keizaishi, vol. 2 (Tokyo: Tokyo Daigaku Shuppankai, 2001), p. 180Google Scholar; Johnson, Chalmers, MITI and the Japanese Miracle: The Growth of Industrial Policy, 1925–1975 (Stanford, CA: Stanford University Press, 1982), p. 19CrossRefGoogle Scholar; Kasza, Gregory J., The Conscription Society: Administered Mass Organizations (New Haven: Yale University Press, 1995), p. 18Google Scholar; Landes, David S., ‘Japan and Europe: Contrasts in Industrialization’, in Lockwood, William W. (ed.), The State and Economic Enterprise in Japan: Essays in the Political Economy of Growth (Princeton, NJ: Princeton University Press, 1965), p. 100Google Scholar; Minami, Ryōshin, The Economic Development of Japan: A Quantitative Study, 2nd edn (London: Macmillan, 1994), p. 35CrossRefGoogle Scholar; Miyajima, Hideaki, Sangyō Seisaku to Kigyō Tōji no Keizaishi: Nihon Keizai Hatten no Mikuro Bunseki (Tokyo: Yūhikaku, 2004), p. 5Google Scholar; Rosovsky, Henry, Capital Formation in Japan: 1868–1940 (New York: The Free Press, 1961), chapter 4Google Scholar; Samuels, Richard J., Rich Nation, Strong Army’: National Security and the Technological Transformation of Japan (Ithaca: Cornell University Press, 1994), p. 14Google Scholar; Tsūsanshō (ed.), Tsūshō Sangyō Seisakushi, vol. 1, Sōron (Tokyo: Tsūshō Sangyō Chōsakai, 1994), p. 13.

4 Flath, David, The Japanese Economy, 3rd edn (Oxford: Oxford University Press, 2014), p. 200Google Scholar.

5 E.g., Patrick, Hugh (ed.), Japan's High Technology Industries: Lessons and Limitations of Industrial Policy (Seattle: University of Washington Press, 1986)Google Scholar; Porter, Michael E., Takeuchi, Hirotaka, and Sakakibara, Mariko, Can Japan Compete? (London: Macmillan, 2000)Google Scholar.

6 Flath, The Japanese Economy, p. 41.

7 Harry Eckstein quoted in George, Alexander L. and Bennett, Andrew, Case Studies and Theory Development in the Social Sciences (Cambridge, MA: MIT Press, 2005), p. 120Google Scholar.

8 The main sources of Gerschenkron's ideas are Gerschenkron, Alexander, Economic Backwardness in Historical Perspective: A Book of Essays (Cambridge, MA: Harvard University Press, 1962)Google Scholar, and Gerschenkron, Alexander, Continuity in History and Other Essays (Cambridge, MA: Harvard University Press, 1968)Google Scholar.

9 Gerschenkron, Economic Backwardness in Historical Perspective, p. 9.

10 Amsden, Alice H., Asia's Next Giant: South Korea and Late Industrialization (New York: Oxford University Press, 1989), p. vGoogle Scholar; Amsden, Alice H., The Rise of ‘The Rest’: Challenges to the West from Late-Industrializing Economies (New York: Oxford University Press, 2001), p. 1CrossRefGoogle Scholar.

11 Amsden, Alice H., ‘A Theory of Government Intervention in Late Industrialization’, in Putterman, Louis and Rueschemeyer, Dietrich (eds.), State and Market in Development: Synergy or Rivalry? (Boulder, CO: Lynne Rienner, 1992), pp. 53, 57Google Scholar.

12 Amsden, ‘A Theory of Government Intervention in Late Industrialization’, pp. 61, 66; Amsden, The Rise of the Rest, p. 19.

13 Gerschenkron, Economic Backwardness in Historical Perspective, p. 7, fn. 2.

14 Amsden, The Rise of ‘The Rest’, pp. 1, 7; Amsden, A Theory of Government Intervention in Late Industrialization, p. 65; Amsden, Asia's Next Giant, pp. v, 4.

15 Landes, ‘Japan and Europe’, p. 154; Sylla and Toniolo, ‘Introduction’, p. 22; Fohlen, Claude, ‘The Industrial Revolution in France, 1700–1914’, in Cipolla, Carlo M. (ed.), The Emergence of Industrial Societies: Part One, The Fontana Economic History of Europe, Vol. 4 (Sussex: Harvester Press, 1976), pp. 12, 17, 6869Google Scholar; Phyllis Deane, ‘The Industrial Revolution in Great Britain’, in Cipolla (ed.), The Emergence of Industrial Societies: Part One, p. 165; Flath, The Japanese Economy, p. 41.

16 Smith, Thomas C., Political Change and Industrial Development in Japan: Government Enterprise, 1868–1880 (Stanford, CA: Stanford University Press, 1955), p. viiiGoogle Scholar; Landes, ‘Japan and Europe’, p. 154.

17 Sylla and Toniolo, ‘Introduction’, p. 22; Trebilcock, Clive, The Industrialization of the Continental Powers, 1780–1914 (London: Longman, 1981), p. 9Google Scholar.

18 For Amsden, the late-developing state must channel investment into the three areas of up-to-date machinery and plants, managerial hierarchies and technological skills, and distribution networks, and it should build institutions such as development banks, special promotional budgets, methods to monitor and discipline industries, economic infrastructure, technological standards, protectionist barriers, and effective bureaucracies. Since all states perform at least some of these functions to some degree, this leads to irresolvable disagreements over which countries fit the category. Amsden, The Rise of ‘the Rest’, chapters 4, 6.

19 Chang, Ha-Joon, Kicking Away the Ladder: Development Strategy in Historical Perspective (London: Anthem Press, 2003)Google Scholar.

20 Jang-Sup Shin alters late development theory by switching the unit of analysis from national economies to specific industries, but this produces different predictions from the standard theories that dominate the field. See Shin, Jang-Sup, The Economics of the Latecomers: Catching-up, Technology Transfer, and Institutions in Germany, Japan and South Korea (London: Routledge, 1996)Google Scholar.

21 Smith, Political Change and Industrial Development in Japan, p. 54.

22 Miwa, Ryōichi and Hara, Akira (eds.), Kingendai Nihon Keizai Shi Yōran, Hoteihan [supplementary volume] (Tokyo: Tokyo Daigaku Shuppankai, 2010), p. 11Google Scholar.

23 Miyajima, Sangyō Seisaku to Kigyō Tōji no Keizaishi, p. 26; cf. Shō, Tsūshō Sangyō (ed.), Shōkō Seisaku Shi, vols. 1–2 (Tokyo: Shōkō Seisaku Shi Kankōkai, 1985), p. 92Google Scholar.

24 Flath, The Japanese Economy, p. 207.

25 Hanai, Shunsuke, ‘Kei Kōgyō no Shihon Chikuseki’, in Ishii, Kanji, Hara, Akira, and Takeda, Haruhito (eds.), Nihon Keizai Shi 2: Sangyō Kakumei Ki (Tokyo: Tokyo Daigaku Shuppankai, 2000), pp. 139, 165Google Scholar; Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi 1–2, p. 18; Amsden, The Rise of ‘The Rest’, pp. 80, 89.

26 Hadley, Eleanor M., Antitrust in Japan (Princeton, NJ: Princeton University Press, 1970), pp. 5253Google Scholar.

27 Miyajima, Sangyō Seisaku to Kigyō Tōji no Keizaishi, pp. 3, 25.

28 Cole, ‘The Late-Developer Hypothesis’, p. 258.

29 Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi 1–2, p. 114.

30 Landes, David S., The Wealth and Poverty of Nations: Why Some are So Rich and Some So Poor (New York: W.W. Norton, 1998), pp. 378–9Google Scholar. Given the statements of Landes and Cole above, it is remarkable that both persist in attributing a leading role to the state in late industrializers, a demonstration of how sticky academic theories can become once they have taken root.

31 Gregory, Paul R., ‘The Role of the State in Promoting Economic Development: The Russian Case and Its General Implications’, in Sylla, Richard and Toniolo, Gianni (eds.), Patterns of European Industrialization: The Nineteenth Century (London: Routledge, 1991), p. 72Google Scholar.

32 Olga Crisp, ‘Russia’, in Sylla and Toniolo (eds.), Patterns of European Industrialization, p. 260. On the prominent role of consumer goods in France's industrialization, see Maurice Lévy-Leboyer and Michel Lescure, ‘France’, in Sylla and Toniolo (eds.), Patterns of European Industrialization, p. 157; Magnusson, Nation, State and the Industrial Revolution, pp. 91–92.

33 Henderson, W.O., The Rise of German Industrial Power, 1834–1914 (Berkeley, CA: University of California Press, 1975), p. 143Google Scholar.

34 Amsden, The Rise of ‘The Rest’, pp. 112–16.

35 Flath, The Japanese Economy, p. 40.

36 Landes, The Wealth and Poverty of Nations, p. 383; Yamamura, Kozo, ‘Japan 1868–1930: A Revised View’, in Cameron, Rondo (ed.), Banking and Economic Development: Some Lessons of History (New York: Oxford University Press, 1972), pp. 196–7Google Scholar.

37 Garon, Sheldon, The State and Labor in Modern Japan (Berkeley, CA: University of California Press, 1987), p. 13CrossRefGoogle Scholar; Hanai, ‘Kei Kōgyō no Shihon Chikuseki’, p. 130.

38 Hanai, ‘Kei Kōgyō no Shihon Chikuseki’, p. 167.

39 Hanai, ‘Kei Kōgyō no Shihon Chikuseki’, pp. 142, 167; Garon, The State and Labor in Modern Japan, p. 15.

40 Deane, ‘The Industrial Revolution in Great Britain’, p. 221.

41 Ha-Joon, Chang, Kicking Away the Ladder: Development Strategy in Historical Perspective (London: Anthem Press, 2003), pp. 105–9Google Scholar.

42 Landes, The Wealth and Poverty of Nations, p. 389. India's revised Factory Law of 1892 stipulated a maximum seven-hour work day for children between nine and 14 years old, and an 11-hour maximum for women, and it prohibited night work for both.

43 Miwa and Hara (eds.), Kingendai Nihon Keizai Shi Yōran, p. 79.

44 Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi, pp. 84–88.

45 Smith, Political Change and Industrial Development in Japan, p. 58

46 Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi, p. 13.

47 Ishii, Kanji, ‘Joshō: Nihon Ginkō Kinyū Seisakushi’, in Ishii (ed.), Nihon Ginkō Kinyū Seisakushi (Tokyo: Tokyo University Press, 2001), pp. 67Google Scholar; Hanai, ‘Kei Kōgyō no Shihon Chikuseki’, pp. 137, 160–4.

48 Miwa and Hara (eds.), Kingendai Nihon Keizai Shi Yōran, p. 61.

49 Ishii, Kanji, Hara, Akira, and Takeda, Haruhito (eds.), Nihon Keizaishi, vol 1, Bakumatsu Ishinki (Tokyo: Tokyo Daigaku Shuppankai, 2000), p. 30Google Scholar; Takamura, Naosuke, ‘The Cotton Spinning Industry in Japan During the Pre-World War I Period: Its Growth and Essential Conditions’, in Pohl, Hans (ed.), Innovation, Know How, Rationalization and Investment in the German and Japanese Economies, 1868/1871–1930/1980, Zeitschrift für Unternehmensgeschichte, Beiheft 22 (Cologne: Gesellschaft für Unternehmensgeschichte e. V., 1982), p. 210Google Scholar; Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi, pp. 17–18.

50 Hanai, ‘Kei Kōgyō no Shihon Chikuseki’, pp. 137, 163–4.

51 Yamamura, ‘Japan 1868–1930’, pp. 181–2, 196 (for quotation); cf. Smith, Political Change and Industrial Development in Japan, p. 39.

52 Flath, The Japanese Economy, p. 41.

53 Amsden, The Rise of ‘The Rest’, p. 68.

54 Hanai, ‘Kei Kōgyō no Shihon Chikuseki’, pp. 124, 134; Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi 1–2, pp. 42–3. The direct tax on domestic, non-agricultural production over 1898–1902 was only 2.8%: Miyajima, Sangyō Seisaku to Kigyō Tōji no Keizaishi, p. 32.

55 Supple, Barry, ‘The State and the Industrial Revolution, 1700–1914’, in Cipolla, Carlo M. (ed.), The Industrial Revolution, 1700–1914, The Fontana Economic History of Europe Vol. 3 (Sussex: Harvester Press, 1976), pp. 307–8Google Scholar.

56 Shin, The Economics of the Latecomers, pp. 57–59. Consider the example of France, which is often considered an early developer. France's revolutionary government abolished guilds, barriers to occupational mobility, and internal tariffs, introduced a standard currency and weights and measures, passed laws protecting patents and private property, and founded an engineering school and a society to encourage national industry. Such measures characterized both early and late-industrializing countries in the West. Supple, ‘The State and the Industrial Revolution, 1700–1914’, pp. 316–17, cf. p. 338.

57 Miyajima, Sangyō Seisaku to Kigyō Tōji no Keizaishi, p. 42; Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi 1–2, p. 136.

58 Cf. Gerschenkron, Continuity in History, pp. 93–4; Gerschenkron, Economic Backwardness in Historical Perspective, pp. 133, 355.

59 Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi 1–2, pp. 52, 101.

60 See Samuels, ‘Rich Nation, Strong Army’.

61 In Gerschenkron's words, industrialization would have to proceed ‘along a broad front, starting simultaneously along many lines of economic activities’: Gerschenkron, Economic Backwardness in Historical Perspective, p. 10.

62 Smith, Political Change and Industrial Development in Japan, p. 71; Kanji Ishii, ‘Bakumatsu Kaikō to Gaiatsu e no Taiō’, in Ishii, Hara, and Takeda (eds.), Nihon Keizaishi 1, pp. 24–6.

63 See Table 2 in Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi 1–2, p. 29.

64 Smethurst, Richard J., From Foot Soldier to Finance Minister: Takahashi Korekiyo, Japan's Keynes (Cambridge, MA: Harvard University Asia Center, 2007), p. 189Google Scholar; cf. Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi 1–2, p. 61.

65 Smith, Political Change and Industrial Development in Japan, pp. v, 102.

66 Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi 1–2, pp. 3–16. For a good overview of state promotion for various industries, see the tables in Miwa and Hara (eds.), Kingendai Nihon Keizai Shi Yōran, p. 60.

67 Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi 1–2, p. 37.

68 Nakamura, Takafusa, The Postwar Japanese Economy: Its Development and Structure (Tokyo: University of Tokyo Press, 1981), p. 18Google Scholar.

69 Flath, The Japanese Economy, pp. 206–7.

70 Miwa and Hara (eds.), Kingendai Nihon Keizai Shi Yōran, p. 21.

71 Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi 1–2, pp. 101–3.

72 Miyajima, Sangyō Seisaku to Kigyō Tōji no Keizaishi, pp. 37–39, 43.

73 Miyajima, Sangyō Seisaku to Kigyō Tōji no Keizaishi, p. 17.

74 Chang, Kicking Away the Ladder, pp. 91–2.

75 Miyajima, Sangyō Seisaku to Kigyō Tōji no Keizaishi, pp. 48, 54–6.

76 Tsūshō Sangyō Shō (ed.), Shōkō Seisaku Shi 1–2, p. 138.

77 Ibid., pp. 117, 139.

78 Ibid., pp. 141–2.

79 Ibid., pp. 158–62.

80 Miyajima, Sangyō Seisaku to Kigyō Tōji no Keizaishi, pp. 3, 269–70.

81 See Fletcher III, William Miles, The Japanese Business Community and National Trade Policy, 1920–1942 (Raleigh: University of North Carolina Press, 1989)Google Scholar.

82 Gerschenkron, Economic Backwardness in Historical Perspective, pp. 133–5, 138, cf. p. 355; Crisp, ‘Russia’, p. 250.

83 Richard Sylla, ‘The Role of Banks’, in Sylla and Toniolo (eds.), Patterns of European Industrialization: The Nineteenth Century, p. 59.

84 Chang, Kicking Away the Ladder, pp 19–24, 59–61.

85 Henderson, W.O., Britain and Industrial Europe, 1750–1870, 3rd edn (London: Leicester University Press, 1972)Google Scholar.

86 Chang, Kicking Away the Ladder, pp. 17, 19–23, 60–1; Amsden, The Rise of ‘The Rest’, pp. 44–5.

87 Chang, Kicking Away the Ladder, pp. 63–4.

88 Bergsten, C. Fred, Ito, Takatoshi, and Noland, Marcus, No More Bashing: Building a New Japan–United States Economic Relationship (Washington, DC: Institute for International Economics, 2001), p. 157Google Scholar.

89 Supple, ‘The State and the Industrial Revolution, 1700–1914’, pp. 308, 311–12.