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Emergence of the Japanese Developmental State: Japanese Management of ‘Manchukuo’ through Special Corporations

Abstract This study attempts to clarify the origin of the developmental state by exploring the degree and the nature of interests articulated by the state and private sector in the realm of economic development, specifically demonstrated in the case of Japanese-occupied Manchuria during 1931–1945. The case of Japanese-occupied Manchuria represents the eclectic early evolution of developmental state patterns, combining an ideology derived from German industrial rationalization as reinterpreted by reform-minded Japanese bureaucrats with the Soviet five-year economic plans adapted to suit military purposes. In order to realize these ideals, the Manchukuo government, under the heavy influence of the Japanese Kwantung Army, used both a form of monopolistic corporations for which each purpose was defined by special law and a form of joint investment by private and state capital. This study attempts to identify the roles of the state and private enterprises in economic development by carefully examining the framework, constraints, and investment patterns of these special corporations.