1276 WORLD DEVELOPMENT and in the cities,and both Japanese and Koreans-in pressure was maintained on respective Governor- production-oriented alliances leading up to sustained Generals to boost the cost-efficiency of public ser- economic change.The results measured by the criteria vices.Unlike many other governments.the colonial of growth and industrialization(though not by such state in Korea did not operate with a"soft budget con- other criteria as human rights,national self-determi- straint."On the contrary,there was consistent pressure nation and fair economic distribution)were a consid- to economize,"hardening"the budget constraint,with erable success.Since successes generally begets emu- significant,positive "trickle-down"effect on the effi- lation and continuity,it is important to analyze the ciency of the bureaucracy,including the economic colonial economic strategy. bureaucracy. Two general observations ought to be noted at the outset.First,while the Governor-General in Korea possessed near absolute powers.he was nevertheless (a)Increased state capacity an agent of the Japanese imperial government.The colonial state in Korea thus pursued,not Korean,but The increased capacity of the new colonial state in Japanese needs and interests that changed over time.28 Korea to directly undertake economic tasks is evident In broad brush strokes,during the early phase,say,the fairly early in the historical record.For example,there first decade of the colonial rule.Japan treated Korea was the issue of state capacity to collect taxes.The old mainly as a strategic gain that could also be exploited Yi state,one may recollect,proved quite incapable of in a fairly classic fashion:exchange of agricultural extracting taxes from society,especially revenues products for manufactured goods.Subsequently,as from landowners.The contrasting performance of the Japanese demand for food outpaced its own supply, colonial state is notable.Land revenue in 1905.the the colonial state aggressively undertook measures to year the Japanese influence in Korea started to grow. increase food production in Korea.Manufacturing was some 4.9 million yen:by 1908.this had jumped to was discouraged in this carly phase,again in a fairly 6.5 million yen.or a real increase of some 30%in classic fashion,to protect Japanese exports to Korea. three years.3 Subsequently,numerous other sources Following WWI,however,with swollen company of revenue were added to that obtained from land- profits,Japan sought opportunities for export of capi- e.g.,railways,post office and customs:and receipts tal and thus relaxed restrictions against production of from the ginseng monopoly and from such public manufactured products in Korea.At the same time. undertakings as salt manufacture,coal mines.timber following the need to coopt nationalistic pressures work and printing bureaus-and the jump in revenue within Korea,the colonial state also involved selected intake was phenomenal.Whereas the total revenue in and prominent Korean businessmen in the growth of 1905 (land and other revenues)was 7.3 million yen. manufacturing.Aggressive industralization of Korea by 191I one year after formal annexation.the total occurred only in the 1930s.This was in part a result of revenue intake was 24 million yen.or an increase of Japan's strategy to cope with the depression-i.e.to more than 300%.32 The factors that help explain this create a protected,high-growth economy on an increased state capacity were two-fold.First.the colo- empire-wide scale-and in part a result of Japan's nial state.backed by superior coercive power.snapped aggressive industrialization,again on an empire-wide the stranglehold landowning groups had on the Yi scale,that reflected national power considerations.2 state.pensioning off the Yangban elite,and replacing Japan was able to switch its imperial policies in Korea them by Japanese career bureaucrats:I will return to frequently and decisively;this,in turn,underlined the this issue below.Second.the colonial elite utilized the highly centralized nature of authority within the newly created civil and police bureaucracy to collect Japanese controlled Korean state. taxes.More specifically.as early as 1906.36 revenue The second related observation concerns the collection officers.again replete with uniforms and pressures on the Governor-General in Korea to simul- swords.were posted all over Korea to identify cult- taneously pursue imperial interests and run a vated land,owners of the land.and the revenue due cost-effective government.Reading through from the land (H.I.J.M.'s Residency General,1908. historical documents of the time,especially the annual Chapter V).While the rate of taxation on land was not reports of the Governor-General in Korea,it becomes increased,it was regularized.In addition.uniformed clear that,among their various achievements.the revenue officers worked in conjunction with local colonial authorities in Korea wanted to emphasize police officers in the process of tax collection.lest any their repeated efforts to enhance revenues and to one forget this newly established separation of state minimize expenditures.especially by rationalizing and society,or the willful presence of the new state in the bureaucracy.30 Since any shortfall between rev- society. enues and expenditures within Korea had to be The successful land survey that the Japanese con- financed by the Japanese Imperial government- ducted in Korea during 1910-18 similarly highlighted and typically,there was a net revenue inflow from the efficacy of the new state.The Yi state had repeat- Japan to Korea-one presumes that constant and firm edly discussed such a comprehensive land survey but1276 WORLD DEVELOPMENT and in the cities, and both Japanese and Koreans - in production-oriented alliances leading up to sustained economic change. The results measured by the criteria of growth and industrialization (though not by such other criteria as human rights, national self-determi￾nation and fair economic distribution) were a consid￾erable success. Since successes generally begets emu￾lation and continuity, it is important to analyze the colonial economic strategy. Two general observations ought to be noted at the outset. First, while the Governor-General in Korea possessed near absolute powers, he was nevertheless an agent of the Japanese imperial government. The colonial state in Korea thus pursued, not Korean, but Japanese needs and interests that changed over time.?” In broad brush strokes, during the early phase, say, the first decade of the colonial rule, Japan treated Korea mainly as a strategic gain that could also be exploited in a fairly classic fashion: exchange of agricultural products for manufactured goods. Subsequently, as Japanese demand for food outpaced its own supply, the colonial state aggressively undertook measures to increase food production in Korea. Manufacturing was discouraged in this early phase, again in a fairly classic fashion, to protect Japanese exports to Korea. Following WWI, however, with swollen company profits, Japan sought opportunities for export of capi￾tal and thus relaxed restrictions against production of manufactured products in Korea. At the same time, following the need to coopt nationalistic pressures within Korea, the colonial state also involved selected and prominent Korean businessmen in the growth of manufacturing. Aggressive industrialization of Korea occurred only in the 1930s. This was in part a result of Japan’s strategy to cope with the depression - i.e. to create a protected, high-growth economy on an empire-wide scale - and in part a result of Japan’s aggressive industrialization, again on an empire-wide scale, that reflected national power considerations.‘” Japan was able to switch its imperial policies in Korea frequently and decisively; this, in turn, underlined the highly centralized nature of authority within the Japanese controlled Korean state. The second related observation concerns the pressures on the Governor-General in Korea to simul￾taneously pursue imperial interests and run a cost-effective government. Reading through historical documents of the time, especially the annual reports of the Governor-General in Korea, it becomes clear that, among their various achievements, the colonial authorities in Korea wanted to emphasize their repeated efforts to enhance revenues and to minimize expenditures, especially by rationalizing the bureaucracy.30 Since any shortfall between rev￾enues and expenditures within Korea had to be financed by the Japanese Imperial government - and typically, there was a net revenue inflow from Japan to Korea-one presumes that constant and firm pressure was maintained on respective Governor￾Generals to boost the cost-efficiency of public ser￾vices. Unlike many other governments. the colonial state in Korea did not operate with a “soft budget con￾straint.” On the contrary, there was consistent pressure to economize, “hardening” the budget constraint, with significant. positive “trickle-down” effect on the effi￾ciency of the bureaucracy, including the economic bureaucracy. (a) Incrensed state capnci9 The increased capacity of the new colonial state in Korea to directly undertake economic tasks is evident fairly early in the historical record. For example, there was the issue of state capacity to collect taxes. The old Yi state, one may recollect, proved quite incapable of extracting taxes from society, especially revenues from landowners. The contrasting performance of the colonial state is notable. Land revenue in 1905. the year the Japanese influence in Korea started to grow. was some 4.9 million yen; by 1908, this had jumped to 6.5 million yen, or a real increase of some 30% in three years.” Subsequently, numerous other sources of revenue were added to that obtained from land - e.g., railways, post office and customs; and receipts from the ginseng monopoly and from such public undertakings as salt manufacture, coal mines. timber work and printing bureaus - and the jump in revenue intake was phenomenal. Whereas the total revenue in 1905 (land and other revenues) was 7.3 million yen, by 191 1 one year after formal annexation, the total revenue intake was 24 million yen. or an increase of more than 300%.3’ The factors that help explain this increased state capacity were two-fold. First, the colo￾nial state. backed by superior coercive power, snapped the stranglehold landowning groups had on the Yi state, pensioning off the Yangban elite, and replacing them by Japanese career bureaucrats: I will return to this issue below. Second. the colonial elite utilized the newly created civil and police bureaucracy to collect taxes. More specifically. as early as 1906, 36 revenue collection officers, again replete with uniforms and swords. were posted all over Korea to identify culti￾vated land, owners of the land, and the revenue due from the land (H.I.J.M.‘s Residency General, 1908. Chapter V). While the rate oftaxation on land was not increased, it was regularized. In addition. uniformed revenue officers worked in conjunction with local police officers in the process of tax collection, lest any one forget this newly established separation of state and society, or the willful presence of the new state in society. The successful land survey that the Japanese con￾ducted in Korea during I9 IO- I8 similarly highlighted the efficacy of the new state. The Yi state had repeat￾edly discussed such a comprehensive land survey but