Reincarnated as Nikolai II

The Republic of Korea, which I know almost as well as Russia. Looking at its economic history, the process is quite unique.

After liberation in the 1940s, finishing enemy property disposal and land reform, that peninsula experiencing war was quite a mess.

With territory halved and post-war trauma overlapping, how bad must the country's state have been.

A country extending life through aid. That was the Republic of Korea.

Won value collapsed after blocking war capital procurement with currency issuance.

Hard-built infrastructure and agriculture destroyed. Exports and imports non-existent.

National production halved in three years starting 1950s. Worse still, loss of basic national capabilities like hospitals, administration, roads, infrastructure, electricity production.

Only surviving was military eating money and manpower.

However, until here one might think 'Isn't this same for any war-experienced country?'

What impressed me wasn't this dark period but what came next.

From the 1960s when growth properly began after completing reorganization.

"Period when country with only basic Korea Development Bank and Korea Agricultural Bank suddenly started creating special purpose banks."

'61 Small-Medium Business Bank, Agricultural Cooperative. '62 National Bank. '67 Export-Import Bank, many foreign bank branches.

Prepare financial system, make development plans, then create banks.

Since just creating and abandoning banks won't work voluntarily well, state allocates business funds through policy.

Starting 1960s, Korea adheres to this method over 30 years regardless of regime.

Truly policy finance endlessly distributed with state stepping forward.

Then did banks established under Republic of Korea government leadership profit from start?

No. Until 1970s banks recorded massive pure deficits for 15-30 years (state debt forgiveness and below-market interest loans).

Policy loans 73% of new loans in '63. Except just three times until 1980s, policy loans always exceeded 60% of total loans.

Republic of Korea was country continuing unprecedented policy finance figures annually unseen anywhere worldwide.

This came as huge shock even to me studying history.

Commonly Koreans might think country developed through New Village Movement learned in textbooks.

Right, that was start.

Next generation after New Village Movement says large companies went overseas earning foreign currency, dollars.

That's also right. High growth period companies advanced overseas seemingly without fear of risk.

However, policy finance lurked behind all that.

Well-grown companies create new companies too but rather when state声s "Hugely raising chemical industry policy finance ratio this year!" companies nationwide immediately jumped into chemical industry.

Republic of Korea's growth was like that. Growth relying on state policy finance rather than foreign or private investment.

Not that I blindly believe in such policy finance.

"Of course there are harms. Insolvent companies arise, unbalanced growth from tax consumption, decreased wealth redistribution etc various side effects."

However, key is growing first before whining about such harms.

Because I've never seen faster, more efficient method among 'state-led development' methods I know in history.

'96 election ended.

Still same ranking just different proportions from first to fourth party Democratic-Conservative-Labor-Progressive.

Winter where snow piles knee-deep in one day, this agricultural country just quiet when snow falls.

Don't much like this country's behavior stopping just because bit cold, some snow fell.

"Hope it gets bit livelier from coming new year. Even in winter."

I want to breathe vitality into this boring, quiet medieval country through policy finance.

Treasury endlessly accumulating 13 years with deficit finance resolved.

Successful gold standard settlement over past year.

And newly established Imperial Industrial Bank too.

"Just look at Professor Bunge running wild in Far East, era where policy finance sufficiently works."

Time has come to inject drugs into this country's capital with only noble bank and peasant land bank.

==

"Your Majesty! This isn't banking but investment! Though you said for imperial capitalism's growth, this is practically like injecting drugs!"

"It's fine I tell you. This is like therapeutic drug."

"How can you be so certain when massive national tax might be invested in land reform anytime?"

"Because I prescribed it."

That the moderate bureaucrats' leader Witte rushes in with blazing eyes. Thought at least he could see macroscopic fruits beyond myopic harms.

"I... cannot understand. Though late starter, empire has steadily grown recently. Not missing single year!"

"Know how long that'll continue?"

"Right, I too can't be certain. So more don't understand why you'd risk such danger."

First, I don't expect Duma to solve unanswerable land problem this year either.

And clearly watched gold standard successfully settle last year.

Meaning I see this year as perfect timing.

"Fail then Soviet Union, succeed then Republic of Korea..."

"What? Though don't understand what you're saying... Your Majesty doesn't know capitalist kinds so that's why. They'll move to fill their bellies under pretext of policy finance support!"

"That's it! The industrialists I want filling their bellies!"

Of course. Would bourgeoisie not drool seeing policy finance? They were at level of making credit unions lending emergency funds and guaranteeing each other, then suddenly state offers money.

"However, they must do business designated by state."

Modern logic that market (demand) naturally creates suitable companies (supply) when created. I lack patience to wait for that.

'Let's try supply first. Know prototypes? Need products first whether domestic or foreign demand.'

People should have pioneering spirit, Minister Witte too negative.

"Or fill with state enterprises every time like until now? State enterprise proportion in taxes already gradually increasing?"

"Didn't you acknowledge that part resolves through gradual reform?"

"Acknowledge. Instead takes insanely long."

Glancing around room not just Witte. Commerce Ministry, Industry Ministry, Finance Ministry, Agriculture Ministry, State Assets Ministry.

Just all bureaucrats with even slight foot in this policy rushed in shouting opposition.

'Not that I don't understand their feelings.'

Since policy finance in Russia only existed as farmer debt forgiveness until now.

Perhaps my words "let's raise bourgeoisie" provoked resistance from inside these elites who studied to rise here.

"Sorry, but only ministers stay, rest leave."

But originally living in capitalist society, can't grow overall pie with such mindset.

What nonsense despising bourgeoisie while wanting growth.

"Perhaps. If thought I strengthen imperial power freely wielding capitalists through policy finance... want to say that's misunderstanding."

"..."

"Really."

"Isn't it?"

"..."

Each sentence exchange blocking once shows how many thought gaps exist.

No but though no precedent until now, saying this works!

Of course don't misunderstand what Witte claims.

Judged budget shouldn't leak to policy finance when state's basic foundations not even solidified.

'Actually Soviet Union blew everything else including agriculture while developing heavy industry from 1920s.'

They say Soviet Union routinely had about 5 million starve during famines then.

But again, this country currently ranks first in both agricultural production and exports.

Not lacking food to eat if state just doesn't take.

"I thought Your Majesty pitied poor farmers. Thus believed you'd quickly reduce their suffering."

"Suffering, will reduce that. Though land reform won't happen short-term."

Not like I pushed policy finance forgetting original Russian history. State develops but complaints inevitably accumulate.

"What... do you mean?"

"Though can't reduce farmers' suffering itself, will make them forget and endure with hope and pleasure." 𝒇𝒓𝙚𝒆𝔀𝓮𝓫𝒏𝓸𝙫𝓮𝓵.𝓬𝙤𝙢

Think I only prepared drugs for bourgeoisie? Of course also prepared customized blue pill for those in countryside who are also my imperial subjects.

"Seems I can't follow what Your Majesty's saying. More explanation-"

"Ah, can confirm that later through newspapers. See farmers' reactions then, if complaint resolution doesn't decrease I'll reconsider once more."

"...Understood."

Good, fine understanding until here.

Can't even start if ministers before me and bureaucrats below oppose from beginning when doing policy finance.

After all they're ones directly injecting capital.

"And there are positive fields included in this policy finance. Content you'll like too."

"What is it?"

"Construction. For you I'd say 'railway construction'."

How long will state stand forward doing railway construction. Already construction speed all different by section.

"Sections slow as if constructing with teaspoons. Just entrusting some sections between Chelyabinsk and Vladivostok would complete much faster."

"That... seems fine."

Truly capitalism's basic quality efficiency might shine.

"Now then, I'll consider all agreed!"

Hmm, somehow feel reliable that my empire's highest bureaucrats agree so much with my policy.

Though ministers leave creaking as if feet won't lift well, still believe their true hearts same as mine.

==

Few weeks before policy finance implementation, news shaking empire arrived from Duma.

[Land Holding Tax Introduction Emerges!]

[Representative Beren Volkov, All Equal Before Tax Whether Noble or Farmer.]

[Land Tax, Stepping Stone for Farmland Redistribution?]

Was small firework Volkov shot up too bright for this dark empire?

Everyone starts stirring transcending region, religion, race.

Though don't know about passage yet and seems fighting back and forth over this in Duma, at least framed one thing well from start.

'Land tax - tax wealthy farmers pay.'

Whether becomes stepping stone for land reform or torments poor independent farmers through land price collapse.

At least recognition of land tax stuck in minds like that.

Poor farmers don't know about mir crisis or double taxation.

Just one thing engraved in their minds that Duma representatives stepped forward one day to beat down landowners.

And that effect was truly excellent.

"Director, how's reaction?"

"Nothing particular to investigate. Even those opposing mir dissolution, no one in countryside dislikes land tax introduction. Isn't it policy hitting tax on specific targets from start?"

"Well, who'd dislike besides major landowners."

Smile gently forms on my lips hearing our poor farmers happy.

Is this parent's heart ruling empire? Truly warm feeling one corner of chest swelling.

'Ah, how can hold coronation when Duma draws attention so well.'

Coronation failed this year too.