Methamphetamine or Vitamin? (1)

South Korea, a country I know almost as well as Russia. Its economic history is quite unique.

After liberation in the 1940s, asset seizures and land reforms wrapped up, and then the war hit. The peninsula was a mess.

Split in half, battered by postwar fallout—what a sorry state.

A nation on life support through foreign aid. That was South Korea.

War funding? Covered by printing money, crashing the won’s value.

Infrastructure and agriculture? Wrecked. Exports and imports? Nonexistent.

By the early 1950s, GDP halved in three years. Hospitals, administration, roads, infrastructure, electricity—basic state functions, gone.

All that survived was an army, gobbling up money and manpower.

You might think, Isn’t that just any war-torn country?

What impressed me wasn’t this dark age but what followed.

The 1960s, when South Korea reorganized and started growing.

“A nation with just the Industrial Bank and Agricultural Bank suddenly started creating special-purpose banks,” I mused.

1961: Small and Medium Enterprise Bank, Agricultural Cooperative. 1962: National Bank. 1967: Export-Import Bank, plus foreign bank branches.

Set up financial systems, draft development plans, then build banks.

Banks don’t thrive on their own, so the state strategically allocates project funds.

From the 1960s, South Korea stuck to this for over 30 years, regardless of regime.

State-led policy finance, pumped out endlessly.

Did these government-backed banks turn profits from the start?

Nope. For 15 to 30 years until the 1970s, they racked up massive losses (debt forgiveness, below-market loans).

In 1963, 73% of new loans were policy-driven. Until the 1980s, policy loans exceeded 60% of total lending, except three years.

South Korea’s policy finance numbers were unmatched globally.

As a history nerd, this blew my mind.

Koreans might think the Saemaul Movement sparked growth.

True, it was the start.

The next generation says conglomerates went global, earning foreign currency.

Also true. In the high-growth era, big firms chased overseas markets fearlessly.

But behind it all? Policy finance.

Sure, grown companies birthed new ones, but when the state yelled, “This year, we’re jacking up chemical industry policy loans!” firms nationwide dove in.

That’s how South Korea grew. Not foreign or private investment—state policy finance.

I’m not blind to its flaws.

“Of course there are downsides. Shoddy firms pop up, tax waste causes uneven growth, wealth redistribution shrinks—issues galore,” I admitted.

But whining about flaws comes after growth kicks in.

Because I’ve never seen a faster, more efficient “state-led development” method in history.

The 1896 election’s done.

The top four parties—Democrats, Conservatives, Labor, Progressives—same order, just different shares.

In this agricultural nation, winter buries everything under knee-deep snow, and it goes quiet.

I don’t love how this country stalls when it’s cold or snowy.

“From next year, I want some noise, even in winter,” I said.

In this dull, medieval land, I’ll inject policy finance to spark life.

Deficit spending’s gone, 13 years of hoarding filled the treasury.

Last year’s successful gold standard adoption.

And the new Imperial Industrial Bank.

“Look at Professor Bunke thriving in the Far East—policy finance works in this era,” I thought.

With only noble and peasant land banks, it’s time to dope this nation’s capital.

“Your Majesty! This isn’t banking—it’s investing! You said it’s for imperial capitalism’s growth, but it’s like shooting up drugs!” Witte protested.

“It’s fine. Think of it as medicine,” I countered.

“With land reform’s massive costs looming, how are you so sure?” Witte pressed.

“Because I prescribed it,” I said.

Of course, it’s Witte, the moderate bureaucrat leader, charging in with fire in his eyes. I thought he’d see the big picture over short-term flaws.

“I… can’t understand. The empire’s grown steadily, despite being a latecomer. Not a single year missed!” Witte argued.

“How long will that last?” I shot back.

“Exactly, I’m not sure either. That’s why I don’t get risking this!” Witte said.

I don’t expect the Duma to solve the land issue this year.

I saw the gold standard settle successfully last year.

This is the perfect time.

“Fail, and it’s the Soviet Union. Succeed, and it’s South Korea…” I muttered.

“What? I didn’t catch that, but… Your Majesty, you don’t know capitalists. They’ll fatten their wallets under the guise of policy finance!” Witte warned.

“That’s the point! I want industrialists fattening their wallets!” I said.

Obviously. Why wouldn’t bourgeois drool over policy finance? They’ve been scraping by with credit unions and mutual guarantees—now the state’s handing out cash.

“But they’ll only get it for state-designated projects,” I added.

Modern logic: demand creates supply. I don’t have the patience to wait.

Supply first. Ever hear of a prototype? You need a product for domestic or export markets.

People need pioneering spirit. Witte’s too negative.

“Or what, keep relying on state-owned firms? Tax-funded enterprises are already eating too much,” I said.

“You agreed gradual reform would fix that,” Witte countered.

“Sure, but it takes forever,” I replied.

It’s not just Witte. Commerce, Industry, Finance, Agriculture, State Assets—every ministry touched by this policy is screaming opposition.

I get their feelings.

Russia’s policy finance has only ever meant peasant debt relief.

To these elite, studious bureaucrats, “grow the bourgeois” probably sparks gut-level revulsion.

“Sorry, but ministers stay—everyone else, out,” I ordered.

You can’t grow the pie in a capitalist society with that mindset.

Hating bourgeois while craving growth? What a crock.

“Maybe you think I’m using policy finance to control capitalists and strengthen imperial power. That’s a misunderstanding,” I said.

“…” Silence.

“For real?” I pressed.

“It’s not?” Witte ventured.

“…” More silence.

The pauses showed the gap in our thinking.

There’s no precedent, but this’ll work, I swear.

I get Witte’s point.

The nation’s foundations aren’t solid, and policy finance could drain the budget.

Soviet heavy industry focus in the 1920s tanked agriculture and everything else.

Back then, famines killing 5 million were routine.

But again, this empire leads in agricultural production and exports.

As long as the state doesn’t steal, there’s enough food.

“I thought Your Majesty pitied poor peasants, aiming to ease their pain quickly,” Witte said.

“I will. Land reform won’t happen fast, but I’ll help,” I said.

Did I forget original Russian history to push policy finance? Progress breeds discontent.

“What… do you mean?” Witte asked.

“I can’t erase their pain, but I’ll give them hope and pleasure to cope,” I said.

Think I’d prep drugs just for bourgeois? My rural subjects get a tailored blue pill too.

“I’m not following, Your Majesty. Please explain—” Witte started.

“You’ll see in the papers. Check the peasants’ reactions. If discontent lingers, I’ll rethink,” I cut in.

“Understood,” Witte said.

Good enough.

Policy finance won’t start if ministers and bureaucrats keep opposing it.

They’re the ones injecting the capital.

“Also, there’s a positive sector in this policy finance. You’ll like it,” I said.

“What’s that?” Witte asked.

“Construction. Or for you, ‘railway projects,’” I said.

How long will the state run railway construction? Sections already crawl at different speeds.

“Those snail-paced sections from Chelyabinsk to Vladivostok? Hand over a few, and they’d finish faster,” I said.

“That… sounds good,” Witte admitted.

Efficiency, capitalism’s core, might shine.

“Alright, I’ll assume we all agree!” I declared.

My empire’s top bureaucrats backing my policy? Feels reassuring.

They shuffle out reluctantly, but I believe their hearts align with mine.

Weeks before policy finance kicks off, Duma news shakes the empire.

[Land Holding Tax Proposed!]

[Veren Volkov: Before Taxes, Nobles and Peasants Are Equal.]

[Land Tax: A Step Toward Land Redistribution?]

Was Volkov’s firecracker too bright for this gloomy empire?

It’s got everyone—region, religion, race—stirring.

It’s not passed yet; the Duma’s brawling over it, but the frame’s set.

“Land tax—rich farmers’ burden.”

Will it pave land reform or torment small farmers with crashing land prices? Who knows.

At least “land tax” is burned into minds.

Mir crises, double taxation—poor peasants don’t care.

They just see Duma members vowing to crush landlords.

And it’s working like a charm.

“Director, what’s the reaction?” I asked.

“No need for surveys. Even mir defenders don’t hate the land tax in the countryside. It targets specific groups,” the director replied.

“True, who’d hate it besides big landowners?” I said.

My poor peasants are happy. A smile creeps onto my face.

Is this the heart of a father ruling an empire? Warmth swells in my chest.

With the Duma stealing the spotlight, how do I hold a coronation?

Another year without one.