章節 14: Colorless King (1)

Development and reform, except for policy aspects, occur entirely in the private sector.

Whether it's technology or development, ultimately someone in the private sector achieved it, and it somehow connects to the state.

That's how the great powers have developed until now.

Truly an era of barbaric liberalism.

Freedom to do anything, and responsibility for whatever one does.

Well, while other great powers have grown this way, could Russia do the same?

"Is it not possible?"

"Roman, how could it be? If it were, Beren, who was a chief adjutant like you, wouldn't be doing military supply work here."

"Hmm, but I heard Beren seems to have found his calling rather late..."

"Though Beren retired, he's not completely civilian, is he?"

This country is basically so large that domestic markets aren't connected to each other, and imports and exports are absolutely conducted under state leadership.

Imports and exports aren't particularly complicated. Remove all the miscellaneous items and there's ultimately one export product. Food.

"Half of the world's rye, 25% of grain, and 20% of wheat are produced within the empire. Even these shares are steadily increasing."

Naturally, agriculture has the largest share in domestic industry, and society, economy, and culture are all aligned with this agriculture.

In this state, leaving the empire's development to the 'private sector'?

"We're neither America nor England. We're not a country where the private sector takes care of things if we just sit back."

The people of this country are still more accustomed to cursing landowners than capitalists.

"That's not to say I'm dismissing agriculture, which is the foundation of our industry. Even now we have high market share, and if it increases further, the day might come when the empire controls world food prices at will. But I'll say again, in the Far East, you can't even cover military expenses if you collect taxes from agriculture."

Then what should be done with this primitive Far East that has nothing but money?

Since there wasn't time to wait for Roman to carefully come up with an answer, I immediately gave an example.

"1883. The Meiji government gathered commoners, kazoku (Japanese nobility), the Emperor, banks including Mitsubishi, and established a joint venture called Japan Railway. With cooperation from the military and police, and transfer of telegraph and postal business rights, a national policy company was born with massive vested interests concentrated in it."

What was the situation in Japan at that time? It was a period when they had to pursue reforms while struggling with poverty and farmland incomparably smaller than present-day Russia.

Following the technology dropped by the great powers, they picked up pieces one by one, and until the 1880s, there remained fear that Japan might fall into becoming a colony.

"Though I don't particularly like Imperial Japan, this part was truly impressive. A national policy company that operates like a private enterprise with state backing. It was truly a timely choice."

This form wasn't limited to railways alone.

If necessary, the state would select private companies and almost forcefully make them participate in national projects, and even in massive construction projects like roads and ports, the Japanese government mixed private sector participation in appropriate ratios to create new enterprises.

The government sows the seeds, the private sector nurtures them, and the government takes the fruits.

The advantage of this method is that groups with purpose suited for specific situations fit together exactly like cogwheels.

"Your Highness, wouldn't this approach lead to too many competing opinions making management difficult? State responsibility would increase, inefficiency would grow, and things would become sluggish. Issues of income and distribution are problems for all companies."

"Oh? Have you read Pareto's efficiency theory? You've done some studying, I see."

Yes, this is the common conclusion from the minds of the empire's elite who received the best education.

The state is inefficient. State responsibility only increases. The state ultimately cannot take on the role of management.

However, I declare this thinking is wrong.

What if the state isn't seeking the best but rather the second-best option?

What if it's pursuing public benefit and the interests of the whole group rather than private interests?

Ah, then the story changes.

Even if there's a deficit, that's fine, and even if there's a surplus, they don't get particularly fixated on money.

Though this concept might be very awkward for him, it's very familiar to me.

Because a company that pursues public good more than any other company.

In the future, this was called a public corporation.

"Let's take our case as an example. When that Manchurian railway is completed, how should it be operated? Should we select operators by region and allocate sections like Britain? Or should we do it like America, taking responsibility from construction to operation?"

"We... shouldn't the Governor-General's Office operate it directly? Though it would need quite a lot of management, wouldn't that be the best option?"

"The best railway expert I know, Finance Minister Sergei Witte, would say this: Give them massive money and point a gun at their head."

The disadvantage of public corporations. They typically conduct monopolistic businesses and easily stagnate like still water.

So here, I want to look at Japan's case again.

How could the South Manchuria Railway Company, which once handled 25% of the Japanese Empire's revenue as a single company, maintain its size while extending into almost every aspect of Manchuria including not just railways but also ports, oil refining, mining, distribution, manufacturing, publishing, education, healthcare, and agricultural products?

The answer was simpler than expected.

"Delegated management."

In the long term, having the Governor-General's Office employ tens of thousands, manage them, and furthermore be responsible for the entire industrial infrastructure? Moreover, from a Governor-General's Office mostly filled with military personnel?

Though administrative hiring has increased yearly since Witte became Finance Minister, they'll probably still suffer from personnel shortages even after 10 years.

"You're a soldier. Not a capitalist or industrialist. Just make sure the gun barrel doesn't shake. Just keep your trigger finger well-placed."

This is the form of public corporation suited to this era.

"Even without explaining it like this to you, there are probably those who already sense it. Beren, who was chief adjutant? He probably knows. That if he isn't selected as the Governor-General's Office's optimal choice, he'll ultimately be discarded."

Nevertheless, Beren said he was happy coming to the Far East. Because his pocket situation became comfortable enough to erase such anxiety.

"That's about it for theoretical education. Any questions?"

"I've always wondered... How do you know all this, Your Highness?"

Ah, did I get too excited and pretend to know everything?

Roman, whose gaze had moved beyond student admiration to the stage of doubt, opened his eyes halfway suspiciously.

After hesitating briefly with my answer, I called out one name.

"Ah, Bunge. Didn't I learn from Professor Bunge? You know he was driven from the Finance Minister position because of his state-directed policies?"

"Hmm, certainly if it's the empire's top economics professor..."

"So this method can only be used in the Far East. It's something only you can do in the empire, right?"

I forgot briefly, but though my status was high, I'm still just a 27-year-old youth born in '68.

Bunge's name carries more credibility than mine.

Using his name, I instilled confidence in Roman as if this were the predetermined answer.

"This is, you know, a method that already succeeded in Germany?"

"So it's the best method when conditions are met."

"Yes, the state view and economic theory that Bismarck proved and Bunge acknowledged! You'll be implementing it with your own hands in the Far East!"

"I see."

Though pushed out of politics, Nikolai Bunge is someone even Witte can't match in scholarship.

"Ah, this method has already been proven by Bunge, who is an Imperial Doctor of Political Science and member of the St. Petersburg Academy of Sciences-"

"According to Chairman Bunge of the Committee of Ministers who oversees the ministers-"

Well, what can I do? I'll just have to use Professor Bunge's name.

Thus, the week passed instantly despite its dense content.

After teaching while staying close every day, the minimum direction I wanted to instill in Roman seemed somewhat established.

'If anything's lacking, I can contact him through the communications department even if it's late.'

Since this communications department itself is the department receiving the most budget from the imperial government except for that railway project, it was more developed than I expected.

Though long-distance wireless communication hasn't been introduced yet, befitting such a large empire, the obsession with 'speed of delivering news' has long exceeded imagination.

During father's time, the communications department grew for purposes of suppressing rebellions in occupied territories and defending excessively wide borders.

That's also why we received the news of his death as quickly as possible.

Now it's really time to return.

When I return, I probably won't be able to pay detailed attention to the Far East for a while.

"Roman, I'll trust you and head back. Sigh, just thinking about holding the coronation ceremony is already giving me a headache."

"Coronation ceremony? Don't you have other matters before that?"

"Other matters? Did something happen in the capital?"

"To become head of the imperial family, shouldn't you get married first?"

"Ah."

Marriage, come to think of it, after living in military units for the past few years and coming straight to the Far East, it was an aspect I hadn't paid any attention to.

Marriage, really.

This is a serious matter.

Because.

'I don't have anyone to marry.'

How can I talk about marriage when I haven't even dated?

After Crown Prince Nikolai left Khabarovsk with a dumbfounded face.

Roman, feeling his shoulders crushed by the massive task given, tried to shake off needless anxiety.

'I can do it. The fate of the Far East lies in my hands.'

The success and confidence that His Highness directly showed would guarantee a brilliant future.

As a servant and soldier, he just needed to follow the orders given.

While reassuring himself with such thoughts, a hand landed firmly on Roman's shoulder.

"Whew, he's finally gone."

"Hm? Admiral Romen, isn't it? Come to think of it, where have you been? I didn't see you even in Vladivostok."

"I just briefly showed my face when he first arrived, then stayed hidden as much as possible."

Stayed hidden? While His Highness is giving his all to develop the Far East, how can a servant so boldly speak of avoiding his duties?

Seeing Roman's contemptuous gaze, Admiral Romen smiled wryly and said.

"Looking at how full of dreams you are, I can tell exactly. Let's see, did His Highness the Crown Prince talk about this Far East like it's a land full of dreams and hopes?"

"..."

"He probably gave you massive freedom and said he'd remove term limits. Support? Oh my, he must have promised plenty of funding. Right?"

"...That's correct."

That was exactly how a sergeant looks at a newly enlisted private. Right now, Romen's eyes and mouth were full of mockery and composure, as if he knew everything.

"You poor fellow. You still don't know your fate. I came here 3 years ago. Our Highness's instructions were so precise, it seemed like everything would work out exactly as he said!"

"You seem to be saying it's not so."

"Tsk, since it's too late for you to run away like me, I'll tell you the reality. Saying they'll give lots of money means there will be lots of expenses. When handling large sums, your hands tremble, but make one mistake? Oh my, you'll be dragged away as a corrupt officer for daring to disobey the imperial order."

Romen's exaggerated gesture showed the illusion of handcuffs being placed on his wrists.

"Is that all? This Far East has no educated talent. The absence of educated people means you have to do everything. Subordinates resent you, His Highness up there is scary, and you can't even go to another region now. Do you understand why I was hiding around?"

"I'll be diff-"

"Different? Hey, with my military experience and life seniority being 10 years more than yours, how could I not know? Well, you'll understand when you experience it."

With each exchange of words, as Roman's confidence was drastically shaved away, anxiety mixed into his eyes like impurities.

Only then, seeing Roman who had somewhat realized reality, Admiral Romen laughed heartily.

But that was brief.

Turning serious and returning to his sharp military bearing, he extended his hand to Roman who was staring at the ground.

"Welcome to hell, comrade."

"Ah..."

Now he realized Admiral Romen wasn't mocking or dismissing him.

He was sincerely pitying Roman.

Watching Roman, stunned by the terror he hadn't yet felt, Romen quietly muttered.

"It's no good if you break down already. You still have a long way to go."

It was truly words that only someone who had experienced hell could say.

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