Abstract
The purpose of the symposium was to inquire into the necessary conditions for the growth of industrialization in Europe, China and Japan. The main point to be discussed was the institutional and political implications of regional industrialization. Although industrialization started in England, it must be viewed as a dynamic process within a European context. The 'Chinese Empire' and the European 'States System" had a quite different effect On industrialization. First, for the development of industrialization, the states system provided favourable conditions, while the empire provided adverse ones. The princes in Europe competed for ascendancy with each other and tended to provide favourable conditions for their subjects in order to increase the revenue for strengthening their military forces. Since the Chinese Emperor, lacking internal and external competitors, used both military forces and the cultural means for government, he did not have to concede to merchants or financiers to obtain revenue. He was thus incapable of providing such infrastructures as decent credit arrangement for the peasantry, and a judicial system to secure property rights and enforce the observance of contracts. Secondly, under the distinct state power patterns, different credit systems developed. In China or in other areas outside Europe, the credit networks were formed among bill merchants and financiers, but were scarcely developed among the commoners such as peasants and small craftsmen. In Europe, especially England in the eighteenth Century, there was a mature credit system which made it possible for commoners to tie up capital in machines or mills, without collection over a certain period; investment of fixed capital was essential for industrialization. Individuals of various social status, including lesser merchants and manufacturers, drew and received inland bills of exchange. There was no real guarantee or formal process, however, that regulated the mechanism of credit in this period. Thirdly, voluntary associations made amends for the unstable credit system. These were clubs which performed social functions as protection against adversity and had an elaborate system of reciprocal obligation. As members of the associations gained confidence, they could get short term loans, were allowed to postpone repayments and could find customers in the association.
