Modernization through Japanization? The Japanese system and state-socialist Poland’s economic reform

In 1971, Polish policymakers embarked on a quest to modernize the socialist economy. The paper explores the influence of the Japanese economic system on Polish press coverage and expert recommendations. It argues that the discourse surrounding Japan reflects a consistent advocacy for market-oriented policies in late socialism. This phenomenon is evident through diverse initiatives, including the pursuit of foreign currency, as well as restructuring in labor, management and state planning. The analysis compares the recommendations related to the Japanese system with the eventual implementation of export-oriented, broad industrialization financed through foreign debt and reliant on inexpensive labor. Exogenous and endogenous factors presented challenges for exports, with the technology gap emerging as a pivotal issue. While recognizing the hybrid nature of Japanese state-socialism-like capitalism, experts overlooked crucial elements, including selective financing of industrialization, the role of entrepreneurship in long-term planning, and investments facilitated by a forceful banking sector. Journalists and experts cited Japan's 'traditional' thriftiness as a rationale for preserving surplus-generating inexpensive labor. Despite the distorted image of the Japanese alternative, it contributed to the domestication of market socialism in Poland, reinforced concepts of flexibility and convergence, and played a vital role in the Polish discourse on economic reform.