Most countries confronted with this problem—how to finance development without sufficient domestic savings—will opt to accept foreign investment. That is what China did in 1978 after Deng Xiaoping consolidated his control of that country. That is what the United States did in the nineteenth century when it relied on capital raised in the City of London to finance the building of its railroad network. But the Japanese were determined not to allow any significant part of their economy to fall under the control of foreigners.
