ocesses, when launched at length in a backward country, showed considerable differences, as compared with more advanced countries, not only with regard to the speed of the development (the rate of industrial growth) but also with regard to the productive and organizational structures of industry which emerged from those processes." For example, in England the industrialization process occurred gradually and earnings from the accumulation of trade and agriculture financed further industrial advancements. England already possessed considerable entrepreneurial talent and sources of long-term capital. In contrast, most countries in Eastern Europe felt pressured to accumulate resources for industrial advancement rapidly, and thus resorted to more creative, non-traditional banking practices.
Russia presented a special case in terms of securing the capital necessary for industrialization. Russia lacked the creditworthiness to attract the necessary funds for large-scale industrialization. Fraud pervaded the Russian business community and incompetence characterized t
...