MeanMrMustard: It is not what you think. This village is basically a corporation using labor from the surrounding towns, paying them a wage, and producing products (like steel) to sell and realizing the profits because they can calculate their inputs and outputs due to prices. The workers coming in from surrounding towns are glad to work for these capitalists because it improves their standard of living. Nothing wrong with that...
Smile, I'm happy you picked up on that point (I wondered if anyone would notice that development).
But it does not take away from the fact that at the start of this village's development all the labour was internal to the village. The use of non-village workers only came with success. But yes, you're basically correct in saying that the village became a corporation.
And whether, a business enterprise is owned by one individual, or by a company or by the government is not particularly important. What's important is that has the following:
1. Access to adequate capital.
2. Skilled management.
3. Skilled technicians.
4. Good accounting practise.
Japan is noted for its fast industrialisation in the late nineteenth and early twentieth century. And, even though there was at times insufficient private capital to start a factory making a certain product, the government was prepared to step in and start a business making the product and later sell the business.
It may be noted in this discussion that government ownership was common in the past. Right across Asia there is evidence that governments initiated production facilities. For the reason already stated, that there was insufficient private capital available for the project. Not surprising when you consider that most of the population (say 80% to 90%) was engaged in agriculture. Only the state had the resources to inject capital into some enterprise.
Lack of capital is the limiting factor in many economic projects. When the CPC came to power in China, they inherited, not only a war ravaged economy, the warlord era, the Japanese war from 1937 and the civil war - 1945 to 1949.\, but also a shortage of capital. (The defeated GMD (or KMT) took China's gold reserves with them - one reason why Taiwan developed so fast. That was the basis of many of the problems they experienced on the road to where they now are).