Japan had economic needs, but lacked resources. Nationalism and strong ambition to be equal to West pushed it to rise to power. Reformed government; all citizens were equal before the law, emperor had unlimited power, legislature/Diet formed with one elected house and one house appointed by emperor. Separate finance, army, navy, and education departments. Military improved through new technology. Modern banking system, railroads, ports, telegraph and postal systems. Factories were built and sold to wealthy business families.