A once-dominant family of interpretations of the beginnings of Japanese and Russian development claimed that policies adopted by the two states were inadequate to modernize agrarian property relations, and so both states were required to mediate between premodern agriculture and “hot-house” modern industry. More recent accounts have insisted that despite the limited reforms to agrarian property relations, agriculture in both countries in fact dynamically participated in economic development. This paper contends that these revised accounts’ one-sided focus on market opportunities leaves unresolved key puzzles. Why did productivity growth jump higher after the Meiji reforms in Japan? Why did only some regions participate in agricultural development in Russia? To answer these questions, this paper argues it is necessary to return attention to the ways agrarian property relations did and did not change following reforms adopted by the two states in the 1860s and 1870s. The key theoretical upshot of this analysis is that the initiation of capitalist development required a political process in which institutions that had previously guaranteed non-market access of rural households to subsistence were dismantled in favor of the domination of market relations.