3)CH1: (TRA) Economic Context Flashcards
How the Russian economy in comparison to other countries in Europe? Why.
1855, Britain, Belgium, France and the German states were industrially advanced.
Meanwhile, the Russian economy remained predominantly rural. This was partly because the inhospitable territory and climate in much of Russia limited economic progress
What was the main reason for Russia’s economic backwardness?
- The serf-based economy which limited the forces that drive change (wage-earners, markets and entrepreneurs):
1) Wage earners: The serfs who were poor just about managed to survive on the produce they grew, and starvation meant that individual serf families worked scattered strips, following communal farming pattern. There was little opportunity for them to develop into wage-earners.
2) Internal market demand: Although markets existed, few goods were ‘purchased’; instead, goods were exchanges.
In some areas, market forces were beginning to develop as peasants sought wage-work in towns when farming was slack, but for most, money was irrelevant and there was no internal market demand
3) Entrepreneurs: At the other end of the scale, the small landowning elite could largely obtain what they needed by squeezing it from their serfs through service and feudal dues.
Although many landowners were in debt, money was of little use to them. There was therefore little incentive to seek alternative ways of making money.
