6: economic development 1855-1894 Flashcards
what was industrialisation in Russia largely driven by
the state
why was industrialisation largely driven by the state
in a deliberate attempt to match the economic development of western europe
who was AII minister of finance 1862-78
von Reutern
what were reuterns reforms designed for
to boost the economy and provide funds to drive industrial growth
reuterns reforms
- treasury reformed
- new arrangements for collecting taxes put in place
- tax farming abolished
- tax system reformed
- banks and credit facilities extended
- state, municipal and savings banks established
how was trade promoted under reutern
reduction of import duties 1863
what were offered to private entrepreneurs to develop railways under reutern
government subsidies
how was foreign investment encouraged under reutern
government guaranteed annual dividend
for what industries was government support offered under reutern
cotton and mining
what did reuterns reforms force tax farmers to do
look elsewhere to invest
how did reuterns reforms encourage enterprise
opportunities provided by gov subsidies and trade treaties
what did the use of foreign technical expertise and capital support under reutern
industrial expansion (railway saw expansion)
what was the annual growth rate during reuterns term of office
6%
what were the new developments under reutern
oil extraction, ironworks
how did economy remain weak despite reuterns reforms
- 1/3 gov expenditure went on repayment of debts
- rouble subject to variation
- limitations of emancipation edict kept peasantry poor and domestic market small
- tariff reductions meant decline in gov revenue
when was the decision to raise tariffs taken
1878
when did Vyshnegradsky take over as minister of finance
1887
what was the import tariff designed to boost under Vyshnegradsky
home production and helped iron industry and development of industrial machinery
how did Vyshnegradsky balance budget whilst financing enterprise
- negotiated valuable loans
- increased indirect taxes
- mounted a drive to swell grain exports
how did Vyshnegradsky policy appear successful on surface
1881-1891 grain exports +18% and Russian budget in surplus
what was Vyshnegradsky export drive achieve at expense of
peasants who paid taxes and saw their grain requisitioned by state
what did Vyshnegradsky famously say about exports
‘we ourselves shall not eat, but we shall export’
what did Vyshnegradsky export drive ultimately lead to
widespread famine due to bad harvest and no reserve stores
who was Vyshnegradsky successor
Witte
what was Witte totally committed to
economic modernisation as a means of curbing revolutionary activity
what did Witte believe was only way forward
continue with protective tariffs, heavy taxation and forced exports to generate capital
what did much of Wittes investment go into
mining, metal trades, oil and banking
who did Witte encourage to oversee industrial developments
foreign engineers to advise on planning and techniques