6. Social and economic change (1855-94) Flashcards
Why was it the state that had to drive economic growth in the late 1800s?
There was no real middle class (unlike in Western countries) so no entrepreneurs to drive growth. The state had to take the leading role.
Who was Mikhail von Reutern and what reforms did he bring in?
Minister of Finance (1862-78)
- Tax-farming abolished
- More indirect taxation
- State bank established 1860 [not under him]
- Govt subsidies for private railway construction
What industries began to grow in the 1870s?
- 1871: Oil extraction began in Baku
- 1872: Ironworks set up in Donetsk
In what ways did the economy remain weak (1855-94)?
(How much spending on debt repayments? How much income from indirect taxes?)
- 1/3 of govt spending was on debt repayments
- Value of rouble fluctuated a lot
- 66% of govt income from indirect taxes (less reliable)
- Failure of emancipation meant peasants remained poor and internal market remained small
Was the reduction in tariffs successful?
(1855-94)
Not really. Reduced govt revenue and they were brought back in 1878.
When was Vyshnegradsky the Minister of Finance?
1887-92
What policies did Vyshnegradsky bring in?
- 30% tariff on raw materials, to boost southern Russia’s iron industry
- Increased indirect taxes
- Increased grain exports 18% from 1881 to 1891
Why was the increase in grain exports under Vyshnegradsky not a good thing?
- Many peasants had grain requisitioned by the state to be exported.
- Vyshnegradsky said, “We ourselves shall not eat, but we shall export”
- This meant there was no spare grain, so during the Great Famine (1891-92) food shortages were exacerbated by Vyshnegradsky’s policies
How many of Russia’s 39 provinces were affected by the Great Famine (1891-92)?
17
How did the Great Famine undermine confidence in the regime?
- Govt requisitioning of grain had left grain stores empty, exacerbating the famine.
- The govt did little to support the people, and the zemstva had to step in to provide aid.
When was Sergei Witte the Minister of Finance?
1892-1903
By how much did foreign investment increase from 1880 to 1895?
98m roubles -> 280m roubles
How much of the railway system was state-owned by the 1890s?
60%
What did Witte encourage to help build the railways and improve industries?
- Foreign investment
- Foreign expertise: engineers and managers from Western countries like France, to oversee the growth of the railways
How many nobles owned their own business in Moscow by 1882?
Over 700.