Alexander II Economy 1855-1881 (Unit 1, Topic 1) Flashcards
What is a Serf Based Economy?
All serfs are tied to their land and cannot seek other employment elsewhere. Focus was on survival, with dues to pay to their masters. Landowners were kept happy with their status quota
Why was the Economy a Cause for the Emancipation Reform?
Many government officials and advisors believed that abolishing serfdom was necessary if the economy was to advance. Some officials and intellectuals accepted that the arguments of economists that free labour was more productive than forced labour. You needed a free market where peasants can walk around and be most productive in agriculture and industry
What were the Financial Problems?
-Following the Crimean War debt had increased drastically to 556 million roubles
-Tax farming (only 1/3rd of taxes made it to the government)
-The value of the rouble was unstable
What Actions were Taken to Address Financial Problems?
Tax farming was abolished (groups could no longer collect taxes). The treasury was reformed with budgeting and auditory systems being introduced making tracking payments easier. Credit facilities were made through establishments of banks. State bank (1860) Municipal State Bank (1862) Savings Bank (1869)
What were the Limitations to the Financial Actions Taken?
The value of the rouble was still unstable and a 1/3rd of government expenditure still went to paying off debts
What Industrial Problems were there?
They were industrially behind the West, underdeveloped, small-scale industrial facilities, domestic based, poor connections between towns and cities
What Actions were Taken to Address the Industrial Problems?
Subsidies offered to railway companies, government supported cottage industries, joint stock companies made new regulations to protect investors.
Growth of metallurgy and cotton industries, new industrial developments including coal, iron and oil, Naphtha extraction company set up by Swedish brothers (1879), growth of the railway networks from 3000 to 13,270 miles by 1881
What were the Limitations to the Industrial Actions Taken?
Textile industry was still dominant, transport and labour still remained low with growth being slow and economy remaining weak. There was limits to the emancipation and a reliance on indirect taxation for 2/3rds of government revenue
What were the Agricultural Problems?
Low productivity, serfdom stops progress, limited fertile land, Black Earth region was overcrowded, unpredictable rainfall, lack of technology and conservative Mir
What were the Actions Taken to address Agricultural Problems?
Tsar overall didn’t change much, peasants who started buying land after the emancipation became known as kulaks, able to produce a surplus of grain to sell
What were the Limitations to the Actions Taken for Agriculture?
Most peasants received slightly less land that was more difficult to maintain by rapid population increase. The Mir’s powers increased and their redemption payments strained the rural economy
