Alexander III Economy + Society Flashcards
Who was the Minister of finance 1862-1878?
Mikhail von Reutern
Why did Mikhail von Reutern see the need for economic reform?
Russia didn’t possess entrepreneurial middle class so industrialisation in Russia was needed to be largely driven by the state so he introduced reforms to do so
What were the reforms introduced by Mikhail von Reuturn?
Tax-farming of vodka abolished
Treasury was reformed and budgeting systems were established
Credit facilities made available through establishment of banks
Subsidies offered to private railway companies
Tariffs on trade were lowered
Successes of Reuturn’s reforms
Cotton and mining industry expanded
Some improvement in agriculture
Overall, annual average growth rate of 6% during his time in office
Railway network grew, by 1883 covered 14,700 miles compared to 3000 in 1866
Limitations of Reuturn’s reforms
Transport and labour mobility remained limited
Growth was slow
Russian currency was unstable and much income went towards paying debts
Russia’s economy still remained comparatively weak
Tariff reduction meant decline in govt. revenue so were increased again in 1878
Who became Minister of Finance in 1887?
Ivan Vyshnegradsky
What changes were put in place by Vyshnegradsky to boost industrialisation?
Increased import tariffs by 30% to boost home production
Increased grain exports by forcing peasants to sell grain to state
Increased loans from abroad
Increased indirect taxes
Successes of Vyshnegradsky’s reforms
Between ‘81+’91 grain exports ^ by 18%
By ‘92 R budget in surplus
Limitations of Vyshnegradsky’s reforms
Peasant’s suffered from heavy taxation, high goods prices and grain requisitions
Many were left without grain for the winter so when great famine hit, this made matters worse and thousands of peasants died and Vyshnegradsky was dismissed
The Great Famine of 1891-2
Affected 17 of Russia’s 39 provinces. Had been early winter and long, hot, dry summer which ruined crops
Ppl weakened by hunger caught disease and over 350,000 died
Govt. failed to organise relief and was left to volunteer groups to help them inc. Nicholas II, heir to throne
Who became Finance Minister in 1892?
Sergei Witte
What did Witte achieve? (1892-1903)
Sought additional loans from abroad
Increased investment in mining, oil and banking
Achieved huge expansions in railway networks
Why was agricultural development initially limited?
Because after the Emancipation the peasants had too little land (about 4 hectares) to become prosperous
High taxes, grain requisition, redemption payments and traditional farming practices benefited the mir elders
Overview of agriculture from 1870s-80s
Some development in '70s and '80s thanks to efforts of kulak class who responded positively to Vyshnegradsky's export drive But after famine it showed than the average Russian had too little land to become prosperous Stolypin changed all this later
Russian society: The landed elite (mostly noble status)
Small and diverse group, after emancipation, personal land had declined as some sold it to pay debts and others abandoned farming for another career
By 1882 more than 700 nobles owned their own business in Moscow
Some found jobs in zemstva
Russian society: The peasants
Kulaks bought up land, sometimes with loans from Land Banks and employed poorer peasants to work for them
The poorest peasants became landless labourers and many were unfit for military service
2/3 of former serfs were unable to feed their families without falling into debt
What was the average life expectancy in Russia?
28, in Britain it was 45
Chief characteristics of Russian industrialisation: Role of state
Govt. played key role as substitute for pressures for development which was lacking due to backwardness, inc: direct investment, loans and subsidies to industries etc.
Chief characteristics of Russian industrialisation: Role of foreign capital
Needed to substitute for lack of investment capital (in 1910 over 50% of capital invested in industry was foreign)
Foreign loans to Russia to help finance govt. expenditure
Chief characteristics of Russian industrialisation: Squeezing of peasantry
Grain squeezed from peasantry to provide surplus for export to maintain balance of payments and to feed growing population
Chief characteristics of Russian industrialisation: Large scale, modern industry
Foreign equipment imported due to large state and foreign capital available
Chief characteristics of Russian industrialisation: Role of railways
Generally boosted industry, especially coal, iron and steel
Helped by govt. via grants but strategic influence still influenced their location
Effects of industrialisation: Economic
Growth in industry led to increased population, growth rate and raised Russia’s world status
Effects of industrialisation: Social
Proletariat doubled between 1865 and 1890, poor conditions in expanding cities with few social amenities, growth of middle class but less powerful than expected Exploitation of peasantry worsened rural misery
Effects of industrialisation: Political
Increased amount of hostility towards tsarism, modernising of economy brought to question maintenance of an outdated political structure
Effects of industrialisation: Military
Growth of industry + railways meant bigger military capacity and more money put into military resources
What factors led to desire for modernisation?
Crimean defeat
Financial reasons
Rival strength
Utilisation of resources
What hindered modernisation?
Serfdom as not enough industry
Modernisation
Tsar autocracy as no developing, fixed in old ways
Russia was so huge, hard to keep control of everyone making it hard to develop
Who was minister of finance
Nikolai Bunge
What reforms did Bunge put in place?
Believed country modernise by making peasants better producers of crops and wealth and turning them into consumers who would spend more
Founded peasant’s Land Bank in 1883
Reduced poll tax which reduced tax burden on peasantry
Introduced tariffs on imported goods but couldn’t avoid govt. borrowing so resigned in 1887
Russian society: The middle class
Grew with urban + industrial expansion + increase in educational opportunities
More enterprise opportunities in management and workshop traders
Russian society: Urban working class
(Proletariat) As industry expanded so did urban population but still small, only 2% of pop
By 1865, 1/3 of St. Petersburg residents were peasants by birth
Very poor living + working conditions
33 strikes a year
What percentage of the population were subscribed to Orthodoxy?
70%
