Beginnings of state-promoted industrial growth

Question 1

why was industrialisation in r largely driven by the state? (2)

Answer 1

• absence of entrepreneurial middle class

- deliberate attempt to match economic development of Western Europe

Question 2

in 1862-78, who produced series of reforms in order to boost economy and provide funds to drive industrial growth?

Answer 2

A II’s Minister of Finance, Mikhail von Reutern

Question 3

who was Mikhail von Reutern?

Answer 3

German from Russian Baltic landowning class who was A II’s Minister of Finance from 1862-78

Question 4

what did Mikhail von Reutern think should direct economic change? (2)

Answer 4

• state control

- state money

Question 5

what did Mikhail von Reutern encourage?

Answer 5

• development of railways

Question 6

when did Mikhail von Reutern become the Chairman of the Council of Ministers?

Answer 6

1881

Question 7

what were Mikhail von Reutern’s reforms designed to do? (2)

Answer 7

• boost economy

- provide funds to drive industrial growth

Question 8

List Mikhail von Reutern’s reforms (11)

Answer 8

1) Treasury reformed
2) new arrangements for collecting taxes
3) auditing accounts of gov departments
4) publishing of budgets
5) tax-farming abolished
6) tax system reformed
7) banks and credit extended&established
8) gov subsidies offered
9) foreign investment encouraged
10) regulation of joint-stock companies
11) gov support offered for development of cotton and mining industries

Question 9

what is the term to describe the funds or revenue of a state, institution, or society?

Answer 9

Treasury

Question 10

what were there new arrangements for?

Answer 10

collecting taxes

Question 11

what was audited?

Answer 11

gov departments’ accounts

Question 12

what was being published?

Answer 12

budgets

Question 13

what was abolished?

Answer 13

tax-farming

Question 14

what is tax-farming?

Answer 14

whereby groups bought the right to collect certain taxes

Question 15

was it the term given to whereby groups buy the right to collect certain taxes?

Answer 15

tax-farming

Question 16

how was the tax system reformed?

Answer 16

to include more indirect taxation

Question 17

what is indirect taxation?

Answer 17

a tax levied on goods and services rather than on income or profits.

Question 18

what was extended?

Answer 18

banks and credit facilities

Question 19

what bank was established in 1860?

Answer 19

state bank

Question 20

what bank was established in 1862?

Answer 20

municipal bank

Question 21

what bank was established in 1869?

Answer 21

savings bank

Question 22

when was the state bank established?

Answer 22

1860

Question 23

when was the municipal bank established?

Answer 23

1862

Question 24

when was the savings bank established?

Answer 24

1869

Question 25

what was promoted?

Answer 25

trade - with the reduction of import duties from 1863

Question 26

what did the gov offer to enable private entrepreneurs to develop railways?

Answer 26

gov subsidies

Question 27

why did gov offer subsidies?

Answer 27

to enable private entrepreneurs to develop railways

Question 28

what type of investment was encouraged in Russia?

Answer 28

foreign

Question 29

what was guaranteed with foreign investment in R?

Answer 29

annual dividend

Question 30

define joint-stock company

Answer 30

business owned by shareholders who invested their own capital in the enterprise

Question 31

what is a business owned by shareholders who invested their own capital in the enterprise?

Answer 31

joint-stock company

Question 32

what was new legislation was introduced for in order to encourage ‘safe’ investment?

Answer 32

regulating joint-stock companies

Question 33

what was the aim of new legislation regulating joint-stock companies?

Answer 33

encourage ‘safe’ investment

Question 34

what was gov support offered to develop? (2)

Answer 34

• cotton industry

- mining in Donets Coalfield

Question 35

what did Von Reutern’s reforms force former tax farmers to do?

Answer 35

look elsewhere to invest

Question 36

what did the use of foreign technical expertise and capital support?

Answer 36

industrial expansion

Question 37

what network expanded under Reutern too?

Answer 37

railway

Question 38

during von Reutern’s term of office, what was the annual average growth rate? (%)

Answer 38

6%

Question 39

the annual growth rate was 6% under who?

Answer 39

von Reutern

Question 40

what was the dominant industry in the late 19th century?

Answer 40

textiles