Chapter 6 Economic and Social Developments Flashcards
Role of the Finance Ministers, the State of economy and changes to society
Give a picture of what the Russian economy looked like in 1855?
Industry not developed
Not advanced farming methods so grain profits small
Trade small as no internal market demand
Starvation rife in the countryside
Economic status compared to European countries
No middle class
Give a picture of what the Russian economy looked like in 1881?
Emancipation meant some kulaks moving to the city
Industrialisation movement
Landowners investing in industry and become entrepreneurs
However
Landowners in debt
Unfair land sharing and allocation
Couldn’t make a grain surplus
Give a picture of what the Russian economy looked like in 1894?
Redemption fees reduced
Poll tax abolished
Inheritance tax introduced
Economy stabilising under reforms
Industry and railway developing
However
Social and working conditions
Dependence on foreign investment
What did von Reutern believe in?
He felt all state money and control should direct economic change
What did von Reutern did summary?
Produced reforms to boost the economy, fund industrial growth and develop the railways
How was the Treasury reformed?
More financially efficient and could see where they spent money with audits of accounts of government departments and published budgets.
New arrangements for collecting taxes
What was tax farming?
Groups bought the rights to collect certain taxes
This was abolished and tax system included more indirect taxation
When was the State Bank established?
1860
When was the Municipal Banks created?
1862
When was the Savings Bank set up?
1869
How did banks and credit facilities reform?
They were extended and the National bank extended the Opportunity of Legal Credit
What things did the government reform under von Reutern?
Government subsidies to enable private entrepreneurs to develop railways
Government support offered for the development of the cotton industry and mining in the Donets coalfield
Government guaranteed annual dividend to encourage foreign investmen
What other reforms did von Reutern pass?
Promoted trade with reduced import duties in 1863
New legislation to regulate joint stock-companies to encourage investment
What were some positives things from von Reuterns reform?
The government subsidies and trade legislation encouraged enterprise
More foreign technical expertise to support industrial expansion
More foreign investment
Railway network saw expansion
Annual growth rate of 6%
What were some negative things from the von Reutern reforms?
Textiles stil dominant industry
Russian economy still weak as third of government expenditure went to repay debts
Currency subject to change in values so currency instability
Taxation system left 66% of government revenue from indirect taxation and kept domestic market small
Tariff reductions reduced government revenue
Tax farmers went elsewhere to invest
What were some important economic developments in von Reutern’s reform?
Oil extraction in Caspian sea port in Baku in 1871
Ironworks in Donetsk in 1872
Mining in Krivoi Rog region with rich iron fields
Naptha Extraction Company was established in 1879 for coal and oil extraction
What did Vyshnegradksy do?
Used entrepreneurial skills to reduce budget deficit
What did the import tariff do?
The import tariff of 30% to the value of raw materials boosted home production and helped iron industry and development or industrial machinery
This increases self-sufficiency
How did Vyshnegradky balance the budget?
Negotiated valuable loans that boosted industrial expansion modernised the economy by utilising heavy industry - French in 1888
Increased indirect taxes
Drove the need to swell grain exports
How much did grain exports increase?
18% from 1881-1891
What year was the Budget in surplus?
1892
What were some positive things from Vyshenegradsky reforms?
Export of grain increased foreign trade and investment
International loans increased indirect taxes and stabilised budget
Tariffs on import goods developed heavy industry and increase self-sufficiency
What were some negative things from Vyshnegradsky reforms?
Peasants paid most of the indirect taxes
Their grain was requisitioned by the State leaving many without reserve stores in the winter
1891-1892 the Great Famine occured - bad harvests, affected 17 provinces and 35000 people died
What did Witte believe in?
Committed to economic modernisation and to curb revolutionary activity
Wanted to develop the economy through protective tariffs, heavy taxation and forced exports