Chapter 6 Economic and Social Developments Flashcards

Role of the Finance Ministers, the State of economy and changes to society

1
Q

Give a picture of what the Russian economy looked like in 1855?

A

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

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2
Q

Give a picture of what the Russian economy looked like in 1881?

A

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

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3
Q

Give a picture of what the Russian economy looked like in 1894?

A

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

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4
Q

What did von Reutern believe in?

A

He felt all state money and control should direct economic change

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5
Q

What did von Reutern did summary?

A

Produced reforms to boost the economy, fund industrial growth and develop the railways

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6
Q

How was the Treasury reformed?

A

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

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7
Q

What was tax farming?

A

Groups bought the rights to collect certain taxes

This was abolished and tax system included more indirect taxation

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8
Q

When was the State Bank established?

A

1860

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9
Q

When was the Municipal Banks created?

A

1862

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10
Q

When was the Savings Bank set up?

A

1869

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11
Q

How did banks and credit facilities reform?

A

They were extended and the National bank extended the Opportunity of Legal Credit

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12
Q

What things did the government reform under von Reutern?

A

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

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13
Q

What other reforms did von Reutern pass?

A

Promoted trade with reduced import duties in 1863
New legislation to regulate joint stock-companies to encourage investment

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14
Q

What were some positives things from von Reuterns reform?

A

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%

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14
Q

What were some negative things from the von Reutern reforms?

A

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

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14
Q

What were some important economic developments in von Reutern’s reform?

A

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

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14
Q

What did Vyshnegradksy do?

A

Used entrepreneurial skills to reduce budget deficit

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15
Q

What did the import tariff do?

A

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

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15
Q

How did Vyshnegradky balance the budget?

A

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

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15
Q

How much did grain exports increase?

A

18% from 1881-1891

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16
Q

What year was the Budget in surplus?

A

1892

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16
Q

What were some positive things from Vyshenegradsky reforms?

A

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

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16
Q

What were some negative things from Vyshnegradsky reforms?

A

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

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16
Q

What did Witte believe in?

A

Committed to economic modernisation and to curb revolutionary activity

Wanted to develop the economy through protective tariffs, heavy taxation and forced exports

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16
What foreign investment did Witte seek?
Sought international loans and investment 1890 - 98 million of roubles 1895 - 280 million This investment went into mining, metal trade, oil and banking
17
What did expert help from abroad do under Witte's reforms?
Advised on planning and techniques and oversaw industrial developments This expanded railway network and developed heavy industry from specialised help
18
How did the railway network develop?
From state support, by mid 1890s, 60% of the railway system was owned by the State
18
What did the growth rate enable Russia to do under Witte?
Moved up league table of industrialised nations to 4th largest industrial economy by 1897 Increase Russian exports and foreign trade
18
How did foreign loans help the economy?
Increased foreign investment Increase in foreign trade Higher grain exports Encourage enterprise More industrial expansion - heavy industry Development of the railway
19
How does foreign expertise help the economy?
Develop industrial expansion from specialised help Large improvements in Oil and mining industry Higher growth rate to become industrial economy Expanded railway network More employment opportunities
19
How does tariffs help the economy?
Generate capital Boost home production and help industry Support industrial expansion Prompt investment and enterprise Develop industrial machinery
19
How does focusing on heavy industry help the economy?
High import tariffs Encourage enterprise and industrial developments in railway Growth rate increases Rise in foreign trade and investment More employment opportunities Increase in exports
20
How did taxation impact the economy?
Left government revenue dependent on indirect taxation Lack of wage-earners so no internal market demand Contradict economic modernisation
20
How does the export of grain help the economy?
Helped grow the budget Increase exports and foreign trade and investment Develop heavy industry
21
Give a picture of the positive side to agriculture after the Emancipation?
More kulaks move to cities and therefore heavy industry develop More peasants buying land from help from Peasants Land Bank Interest rates on loans were low to increase peasant ownership Increase in agricultural production in the 1870s and 1880s with higher export drive from the kulaks Peasants had more legal freedoms under the Mir
21
Give a picture of agriculture after the Emancipation?
Average peasant received less than 4 hectares of land Grain requisitions and high taxes meant domestic market was small Traditional farming practices continued from lack of new farming methods and new equipment invested by the Mir Bulk of export trade remained in grain export High taxes from redemption payments Lack of mobile labour forces Many tied to the land and couldn't purchase new land - landless and in poverty Mass poverty - 2 in 3 former serfs in 1880 in Tambov region were struggling to buy food
21
What was the Peasants Land Bank?
Held funds and reserves of lands and assisted peasants who wanted to acquire land through purchase Between 1877 and 1905 over 26 million hectares of land were given to peasants Set up in 1885
21
What was the Nobles Land Bank
Helped nobles with legal costs involved in land transfer and land improvement schemes However this increased debt
22
How did society develop summary?
As industrialisation developed, the society remained divided but new classes like the middle class emerged, new rights were given to lower classes and society was more focused on the economy
23
How much of the money gained in land sales went to pay off mortgages with Nobles Land Bank?
1/8th
24
Who held private industrial enterprises in 1860s?
Nobility
25
Which classes did industry open to?
Factory owners, supervisors and urban workers
26
What were the Landed Elite able to do after the Emancipation?
Many abandoned farming and took up professions and jobs in commerce, transport and industry. Some worked in state service in the zemstva or in provincial governorships
27
What changed in the Landed elite?
Personal landholdings decreased and many sold land to pay off debt
28
What proportion of university professors were from nobility?
1/5th
29
How many nobles owned own businesses in Moscow in 1882 and how many employed in commerce and transport?
700 in Moscow and 2500 in industry
30
What didn't change in landed elite?
Continued to hold noble status and much of previous wealth Society still feudalistic
31
Why did the middle emerge?
With urban and industrial expansion there were more educational opportunities and therefore the middle class grew
32
What proportion of people worked in professional jobs?
Half a million in the 1897 census
33
How did people get involved in middle class?
Government contracts to build railways and state loans to set up factories provided enterprising opportunities More opportunities to take up management positions and set up as workshop owners
34
Where did more non-nobles find jobs?
In 1890s, more non-nobles found jobs as factory owners
35
Why did the urban working class grow?
As industry expanded, the urban working population expanded. More peasants moved to cities and sold land and left the countryside Some sold land and became urban workers/migrant groups to build railways.
36
What percent of the population were urban workers?
2%
37
How many people living in St Petersburg in 1864 were peasants?
1 in 3
38
What did reformist legislation do?
Helped to regulate child labour, reduce fines and payments in goods and services, appoint inspectors with powers to check working conditions and to reduce working hours
39
How were conditions in factory?
Harsh and factories didn't care for worker's welfare so reforms contributed little to improving lives of working class
40
How was pay for working class?
Low pay although regular
41
How many strikes per year between 1886 and 1894?
33 strikes per year
42
Describe the peasantry?
Divided with the kulaks at the top who bought up land using loans from Peasants Land Bank, employed labour and sold grain at inflated prices and poorer peasants who found life in agriculture harsh without labour
43
What were living standards like?
Varied to area and areas of former-state serfs were better in living conditions as had more land. There were some improvements in the zemstva from healthcare Large number of peasant couldn't go to army
44
Describe the importance of religion in Russia?
70% follow Russian Orthodox Church They felt Russia is a holy land and the Tsar had a divine right to rule as a saint on Earth. An integral part of the Russian empire alongside tsarist regime Church authority under the Holy Synod
45
How did the Church maintain control?
Imperial Russia was a strongly Orthodox State and dominated peasantry which was beneficial for political loyalty Church possessed strict censorship controls and Church courts dealt with moral and social crimes Under Delyanov, the Church was given more control over primary education Alexander's III policy of Russification meant he could promote Orthodoxy in the Empire making it an offence to convert to another faith. - 40000 Catholics and Lutherans converted to Orthodoxy Conservatives silenced calls for reform to tsarist relations Dominant cultural influence
46
How did villages show religious devotion?
Religious observance was significant with peasants having an icon in their huts
47
Describe the role of priests?
Priests had close ties with the village and had a State role. They read out Imperial decrees and manifestos, kept statistics, noted opposition and inform police of activity. They passed on statements from Holy Confession to the authorities.
48
What improvements did the Church make?
In 1858, after concern about clerical poverty, the Ecclesiastical Commission looked into Church organisation and practice in 1862 In 1868, reforms improved education of priests.
49
How was the Church losing control?
Control over people's lives weakened Provision of Churches and priests didn't grow with urbanisation and didn't take into account worker's welfare People were becoming attracted by more socialist ideas and some liberal clergy wanted to reform relation to the State Priests had less influence in the countryside