Economic And Social Developments Flashcards
How can emancipation be seen as a decisive turning point
Emancipation removed a barrier to industrial growth as serfdom ensured a restricted home market, a low level of agricultural technology and a largely immobile population leaving little room for development.
Total industrial production grew by 5 percent after 1861. Economy developed, peasants marketed crops which had previously remained u harvest. Russians were left with no land and could therefore supply a factory labour force.
What reforms were made by von Reutern (minister of finance) from 62-78
- new arrangements for collecting taxes and publishing budgets was put in place.
- tax farming was abolished and the tax system was reformed to include more indirect taxation.
- bank and credit facilities were extended with the establishment of a state bank in 1860 and saving banks in 1869
- trade was promoted with the reduction of import duties form 1863
- enterprise to develop railways
- foreign investment was encouraged
- new legalisations regulated joint stock companies ( a business owned by shareholders who invested their own capital in the enterprise)
- government support for development of the cotton industry.
Who was Mikhail von Reutern
A German from the Russian Baltic landowning class. He believed the state money and control should direct economic change and he used his position to carry out these actions. He encouraged the development of railways. He became chairman of the council of ministers in 1881
What was the result of von Reuterns reforms
-forced tax farmers to look elsewhere to invest
- opportunities provided by the government subsidies and trade treaties encouraged enterprise.
- the use of foreign technical enterprise support do industrial expansion
- railway networks saw a expansions
- annual growth rate of 6 percent during Von Reuterns term in office.
- oil extraction began in the Caspian Sea port of Baku in 1871
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How did Russia’s economy still remain weak even after Von Reuterns reforms
- a third of all government expenditure went on the repayments of debts and the Russian currency
- the limitation of the emancipation edict and taxation system which left 66% of government revenue coming from indirect taxation keeping the peasantry poor and the domestic market small.
- traffic reductions meant a decline in government revenues and the decision was taken to raise these again from 1878
Who was Ivan Vyshnegradsky
Began as a priest who accumulated wealth by investment. Made a member of the council of ministers where he drew up a new programme for technical education.
1887-92 he was ministry of finance. Where he successfully reduced the budget deficit but only because of harsh measures
Who was Sergei Witte
Worked in railway developments.
1892- promoted to minister of communications and then to minister of finance in 1903.
Author of the October manifesto.
Russia’s first prime minister but resigned after 6 months.
Opposed Russia’s entry to World War One on economic grounds.
What reforms were made under Vyshnegradsky
- prohibitive import tariffs of 30% of the value of raw materials to boost home production and help iron industry
- increased indirect taxes and mounted a drive to swell grain exports
- successful policy’s
- between 1881- 1891 grain exports increased by 18%
Why was Vyshnegradsky dismissed
1891-92 when bad harvest brought widespread famine where thousands died Vyshnegradsky policy’s made it worse. ‘ we shall not eat but we shall export’
When was the great famine and what happens
1891-1892
Affected 17/39 Russian provinces.
Early winter and long hot dry summer when ruined crops.
Population of hunger brought disease. Cholera continued to kill more.
Over 350,000 died from starvation or disease. The government failed to organise adequate relief and it was left to volunteer groups to help the stricken peasants.
What was Wittes ideas for the economy
What did he do
- the only way was to continue with protective tariffs, heavy taxation and forced exports to generate capital.
- sought additional loads from abroad and foreign investment increased considerably.
Year- 1880- 98 million foreign investments
Year- 1895- 280
Much of the investments went into minding, the metal trades, oil and banking.
- Witte encouraged engineers, managers and workers from Europe to oversea industrial developments and advise in planning and techniques resulting in an expansion of railway networks.
- became the fourth largest industrial economy by 1897- increased Russian exported and foreign trade.
How did the railways reform
First railway - 1837
A line linking St Petersburg and Moscow in 1851
Expansion better 1855-94 by the mid 90s 60% of the whole of Russian railway systems was owned by the state.
What were land banks
Peasant land banks held funds and reserves of land. They were set up to assist peasants who wished to acquire land directly or through purchase from nobles.
The Nobel landmarks were to help novels with legal costs
Interest rates were low. They increased peasant ownership and between 1877- 1905 26 million hectares passed into peasant hands.
How may it be argued that emancipation did nothing for the economy
It could be argued that everything continued as before the emancipation edict. The only difference was the quantity of ploughland had been rescued and the meadows were still in bad condition.
- the great famine
Why was there an increase in agriculture production in the 1870’s and 80’s
Largely thanks to the efforts of the kulak class to respond positively to vsynegradsky seaport to drive.