Economic Change Flashcards
What were the reforms by Mikhail Von Reutern designed to do?
-they were the beginnings of state promoted industrial growth following the emancipation
-to boost the economy
-provided funds to drive industrial growth
What were Von Reutern’s reforms?
-treasury reformed + new arrangements collecting taxes, auditing accounts of govt departments + publishing budgets
-tax farming abolished + new tax system included more indirect taxation
-bank + credit facilities extended with establishment state bank 1860 + savings bank 1869
-trade promoted with reduction import duties from 1863
-govt subsidies offered to enable entrepreneurs develop railways
-foreign investment encouraged with govt guaranteed annual dividends
What was the impact of Von Reutern’s reforms?
-forced former tax farmers invest elsewhere
-opportunities from govt subsidised + trade treaties encouraged enterprise
-use of foreign technical expertise supported industrial + railway expansion
-annual growth rate 6% during Reutern’s term as finance minister 1862-78
What new developments did Reutern’s reforms make?
-oil extraction began in Caspian Sea port of Baku 1871
-ironworks set up in Donetsk 1872 which mined rich iron fields of Krivoi big region
-1879 Naphtha extraction company est by Nobel Brothers to exploit coal + oil extraction
What were the limitations of these reforms?
-Russia economy remained comparatively weak
-1/3 of all govt expenditure went on debt + Russian currency
-limitations of emancipation edict + poor taxation system kept peasantry poor + domestic market small
-tariff reductions means decline govt revenues
What was the industrial takeoff under Vyshnegradsky + Witte?
-Vyshnegradsky new minister of finance 1887-92
-Witte minister of communications 1892 + then minister of finance until 1903
-tariffs were raised 1880s + under Vyshnegradsky an import tariff of 30% of the value of raw materials was introduced
-designed boost hime production, help iron industry of southern Russia + develop Ind machinery
What happened under Vyshnegradsky as finance minister 1887-92?
-needed balance budget while financing enterprise as well as negotiating valuable loans from France 1888
-increased indirect taxes + mounted drive to swell grain exports — 1881-91 they increased by 18% as % of total Russia exports
-by 1892 Russian budge in surplus
What was the impact of Vyshnegradsky’s policies?
-remarkable export drive achieved at expense of peasants
-they paid the taxes + saw their grain requisitioned by the state
-many left with no reserves of grain for winter
-1891-92 famine — affected 17/39 provinces, population weakened by hunger, susceptible to disease + over 350,000 died, govt failed organise adequate relief + Vyshned dismissed 1892
What happened under Witte as finance minister 1892-1903?
-committed to economic modernisations as means to curbing rev activity
-believed only way forward — continue protective tariffs, heavy taxation + forced exports to generate capital
-sought additional loans from abroad + foreign investment
Who did Witte seek help from?
-encouraged engineers, managers + workers from Fr, Bel, Ger, Br + Swe to oversee industrial developments
-with a their help there was huge expansion of railway network
-rate growth allowed it to be fourth largest Ind economy by 1897
-growth increased exports + foreign trade but export trade still mainly in grain + not Ind goods
Key profile of Vyshnegradsky?
-began life as priest but entrepreneurial skills enabled him accumulate wealth through investments
-1884 member of council of ministers where drew up programme for technical education
-1886 council of state + 1887-92 head ministry of finance
Key profile of Witte?
-an able minister
-author of October manifesto 1905
-became Russia first PM 1905 but resigned after 6 months
-opposed entry into WW1 on economic grounds + died 1915
