Economic Change (1881-1914)

Question 0

The emancipation of the serfs hadn’t changed much since 1861.
Russia…

Answer 0

• Carried on being dependent on agricultural production
• Very few Russians worked in industry (over 80% = countryside)
• Russia cities were small by •European standards (pop. <mil.)

Question 1

In 1881 economy still based on…

Answer 1

Agriculture

Question 2

Tsars modernised Russia through industrialisation:

Answer 2

• Russia’s pop. growing rapidly = overpopulation of the countryside, put pressure on landholdings
• Wanted to maintain its status as a great power - HAD to industrialise to COMPETE with Germany/Britain
• Alexander III & Nicholas II decided to take DIRECT ACTION to FORCE industrialisation

Question 3

Industrialisation was carried out by 3 key players:

Answer 3

Nikolai Bunge
Ivan Vyshnegradsky
Sergei Witte

Question 4

Nikolai Bunge (1881-1887) created the…

Answer 4

Peasants’ land bank

Question 5

The peasants’ land back was interned to encourage peasants to expand their landholding but was…

Answer 5

Too small to be effective

Question 6

Vyshnegradsky (1887-1892) intended to raise money for industrialisation by…

Answer 6

Encouraging foreign investment and increased taxes

Question 7

Vyshnegradsky encouraged foreign investment by enticing foreigners with incentives. This helped the expansion of…

Answer 7

The small railway network and the growth of heavy industry in Ukraine and oil production in Baku

Question 8

Vyshnegradsky protected domestic industries with…

Answer 8

High tariffs to boost consumer demand

Question 9

But Vyshnegradsky exported a lot of grain to finance his policies, and continued despite a…

Answer 9

Major famine in 1891

Question 10

Sergei witte (1892-1903) was the most important finance minister of this period, in the absence of a large middle class, witte developed a policy of…

Answer 10

State intervention in the Russian economy

Question 11

Witte’s policies aimed at improving the Russian economy by focusing on 2 key areas:

Answer 11

Railways

Foreign investment

Question 12

Witte focused on railways by:

Answer 12

• Trans-Siberian railway (1891) to open up the eastern empire & advance the growth of new towns & cities
• Network of railways was planned for western Russia to link new industrial centres
• A new railway linked the oil refineries of Baku to port of Batum

Question 13

Focusing on railways helped to…

Answer 13

Stimulate the growth of iron and coal industries

Question 14

Witte focused on foreign investment by:

Answer 14

• 1897 put the rouble on the gold standard which guaranteed the currency’s value
• Encouraging western countries (ESP. France/Belgium) to invest heavily in Russian industry

Question 15

Focusing on foreign investment increased foreign investment from roughly 200million rubles in 1890 to approximately…

Answer 15

900million rubles in 1900

Question 16

Pros of witte’s policies are:

Answer 16

1) Heavy industry saw massive increases in production (coal&iron)
2) Output from Baku oil refineries increased tenfold 1883-1900
3) Economy grew rapidly by an estimated 8% a year in the 1890s
4) Growth briefly stalled, but from 1906-1914 the economy grew by 6% a year

Question 17

Cons to witte’s policies are:

Answer 17

1) Trans-Siberian railway was built to encourage migration to areas where workers were needed. 1914 only partially finished & it didn’t increase migration by very much
2) Witte RAISED TAXES in order to provide money for INDUSTRIAL DEVELOPMENT - these taxes SQUEEZED THE PEASANTS making them less likely to spend on consumer goods
3) Government ran up ENORMOUS DEBTS

4)DIDNT IMPROVE the state of
AGRICULTURAL INDUSTRY, even though taxes on the peasants accounted for 80% of the government’s income