ECONOMIC DEV RUSSIA INDUSTRIAL WITTE 1892-1906 Flashcards
Sergei witte
finacne minister replaced Ivan v, 1892-1906 wanted to strengthen autocracy+industrialse quick w/o social upheaval and instability autocracy
continued state promotion industrial growth by
state provvide impetus for industrial growth, nationalising state owned enterprises (russia only)
aims and policys industrialise quick
inc gov revenue, attract firing investment(France), attract foreign expertise, protect russian existing industries, build more railways
great spurt 1890’s
mass foreign capital(FRACNE+BRITIAN) funded insiutry plants in major cities
railways emmecnly expanded (more In 1 decade than whole c prior)
key dev placing russia currency on gold standard 1897
rouble more stable (foreign investors more attractd to russian industry)
1895 280 million roubles
1914 2000
+money loaded from other counties (France)
railway emphasis building
1881 amount of track:13.7k
1913:43,850k (32x more than 1861)
transiberain railway expansion
allowed transport of workers to more remote areas
source of revenue in long run
moving military around easier
helps with trad links for east
high tarifs/taxes continues
used to inc gov revene(for capital)
vol of grain exports continued to inc 20% in this period
impacts of high tarifs
protectionsm made imports more expensive making domestive goods/materials cheaper by comparison raising demand devloping domestic industries (protecting from foreign competiton)
impact of wittes tax policies
(higher taxes)
raised indirect taxes on consumer goods>prices of goods rise, for peasnts to be able to afford given incentivce to produce and sell more grain>merchents and state export more abroad>brings wealth into russia and allows investment in indsutry(develops)
HOWEVER
more land used three feild sys(less fruitful) fammine
summary of the witte system
- foreign investment (reliance/laons)
2.strong rouble gold standard
3.protectionism
4.high taxes
5.railways
3 facts from the witte system
1897-1910
number of factorties inc by 1/3
number of industrial workers doubled#
million tons of fossil fuels (coalx5,ironx3.5,oilx4)
heavy industy
witte policy allowed devlopemnt of large scale heavy insudtries
regions began to spealsie in particular commodities
stpetersburg/moscow-engernerring
donbas region- coal
banku-oil
poland-varied
cities grown massively facts
moscow 1890-753k, 1914-1.7m
stpetersburg, 1890-928k, 1914,2.2m
evaluation of witte policys
caused sever unrest even though urban wc begun to grow
the state neglected the living and working class(marxist ideas growth)
peasnts being squeezed to pay for industralisation(disgrunted industrial workforce)
contributed to revolutionary sentimen in early 1900
1899-1903
economic depression(hit all areas of economy)-output in many industrys fell, unemployment rose
1903-5
economy begun to pick up again but was severly halted
WITTE SACKED 1903:BLAMED FOR
economic slump post 1899
social unrest(unemploy/strikes doubled/peasnt disrubances)
not fully trusted by n.2 who was influencedd by converatives in royal court
witte returned 1905(1st duma) as first priminister of russia
played big influence on ecourging tsar to issue concessions
negotiated with japan to concliude peace(treaty of portsmouth)
witte replaced in may1906 by stolypin (2nd duma)
protested agaisnt fundamental laws
1908-14(under witte policys)
economy began to grow quick again
8.5% per annum howveer workers becoming poor (prices rose 40% wages 8%)
by 1914 catching up with national compeitiors (under witte polciys)
2nd largers of all produce
4th largerst gold mining
4th largesr produce coal/steel
5th largest industial power
1915 witte died
predicint revolution and opposed russia involvemnt in ww1
n.2 commander of cheifs 1915-17>fall autocracy feb 1917
the cost fo rapid economic growth did gerate social instability
over reliance on foregn loans (20%state revenue went on repayments in 1900)
heavy industries were prirotised over light industies(eg consumer goods)
industralisation was placed above welfare of people (poor living/working conditions>stirkes/discontent)
high taxes/tarrfis rose cost of living more exoesive for ordinary citizens.
economic growth and social instabilty led to more urbansiation which …
towns made policitcal activity possible
workers exposed to radicle ideas such as marxism which they took bakc to village
a true wc develop(born in urban areas no peasnt bg)
railways>spread of ideas and allowed national organsiation develop
new ideas enterd russia from foregn countries (parliemtray democracies)
evaluation of witte overall 1915
sucessful as helped russia catch up west but also created industrial wc prone to grivences and revolutionary ideas.