Economic developments in Russia by 1914 Flashcards
Russian finance ministers between 1881-1903 = ?
-Nikolay Bunge 1881-1886
-Ivan Vyshnegradsky 1887-1892
-Sergei Witte 1892-1903
What did Sergei Witte believe would happen with industrial growth?
Witte thought that with the increase in industrialisation revolutionary action and unrest would be curbed.
How much did the economy grow by per annum between 1892-1914?
8%
How was industrial growth state managed?
-Interest rates raised to encourage foreign loans
-A new rouble backed by the value of Gold was issued in 1897, done to increase business confidence.
-Foreign capital was raised to fund the development of railway, electricity plants, mining and oilfields.
-Heavy industry prioritised over light industry.
What major rail link was built in this period?
Trans-Siberian railway
By 1914 how much KM of railway track did Russia have?
62,000
What was massive about the 62,000 km railway tracks?
Second longest in the world only behind the USA.
What was the positive effect of the Trans-Siberian railway expansion?
The railways development stimulated heavy industries, reduced transport costs for manufacturers and provided government revenue
What was the negative effect of the Trans-Siberian railway expansion?
The cost of industrialisation and the railway was high and as a result Russia became tied to foreign investment from countries such as Britain, France and Germany.
How much did foreign investment go up between 1880-1900?
Tenfold
What international economic figures did Russia reach before 1914?
Russia became 5th largest economy.
Russia became 5th largest industrial power.
In 1887 how many factories were there?
30,856
In 1887 how many factory workers were there?
1.3 million
In 1908 how many factories were there?
39,856
In 1908 how many factory workers were there?
2.6 million
Main problem with the growth in heavy industry in Russia = ?
Heavy industrial growth was focused in 4 main areas and not the whole country and whilst the heavy industry was growing the living standards and social standards were not growing at all in fact they stagnated and in some places fell.
What did a lack of proper living and working conditions lead to?
Huge instability in the urban working centres and in living spaces for workers
Production of coal in 1880 = ?
3.2 million metric tonnes
Production of coal in 1910 = ?
25.4 million metric tonnes
What was the increase in coal production between 1880 and 1910?
8x increase
However what US State produced the same amount of coal as the entirety of Russia?
West Virginia
What does West Virginia producing the same amount of coal as Russia show?
It shows that despite the Russian economy improving massively there was still a way to go in order to Catch up the production might of the western countries such as America, UK, France and Germany.
Production of pig Iron in 1880 = ?
0.42 million metric tonnes
Production of pig iron in 1910 = ?
3 million metric tonnes
Increase in pig iron production between 1880 and 1910 = ?
6x
Crude oil production in 1880 = ?
0.5 million metric tonnes
Crude oil production in 1910 = ?
12.1 million metric tonnes
What was the increase in production in Crude oil between 1880 and 1910?
24x
What was the main problem with exporting all their raw materials?
Russia was exporting these materials out instead of developing them like the other major western countries did. Crude oil, coal and pig iron weren’t valuable resources compared to what the western powers were selling
Main industries of Western + Russian economies = ?
Russia = Exporter of materials
Germany = chemical industry
UK/France =. technology and development industry
US = Services [Banks and finance]
Why did the lack of development prove a massive issue for the Russian economy?
The lack of development proved a massive problem for the Russian economy as they stagnated due to a lack of developing on their immense natural resources.
Evaluation of the economic developments in Russia by 1914 = ?
There was a large growth in the Russian economy by 1914 but it wasn’t the growth it could be, Russia hadn’t unlocked its true potential mainly due to worker unrest and a lack of supporting white goods industry made the economy weak. Additionally a lack of a sufficient bourgeoise middle class meant that Russia over relied on foreign investment and expertise meaning that when they did join in on the First World War the economy tanked as foreign investment was pulled out of the country.
Why was the Russian economy maybe not as good as first thought?
-Not self sufficient
-Unstable
-Lack of a middle class
-Workers unrest
-Lack of expertise from within
-Reliance on foreign investment and expertise
-Raw materials industry wasn’t profitable
-Obsession with exporting goods.
