Industrialisation under Alex II Flashcards
Who was the Minister of finance under Alexander II?
Mikhail Reutern
When was Mikhail Reutern the Minister of Finance?
from 1862 - 1878
What was the impact of the Crimean War 1855 on the economy/industry?
the defeat showed industrial backwardness
showed that serfdom was inefficient + not profitable
needed to modernise + “catch up with the West”
What was the impact of the Emancipation Edict 1861 ( on economy/industry) ?
freed up the labour force (couldn’t have had next stage with out this)
laid the foundation of an internal market
What was Alexander II’s motivation?
military success
avoid opposition eg revolution from below
state control
modernisation
catch up with west etc
What did Reutern’s reforms encourage?
foreign investment and expertise
construction of the Trans-Siberian railway (rail lines grew to over 20,000 km)
Why was there a ‘Railway Mania’ under Alex II?
there was a seven fold increase in the amount of railway lines opened under Reutern
railways increased from 1600 km in 1861 to 22,000 km by 1878
What foreign investment/technical expertise did Reutern attract to Russia?
JJ Hughes (a Welshman)
by 1884, his new Russia coal, iron + rail making company was the largest producer of pig iron in the whole empire
constructed new town (Yuzovo) filled with English schools, public houses etc
What were Reutern’s successes?
(6 successes)
first time Russia had economic budget
paved the way for others especially Witte
iron, coal + textiles industries expanded rapidly
employing foreign expertise helped move Russia forward
built on foundation of railway construction, track expanded–> 7 fold increase
industrial output doubled, average annual growth rate of 6% during his time in office
capacity of railways to “breakbulk” + railway expansion gave significant boost to industrial sector & allowed Russia to cushion itself against the European economic depression (1873-82)
Under Reutern what happened to industrial output?
Industrial output doubled and there was an average annual growth rate of 6% during his time in office
What did Clive Trebilcock claim the capacity of railways to ‘breakbulk’ + its expansion was?
“the country’s first respectable performance in manufacturing”
What were Reutern’s failures?
(6 failures)
Russia was still behind the West
the rouble wasn’t stabilised, much money spent on old debt
his efforts were cut short by the coming of war (Russo-Turkish war)
construction was placed in the hands of private contractors, led to corruption, by 1880 about 94% of railway lines were in private hands
attempts were made to improve auditing of accounts but no tax reform
foreign trade, banking and railways were encouraged but to mixed success, some increased boost to fuel/metals but few railways were profitable
What was the impact of railway construction being placed in the hands of private contractors?
by 1880 about 94% of railway lines were in private hands
How significant were Reutern’s policies?
very significant (particularly the railways)
he started with do industry and greatly improved this
he laid the foundation for future leaders / ministers of finance
arguably future progress couldn’t have been made without his work
