Industrialisation within Russia (1855-1964) Part I Flashcards
Why did Alexander II want to Industrialise?
- Russia was lagging behind the Western Nations (Despite being a much larger country)
- It had lost the Crimean War by 1856 and it had showed how pre industrialised its armed forces were
- To push Russia away from a reliance on a ‘serf’ economy and more akin to an Industrialised nation.
What was ‘New Workers Discipline’?
This was when factories introduced strict rules and regulations that were required for the new workers (Peasants being drafted into factories to work)
Why was ‘New Workers Discipline’ introduced?
- Peasants continued to work according to the natural clock (Rising and setting of the sun); This led to high absenteeism.
- Peasants were turning up to work drunk
- Peasants were unable to work effectively and with the machinery in the factories.
Who was the economic minister under Alexander II?
Mikhail Reutern (1862-1878)
Name three things that were introduced under Reutern to help push for Industrialisation.
- Continued Railway Construction.
- Attraction of Foreign Capital
- Attraction of Foreign Technical Expertise
What were the results of Reutern’s new measures that were implemented?
- Modernisation & Expansion occurred within the staple commodities (Coal, Iron & Textiles)
- Newer Industries started to flourish (Oil)
Name an example of a Foreign Expert that came to Russia to boost Industrialisation & three things he achieved.
- JJ Hughes - He transformed Iron & Steel production at Ekatrinoslav
- From 1871 became an expert in ‘armour plate’
- Set up in 1884 ‘The New Russian Coal, Iron & Railmaking Company’ - developing into the biggest manufacturer of Pig Iron.
- Responsible for 1/2 of Steel Production by 1900.
- Social investment. He established communities with schools, housing and education for his workers - namely Yuzovo
How much did Railways develop under Reutern?
- 1862 Railway Track was at 2194 miles - increasing to - 13,979 miles by 1878.
In what ways did Railway expansion also help develop the Industrial Sector?
- Break Bulk: With the capacity of the Railways increasing it meant heavy goods like coal could be transport in large quantities; boosting the Industrial sector.
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For the railways to expand it needed investment - How was this achieved by Reutern?
Name three ways this was.
- Taxation Exemptions: Investors were allowed to pay lower taxes in return for lending the government money.
- Monopoly Concessions: Investors were given the right to be the prime and only seller of a particular product (This cut competition and were more likely to be willing to invest)
- Government Bonds: Investors were encouraged to invest by buying these bonds. When progress and more money was made, the investor could cash in their bonds and earn interest.
Name one issue with the polices of Reutern
- Corruption developed (Financial help was given to certain companies when they never really needed it)
- It was affected and paused whenever Russia entered a war (In this case the Russo-Turkish War)
Who replaced Reutern as finance minister in 1882? (He would last until 1886)
Nikolay Bunge
Name three measures enacted by Bunge from 1882 to help fix the economy and boost Industrialisation
- Abolition of the Salt Tax
- Abolition of the Poll Tax 1886
- Creation of the Peasant Land Bank in 1883
The rouble fell in the 1880’s - Who replaced Bunge as economic minister?
Ivan Vyshnegradskii (1887-1892)
Bunge’s replacement was a hardline conservative with the economy - Name two ways that he tried to rescue the situation
Efficient utilisation of income from;
- Taxation
- Railways
- Crown Properties
- The State Bank
- The Treasury
What was the Medele’ev Tariff of 1891?
A documented book (700 Pages) that recorded the import tariffs on goods.
(This was to reduce the amount of foreign goods coming into the country and compliment the push of exporting large amounts of grain)
What was the impact of the Medele’ev Tariff?
- The Tariff exasperated the domestic shortage of grain and contributed to the 1891 famine.
Who was the economic minister that followed Vyshnegradskii in 1892?
Sergei Witte
What was the ‘new philosophy’ of Witte when he took over as Economic Minister?
- By 1893 Russian economic activity was still predominately revolving around agriculture & he was one of the first to push for “Total” commitment to Industrialisation.
What was the “substitution effect” that Witte incorporated into his policy?
The increased investment into industry over agriculture.
