Industry in Russia 1855 - 1964 Flashcards
What three sections can the theme be split into and what characterises these?
Tsarist Rule: 1855-1917
Early Bolshevik: 1917-1921
Late Bolshevik: 1921-1964
What were the negative Impacts of the Reutern Press?
Poor infrastructure continues to hinder modern development.
The quality of alexanders internal market was fragile, as the vast majority of Russians were in debt, and they had little disposable income. Reliance on peasantry was doomed for failure due to economic state of serfs.
If you are reliant on foreign entrepreneurs, you are vulnerable to the global economic environment. Foreigners are able and willing to leave if they see fit.
Also, there is no incentive for the Russian middle class to grow.
What were Reutern’s Policies?
Limited control on imports.
Moderate taxes.
Greater freedom for entrepreneurs.
Encouraged foreign investment: Ludwig Knoop: German Textile entrepreneur, established 187 cotton mills in Russia during the reign of Alexander II.
Used English machinery, managers, and technicians.
Paid low wages but provided services to workers, e.g., health insurance.
Made a baron in 1877 by Alexander.
John Hughes: Welshman who established an ironworks in Russia in the 1870s to supply orders from the Russian government.
How did the foreign investors help support Russian industry?
Overseas loans were used to finance the development of the rail network: the rail network grew from 2200 miles to 14200 miles.
There were significant increases in raw material production: 1860, Russians were mining 300,000 tonnes of coal versus in 1880, they were mining 3,212,000 tonnes of coal.
1865: 8912 tonnes oil, versus in 1875, 83200 tonnes of oil.
What were Witte’s policies in 1890s?
Encouraged foreign experts and investors to come to Russia.
The rouble was placed on the gold standard—this fixed the currency to a specific value of gold – stabilised the economy and encourages investment from foreign investors.
Capital to invest in industry was raised through increases in taxation on the peasantry, foreign loans, and high interest rates.
High tariffs placed on imports to encourage people to buy things made in southern Russia.
Kickstarts the economy through railways, (Railways open up markets, increase demand for iron and coal, betters’ infrastructure and makes it easier to access foreign markets.
What were the results of Witte’s policies?
8% growth rate: “far exceeding any comparable period before 1914 and establishing one of the most impressive performances in late nineteenth century Europe.” (Trebilcock)
Doubling coal production, sevenfold in production of iron and steel.
More specialist technologies developed e.g., in the oil and chemical industries.
The Trans-Siberian railway.
What were some criticisms of Witte’s policies however?
Over reliant on foreign investors, which risks a collapse in the economy. Left Russia vulnerable to any falls in investor confidence. E.g., in 1901-2 a collapse in an investor’s confidence and resulted in 2,400 firms closing.
Heavy taxation on the peasantry, was a limited domestic demand for goods already. Reduced the domestic market even further as the taxes took away more of the disposable income and so the problem was not addressed at the root.
Reliance on foreign investment meant that profits often went overseas.
High tariffs made certain products more expensive, like agricultural equipment. Russian industry couldn’t keep up with demand for products.
Witte’s policies limited Russia’s foreign policies. A lot of foreign money was coming for a limited number of countries, like France. Therefore, the tsar was unable to reach out to other countries, limits potential alliances.
Rapid industrialisation leads to people moving into the cities to find jobs. This led to appalling working and living conditions, which created a discontented working class, possibly revolutionary, and the close proximity allowed ideas to spread.
What were Stolypin’s Reforms?
Low taxing on rich meant there was build up in capital for investment.
Agricultural development built on the railway network for the greater marketing of produce.
Financial ministers after Witte avoided excessive taxation
Available workforce—urban wage rates in the south were higher than agricultural incomes and were generating market.
Riga production picked up after the production of the railway slowed.
Expansion of consumer goods like the gramophone.
After 1905 there was a lot of French investment
Rebuilding of the navy meant that steel industries in the Ukraine were regenerated.
A decline in cotton sales at home lead to state subsidiaries directed towards building up exports to the near and Far East to earn foreign currency.
What impact did industrialisation have on Russian Society?
Industrialisation resulted in major internal migration (15% of population migrated between 1881 and 1897. 33% of St Petersburg’s population were rural immigrants by 1897). Wage rates varied e.g., in the south where labour was scarcer, workers could earn 360 roubles per year (average was 175 roubles). Generally, immigration pushed down wages (rural wages were lower).
Harsh work discipline e.g., fines, beatings. Peasant migrants had to adapt to an alien way of working – loss of freedom over their working life.
Rapid urban growth resulted in overcrowding e.g., 1896 survey found 4-6 people in a bed, many lived in basic dormitories. Poor sanitation caused outbreaks of disease e.g., cholera outbreak 1896.
Govt. failed to plan for consequences of industrial growth.
Number of strikes varied e.g., declined between 1905 and 1910 from 2863 000 strikers to 47000 strikers); increased after 1910 (11337 000 strikers in 1914). Violence sometimes used to suppress strikers e.g., Lena Goldfields massacre 1912 (200 striking miners shot dead by soldiers). As a result of 1905, Russian workers achieve the right to unionise.
How did WW1 affect Russian industry?
Initially the Russian Economy was hit badly by World War I.
The borders between countries were closed so the trading was off. 90% of Russia’s exports had passed across the western border, and it had shut as a result of the war. No workers due to conscription. Labour force hit badly.
10 million peasants and urban workers were recruited into the military.
German takeover huge sections of the Russian rail system and the transports system collapses. The system was disrupted by the loss of land in the west. This network struggles to keep cities supplied with grain and raw materials. Horses are taken from the countryside to use as transport. This leaves farmers struggling.
However, Russian industry did adapt to the war: by 1916 Russian industry was largely meeting the industrial needs of the war. However, it took them time to reach that point. although Russia had significantly more success than other wars in the years previous, Russia could last for years against the Germans and hold its own against the other western powers like France and Britain.
Industry in the Early Bolshevik era 1917-1921
