NICHOLAS II ECONOMY Flashcards
8, 11
8 . Economic developments to 1914:
Annual growth rate per annum from 1894-1913 ?
> 8%
8 . Economic developments to 1914:
Witte, minister of finance from
1892-1903.
8 . Economic developments to 1914:
witte reforms impact
railways + income
- By the early 1900s the state controlled 70% of railways and held extensive holdings in the growing heavy industrial plant.
- 1903-13 the government received more than 25% of its income from its industrial investment.
8 . Economic developments to 1914:
what did witte do that became known as the great spurt?
(industrial econ improved more in a decade than in the last century.) 3
- Witte deliberately sought to manage industrial growth, seeking capital, managers, and skilled workers from overseas.
- Introduced a new rouble, backed by gold in 1987 to strengthen the currency and encourage foreign investment.
- The capital was used to fund public works and develop Russia’s infrastructure, mines, oilfields.
8 . Economic developments to 1914:
- Railway trackage doubled, coal output jumped from 183 million puds to 671 million in 10 years, and foreign investment soared with France supplying a third of all foreign capital – foreign investment went up from
280 in 1895 to 2000 million roubles in 1914.
8 . Economic developments to 1914:
- The state continued to buy out private railway companies which led to
60% of Russia’s railways were owned by the state by 1905.
8 . Economic developments to 1914:
- The railways helped open up Russian interior and allowed more extensive exploitation of raw materials, as well as linking grain-growing areas to Black Sea ports, reinforcing the export drive.
- They also stimulated the development of
the iron and coal industries and permitted the development of new industries.
8 . Economic developments to 1914:
railways impact
- Transport costs fell, bringing down the pries of good, and the government made money from passenger fees.
- By 1913, Russia had the second largest railway network in the world.
- The trans-Siberian railway was constructed by Witte, linking the central European Russia and Moscow with the Pacific Ocean. It brought economic benefits through its construction and by opening up western Siberia for emigration and farming.
8 . Economic developments to 1914:
Moscow overtook St. Petersburg as the industrial centre, which also grew in the engineering sector with the expansion of Putilov iron works.
* Number of factory workers increased from
1.3 million in 1887 to 2.6 million in 1908.
8 . Economic developments to 1914:
Witte believed that by concentrating on production in key areas and by developing large factory units, big increases in heavy goods production could be achieved so set the pattern for industrial development.
2 regions, what he did, impact
- The Donbas region was supplying 87% of all Russian coal and 74% of pig iron by 1913.
- By 1914, Russia was the 4th largest producer of coal, iron, and steel.
- The Caspian Sea port in Baku grew tremendously - Russian oil production trebled from 153 million puds to 570 million between 1885-1913. Russia became self-sufficient and was also able to compete with the US on the international market.
- It took second place in oil production in the world.
8 . Economic developments to 1914:
DEVELOPMENTS IN AGRICULTURE
Agriculture was largely ignored / sacrificed at the expense of industrialisation until 1906 when
Stolypin was appointed minister of internal affairs.
8 . Economic developments to 1914:
Fuelled by a growing internal demand, there was also a growth in light industry and textiles (which still accounted for 40% of the total industrial output in 1910).
* Between 1908-13, Russia experienced an industrial growth rate of ???
* By 1914, Russia was the world’s ???
8.5% every year.
5th largest industrial power.
8 . Economic developments to 1914:
- Before 1906 most farming small scale in the hands of the former serfs and state peasants, tied to the local mir and heavily taxed (exploited) by the state.
what were the problems caused by this?
- The subdivision of estates caused the average land holding to fell from 35 acres to 28 by 1905.
- Although there was a government initiative to sponsor emigration to new agricultural settlements in Siberia, it was insufficient to alleviate the pressure of a growing population on resources.
- Traditional agricultural practices continued – he wooden plough was still widely used and medieval rotation systems left land untouched each year.
8 . Economic developments to 1914:
- Some peasants had managed to improve themselves since the edict by buying up land and farming more efficiently - Stolypin sought to
produce more of these kulaks, as he aimed to both win their loyalty to tsardom and creating an internal market for the products of industry.
8 . Economic developments to 1914:
STOLYPIN’S LAND REFORMS
Stolypin wanted the peasants to become the permanent owners of their land.
He intended that each peasant’s land should be held in one piece, and without interference by the mir.
This programme began in 1903 when
the mir’s responsibility to pay taxes on behalf of all the peasants in the village was removed, but the major changes were undertaken after the events of 1905.