the beginnings of state-promoted industrial growth Flashcards
why was industrialisation in Russia largely driven by the State?
due to the absence of an entrepreneurial middle class
state-promoted industrialisation attempted to?
match the economic development of Western Europe
Following emancipation, who produced a series of reforms designed to boost the economy and provide funds to drive industrial growth?
Alexander II’s minister of finance (1862-78)=
Mikhail von Reutern
mikhail von Reutern (1820-90)
- believed that state money and control should direct economic change, used his position to carry these beliefs into action.
-particularly encouraged development of railways
-became chairman of the council of ministers in 1881
the treasury
-treasury was reformed and new arrangements for collecting taxes, auditing the accounts of government departments, and publishing budgets were put in place
tax farming
-whereby groups bought the right to collect certain taxes
-abolished and the tax system was reformed to include more indirect taxation
banks and credit facilities
extended with the establishment of a state bank in 1860, municipal banks in 1862 and a savings bank in 1869
trade
promoted with the reduction of import duties from 1863
government subsidies
were offered to enable private entrepreneurs to develop railways
foreign investment in Russia
encouraged with a government-guaranteed annual dividend
new legislation
regulated joint-stock companies to encourage ‘safe’ investment
government support
offered for the development of the cotton industry
what did von Reutern’s reforms force former tax farmers to do?
-forced them to look elsewhere to invest, whilst the opportunities provided by government subsidies and trade treaties encouraged enterprise
what else supported industrial expansion?
the use of foreign technical expertise and capital
-the railway network saw a marked expansion
overall what was the annual growth rate during Von Reutern’s term of office?
annual growth rate of 6%
textiles=dominant industry
what began in 1871?
oil extractions began in Caspian Sea port of Baku
what was set up in Donetsk?
an ironworks was set up in Donetsk in 1872
what was set up in 1879?
the Naphtha Extraction company was established by the Nobel brothers, to exploit coal and oil extraction further
despite these improvements in Russia’s economy?
remained comparatively weak
how much of all government expenditure went on the repayments of debts?
1/3 of all government expenditure
the Russian currency (the rouble) was?
subject to wild variations in its value
what kept the peasantry poor and the domestic market small?
-the limitations of the emancipation edict
- a taxation system which left 66% of the government revenue coming form indirect taxation
what did tariff reductions mean?
a decline in government revenues
-> the decision was taken to raise these again from 1878
