Tsarist Economy Flashcards
Who was appointed finance minister in 1893?
Sergei Witte
In the 1890’s why was the period described as the ‘great spurt’
- The Russian industry grew so rapidly
- This was because of the increae in the output of coal in Ukraine and of oil in the Caucasus
What is state capitalism?
Witte believed that the government should have control over the economy and modernise Russia to catch up with the western powers
Argued that Russia could successfully modernise by industrial revolution
How did Witte raise capital for investment in industry?
He negotiated large loans and investments from abroad
While improving heavy taxes and high interest rates at home
Whilst encouraging the inflow of foreign capital
Limited the import of foreign goods
Other methods Witte used to increase investment?
Protective tariffs were set up as a means of safeguarding Russias young domestic industries
In 1897 the Russian currency was put on the gold standard - hoped it would create financial stability
Witte and the Trans Siberian railways
Constructed between 1891 to 1902
Line stretcher for 6000km from Moscow to Vladivstok
Intended to connect the remoter regions of the central and Eastern empire with the industrial west
And so encourage migration of workers to the areas where they were most needed
Problems of Witte
He made Russia too dependent on foreign loans and investments
In giving priority to heavy industry he neglected vital areas of light engineering such as machine tool production which would have helped to modernise manufacturing
Paid no attention to Russia’s agricultural needs
