Witte- Unit 1, 1890s

Question 1

What were the main aspects of Witte’s modernisation?

Answer 1

• State Capitalism
• Railways

Question 2

Who was Witte?

Answer 2

Minister of finance.
Wanted to modernise Russia, tried to bring in foreign experts and works to advise on Industrial planning.

Question 3

What is state capitalism?

Answer 3

The control of the economy by the government.
Inspired by Western Europe and USA.

Question 4

How did Witte carry out state capitalism?

Answer 4

• Negotiated loans and investments from abroad and imposed heavy taxes at home.
• Set up Tariffs.
• Russia’s currency put on gold standard.

Question 5

What are tariffs?

Answer 5

Duties imposed on foreign goods to keep prices high and discourage importers from bringing them into the country (to safeguard Russia’s industry).

Question 6

When was Russia’s currency put on the gold standard?

Answer 6

1897
Roubles
For stability, encourages direct foreign investment.

Question 7

What was the impact of the gold standard and tariffs?

Answer 7

Good for foreign investment, effectively stabilised Russia.
But penalised people at home, higher value of currency made the already scare products more expensive.

Question 8

What did Witte do to the railways?

Answer 8

• Wanted effective railways system.
• Increased railways from 13,270 in 1881–> 43,850 in 1913.

Question 9

What was the focus on railways called?

Answer 9

‘Transport revolution’.

Question 10

What is the most prolific railway created?

Answer 10

Trans-Siberian Railway (1891-1902).
Wanted it to encourage migration for workers, but it remained incomplete for the majority of its existence.

Question 11

How was foreign trade improved?

Answer 11

Coal:
1890- 5.9 tons.
1913- 35.4 tons.

Question 12

Why may the improvements not be so impressive?

Answer 12

Population increase.
Data inaccurate and backwards.

Question 13

What is the industry referred to as in the 1890s?

Answer 13

‘The Great Spurt’

Question 14

What was the positive impact of Witte?

Answer 14

• Increased urbanisation, working classes reach 11 million.
• In 30 years, growth of railways= 230%
• Russia became 4th largest economy in the world.
• By 1900, economy expanding 8% per annum.

Question 15

What problems did Witte cause?

Answer 15

• Too dependent on foreign loans and investment.
• Rejected areas like engineering, too focused on heavy industry as from 1885 onwards, 50% gov spending was on military.
• Was a huge increase in population, figures not too impressive.
• Witte heavily disliked. Forced to resign in 1906.