MODERNISATION: ECONOMIC 1881-1904

Alexander II
1. After Crimean defeat:
  1. railway building programme
  2. limited spread of factories
1881 RU economic far development behind W.EU
1. huge potential
  1. vast supplies of natural resources
  2. plenty of manpower
Alexander III
1. 'Industrial revolution' took off
2. His and Nicholas II finance ministers
  1. Vshnegradsky 1887-92
    1. Aims
      1. improve RU finances
      2. build up gold reserves
    2. Methods
      1. increase indirect taxes
      2. drive to increase grain exports
      3. reduce imports by increasing tariffs
      4. The Tariff Act of 1891
        protected from outside competition
        iron
        industrial machinary
        raw cotton
    3. Results
      1. 1891 import duties = 33%
      2. 1881-91 grain exports increased by 18% (of total RU exports
      3. 1892 budget = surplus
      4. peasants suffered
        heavy indirect taxation > reduced limited purchasing power
        price goods increased because of import taxes
        grain requisitioning
        1891 bad harvest = widespread famine
        many thousands died
        Vshnegradsky dismissed 1892
  2. Witte 1892-1903
    1. V. forward thinking
      1. caused controversy
      2. agreed with Vshnegradsky
    2. committed to economic modernisation
      1. preserve RU 'great power' status
      2. only way living standard would improve
      3. curb unrest & revolutionary activity
    3. Aims
      1. solve
        insufficient capital
        lack of technical & managerial expertise
        insufficient manpower in right areas
    4. Methods
      1. got industrialisation directed 'from above'
        state capitalism
      2. protective tariffs
      3. heavy taxation
      4. forced exports
      5. loans from abroad
      6. raise interest rates
      7. Jan 1897 new rouble
        value of gold
        preserve its worth
      8. encouraged foreign experts and workers
        more modern techniques
      9. Buying of private railways in 1880s &expanding
    5. Results
      1. increased foreign investment because there was more business confidence
        mining
        metal
        oil industry
        banking
        FR = biggest investor
        1/3 of all foreign capital
        1895 in millions of roubles = 280
        1900 = 911
      2. new rouble stopped currency fluctuating
      3. RU forced into industrial revolution
        expanding industrial cities
      4. railways
        mid 1890s
        66% whole railway system state owned
        1905
        66%
        59,616km railways
        major engineering feat accomplished
Railways development (Indust. growth)
1. increased exploitation of RU raw materials
  1. stimulated iron and coal industries & founded new indust. areas
2. outlet for exportation
  1. funded by foreign investment
  2. grain-growing areas could send produce to Black Sea ports
3. transports costs decreased
  1. price of goods decreased
  2. gov. gained new revenue
    1. freight charges
    2. passenger fares
4. Trans-Siberian Railway
  1. huge indust. stimulus
  2. socially gave a psychological boost
  3. massive economic benefits
    1. construction
      1. massive gov. order for metals and coal
      2. peasants encouraged to emigrate & prosper in Siberia
        less strain on densely populated areas W.RU
        fewer restrictions on life (far away from capital)
        attractive option
    2. farming in region increased
      1. supplied towns and cities of W & foreign countries
  4. strategic benefits
    1. transport troops
    2. transport military supplies
River & sea navigation improved
1. increase in the no. steam ships
  1. BUT
    1. most overseas trade = carried in foreign ships
    2. RU roads remained poor

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MODERNISATION: ECONOMIC 1881-1904

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	Created by Emily Littlejohn almost 11 years ago