Economic developments (9)
- Created by: MonsurAli
- Created on: 01-06-17 19:41
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- Economic and social developments
- Economy under Mikhail von Reutern (Minister of Finance 1862-78)
- Due to no wealthy middle class, Reutern, believed govt must make economic reform.
- Tax farming abolished (companies could not buy rights to collect taxes).
- Treasury reformed and budgeting and auditing systems established.
- Credit facilities made available through banks
- Subsidies offered to private railways.
- Govt guaranteed dividends for foreign investors.
- Tariffs lowered and trade treaties negotiated.
- Degree of success
- Strengths: Cotton and mining industry expanded. Some improvement in agriculture.
- Limitations: Transport and labour mobility remained limited. Growth was slow. Russian currency was unstable. Most income went to paying debts.
- Due to no wealthy middle class, Reutern, believed govt must make economic reform.
- Economy under Ivan Vyshnegradsky (Finance Minister 1887-92)
- Import tariffs raised by 30% to boost home production.
- Grain exports increased by forcing peasants to sell grain.
- Increased loans from abroad (France 1888)
- Results
- Grain exports increased by 18% (1881-91) and the govt was in a surplus.
- Peasants suffered from heavy taxation, high prices and grain requisitions.
- 'We ourselves shall not eat, but we shall export.'
- He was dismissed due to the extent of famine: The Great Famine 1891-92 (Cholera hit at the same time causing 350,000 deaths).
- Economy under Sergei Witte (Finance Minister 1892-1903)
- He sought loans from abroad raising Foreign investment from 98 million to 280 million roubles between 1180-95.
- Increased investment in mining, oil and banking.
- Encouraged European experts to oversee industrial development and advise on planning
- Achieved huge expansion of railway: peaking at 1700km being built annually between 1871-75. By the mid 90's 60% was owned by the state.
- Agriculture and land issue
- Emancipation brought little change in agriculture; most peasants had too little land to prosper
- Also due to high taxes, grain requisitions, redemption payments and traditional farming practices, Mirs benefited more.
- Land owners: Most were noble men. Many sold their land to pay off debts and some abandoned farming to set up business or to enter professions.
- Peasants: Kulaks (rich and successful peasants) bought land - sometimes with loans from the Peasants' Land Bank.
- These Kulaks employed poorer peasants to work on their land (poorest ones becoming labourers). Many peasants were deemed unfit for military service and the avg. life expectancy was at 28 (England at 45)
- Economy under Mikhail von Reutern (Minister of Finance 1862-78)
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