Russia's Economic Reforms

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  • Economic Reforms
    • Mineral
      • Before, there was 20 manufacturers involved with this type of industry. Run by foreigners. Used to melt Church bells down for Iron
        • Existing foundaries were expanded. During Peters reign, 52 new ones opened. they were large and well equipped
        • 1719 Ukaz = gave anyone the right to exploit mineral deposits, even on land of another if the owner failed to exploit their minerals
        • By Peters death, there was 16,000 cannon held in reserve
        • Iron Production = 1716 Russia was the net exporter of Iron
          • 1700 = Russia produced 150,000 poods of pig iron
            • By Peters Death = 800,000 poods
              • LONG TERM SUCCESS
    • Other Industries
      • Textile and Leather industries were expanded to meet the needs for uniforms, sails and saddles
        • Ensuring that Peter has an equipped and good quality army
      • Peters silk factory, supported with subsides
        • failed due to mismanagemnet and quarrels between managers
      • New industries = high tariffs on foreign imports. Were granted monopolies, tax exemptions and subsides to help them succeed
        • By 1724, tariff between 50-75% of good value
          • EFFECTS SOCIETY = POVERTY
          • USED FOR MILITARY PURPOSE. GNW
        • Monopolies etc granted to encourage investment
      • by the end of reign, 233 factories and workshops set up. Several shutdown after Peters death, particularly those reliant on military
    • Workforce
      • State money into the industries with no system of accountancy.
        • closest associates gathered huge fortunes, were corrupt and damaged his projects.
      • efficiency of industry and quality of goods = poor due to lack of skilled workforce
        • Reliant on foreign experts to train Russians
      • Serfs to Work- Poor quality, not trained
        • the only ones available to work, the ones that wouldn't be reluctant
    • Investment
      • The state provided much of the initial capital (the investment) to set up these industries and granting priviledges
        • Industries still often failed as they had to produce for the state at state prices. This allowed limited opportunities for profit and involved harsh punishments for failure to succeed
          • Nobles unwilling to invest or trade due to these harsh punishments
          • Voevody were reluctant to take risks and so not invest. They were reluctant to be recognised for being successful
            • If their business was successful, then it could be just nationalised which doesn't benefit their wealth
        • Reliant upon the state = state funding could be withdrawn at any time
    • Transport
      • Russia's poor roads meant that trade was slow and expensive for transporting goods
        • Peters plan to construct new canal system, planning to connect Volga and Don Rivers in order to connect Caspian and Azov seas
          • Plan abandoned after Peter lost Azov due to cost.
        • 1709- New Canal System Built. soon 2000 tons of freight travelling along rout annually
        • Peter planned for a 65 mile canal to be built pass Lake Ladoga
          • Wasn't completed until 1732 due to mismanagement and corruption of Menshikov
            • Was completed in the end, even though Peter was pushed back
            • Took a long time
    • Trade
      • Peter Sent expeditions to Central Asia
      • Added Kamchatka and Kurile islands to his territory = greater size
      • Peter failed to develop its own merchant marine due to a lack of private investment and inabiity to complete due to the established trading powers with Britain and Holland
      • Foreign trade increased four folds during Peters reign. Russia exporting than importing

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