Witte's economic reforms

Witte's Economic Reform (1893-1903)

State Capitalism

• Witte believed that modernisation in Russia could be achieved by State Capitalism, modeled on Western European countries and the USA.
• Therefore, Witte believed that capital investment into industry was necessary. To do this, he received large loans from abroad and implemented heavy taxes and high interest rates within Russia.
• Witte also limited the import of foreign goods 
• Protective tariffs were set up as a means of protecting Russia's newer domestic industries such as steel production. 
• In 1897, Russia's currency was also put onto the Gold Standard, in an attempt to create financial stability. As a result of this, consumers within Russia had to pay higher prices…