Tsarist and Communist Russia 6A- Economic developments

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What was industrialisation driven by?
The state
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Why was it driven?
To match the economic development of western Europe.
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Who was Alexander II's minister of finance?
Mikhail von Reutern (1862-78)
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What did Von reutern believe in?
state money and control should direct economic change. Encouraged the development of railways.
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What did he do following emancipation?
Produced a series of reforms designed to boost the economy, and provide funds to drive industrial growth.
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What happened to the treasury in these reforms?
It was reformed, and new arrangements for collecting taxes were put into place.
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What happened to tax-farming (groups buying rights to collect certain taxes)?
It was abolished. Tax system was reformed to include more indirect taxation.
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What happened to trade?
It was promoted with the reduction of import duties from 1863.
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What did Von Reutern's reforms force to happen?
Former tax farmers looked elsewhere to invest and ops provided by government subsidies encouraged enterprise.
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What saw a marked expansion?
The railways, after government subsidies allowed private entrepreneurs to develop railways.
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During Von Reutern's time in office, what was the annual average growth rate?
6%.
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What new developments occured in industry?
Oil extraction began in 1871 in Baku, Ironworks set up in Donestk in 1872.
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Despite these improvements, how was Russia's economy?
It was comparitavely weak.
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How much of government expenditure went on repaymnet of debts?
A third.
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What did the Russian currency- the rouble- experience?
subject to wild variations in value.
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What did the limitations of the Emancipation Edict and the taxation system mean for the peasantry?
It kept the peasantry poor, and the domestic market small.
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How much government revenue came from indirect taxation?
66%
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What were raised in the 1880s?
Tariffs.
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Who took over from Von Reutern in 1887?
Ivan Vyshnegradsky
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What did he introduce for tariffs?
An import tariff of 30% of the value of raw materials was introduced
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What was this designed to do?
Boost home production. It considerably helped the iron industry.
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How much coal was produced in 1880 and 1890?
1880- c3 million tonnes. 1890- c6 million tonnes.
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What did Vyshnegradsky need to do?
Balance the budget whilst financing enterprise.
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What was he able to negotiate with other countries?
Valuable loans e.g. from the French in 1888.
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What was he able to increase?
Indirect taxes and grain exports.
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Between 1881 and 1891, how much did grain exports increase by?
18%.
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By 1892, what was in surplus?
the Russian budget.
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On the surface, how did the policy appear?
Very successful.
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But what was this export drive achieved in the expense of?
The peasants, who paid the taxes and saw the grain be requistioned by the State.
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What was life like for the peasants?
Had no reserve stores for the winter, so were left with little or no food.
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What did Vyshnegradsky say about this?
'We ourselves shall not eat, but we shall export'.
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What did this policy result in?
Bad harvests brought a widespread famine in 1891 and 1892.
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How many provinces did the famine affect?
17 out of 39.
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Why did this famine occur?
Early winter and a long, hot summer, whcih ruined crops.
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How many died as result of starvation and disease?
350,000.
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What happened to Vyshnegradsky as a result of this?
He was dismissed.
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Who replaced him?
Sergei Witte.
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What was he focussed upon?
Economic modernisation as a means of curbing revolutionary activity.
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What did he believe was the only way forward?
To continue with protective tariffs, heavy taxation and forced exports that generates capital.
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What did Witte sought from abroad?
Additional loans.
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How much foreign investment did Russia have in 1880 and 1895?
1880- 98million r. 1895- 280million r.
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What did this investment go into?
Mining, the metal trades, oil and banking.
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Who did Witte encourage to come and oversee industrial developments?
Engineers, managers and workers from France, Germany, Britain and Sweden. Also advised planning and techniques.
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What did this help to expand?
The railway network.
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What did this expansion allow Russia to become?
the world's 4th largest industrialn economy in 1897.
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What did this growth help to increase?
Russian exports and foreign trade.
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by the mid 1890s, how much of the whole Russian railway system was state owned?
60%.
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Did emancipation bring about any fundamental change to agriculture?
No, it was just the same as before, except the quantity of ploughland had been reduced.
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Although there was considerable variation, how much land did an average peasant receive?
a little less than 4 hectacres.
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What factors of emancipation hindered agricultural change?
High taxes, grain requistions, redemption payments and traditional farming practises.
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What did the government introduce to facilitate land purchase?
Nobles' (1882) and Peasants (1885) Land Banks.
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But what did this do instead of helping?
merely increased debt.
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Had there been an increase in agricultural production in 1870s and 80s?
There HAD been an overall increase, due to the kulak class responsing positively to Vyshnegradsky's export drive.
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But what did the famine and the expected to solve Emancipation show?
The basic problem that the average Russian peasant had too little land to become prosperous.
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Card 2

Front

Why was it driven?

Back

To match the economic development of western Europe.

Card 3

Front

Who was Alexander II's minister of finance?

Back

Preview of the front of card 3

Card 4

Front

What did Von reutern believe in?

Back

Preview of the front of card 4

Card 5

Front

What did he do following emancipation?

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Preview of the front of card 5
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