Economic developments of Russia between 1881-1905

Question 1

How much of the population worked on the land in 1881?

Answer 1

90%

Question 2

What was the main basis of the whole economy?

Answer 2

Grain

Question 3

How many serfs were freed in the emancipation act?

Answer 3

20 million serfs

Question 4

How long were the redemption payments set for?

Answer 4

Serfs had 49 years to pay off redemption payments [until 1910]. This meant that they were even poorer than before.

Question 5

How did the emancipation of serfs cause people to lose money?

Answer 5

Peasants got poorer due to redemption payments.

Landlords became poorer as they lost their peasant workforce.

Question 6

How much did the population increase by in 1914?

Answer 6

Between 1881 and 1914, the Russian population doubled, increasing pressure on the economy.

Question 7

Who were the two finance ministers before Serge Wit?

Answer 7

-Nikolai Bunge
-Ivan Vyshengradsky

Question 8

When was Nikolai Bunge finance minister?

Answer 8

1881-87

Question 9

When was Ivan Vyshenegradsky finance minister?

Answer 9

1887-1992

Question 10

What did Nikolai Bunge do as finance minister?

Answer 10

Created the peasants land bank for Alexander III to encourage peasants to borrow money to buy larger land plots and farm more.

Question 11

Was Bunge a successful finance minister?

Answer 11

He had a good idea with the land banks but it was too small scale to have a large effect on the Russian economy.

Question 12

Ivan Vyshnegradsky finance minister policies?

Answer 12

Encouraged foreign investment in Russian businesses in order to raise money for industry by offering them financial incentives such as bonus payments.

Raised tax on the Russian population.

Tax was used to expand the rail network and increase oil production in Baku and coal in Ukraine.

High tariffs on importing coal and oil to protect Russian industry.

Question 13

Evaluation of Vyshnegradsky?

Answer 13

All good ideas in principle but they were funded by selling grain abroad, this caused a famine due to a lack of food for the peasants in 1891.

Question 14

How many people died in the famine of 1891?

Answer 14

400,000

Question 15

How long was Witte finance minister?

Answer 15

1892-1903

Question 16

What was the main problem in Russia’s economy at the time of Witte?

Answer 16

Witte had realised that the root of the problem of modernisation in Russia was the lack of a middle class. in other countries they had modernised using their large middle classes of factory owners and industrialists as the driving force. Russia simply didn’t have a middle class.

Question 17

What was Witte solution to this problem?

Answer 17

State intervention

Question 18

What does state intervention mean in Russia?

Answer 18

Government would directly drive and invest in the various industries, rather than encouraging Russian and foreign businessmen to do so.

Question 19

Two main areas Witte focused on?

Answer 19

-Railway
-Foreign investment

Question 20

Trans Siberian railway was started by who and in what year?

Answer 20

Vyshnegradsky in 1891

Question 21

What industries benefitted from the boom in the railway industry?

Answer 21

Coal and iron.

Question 22

What did Witte know would be key to growing the economy?

Answer 22

Communication lines were needed across the country if the economy was to grow.

Question 23

What did the railway expansion do?

Answer 23

Connected major towns and cities with industrial centres in the east.

For example it linked the oil city of Baku to the port of Batum on the Black Sea increasing exports and making them easier.

Question 24

What did Witte do in 1897?

Answer 24

Put the Russian Rouble on the gold standard.

Question 25

What does putting the rouble on the gold standard mean?

Answer 25

An international means of guarenteeing the value of a currency against other countries.

Question 26

Evaluation of the gold standard policy?

Answer 26

-Made trade easier and less risky with Russia [strength]

-Rouble now became a floating currency and unstable. [Weakness]

Question 27

What countries invested into Russian industry?

Answer 27

-France
-Belgium
-Britain
-Germany [heavy German investment into areas such as manufacturing and oil]

Question 28

Foreign investment increases between 1890 and 1900 = ?

Answer 28

Foreign investment rose from 200 million roubles in 1890 to 900 million roubles in 1900

Question 29

Drawback of Witte himself?

Answer 29

Although he was a good finance minister he was not a good politician. in 1903 he had to resign as his political opponents created too much pressure against him for him to remain.

Question 30

Successes of Witte?

Answer 30

-Massive increases in industry
-At Baku oil refineries, oil production rose by 1,000% between 1883 and 1900.
-Economy grew by 8% a year in the 1890s [GDP]
-From 1906-14 the economy grew by 6%.

Question 31

Failures of Witte = ?

Answer 31

-Trans Siberian railway was not finished [failed to achieve its goals]
-Witte raised taxes to achieve his modernising policies this put financial pressure on most of the populace.
-Peasant spent less on consumer goods, raw materials increased consumer marker froze
-Government got into debt due to investing into industry
-Middle class stayed small
-State of agriculture didn’t develop at all.

Question 32

Overall evaluation of Witte?

Answer 32

He had achieved more than his previous finance ministers as he created large economic and industrial growth. Though this had been at the expense of the people and thus in an indirect way Witte’s policies linked to the 1905 and 1917 revolutions as a factor in the working class Russians discontent as they were squeezed financially without seeing any improvements.