Economic Changes 1855-1881 Flashcards
(17 cards)
Describe Russias economy in 1855
It was primarily agricultural and serf based
Describe Russian transport systems and railway networks in 1855
They were underdeveloped and consequently economic growth rates were poor
Why was Russian agriculture limited to subsistence farming?
Outdated and inefficient farming methods were still used, it was also due to unpredictable harvests. Some peasants made small scale crafts in cottage industries and sold surplus crops, but this was largely through bartering
Why was there little capital for investment?
There were few wage earners and virtually no entrepreneurial middle class
What discouraged foreign investment?
The instability of the rouble
After 1861 what did many landowners use their government compensation for?
To pay off existing debts and mortgages which limited the potential for investment into industry
What kept the peasantry poor after 1861?
Taxes and redemption payments
What were the consequences of the pressure of the Mir?
It inhibited movement into towns and cities
What made it hard for freed serfs to get jobs?
Lack of technical expertise and education
What was the pattern of movement after 1861?
Some freed serfs did temporary labour in factories and returned to their villages for harvest whilst those with no land often relocated permanently and started earning wages
What new industry developed?
Oil extraction in the Baku Region and iron ore mining in Donetsk
After 1861 what was the average annual economic growth rate?
5%
When was Von Reutern appointed finance minister?
1862
What were the consequences of government investment into the railway network?
It improved transport links and led to a growth in coal mining, metallurgy and engineering industries
Who was employed to support new industries?
Foreign experts
What did Von Reutern do?
He made credit and loans more easily accessible through state and municipal banks, and offered state subsidies to domestic investors and entrepreneurs to develop industry
What did economic reform achieve?
It helped stabilise the ruble and regulate joint-stock companies which encouraged foreign investment. This was further boosted by the guarantee of annual dividends
