Industrialisation Flashcards
(37 cards)
1
Q
What did Alexander II introduce?
A
- He introduced the ‘New Work Discipline’ whereby factory owners introduced strict rules and regulations that were required for employees to work safely and efficiently with machines.
2
Q
Who was Finance Minister under Alexander II in the period 1862-1878?
A
- Mikhail Reutern
3
Q
What approach did Reutern adopt to industry?
A
- Revolved around railway construction
- The attraction of foreign expertise
- Employment of foreign direct investment
4
Q
Give some examples of the modernisation that occurred under Reutern?
A
- The Nobel Brothers were responsible for the growth of the oil industry around Baku
- Ludwig Loop developed the Russian textile industry
- JJ Hughes was responsible for the transformation of iron and steel production.
5
Q
To what extent did Reutern build upon the railway under Nicholas I? What were the impacts of this?
A
- There was a seven fold increase in the amount of railway track opened, from 2200 miles in 1862, to 14,000 miles in 1878.
- This allowed for railways to ‘break bulk’ at speed, which gave a boost to the industrial sector.
- Subsequently, there was a doubling of industrial output, and an average annual growth rate of 7%
6
Q
How did Reutern improve trade and investment?
A
- The issuing of government bonds, taxation exemptions and monopoly concessions(being given the right to be the only seller of a product)
7
Q
What were the downsides to the railway construction under Reutern?
A
- Wherever possible construction was placed in the hands of private contractors, and to secure their services, the government made a promise to bail out projects which encountered financial difficulties. This inevitably led to corruption.
- Due to the very high costs of construction and operation, 94% of the railway was private by 1880.
8
Q
How were Reutern’s efforts cut short?
A
- Russo Turkish War 1877-1878
9
Q
Who was the first finance minister under Alexander III?
A
- Nikolay Bunge (1882-1886)
10
Q
How did Bunge reform industry?
A
- Fiscal amendments eg - the abolition of salt tax in 1881, and in 1886 poll tax.
- Creation of the Peasant Land Bank in 1883
- Move towards a greater state ownership of the railway
11
Q
What percentage of the railway was publically controlled under Alexander III?
A
- 69% by 1911.
12
Q
Why did Bunge fall from power?
A
- Alexander III blamed Bunge’s liberal reforms for the dramatic fall in the value of the rouble and was replaced with Ivan Vyshnegradskii
13
Q
How did Vyshnegradskii balance the government budget and make a surplus of income?
A
- Achieved through a more efficient utilisation of income from taxes, railways, crown properties, the state bank and treasury.
14
Q
What is the significance of the Medele’ev tariff of 1891?
A
- Vyshnegradskii raised revenue from this tariff and income gained by exporting large amounts of grain even when there was a prospect of starvation and domestic shortage.
- The 1891 famine was seen partly as a result of Vyshnegradskii’s policies, and was forced to give way to Sergie Witte (1893-1903)
15
Q
Who was the finance minister under Nicholas II?
A
- Sergie Witte (1893-1903)
16
Q
How was Witte different to previous finance ministers?
A
- Witte showed full commitment to industry in an attempt to compete with other industrialised nations and to improve Russian military capability.
This was mainly achieved through the expense of agriculture - ‘substitution effect’.
17
Q
What were the 5 main strands of Witte’s Great Spurt?
A
- The placement of the rouble on the gold standard in 1897 which gave confidence to potential investors of the Russian currency
- Took out foreign loans, raised taxes and interest rates to boost available capital for industry
- Encouraged foreign expertise like Reutern did.
- Most investment should go on heavy industry and the railways
- Further industrialisation was to be planned and managed mainly by the state, with a move away from private enterprise.
18
Q
What was the impact of the Great Spurt?
A
- Coal production doubled and iron and steel increased seven fold.
- A stimulus was provided to the development of new technologies in the oil and chemical industries
- The total amount of railway track opened rose by 40% between 1891 and 1901.
19
Q
What were the criticism’s of Witte’s Great Spurt?
A
- The encouragement of foreign expertise halted domestic talent
- Although the railway track expanded, it was still very costly and not as impressive as European tracks.
- The reliance on foreign capital had been criticised as dangerous as loans could be recalled at short notice
20
Q
Why was Sergie Witte dismissed from post?
A
- Witte opposed Nicholas II’s expansionist foreign policy, mainly on the grounds of cost.
21
Q
Following his dismissal from finance minister, why/how did Witte become prime minister?
A
- After a disastrous war against Japan(1904-1905) and the social unrest of 1905, Witte was appointed as Prime Minister
- Stolypin was put as Finance Minister and their joint efforts resulted in a revival of the economy.
- From 1909 to 1913, industrial output increased at a rate of 7% a year.
22
Q
What was the industry like at the start of WW1?
A
- Coal production was 10% of British capacity
- There were small scale enterprises and a lack of modern technology
- Witte’s reforms were abandoned
23
Q
How did Lenin change industry in 1917?
A
- Introduced State Capitalism; involved taking control of the economy until it could be handed over to the proletariat.
24
Q
How did Lenin introduce State Capitalism?
A
- November 1917 decree on land - The division of private land that was then handed to peasants
- November 1918 Decree on Workers Control - worker committees given extra powers to run factories
- December 1917 SEC(Supreme Economic Council) The SEC was formed to manage key industries that were nationalised by the Bolsheviks.
25
How was Lenin's State Capitalism affected by Civil War?
- Production of coal fell from 29 million tons in 1913 to 9 million tons in 1921.
- Inflation had got out of hand; the rouble was worth 1% of its 1917 value
- As a result, 90% of wages were 'in kind' (payment other than using money)
26
How did Lenin change his approach during the Civil War?
- Lenin used State Capitalism and Grain requisitioning to create War Communism
27
What was War Communism?
- Nationalisation of larger enterprises
- Partial militarisation of Labour
- Forced requisitioning of agricultural produce
28
After State Capitalism and War communism, what did Lenin introduce?
- Lenin introduced NEP(New Economic Policy)
Features are as follows;
- Return to private ownership
- The continuation of state control of heavy industry
- Removal of trade restrictions
- Encouragement of foreign trade
- End to grain requisitioning
29
What was the impact of Lenin's NEP?
- Industrial output increased rapidly and this was reflected in a greater number of consumer goods found in shops and markets.
This was heavily linked to the emergence of the NEPMEN. By 1923, NEPMEN were responsible for 60% of retail trade.
- The NEPMEN had started to annoy people with their underhand dealing
- Another cause for concern was the emergence of the Scissors Crisis whereby the supply of food increased at a faster rate than it was demanded, resulting in a swift fall in prices.
30
What were Stalin's aims based on?
- Launch a war against Russia's Tsarist past
- To prepare for potential conflict with Russia's capitalist enemies
- The development of heavy industry was the key to expansion and modernisation of the armed forces.
- These aims were also linked to the wish for economic autarky(self sufficient)
31
What did Stalin replace the NEP with?
- Replaced with a policy that revolved around strict control and centralised planning
- Industrialisation was to be stimulated through the setting of production targets.
- From 1929 to 1964, there were seven 5 year plans
32
How were the 5 year plans corrupt?
- Targets were set by the ruling elite and were often based on flimsy research.
- Managers at local level were ordered to achieve them and were in constant fear of failing.
33
in theory, what was the structure of the 5 year plans?
- Initial targets were stipulated by key officials in the party. Gosplan was given the task of researching and calculating figures needed for target setting.
- Targets were then passed on to commissariats to frame a plan for clearly defined areas of economic activity
- The plans were then passed on to regional managers to implement. In reality, the plans were little more than very detailed instructions
34
What are the statistical achievements of the Five Year Plans?
```
- From 1928 to 1960;
Electricity 5 to 292
Oil 12 to 148 million tonnes
Coal 35 to 510 million tonnes
Clocks and watches 900,000 to 26 million
```
35
How was Khrushchev different to Stalin in terms of industrialisation?
- He continued with centralised planning which resulted in further economic growth and more diversification in what was produced.
- But, his first plan was abandoned, and his second correlated with a slowdown in the economy, which makes Khrushchev's achievements less impressive than Stalin's.
36
Give some successes of the 5 year plans
- Significant increases in the output of heavy industry
- New specialist industries emerged eg chemical
- In the second 5 year plan, 4500 new enterprises were started.
- Larger range of goods
37
Give some limitations of the 5 year plans
- Shortage of skilled workers
- Targets were not met
- Managers were forced to exaggerate achievements
- Oil industry was very slow to expand in comparison to western industries
- Entry into WW2 led to a shortage of raw materials and a slowdown in economic progress
