How Successful Were the Russian Governments in Promoting Economic Change and Modernisation Between 1881-1904?

625 WordsJun 16, 20123 Pages
How successful were the Russian governments in promoting economic change and modernisation between 1881-1904? After the Crimean War (1854-56) the econmoy in Russia slowly begun to develop. Alexander II set the development of a railwail bulding programm and a limited spread of factories. But Russia's economy was still not as well-developed as that in western Europe. So a real industrialisation took of in the reign of Alexander III and the help of Nicholas II's finance minsters Ivan Vyshnegradsky and Sergei Witte. The main point of those developments, was imporoving Russia's finances and buliding up the gold reserves. For doing this Vyshnegradsky decided to increase the indirect taxes and mount a drive to swell grain exports.. By…show more content…
These investments went into mining, matal trades and mostly in oil industry and banking.Besids Witte brought engeneers and managers from abroad and begun to develop the growth of the railways and the importance of "heavy " industry with them. It was time an industrial revolution in Russia. Russia begun to nationalise the railway companies in the 1880s. By 1905 nearly 66 percen of the whole railway system was state-owned.The most important railway line was the Trans-Siberian (building 1891-1902), which crossed Russia from west (St.Petersburg) to east ( Vladivostock).Those new railway lines linked the major areas of industrial producion and those with markets or ports. So building these railway lines also helped the development of the industries along their length. The development of iron and coal industries in the area of Moskow, St. Petersburg,the Baltic coast and the Ural Mountains to the east was heavily. This industrial growth helped Russia being the fourth largest industrail economy in those times. However there was more trade with grain than with industrial goods. Even though the state budget more than doubled because of Witte's work , the dependece on loans from abroad , which had to be paid back, should not fall in oblivion.Moreover Witte didn't aid the local industries and the agricultural modernasation since he thought the peasant could just be forced into

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