03 russian economy

Russian Economy

Russian Economy

• The late 19th and early 20th centuries were economically problematic in Russia.

• Technology and industry continued to develop more slowly than in the West (and Far East).

Country Coal produced in 1900

Britain 250 million tonnes

Russia 12 million tonnes

Russian Economy - Change• Industry, in general, had greater

state involvement than in Western Europe.

• But there was some private investment especially from abroad.

• 1850 - 1900 Russia's population doubled– Fastest of all the major powers except

for the United States.

Russian Economy

• Agriculture was technologically underdeveloped.

• It remained in the hands of former serfs and former state peasants.

• They were 4/5 of the rural population.

• Smaller farms and more people increased the amount of land used for agricultural development.

• But land was used more for gardens and fields of grain and less for grazing meadows than it had been in the past

Industrial growth was limited to the west of Russia

Russian Economy, c.1890 Label the economy fact boxes into ‘good economic news’ and

‘bad economic news’

Give a positive score to each good thingGive a negative score to each bad thing

How does the Russian economy score overall in

1890?

Russian Economy – An improving picture

Russian Economy – An improving picture

• Better transportation = more efficient use of Russia's abundant natural resources.

• The railroad allowed shipment of grain to the West,

• This helped finance industrialisation.

Better Transport = More trade

GoldFood

Iron Timber

Better Transport = More trade

Gold

Food

Iron Timber

Wealthy western markets

Russian Economy• High tariffs were introduced

to protect new industries.

• Western investment in Russian industrialisation was encouraged

• As a result, nearly half of Russia's industrial businesses were foreign-owned.

Imports

Tax

Foreign money

Russian Economy1900: – 4th in steel & iron production– 2nd in petroleum production.

• Russian factories were typically enormous but technologically backward.

• Agriculture also lagged behind Western standards of productivity.

Read p.19 and answer these questions

1. What campaign did Stolypin organise?

2. Why was there an increase in strikes after 1910?

3. How many workers were killed at the Lena Gold Fields in 1912?

4. What prevented the number of strikes escalating?

Russian Economy

Sergei Witte

Sergei Witte• A Russian politician and prime minister (1905-

06)

• He was the Tsar's most valued adviser on transport and economics.

• Achievements:– sought foreign investment, – masterminded the modernisation of Russian

industry – suggested the construction of the Trans-Siberian

Railroad.

Look at the policies and effects on the handout and complete this table.

Successes Failures

The Russian Economy

1905-1914

1905-1914 Summary• After the Russia-Japan

war of 1905 the economic situation became worse.

• The peasants started to question the right of the aristocracy to rule.

• Many wanted change.

1905-1914 Summary

• Many peasants, burdened by high taxation, demanded land.

• Much of the land still belonged to the gentry.

Hello, I’m back. I

want some land

please.

1906 Harvest• To make matters worse, 1906

saw significantly reduced harvests.

• Wheat figures: 12.8 million metric tons in 1905

9.9 million in 1906

1906 Harvest• Oats:

12.0 million

8.8 million

• Potatoes:27.6 million

25.1 million.

Prime Minister Stolypin tried to reduce tension.

He told the Peasants' Bank to buy up land from nobles and sell portions of it off to peasants.

This policy which was only partially successful.

Russian Government Revenue and Expenditure, 1905-1913 figures in Russian Paper Roubles

Year Revenue Expenditure

1900 1,704,000,000 1,883,000,000

1905 2,025,000,000 3,205,000,000

1906 2,272,000,000 3,213,000,000

1907 2,342,000,000 2,583,000,000

1908 2,418,000,000 2,661,000,000

1909 2,526,000,000 2,608,000,000

1910 2,781,000,000 2,597,000,000

1911 2,952,000,000 2,846,000,000

1912 3,106,000,000 3,171,000,000

1913 3,417,000,000 3,383,000,000

In 7 out of 13 years between 1900 and 1913 expenditure was greater than income.

Correctly dealing with figures is important in History.

Calculate the total budget deficit. (Σrevenue – Σexpenditure)

Year Revenue Expenditure Difference

1900 1,704,000,000 1,883,000,000 -179,000,0001905 2,025,000,000 3,205,000,000 -1,180,000,0001906 2,272,000,000 3,213,000,000 -941,000,0001907 2,342,000,000 2,583,000,000 -241,000,0001908 2,418,000,000 2,661,000,000 -243,000,0001909 2,526,000,000 2,608,000,000 -82,000,0001910 2,781,000,000 2,597,000,000 184,000,0001911 2,952,000,000 2,846,000,000 106,000,0001912 3,106,000,000 3,171,000,000 -65,000,0001913 3,417,000,000 3,383,000,000 34,000,000

Total 25,543,000,000 28,150,000,000 -2,607,000,000

Russian Economy

1914-1917

1914-1917 Summary• The Tsar wanted to ensure

a supply of food and consumer goods.

• However, such goods became increasingly scarce.

• Industry focussed on war articles and imports decreased because of Russia's isolated location.

1914-1917 Summary

• The production of Vodka was forbidden in order to save potatoes.

• Food Rationing was introduced and a Price Fixing policy adopted.

• Ration coupons were not always effective as shop shelves were empty.

• Agricultural production decreased for a number of reasons: – many farmhands had been

conscripted into the army–many horses from the villages

had been confiscated by the military forces. – the fixed prices made it

unattractive for farmers to grow grain.

• Some of the potato harvest was used to clandestinely produce vodka.

• When large regions in the west were occupied by the enemy, the population was evacuated into Russia's hinterland.

• They had to be fed, providing an additional burden on the faltering economy.

The cost of the war to the Russian Empire

• c.1,700,000 dead

• 4,950,000 wounded

• 2,500,000 M.i.A

Total losses: • 9,150,000 out of a population of 158,000,000

Cost in Cash

• c. 40,000,000,000 roubles

• For comparison Russia's state revenue in 1913 amounted to 3,417,000,000 roubles.

• The war had been financed by both foreign and domestic credits as well as by printing additional money.

1914-1917 TaskStudy the tables on the handout [Evans, D. Years of Russia & the USSR (2001) pp.170-171]

1. What advantages did Russia have in WW1?

2. What disadvantages did it have?

3. In 1914 the British Foreign Secretary said ‘Russian resources are so great that in the long run Germany will be exhausted.’ How accurate is his assessment of Russia’s strength? (Write about 50 words)