Economic Growth in Tsarist Russia

Lesson Focus• The ‘Great Spurt’• State Capitalism• Railways• Witte’s problems• The end of the ‘Great Spurt’• How strong was the Russian economy by 1914?

The ‘Great Spurt’

• Rapid growth of industry in the 1890’s

• Coal in the Ukraine, oil in the Caucasus

• Private enterprise, encouraged by government policy

• Military motive of the Tsarist government?

Witte and State Capitalism• Witte encouraged foreign

investment and workers to come to Russia.

• State capitalism was difficult as Russia was backwards compared to GB, Fr, Germany.

• Russia must not remain the ‘handmaiden’ of western countries.

• Witte wanted to gain CAPITAL for investment in industry.

• Loans from abroad/High taxes and interest rates at home – GET THE MONEY IN, STOP IT GOING OUT

• Tariffs and the gold standard; financial stability, but higher prices domestically.

The Railways

• Target for investment –size of country

• Movement of goods and people

• Increase in lines and rolling stock (page 14)

• Trans Siberian railway (1891 – 1902)

• Difficulties – incompletion, reluctance, unaffordable for most.

• Symbolic rather than practical

Problems• Playing catch up• Per capita production low due to

expanding population• Dependency on foreign loans and

investments• Light manufacturing neglected – no

real basis for heavy industry to keep expanding

• No attention to agriculture• Demands of the military• Resistance to change• Government obsession with military• Witte never trusted – secretive,

obsessive, moody

The end of the ‘Great Spurt’

• End of a worldwide boom• Large population could

not be supported• Lack of organisation and

infrastructure• Overcrowding• Unemployment• Homelessness• Serious social unrest• Exploited by political

groups

Witte’s successes?

• Text readings pgs. 15-18

• Were Witte’s policies successful within Russia?

• Were Witte’s policies useful in helping Russia to catch up with the other Great Powers?

• Worksheets: Industrial Development Under Nicholas II: Sergei Witte

• Source work 1: Economic Effects of Industrialization

• Use precise data to back up your points.

• Use the P.E.E. http://www.bbc.co.uk/dna/h2g2/A877935 at all times in all answers.

Summary

•Was Sergei Witte a success?