Pobedonostev and Witte

• Pobedonostev was Nicholas II tutour.
• Main economic resources were:

  • Land for growing grain
  • Coal, iron, oil
  • Vast natural resources of Siberia
  • Labour (people)
• Barriers to industrialisation:

  • Lack of capital to fund industrialisation
  • Very small business middle class to drive investment and innovation
  • Poor communication and infrastructure
• pobedonostev was a deeply conservative slavophile and against modernisation. 
• Witte wanted to modernise Russian economy
• Witte tried to fix lack of capital with - foreign loans, high taxes and the gold standard
• Witte tackled poor infrastructure and communication by building railways
• The 'great spurt' was the period of economic growth under Witte.
• Witte neglected - agriculture, textiles and engineering
• Industrial production went up by 7.5%
• WITTE was the first to totally commit to industrialisation + improve military capability which led to the 'great spur'. Foreign loans, Russian currency improved and there was heavy investment in heavy industry and railways foreign experts
• WITTE - thousands of km of railways laid and industry production up 7.5% aswell as coal production doubling