Economy and society

• What was a common theme regarding industrialisation among Russian leaders?

  They were all keen to accelerate it
• What was the main motive behind Russia's industrialisation?

  To catch up with the West, who based their economic progress on the development of iron and coal industries
• How did the economic progress of great European powers influence Russian leaders?

  They sought to reproduce the industrial revolutions experienced in these countries to increase and maintain world power status
• What was Alexander II's approach to industrialisation?

  He marked a move towards state involvement
• Why was there little industrialisation before Alexander II came to power?

  It was associated with the rise of an urban workers who had intentions to start a revolution, though Alexander recognsied the threat of peasant unrest was just as great
• What was one method Alexander II used to avoide peasant unrest?

  Moving rural workers into industry where they would be disciplined and therefore controlled
• What significant infrastructure project was implemented under Alexander II?

  Railway construction
• How did foreign investment contribute to Russian industrialisation?

  It attracted foreign technical enterprise
• What was the rate of railway building in Russia by 1878?

  It had increased by seven times from just over 2,000 miles in 1862 to just under 14,000 miles in 1878
• What was the effect of railway expansion on the industrial sector?

  It helped double industrial output as it made transporting industrial goods much faster
• What was a consequence of the government guaranteeing to bail out railway projects?

  It led to corruption and expensive transport, though it was effectively completed and 94% of railways were privately owned by 1880
• What economic reforms did Nikolay Bunge enact after Alexander II's death?

  There was an abolition of the salt tax in 1881, abolition of the poll tax in 1886, creation of the Peasant Land Bank in 1883, and a greater move towards state ownership of the railways
• What was the purpose of the peasant land bank created in 1883?

  To allow peasants to borrow money at relatively cheap rates for the purchase of land
• What was Nikolay Bunge blamed for in the mid-1880s?

  A significant decrease in the value of the rouble, leading to him being replaced as finance minister by Ivan Vyshnegradskii
• How did Ivan Vyshnegradskii manage to make surplus income?

  Through effective tax income utilisation
• What was the problem with Vyshnegradskii's export policies?

  Large amounts of grain were exported even when there was a domestic shortage and starvation
• What was a consequence of Vyshnegradskii's grain export policy?

  It contributed to the 1891 famine
• Who succeeded Vyshnegradskii as finance minister?

  Count Witte
• What was the 'great spurt' in Russian history?

  A period of rapid industrialisation under Witte
• What was Witte's approach to industrialisation?

  He wanted to move away from agriculture as quickly as possible and show total commitment to industrialisation to compete globally and incerease military strength
• What were Witte's plans for industrialisation?

  Taxes would be raised, foreign loans would be taken, investment would be put into heavy industries and railways, and industrialisation would be planned and managed by the state with a move away from private enterprise
• What were the effects of Witte's great spurt?

  Coal production doubled and that of iron and steel increased seven times, new industries such as the chemical industry emerged, railway coverage increased by 120% each year, and there was a 7.5% annual average rate of increase in industrial production
• What criticism did Witte face regarding his policies?

  He was accused of neglecting some industries like textiles, completely neglected agriculture, and he relied too heavily on foreign investment
• What was a significant issue with the trans-Siberian railway even after the great spurt?

  It was never completed and poorly constructed
• What happened to Witte in August 1903?

  He was removed from his post due to rural discontent from peasants at his neglect of agriculture and distrust from other members of government
• What was Nicholas II's policy that Witte opposed?

  He had an expansionist policy, though Witte believed that this would be too expensive, and the economy did suffer a slight recession as a result
• What was the impact of WW1 on the Russian economy?

  It caused the economy to fall into a deep recession
• What were the problems faced by Russia during WW1?

  They didn't have enough wealth required to fight a war, industry struggled to meet demands, and the railway system was still inefficient
• What was the most significant problem faced by Russia during WW1?

  There was significant inflation and the price of food and fuel increased by four times, caused by Russia borrowing large amounts of foreign money and increasing taxes
• How did Lenin try and deal with the economic problems caused by WW1 and the Russian Revolution?

  He introduced state capitalism, where the Bolsheviks would take control of the economy until it was stable enough to be handed to the proletariat
• How was state capitlaism implemented?

  Through the Decree on Land, the Decree on workers' control, and the formation of the Supreme Economic Council (SEC)
• What was the Decree on Land?

  The division of private land in November 1917, which would be handed over to the peasants
• What was the Supreme Economic Council (SEC)?

  A body formed in December 1917 to manage key industries that had been nationalised, with these businesses being any with over 10 employees
• What was the impact of the Russian Revolution on the economy?

  It cancelled any positive impact that state capitalism might have had, industrial ouput decreased in many sectors, and inflation was so high that the rouble was abandoned in 1917
• What was a key feature of War Communism introduced by Lenin?

  The nationalisation of larger enterprises and a state monopoly of markets for goods and services, though it created unrest as people lost the freedom to produce and sell goods when they wished
• What was the effect of forced requisitioning during war communsim?

  It created a disincentive to grow more than what was needed by an individual household, leading to famine and starvation
• What were the key features of the New Economic Policy (NEP)?

  The denationalisation of small-scale enterprises and a return to private ownership, the revival of trade through the removing of restrictions, increasing investment and imports, and ending grain requisitioning to allow peasants to sell surpluses at markets
• What was the short-term impact of the NEP on industrial output?

  It increased rapidly, reflected by more food and consumer goods
• What was the 'Scissor crisis' described by Trotsky?

  Where the production of food outpaced domestic demand, resulting in a fall in prices
• What was Stalin's view on the NEP?

  He believed it needed to be abandoned