industry

• witte thought industrialisation was essential
• interest rates were increased to encourage foreign loans
• a new rouble (currency) was issued in 1897
• foreign investment was raised to fund the development of railways
• heavy industry was prioritised over light
• how much railway was built by 1914

  62,000km
• the railway stimulated heavy industry
• state capitalism 


  all economic development was sponsored and directed by the government
• • 1887= 30,888 factories and 1.3 million workers
  • 1908= 39,856 factories and 2.6 million workers
• the government ran up enormous debts
• state control of industry meant that the middle class grew slowly before 1914