Topic Two

• Describe why Alexander II decided to industrialise (3) - Realised that peasant unrest was just as much of a threat as urban workers - The New work discipline could be used to control workers - Emancipated the serfs to remove barrier to industrialisation and appointed von Reutern as finance minister
• Who did Alexander II appoint as finance minister in terms of industry Von Reutern
• What were Von Reuterns policies regarding industry under Alexander II (4) - Reform the treasury by creating new arrangements for tax collection - Tax farming abolished, tax system refromed to include more indirect tax - Trade promoted through reduction in import tarrifs - Government subsidies offered to entrepreneurs to develop railways
• Describe the success of von reuterns polcies regarding industry under Alexander II (4) - Annual growth rate of 6% - Oil extraction began in the caspian sea - Ironworks set up in Donetsk (Hughstown) in 1872 - Sevenfold increase in Railway construction
• Describe failures with von reuterns policies regarding industry under Alexander II (3) - 1/3 of all government expenditure went on repayments of debts and russian currency - Taxation system led to 66% of government revenue coming from taxes, affecting the poor moore and limiting domestic markets as peasants made less - Tariff reduction meant decline in government revenue, hence it was revoked in 1878
• Name the two finance ministers under Alexander III regarding industry - Nikolai Bunge - Vyshnegradsky
• Describe Nikolai Bunge regarding industry under Alexander III (2) - Abolished poll tax in 1886 - Set up peasant land bank allowing peasants to borrow money
• Vyshnegradsky's policies regarding industry under Alexander III (4) - Introduced 30% import tariff on value of raw materials - obtained french loans in 1888 giving russia hard currency - Mounted a drive to export grain - Increased indirect taxation to force peasants to work
• Describe the successes of Vyshnegradsky's policies regarding industry under Alexander III (3) - Grain exports increased by 18% - Tariffs protected iron industries in Russia promoting domestic production - 1892 Russia achieved a budget surplus
• Describe the failures of Vyshnegradsky's policies (2) - Contributed to the 1891 Great famine where 250,000 died due to the requisitioning and drive in exporting grain rather than feeding the population - Sacked by Alexander III
• Finance minister under Nicholas II Sergei witte until 1903 when he was sacked
• What was sergie wittes great spurt regarding industry under Nicholas II - First to fully commit to industrialisation by adopting the substitution effect by investing in heavy industry over agriculture
• Describe Sergei wittes policies regarding industry under Nicholas II (3) - Protective tariffs introduced to protect domestic industries - Obtained foreign loans - predominantly from france - Encouraged engineers from abroad to oversee industrial developments resulting in massive expansion of railway network
• Describe the success of Sergei Witte's policies regarding industry under Nicholas II (4) - Growth rate hit 9% between 1890 and 1900 - Production of iron and steel increased from 9 million poods to 76 million - Coal output tripled - Construction of trans-siberian railways with 25 factories producing 39 million roubles worth of track
• Failures with sergei wittes policies regarding industry under Nicholas II (2) - International recession ended growth in 1899 and by 1903 only 23 out of 35 blast furnaces in the donbass were working - Output in basic industries like iron, oil and coal fell, forcing workers to drift back to countryside (reverse migration)
• Describe the criticisms of Sergei witte regarding industry under Nicholas II (3) - Prioritised industrial development over welfare with poor living and working conditions - Interest rates were high to service foreign debt with 20% of government budget used to pay of foreign debt in 1900 - Prioritised heavy over light industry, hence the inbalanced economy led to a greater impact of the recession
• Describe industry between 1908 and 1914 (3) - Expanded after recession in 1908, with heavy indsutry still driving economy due to rearmament programme after russo-japanese war - Industrial growth increased 6% per annum until 1914 - But russia still had an inbalanced economy placing too much emphasis on heavy industry
• Describe the impact of first world war on the economy regarding industry - War caused a collapse in the economy with inflation at 1400% by 1917
• What were Lenins three policies regarding industry - State capitalism - War communism - NEP
• Describe state capitalism regarding industry under Lenin (2) - Where the state controlled private enterprise - Caused factional conflict in CPSU as this appeared anti-communist, but lenin needed to make concessions to prolong regime
• What measures were used to enforce state capitalism regarding industry under Lenin (2) - Veshenka (council of economy) was created in December 1917, supervising and controlling economic development - Workers decree of November 1917 allowing workers to control the factories
• Problems with state capitalims regarding industry under Lenin (2) - Workers couldnt organise factories effectively, output declined when it was needed the most (due to civil war) - Led to high inflation and peasants hoarded grain to wait for higher prices, leading to food shortages in cities and encouraged reverse migration to countryside
• Describe war communism regarding industry under Lenin (3) - Introduced due to production being low in key sectors, 36% decline in oil production and a declining urban population 2.2 million in 1914 to 0.6 million population of petrograd in 1920 - A nationalisation prgramme with all factories and businesses owned by the state in 1920 - Reintroduced internal passports
• Describe the NEP regarding industry under Lenin (2) - Imposed through 1921 Sovnarkom decree establishing the 'gosplan', a state planning comittee with the purpose of implementing the NEP - The NEP allowed a greater freedom of internal trade, some private ownership of businesses, and the relaxation of state control over some industries - it was replaced by stalins first five year plan in 1928 - Allowed Capitalism in Russia's lower classes, stimulating growth in economy and resulted in NEPMEN emerging
• Positive impacts if the NEP by 1927 regarding industry under Lenin (3) - Between 1920 and 1923 factory output rose 200% - Industrial levels reached 1913 levels by 1926 - NEPMEN population reached 25,000 in Moscow
• What were NEPMEN regarding industry under Lenin - Private traders who kickstarted economy by getting people to buy 'tat' for high prices
• Negative impacts of the NEP by 1927 regarding industry under Lenin (2) - Scissor crises was a direct result of the NEP (in 1923 where there was a widening gap between industrial and agricultural prices - In the first 2 years unemployment rose steeply but wages remained low
• Describe Stalins policies with regards to industry (3) - The Great Turn - First, second and third five year plan - High Stalinist post war reconstruction
• Describe Stalins great turn with regards to industry under stalin (2) - Initiation of a command economy, this was better suited to stalins leader ship style - Ended the NEP in 1927 as it was failing to produce growth and military strength
• Aims of the first five year plan with regards to industry under stalin (3) - Increase production by 300% - Develop heavy industry and boost electricity production by 600% - Double output of light industry
• Success of the first five year plan with regards to industry under stalin (2) - Electricity output trebled, steel production increased by 1/3 - Industrial complexes like magnitogorsk were constructed
• Failures of the first five year plan with regards to industry under stalin (3) - No major targets actually met - Housing and consumer industries neglected - too few skilled workers combined with too little effective coordination for efficient development
• Aims of the second five year plan with regards to industry under stalin - Too continue to develop heavy industry, with a new emphasis on chemical industry
• Success of the second five year plan with regards to industry under stalin - Steel output trebled and coal doubled, with russia becoming virtually self sufficient by 1937
• Failure of second five year plan with regards to industry under stalin (2) - Oil production failed to meet target - No appreciable increase in consumer goods with emphasis on quantity rather than quality
• Aims of the third five year plan with regards to industry under stalin (2) - Develop heavy industry out of fear of war - Promote rapid rearmament and complete transition to communism
• Success of the third five year plan with regards to industry under stalin (2) - Strong growth in machiner and engineering - Spending doubled on rearmament between 1938-1940
• Failure of the thrid 5 year plan with regards to industry under stalin (2) - Steel production stagnated - Death of capable, skilled factory managers during Stalins great purge
• Describe High Stalinism with regards to industry under stalin (3) - 85% of investment devoted to heavy industry - Everybody involved in reconstruction work - Huge surge in industrial growth, coal and steel production passed pre war levels
• Describe how everybody contributed to reconstruction work during high stalinist period with regards to industry under stalin (2) - Everyone contributed 30 hours of volunteering a month on top of 8 hour working day - Unemployed put in 60 hours to encourage job seeking