Additionally the production of steel stagnated. Although economy grew by 14%, they failed to meet official targets and as a result the local party officials were sacked or demoted. Overall, the Russian economy improved massively changing from a backward peasant economy at the end of the 1920’s to a highly industrial economy by 1941. In terms of consumer goods there was no a significant improvement. The Five Year Plan tried to eradicate free trade which meant that people could not afford what they wanted.
The recession hit close to home for the Tories, effecting the middle class not just the working class of the industrial north. Businesses were also drastically affected, with high investment rates no one was investing resulting in 48,000
Other than Witte the only Russian Leader to have made such a big of an impact on Russian industrialisation is Stalin and his five year plans. His time in power saw the narrowing of the gap between Russia and the west which surely was a sign that Russia was on the right path, but it’s important to remember the Wall Street crash of 1929 sparked a worldwide depression, which allowed Russia to catch up in a sense since the depression prevented the west from experiencing any type of growth. Since Industrialisation became a key focus point for each leader, a main issue which had to be dealt with was the creation of large population of inner city workers, who would primarily work in the cities. Before Witte’s Great Spurt the percentage of the population who were workers made up around 0.75% of the population, during and after his Great Spurt this figure rose to approximately 1.25%. This is in stark contrast to the west where the average percentage of the population in work was much higher.
There was a massive divide in the North from the South. The North had an industrial revolution in the late nineteenth century, although Italy’s industrial development was always going to be limited, as they did not have enough key resources such as iron and coal. The poorer side of Italy, the South, was full of peasants and no industrialisation, therefore the South suffered from a bad economy and poor living conditions. In the South, 0.01% of the population owned 50% of the land. That agricultural industry in the South was so corrupt that farmers gained no profit from their livestock and crops, therefore was inefficient and moving backwards.
The World War brought up a huge range of different issues, which plummeted an already shaky country, into a desperate country. One such issue was the economic strains that the war put on the country. The urgent need for weapons and specialised equipment drove the Russian economy into overdrive, leaving the poorest Russians without food and with an inflation rate which rose around twice as fast as wages went up. The huge numbers of men armed by Russia also meant that industries all across Russian began to slow their production rapidly, most notably of all being agriculture. This meant trade to other countries went down bringing the economy to yet another low and this lack of agricultural workers meant a lack of food across Russia, especially in towns and cities where there was no easy access to farms; and as is with most things in demand, the prices went through the roof, leaving peasants starving on a mass scale.
Over-production – Fewer products such as cars, consumer good etc were not being sold as factories were making more goods than Americans needed or could afford to buy. As the number of sells went down, the prices of goods also went down which meant that wages had to be kept low. When this did not work, industrialists had to resort to sacking workers, and because the workers did not have any more money, they could not afford luxury so factories continued to
“Australia was NOT a working man’s paradise” Australia was not a working man’s paradise in the 1900’s. It was very harsh and dangerous, and people were forced to work huge hours with little pay. Many families lived in poverty and only few owned their own homes. Husbands had trouble supporting their families and found it hard to keep a job. Most people did not know how to read and write.
Because of this, they endured more and more prejudice. Old traditional industries The traditional industries failed to respond to the new mass-production methods of the 1920s, unlike the Ford company that was making a good profit and could pay impressive wages. Also, following a reduction in the powers of Labor Unions (Trade Unions), the workers were not in a position to be able to claim better wages and working conditions in the old industries. * Coal - Coal prices fell and thousands had to be made redundant because the industry was producing too much coal and not enough people and countries wanted to buy it. * Ship building - Another major industry that had to make thousands redundant due to a reduction in the demand for new ships.
Previously it was a by –product of the over population. Like any other sector there are challenges and opportunities that arise. Some of the challenges are that people operating in the informal economy are exposed to poor infrastructure such as transport, thee is a lack of proper working premises and poorly developed markets. Resources such as the latest technology are usually limited because of capital and insufficient funds don’t allow for further investment in the informal economy. As a result of this there is hindrance to the growth of the economy as a whole.
Case Study: Zing PC 1. What are the Major Problems facing ZingPC? * Losing the market share Zing PC is losing its market share because of Push strategy failing to comply specific customer needs. * Dysfunctional Logistics Dysfunctional Logistics occurs because there is no 3PL (third party Logistics Contractor) for inventory / supply and order deliveries to the customer, hence overloading company resources / expertise. * Lack of inventory Management Lack of inventory management and standardized parts not being used in manufacturing, due to unrelated inventory procurement of Zing PC.