To What Extent Did Witte Solve Russia’s Problems? [50]

1380 Words6 Pages
When Sergei Witte was appointed as Director of the “Department of Railway Affairs” in 1889, he brought with him a wide range of vision and outstanding moral qualities to the Russian Government. In particular, these qualities beneficially led him to become Minister of Finance in 1893, overtaking Ivan Vyshnegradskii, whose headship had caused famine due to the increase in high taxes on consumer goods which had forced peasants to sell more produce (grain). As a witness of the abolition of serfdom and the first Russian revolution, Count Witte was believed to have the ability to heal Russia’s problems desperately including decreasing inflation, improving infrastructure and encouraging foreign investment. In this essay, I aim to evaluate how far Witte’s leadership solved Russia’s problems between the end of the 19th century and the beginning of the 20th by examining the successes and failures of the time under his control. Economically, Witte’s policies solved Russia’s problems to a moderately small extent due to the lack of industrial tradition yet increase in industry expansion. Witte’s policy was to expand the industry and maintain tradition by increasing the production of pig iron and basic heavy industry in steel and iron, this proved to be a starting point in reversing the problems of Russia at the time, however not all was successful as Witte ignored manufacturing essential produce, for instance he neglected vital areas such as light engineering. This is important because despite the growth of production initially impressing the country’s needs, the refusal of developing necessary goods cost the country, “modern equipment was imported from the West which increased costs”. Regardless of the increase in growth of national product by 98%, this figure is not so impressive; this is because at the time, Russia was experiencing a massive growth in population. Therefore,
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