Industrial Advance Would Essay

297 Words2 Pages
How far do you agree that the economy of Tsarist Russia was transformed in the years to 1914 It is obvious to see that the economy in Tsarist Russia rapidly changed in the years to 1914. Every Tsar wanted one thing. To modernise Russia from which they saw to be dramatically, economically behind countries across Europe. In the 1890s, Russian industry grew so rapidly that the term ‘the great spurt’ was used to describe the period. This meant that they were making progress in matching up with western countries such as England and France and their development. Russia's initial plan for modernization was via industrialization. During the years 1881 and 1900 was Russia’s ‘industrial boom’. It was in this time that Russia’s industrial output increased by up to 4%. Most of the capital industries were on a rise. The government done this by focusing on the construction of railroads that required iron, coal and steel. Protecting tariffs were set up as a means of safeguarding Russia’s young domestic industries, such as steel productions. In 1897 the Russian currency was put onto gold standard – the hope was that this would create financial stability and to encourage international investment in Russia. Major reason for the exceptional growth was the increase in the output of coal in the Ukraine and of oil in the Caucasus. It was Wittes belief that modernisation could be achieved only through state capitalism. By making the taxes even higher, Witte harmed the domestic market. As Witte was chiefly concerned with heavy industry, he neglected the needs of agriculture which was Russia’s main source of income. This point shows that the economy of Russia under the Tsarist rule was not completely developed. Witte stated that he hoped that the industrial advance would eventually help

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