To What Extent Did the Tsarist Economy Improve in the Period from 1881-1904?

569 Words3 Pages
To what extent did the Tsarist economy improve in the period from 1881-1904? At the start of this period in 1881, Russia had the greatest economic power in Europe. However Russia is an extremely large country and therefore in comparison to the other European countries their economic power didn’t excel. Although the involvement of Vyshnegradsky and especially Witte helped the Russian economy to grow extremely well, however many of the policies held strong in the short term and only some in the long term. The key to economic power in Russia was agriculture. When Russia’s agriculture was turning out to look like a disaster, Alexander III as the Tsar made a difference by introducing new laws. He created Peasant Land Banks where peasants were given loans to increase their land size and grow more grain. Therefore Russia was able to sell more grain and gain more money. This suggests that Russia’s economy was improving very early on and this method of increasing their economic power panned out to be successful in the long term, however this would only be successful if the peasants buying the land were productive. This also suggests that Alexander III was a productive Tsar who was determined to improve Russia’s status by taking control of the situation and making a difference. Foreign loans were introduced in the 1890’s by Vyshnegradsky and later carried on by Witte when he gained control of the economy of Russia. This was a process where other European countries, mainly Britain and France would loan Russia money so they could improve their economy. This was very successful in the long term for Russia because Russia was able to gain a foreign alliance that would help Russia in times of desperation. However this left Russia very venerable as they were depending on other countries for the economic growth. This suggests that Russia was going to end up in a downfall
Open Document