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Economic Growth in Tsarist Russia
Lesson Focus
• The ‘Great Spurt’
• State Capitalism
• Railways
• Witte’s problems
• The end of the
‘Great Spurt’
• How strong was
the Russian
economy by 1914?
The ‘Great Spurt’
• Rapid growth of
industry in the 1890’s
• Coal in the Ukraine,
oil in the Caucasus
• Private enterprise,
encouraged by
government policy
• Military motive of the
Tsarist government?
Witte and State Capitalism
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Witte encouraged foreign
investment and workers to come
to Russia.
State capitalism was difficult as
Russia was backwards compared
to GB, Fr, Germany.
Russia must not remain the
‘handmaiden’ of western
countries.
Witte wanted to gain CAPITAL for
investment in industry.
Loans from abroad/High taxes and
interest rates at home – GET THE
MONEY IN, STOP IT GOING
OUT
Tariffs and the gold standard;
financial stability, but higher prices
domestically.
The Railways
• Target for investment –
size of country
• Movement of goods and
people
• Increase in lines and
rolling stock (page 14)
• Trans Siberian railway
(1891 – 1902)
• Difficulties –
incompletion, reluctance,
unaffordable for most.
• Symbolic rather than
practical
Problems
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Playing catch up
Per capita production low due to
expanding population
Dependency on foreign loans and
investments
Light manufacturing neglected – no
real basis for heavy industry to keep
expanding
No attention to agriculture
Demands of the military
Resistance to change
Government obsession with military
Witte never trusted – secretive,
obsessive, moody
The end of the ‘Great Spurt’
• End of a worldwide boom
• Large population could
not be supported
• Lack of organisation and
infrastructure
• Overcrowding
• Unemployment
• Homelessness
• Serious social unrest
• Exploited by political
groups
Witte’s successes?
• Text readings pgs. 22-25
• Were Witte’s policies
successful within Russia?
• Were Witte’s policies
useful in helping Russia
to catch up with the other
Great Powers?
• Worksheets: Industrial
Development Under
Nicholas II: Sergei Witte
• Source work 1: Economic
Effects of Industrialization
• Use precise data to
back up your points.
• Use the P.E.E.
http://www.bbc.co.uk/
dna/h2g2/A877935 at
all times in all
answers.
Summary
•Was
Sergei
Witte a
success?