Witte's reforms

What four problems did Witte identify?

Insufficient capital,

lack of technical/ managerial expertise,

insufficient manpower in the right places,

industrialisation had to happen ‘from above’ because there was no entrepreneurial class to drive change

When was ‘The Great Spurt’

1892 to 1903

What jobs did Witte have in government?

Russian Finance Minister

Chairman of the Council of Ministers/ Prime Minister

When was Witte the Russian Finance Minister?

1892 - 1903

When was Witte Chairman of the Council/ Prime Minister?

October 1905 - April 1906

Why did Witte resign?

It became clear that Nicholas had no intention of honouring the concessions promised in the Manifesto in the April 1906 Fundamental Laws

Witte’s opinion on the autocracy and reform

He was a supporter of the autocracy, but recognised the need for modernisation along Western lines

Describe state ownership of heavy industry by 1899

The state owned 2/3 of metallurgical production, controlled 70% of railway and owned several of fields and mines

Describe coal, steel and iron production by 1899 in Russia

Coal output tripled, iron and steel production increased from 9 to 76 million poods per year

What was a positive side effect of heavy industry

Led to migration from the countryside to cities, and an increase in educationˋ

Negative side effects of heavy industry

Led to more politicisation and calls for reform
Domestic and lighter industry like textiles were neglected

Describe the expansion of the railways between 1866 and 1913

1866 - 3000 miles of track

1913 - 43850 miles

Positive of the Trans-Siberian Railway?

Connected isolated parts of the country from the large cities in the West to Vladivostok in the East

Negative of the Trans-Siberian Railway

It was largely symbolic in nature and unfinished in parts

Example of a foreign loans to Russia

900 million roubles from France

Negatives of foreign loans

Had to be payed back with interest

Led to arguments that Russia had become reliant on loans, dragging Russia into political alliances that might not suit them in the future

What did Witte introduce to change investment and expertise

Foreign companies, engineers and experts from places like France, Britain, Germany and Sweden

How did Witte’s fiscal policy effect Russia’s currency?

Roubles (Russian currency) was placed onto the gold standard

What benefits did linking roubles to the gold standard have?

Helped stabilise the currency against inflation.

It allowed Russia to trade more with foreign countries.

What items did Witte raise taxes, directly and indirectly on?

Kerosene, alcohol and salt

How did taxes affect peasants?

They had to sell more grain to pay for taxes, which gave Witte more to sell abroad

What did Witte change about foreign goods?

Placed high tariffs to promote Russian industry

Negative on placing tariffs on foreign goods

Led to high prices on agricultural machinery that couldn’t easily be made outside of Russia

How did Witte’s fiscal policy affect wages?

Witte kept wages low, so the peasants and urban workers were squeezed hard

Why did Witte keep wages low?

So profits were invested into industry and not wage bills

Counter SK to Witte’s fiscal policy

Russia still lagged behind other major powers
.e.g. Austria-Hungary expanded national income by 79% between 1894 - 1913 and Britain 70% compared with Russian 50% in the same time

What impact did Witte’s reforms have on the middle class?

The middle classes grew as a result of increased industrialisation and demand for bankers, doctors, teachers and administrators. But growth was limited and in the 1897 census only 1.5% were middle class

How many inhabitants did Moscow have in 1897

1.5 million

How many inhabitants of St Petersburg have in 1897

Over 2 million

By 1900, Moscow was

The fastest growing city East of New York and one of the 10 biggest cities in the world

Negative side effect of urbanisation in Moscow and St Petersburg?

Woefully inadequate infrastructure for the huge influx of people

In St Petersburg in 1900, 40% of houses had no running water or sewage system

What did Witte do during the Russo-Japanese war aftermath?

Negotiated the Treaty of Portsmouth on behalf of the tsarist regime

What did Witte want in October 1905

To form a cabinet under the Prime Minister, who would have supreme direction over all the branches of the government. If ministers disadreed they must resign, but the Tsar retained veto powers

Reaction to Witte’s suggestion for the Prime Ministers cabinet

Met with bitter opposition and rejected

Why did Witte want a ‘modernised autocracy’?

Argued it wasn’t weakness if it came from the Tsar

What would a ‘modernised autocracy’ result in?

The Tsar granting civil liberties to prevent uprisings

How did N II respond to the ‘modernised autocracy idea?

Only accepted after the 1905 Revolution and his uncle (Grand Duke Nicholas) threatened to shoot himself upon his refusal