economic change - the extent of and reasons for

industation and agriculture

main aim for industrialisation

catching up with the west

focus on heavy industrialisation commonly lead to a lack of what

focus on agriculture

AII’s new work discipline

strict rules and regulations by factory owners encouraging those from the countryside to move away from natures clock

minister of finance (1862-78)

reutern

features of industrialisation that AII and Reutern focus on

railway construction, foreign expertise and expansion of the staples (iron, coal, textiles)

example of foreign expertise

welshman JJ hughes, transformed iron and steel production

main ideas of AII in managing the economy

railway construction, foreign expertise and foreign investment/loans

Hughes constructed a new town, yuzovo, occupied with how many welsh russians (foreign expertise under A2)

32,000

under which tsar was the first railway constructed

Nicholas I

when was the first railway constructed

1837

when did the st petersburg to moscow train line open

1851

how many miles did the railway cover in 1862 compares with 1878

62 - 2,194m 78-13,979

who completed the first railway

austrian, gerstner

how did reutern secure foreign investment (3)

gov bonds, taxation exemptions, monopoly concessions

% of railways that were private by 1880

94

1882 -6 finance minister for A3

Bunge

economic reforms by bunge (3)

fiscal amendments, peasant land bank, greater state ownership of railways

what did Bunge’s fiscal amendments include 1882-6

abolition of salt tax 1881 - kept peasants on side and abolition of poll tax 1886 - based on number of people per household - tsar income increase

purpose of the peasant land bank (and date)

allows peasants to borrow money at cheaper rates - 1883

% of railways under public control in 1911

69

why was bunge replaced

blamed for fall of rouble in mid 1880s

bunge was replaced by

vyshnegradsky

how did vyshnegradsky increase gov revenue

mendele’ev tariff - taxes

when was the famine blamed for vyshnegradsky’s policy of exporting large amounts of grain

1891 famine

who replaced vyshnegradski as finance minister

witte

difference between witte and other finance ministers

first to show total commitment to industrialisation to compete with other nations and improve military capability

6 witte’s policies

foreign loans, foreign expertise, focus on staples, boost railway production, nationalise instead of privatise, fixed currency based on gold reserves

income earned from industry under witte shot up from 42 million in 1893 to what

161 mill in 1898

production of staples under witte increased by how much

coal production doubles, iron and steel increased sevenfold

the effect of wittes great spurt / policies…

rapidly increased industrialisation

how did wittes policies affect russia globally

russia started to catch up to other industrialised nations

why was witte dismissed as finance minister

anti-expansionist and gold standard goes against industrialisation - affects speed

what happened to the country after Witte’s fall

rouble collapses, no faith in currency, 1903 depression

what happened to the economy once Stolypin became the new finance minister and Witte the prime minister?

1909 -1913 increases industrial output increased by 7 percent per year

6 criticisms of witte’s policies

1. neglected other parts of industrial sector e.g textiles, engineering

2. reliance on foreign capital, loans recalled at short notice

3. foreign expertise stunted home grown talent

4. railways costly

5. no attention to agriculture

6. rise of revolt and famine

by 1914 how many times fewer of railway track miles did russia have than germany

11

how did witte break with the past (4)

1. nationalisation over privatisation

2. fast speed industrialisation

3. chemical focus instead of staples

4. backing the gold standard

how did witte stick with the past (4)

1. foreign aid

2. foreign loans

3. focus on staples

4. focus on railways

what does lenin introduce in november 1917

state capitalism

what is state capitalism

state takes complete control until workers are ready

why does lenin introduce state capitalism

1. workers not educated

2. juggling 3x extensive problems: ww1 - civil war - retaining power

how was state capitalism introduced (3)

decree on land, decree on workers control

when was the decree on land (state capitalism)

nov 1917

what was the decree on land

division of private land - then handed over to peasants

when was the decree on workers control (state capitalism)

nov 1918

what was the decree on workers control

committees were given extra power to factory bosses, degree of autonomy

supreme economic council established

dec 1917

what was the supreme economic council (SEC)

body to oversee pure nationalism of the industry

local nationalism

on a local level still meant factory nationalisation occured

why was local nationalisation an issue for lenin

too fast, workers were not educated yet

how was the nationalisation process tightened

by 2 further decrees: summer 1918, spring 1919

what was lenin’s aim of nationalisation

create 30,000 nationalised economic entities by 1920

opposition to state capitalism was fuelled by what

treaty of brest - litovsk

what did the treaty of brest - litovsk result in (peace treaty with germany)

loss of 1/3 land, 1/3 resources and 2/3 production

how did the civil war nullify any positive impact state capitalism would have had

industrial output fell dramatically, rouble in oct 1920 was worth one percent of its value in 1917 and rise in the black market

3 features of war communism

nationalisation, partial militarisation of labour and forced requisitioning

why did people hate the partial militarisation of labour

people were forced to work solely to meet the needs of war

why was forced requisitioning the most hated policy

involved taking surpluses of food and grain to feed army and urban workers, disincentive to grow more than was needed, resulted in starvation in rural areas

what was war communism replaced by

NEP

6 key features of the NEP

1. denationalisation.

2. state control of heavy industry

3. rejuvenation of trade

4. return to the encouragement of foreign trade

5. end to grain requisitioning

6. peasants could sell surpluses

short term impact of nep (4)

industrial output increased rapidly, food in shops, rationing ended, shops flourished

nepmen

new breed of entrepreneur

how much trade were nepmen responsible for by 1923

60%

nepem caused the sudden rise of

use of black marker to access more consumer goods

scissor crisis

agricultural prices fell as the supply of food increased - surplus of grain and wheat due to nepmen, industrial prices rose dramatically

name given to stalin’s abandonment of NEP

the great turn

stalin’s 6 financial aims

increase military strength, achieve self sufficiency, increase grain supplies, move towards socialist society, establish his credentials, improve standards of living

4 challenges stalin faced when trying to achieve his aims in the great turn

destroyed ability to be self sufficient, not enough capitol, couldn’t generate enough money to industrialise, lack of foreign investment - communism not popular and agriculture directed by peasants instead of state

why did stalin need to move away from the NEP

encouraged private enterprise by nepmen, peasants unable to produce enough grain for industrialisation, party members never liked it, created divisions

when were the 5 year plans

1929-1964

how many five year plans were there

7

5year plan structure

stalin - centralised planning - gosplan - sets targets - individual deps - fearful of sack, frame a plan how to achieve - managers and factories - interpret plans

why was the structure of 5 year plans problematic

targets set with no direction or achievable aims, everyone feared making mistakes, stalin continues moving targets upwards

first 5 year plan

spring 1929

why did first 2 plans end early

government claimed success yet in reality workers had failed due to unrealistic standards

what caused the post war period to be successful in terms of five year plans

as war had ended people were enthusiastic in rebuilding the country

Khrushchev and industrialisation (3)

centralised planning and 5 year plans maintained, diversification implemented - extension of staples, new technology improves industrialisation

Khrushchev and 5 year plans

first plan abandoned and second plan slowed down growth

issue of land ownership

led to localised uprisings - independent work ethic led to no incentive

emancipation of the serfs

1861

how was the emancipation of the serfs problematic in agriculture

serfs were given infertile, black earth regions of land and the nobility were given fertile land - was still an issue in 1917

alexander III agriculture

limited reform, land captains ruled over village - more productivity, 1891 famine blamed on peasants, outdated education methods and lack of support

a3’s solution towards peasants to produce productivity

enforce more land captains

who did Nicholas instruct as prime minister in 1906 to stop rural

Stolypin

stolypins aim

use land distribution to build and strengthen more able and educated peasants - hope that they would act as a role for other peasants

what did the stolypin reform include

peasant land bank 1883 meant peasants could buy unused or poorly utilised land - mir abolished - strip farming into small farm units - hereditary

why did stolypins reforms backfire

1914 - 2 million peasants left village - short of rural labour and expansion in the numbers joining the wealthier class of peasants - more loyal to tsar but believed best land was inaccessible to peasants

how successful was agriculture under the tsars

not very; famine, reform was slow and weak, WW1 undermines any work done

under the provisional gov when did peasants seize land by force

july days

sign the bolsheviks advertised

peace, bread and land

mir

self governing community of peasant households

how did Lenin use the land issue to get the support of peasants during October revolution

peace, bread and land and the decree on land 1917

significance of the decree on land

land was no longer state controlled, kept peasants on side, done instantly

who did lenin blame for food shortages

kulaks

what happened when Lenin ‘unleashed a class war’ for kulaks

kulaks property confiscated, committees of village set up in order to denounce kulaks - help of cheka

what did people think about the kulaks

they were ignorant, backwards and superstitious against proletariat

when did attitudes against kulaks change

when NEP was introduced

in 1925 and 1928 how many cows did peasant own

1925= 2 1928=6

perceptions of kulaks under tsars

disliked for being ‘money lenders’ associated with grain hoarding and shortages, higher taxes and children refused entry to state schools

collectivisation

process of bringing a number of small farm units together to form bigger farms