EP Alexander III

Time of reign

1881-94

Who was involved in Alexander III’s reigns

1. Nikolai Bugne — 1881-86

2. Ivan Vyshnegradsky — 1886-94

Nikolai Bugne ideology

• Was terrified of socialism and believed that workers needed better conditions otherwise they might rebel so he:

  • Reformed labour laws which involved restricting child labour.

  • Set up a system of factory inspectorates to ensure working conditions improved

  • Encoded procedures for hiring and firing workers.

Bugne actions

1. Attempted improving the banking system

2. Increased railway through purchasing private lines and upgrading existing routes.

3. Imposed tariffs in 1881 and 1882 to protect Russian industry

4. In order to increase the amount of food that the peasants made, he: 

   • Organized the Peasants’ Land Bank in 1883 to allow peasants to purchase land. Limited success as was underfunded.

   • Introduced a Nobles Land bank which had lower rates than the Peasant Land Bank

   • Decreased tax burden on peasants by 1/4.

End of Bugne

Conservatives did not like Bugne’s reforms because they were too expensive and radical. He was forced to resign in 1887.

Vyshnegradsky ideology

• He accepted that government involvement and investment was needed to kickstart economic growth.

• Wanted to create a budget surplus

• Vyshnegradsky's motto 'We shall not eat but we shall export’ — massively increased grain exports

Vyshnegradsky actions for budget surplus

1. In order to achieve a budget surplus he:

   1. Reduced imports through the imposition of the Medele'ev Tariff Act in 1891. it was the highest tariff in Russia's history.

   2. Negotiated foreign loans (the biggest was with the French in 1888)

   3. Massively increased the export of grain- This allowed Russia to repay their loan to the French.

   4. Increased indirect taxation (on consumer goods)

Vyshnegradsky grain famine

• Despite 1891’s poor harvest, there was enough food available to feed the population, but only if the harvest was rightly distributed:

  • Most of this grain, however, was exported due to economic policies that encouraged the sale of Russian grain abroad

  • Even though crops decreased yearly, exports remained the same so grain reserves were thereby reduced.

• Other factors worsened situation:

  • The development of railroads that raised the value of land and produce encouraged some landlords to devastate the forests, impoverish the soil, and raise the already high rents on their peasants.

Statistics on grain famine

• 1891 famine affected 17/39 provinces were affected

• 500,000 peasants died.

• There was widespread anger and shock both inside and outside Russia

End of Vyshnegradsky

Vyshnegradsky was forced to resign in 1892.

Statistics on overall success

• The coal, iron and steel industries were growing, as was the railway-equipment industry. There was more demand for rails, locomotives and other goods, stimulating the economy.

• Industrial suburbs appeared around Moscow and St. Petersburg and industrial workers grew in number.

• In the early 1860s the Russian Empire had about 2,000 kilometres of railroad track.

• By 1880 it had about 24,000 kilometres of track.

1. But much of Russia's vast economic potential remained untapped.

2. A major problem preventing the growth of industry was a lack of capital.

3. Landowners, barely able to keep out of debt since before emancipation, had limited capital to invest in industry.

4. Also no sizeable middle class to provide capital, direction or expertise.