What problems did Russia face - No middle class to invest and create capital
modernising? - Poor infrastructure made travel and communication
goods difficult
- Poor education levels meant there was not a
sufficiently educated class of people to work
Vyshnegradsky - 1887 to 1892: Finance Minister of Russia.
- Indirect taxes was increased under him.
- His policies appeared to be successful when it comes
to statistics. By 1982, grain exports increased by
18%. A valuable loan was negotiated with the French
in 1888.
- Peasants, however, suffered greatly under his
policies. Problems included an aforementioned
increase in indirect taxation, starvation due to grain
requisitions and also inflation from high import duties.
Witte - Finance minister of Russia after Vyshnegradsky.
- Suppressive policy.
- Increased tariffs.
- Believed that if it had to industrialize it had to go away
from peasants and agriculture
- Encouraged close contacts between state and
business
- Used gov. propaganda together with state subsidies
to stimulate industrial development
- Thought that state’s role was to drive industrial
change, although he hoped that private
entrepreneurs would eventually take the lead
- Encouraged private businessmen through the funding
of credit institutions, the encouragements fo trade
fairs, and by offering entrepreneurs protection
through tariffs
- Witte: politically conservative
- State capitalism could only be organized thru
autocratic system and he wrote a book defending
tsarism
- Praised peasant commune system
- Policy of heavy taxation and grain exports
depended on
- David Christian: Witte hoped to use Russia’s
traditional political and fiscal structures to pay for
economic modernization.
- Was well aware of the pressures on the
peasants, but saw these pressures as
unavoidable - a necessary evil
- Raised capital within Russia thru taxation, loans,
import tariffs, but relied on foreign investment
- Stabilized rouble so that it would encourage inward
investment
- Put it on the gold standard in Jan 1897, so
foreigners would know the real value of the
interest they would earn
- Foreign investment (Fra and Bel) grew from
98 mil roubles (1880) to 911 million in 1900
modernising? - Poor infrastructure made travel and communication
goods difficult
- Poor education levels meant there was not a
sufficiently educated class of people to work
Vyshnegradsky - 1887 to 1892: Finance Minister of Russia.
- Indirect taxes was increased under him.
- His policies appeared to be successful when it comes
to statistics. By 1982, grain exports increased by
18%. A valuable loan was negotiated with the French
in 1888.
- Peasants, however, suffered greatly under his
policies. Problems included an aforementioned
increase in indirect taxation, starvation due to grain
requisitions and also inflation from high import duties.
Witte - Finance minister of Russia after Vyshnegradsky.
- Suppressive policy.
- Increased tariffs.
- Believed that if it had to industrialize it had to go away
from peasants and agriculture
- Encouraged close contacts between state and
business
- Used gov. propaganda together with state subsidies
to stimulate industrial development
- Thought that state’s role was to drive industrial
change, although he hoped that private
entrepreneurs would eventually take the lead
- Encouraged private businessmen through the funding
of credit institutions, the encouragements fo trade
fairs, and by offering entrepreneurs protection
through tariffs
- Witte: politically conservative
- State capitalism could only be organized thru
autocratic system and he wrote a book defending
tsarism
- Praised peasant commune system
- Policy of heavy taxation and grain exports
depended on
- David Christian: Witte hoped to use Russia’s
traditional political and fiscal structures to pay for
economic modernization.
- Was well aware of the pressures on the
peasants, but saw these pressures as
unavoidable - a necessary evil
- Raised capital within Russia thru taxation, loans,
import tariffs, but relied on foreign investment
- Stabilized rouble so that it would encourage inward
investment
- Put it on the gold standard in Jan 1897, so
foreigners would know the real value of the
interest they would earn
- Foreign investment (Fra and Bel) grew from
98 mil roubles (1880) to 911 million in 1900
