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Russian Economic History ECON 4337 Notes 10 Hui He (Based on David ...

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Topic: Economic History

Sort Desciption: Russian Economic History. ECON 4337 Notes 10 ... The system of economic organization instituted by the Bolshevik administration ...

Content Inside: Russian Economic History ECON 4337 Notes 10 Hui He (Based on David Kennett (2004) Chapter 16) 1 The Czarist Economy Peter the Great - the first great modernizer aggressively importing Western technology and science while simultaneously resisting the liberalizing influence of Western political thought. Failure to defeat a rather small Anglo-French force in the Crimean war of 1853 1856 underlined Russian backwardness. 1861 led Czar Alexander II to take the immense step of liberating the serfs three-quarters of the population. Modernization - 20000 miles of railway track were built between 1861 and 1894 opening up the interior for export-oriented agriculture. 1890s Russia had emerged as the worlds largest grain exporter. The finance minister Sergius Von Witte carried out aggressive industrialization scheme to make the industrial output tripled between 1880 and 1900. Russia became the worlds fifth largest industrial power in 1913. Peasants held in a vise of ruinous aggregate taxation were forced to sell the bulk of their output to raise cash for taxes and debt service payments. The conditions of industrial workers were little better and labor discontent led to political organization. Support grew among the industrial workers for the Russian Social Democratic Party but it divided into two fractions. Menshevik wing consisted of social reformers committed to piecemeal liberal- ization. Bolsheviks or majorityfavored radical revolutionary change. The defeat in the Russo-Japanese war of 19041905 gave another shock to the Czarist system. Stolypin reforms (named for the finance minister) accelerated the rate of in- dustrial growth freed the peasants from the communes and alleviated their crushing debt burden. 2 War Communism In August 1914 Russia was propelled into WWI along with its allies France and Britain. The war led to a domestic economic crisis. In May 1917 the Czar abdicated and power passed to the Mensheviks. Menshevik policy to continue the u ...

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