chapter 2 the impact of dictatorial regimes on the economy and society

the extent and reasons for economic change

industrialisation

• industrialisation- the manufacture of goods in workshops and factories
• 1855-1964 russian leaders were keen to accelerate the industrialising process
• consistent emphasis on heavy industry
• catch up with the west
• the great western powers had seemingly based their economic progress on the devleopment of the iron and coal industries
• russian leaders sought to emulate the industrial revolution that had occurred in these countries
• believed this was the obvious way to increase and maintain world power status
• the methods used to achieve this varied from leader to leader according to circumstance

• russian industrialisation proceeded through different phases- differences in political leadership; changing world context
• common thread that affected development- relationship with agricultural activity; peculiar nature of russian society

alexander II and the proto-management of the economy

• before 1855 there had been a reluctance to engage in industrialisation- associated with the rise of an urban proletariat which displated a propensity to revolt
• Alexander II recognised that the threat of peasant unrest was just as great
• this could be dealt with by moving rural workers off the land and into industry
• factories warranted a new work discipline
• factory owners introduced strict rules and regulations that were required for employees to work safely and efficiently with machines
• way of controlling the activities of the bulk of the population

• more committed move towards state involvement in industry- appointment of Mikhail Reutern as minister of finance
• mikhail reutern- helped to implement emancipation; minister of finance; introduced a unified state budget
• adopted a sensible approach- continued railway construction, attracton of foreign technical expertise, employment of foreign investment capital
• modernisation and expansion occurred within the staples and newer industries
• Ludwig Loop from Manchester helped to develop the Russian textile industry
• the Nobel brothers were responsible for the growth of the modern oil industry around Baku in the Caucasus

• J.J. Hughes transformed iron and steel production at Ekaterinoslav
• employed in 1871 by the Russian government as an expert in the manufacture of armour plate
• 1884- New Russian Coal, Iron and Railmaking Company was the largest producers of pig iron in the whole of the empire
• start of the 20th century- responsible for 1/2 of the steel production of Russia
• accompanied by social investment- constructed a new town (Yuzovo)
• had english schools, public houses and 32,000 welsh russians by 1904
• clear demonstration of the value of employing foreign technical expertise to move Russia forwards 
• trend that continued throughout the period

railway construction

• use of foreign expertise was not entirely new
• well illustrated in the field of railway construction
• 1837- first railway in Russia completed during the reign of Nicholas I; work of Gerstner
• 1851- St Petersburg to Moscow line opened
• stimulated by the success of the Manchester to Liverpool railway
• the final design and construction were mainly influenced the american engineers George Washington Whistler
• built to a very high technical standard
• illustrated that where there was a will there was a way for russia to keep up with its western counterparts

• Reutern built…