Before Witte came into power, Russia was in a state of crisis. Due to many factors (including the tsarist system, geography and lack of education and ingenuity) Russia was 500 years behind the western powers. Witte, as finance minister oversaw Russia's transition economy from 1892 to 1903. Witte aimed for greater exports, ambitious industrialization, and large foreign loans. He hoped to modernize Russia and make it competitive with other great powers. These policies by and large continued after Witte was dismissed in 1903 and were expanded by Witte when he returned to government as premier in 1905-1906, and by his successors. So, through this Russia did thoroughly improve and slowly began catching up with the western powers through economic development and industrialization. However, despite the massive step forward, some argue that the situation in Russia did not improve as their was a growing tension due to the massive debt because of the loans, the lack of agriculture to sustain the country after the majority of the peasants went to work in factories.
Witte’s system was one that was simply meant to thrust Russia all the way up to the level of the western powers. Productions of coal, iron and oil all rose, showing Witte’s understanding of that the world was becoming focused on mass production of effective useful goods. By 1903, the Siberian railway was finished, and quite literally went strait through the heart Russia, thoroughly applying to the problem of transport, proving Witte’s understanding of Russia’s obstacles in progressing. And the industrial growth was largely concentrated in the major cities, such as St Petersberg, Moscow and Ukrain, perhaps copying places such as London where the main industry were in the city centers. By the 1900 over half of the industrial workforce were employed in factories with more than 1000 workers. As a result large cities grew at a phenomenal rate. The