To what extent did Witte change Russia?
To what extent did Witte’s Policies develop Russia?
Sergei Witte was the Minister of Finance in Russia in from 1892 to 1903. He desperately wanted to bring Russia, metaphorically, ‘out of the dark ages’ by bringing it up to speed, so that it would eventually reach a level of modernisation where it could go head to head with the advanced countries further west. He believed Russia first needed to attain capital investment in the industrial sector, increase urban workers (Proletariat), attract foreign trade and develop greater train links to ease the possibility of further foreign trade.
Witte believed that Russia would have to follow in the footsteps of the United Kingdom, United States of America and France in the west of developing capitalism within the State. This would be achieved by gaining ‘State Capitalism’. Witte brought enormous loans and investment, across the border; he also encouraged and openly imported foreign goods to help the industrial spurt, which Russia so badly needed. But with the high amount of loans being offered, taxes and interest increased dramatically. A knock on effect of this was a steep rise in prices on goods to keep up with the ever-growing Rouble (Russian currency). This meant Witte had developed Russia’s industry as it could now grow, but it would bring massive prices for the lower classes that they simply couldn’t keep up with. This growth wouldn’t have been maintained, rather made the lower classes of the populace worst off limiting its overall industrial development.
Witte also aimed to develop the railways for travel and communication but to also help with foreign trade. Between the years of 1861 and 1890, 5,800km of railway had been built in Russia. This was then combined with rapid construction, so that the 5,800km of track before had been turned into 59,616km by 1905. Though this was impressive by Witte the industrial growth was again limited. It climaxed at 62,200km by 1913 showing a clear drop off of construction
Sergei Witte was the Minister of Finance in Russia in from 1892 to 1903. He desperately wanted to bring Russia, metaphorically, ‘out of the dark ages’ by bringing it up to speed, so that it would eventually reach a level of modernisation where it could go head to head with the advanced countries further west. He believed Russia first needed to attain capital investment in the industrial sector, increase urban workers (Proletariat), attract foreign trade and develop greater train links to ease the possibility of further foreign trade.
Witte believed that Russia would have to follow in the footsteps of the United Kingdom, United States of America and France in the west of developing capitalism within the State. This would be achieved by gaining ‘State Capitalism’. Witte brought enormous loans and investment, across the border; he also encouraged and openly imported foreign goods to help the industrial spurt, which Russia so badly needed. But with the high amount of loans being offered, taxes and interest increased dramatically. A knock on effect of this was a steep rise in prices on goods to keep up with the ever-growing Rouble (Russian currency). This meant Witte had developed Russia’s industry as it could now grow, but it would bring massive prices for the lower classes that they simply couldn’t keep up with. This growth wouldn’t have been maintained, rather made the lower classes of the populace worst off limiting its overall industrial development.
Witte also aimed to develop the railways for travel and communication but to also help with foreign trade. Between the years of 1861 and 1890, 5,800km of railway had been built in Russia. This was then combined with rapid construction, so that the 5,800km of track before had been turned into 59,616km by 1905. Though this was impressive by Witte the industrial growth was again limited. It climaxed at 62,200km by 1913 showing a clear drop off of construction