Sergei Witte - The Great Spurt

Sergei Witte - The Great Spurt

1. Impact of the Witte system

   • Coal, iron and oil production rose.
     • Russia still lagged behind other Great Powers.
   • 1903 - most of railway complete.
   • 1900 - half of industrial workforce employed in factories.
     • Large cities grew at a phenomenal rate.
       • Poor living and working conditions.
         • Development of social unrest and radical alternatives.

2. Aim to make the Russian economy strong enough to maintain Great Power title.

   • Lacked industrialisation factors:
     • Very small business class - class that was central to development of European economies in 19th century.
     • Peasants did not have complete freedom of movement - limited migration of workers into cities.
     • Economy did not have sufficent funds to invest in industrial development - couldnt produce enough surplus grain to raise money.

3. Witte System

   • Gov. placed emphasis on capital goods - iron and steel, coal and machinery.
   • Economic development financed from abroad. Also, Russias extra taxes were levied on already over-taxed peasantry.
   • Trans-Siberian Railway
     • Run 700km across Russia - from St. Petersburg to Vladivostock
     • Provided communication needed to explot Siberian economy.