The Witte Programme: successful?

What was it?
1. After the emancipation of the Serfs and the Great Reforms, The Russia was changing quickly.
  1. Alexander 111 dies in 1894
    1. replaced by his son Nicholas 11
  2. Agrarian Crisis
  3. Govt was attempting to industrialise and modernise the country
  4. famine
2. in 1884 Minister of Finance Bunge warned that the state finances would not allow for investment in industry
  1. IA Vershnegradskii taxed the peasants heavily for the money needed
    1. replaced by Sergei Witte in 1892
      1. Background of a railway man, rather than a noble or bureaucrat.
      2. inspired by German economist Friedrich Hist and by protectionist ideas in general
        lear vision: state should invest in industry and communications infrastructure. Money should be borrowed from abroad whilst foreign investment should be welcomed.
3. When Witte was implemented he started a new programme to continue Russias search for modernity
  1. involved a number of interrelated elements of economic policy that were implemented by the state.
  2. Monetary stability was achieved by means of introducing the gold standard, tariffs protection was raised in order to foster indigenous industry, level of taxation was increased, and foreign investment was encouraged. Foreign loans. Agricultural exports stimulated.
  3. started with the railways- efforts to greatly extend the railways.
Successful:
1. successfully accomplished the development of the railway. 1892 expenditure railways - 50 mn Rubles to 275mn rubles per year
  1. greatly improved the transport system and assisted developing new trade networks
  2. demand for rails and locomotives called for steel mils, and steel mills called for coal and pig iron. Stimulated the growth of auxiliary industries producing cement, bricks and instruments. stimulation of consumer industries, prod agricultural production. railroad construction and Russian greatness linked in one comprehensive vision of economic development.
2. Russias industrial economy grew faster than it any other time in prerevolution Russia
3. growth rates in the late 19ths and early 20th Century were high, comparing favourably with US, Germany and Japan
4. 1913 Russias total National Income was nearly equal to that of Britain
5. Russias steel production i 1913 exceedd Frances'
6. 5th biggest industrial power by 1915
Failure:
1. reliance on foreign loans
  1. supply depended on the goodwill of the world- rumours of war and wittes boom ends?
  2. severe limitation on Russian Sovereignty
  3. Interest. State had to force exports, grain and food stuffs at a risk of starving their own population
  4. credit, had to create a favourable impression abroad, on western terms
2. tax= fell on the poorest people
3. stimulation of industry does not autmoatically carry over to agriculture. Remained stationary/deteriorated
The witte programme was a set of economic policies designed by Witte to produce industrialisation in Russia. 2 main pointes 1. Railways and 2. Foreign loans. Had success but wasnt without problems. Industrialisation very ineven, and agricultural system underdeveloped. starving peasants. It can be argued that although Wittes programmed caused industrialisation and did better than previous programmes, the policies were very risky. Just got lucky? However, it is possible that if the programme had not been interrupted by the First World War, that it could have had further successes
Vincent Barnett on the Witte programme, Theodore van Laue and Paul De Quenoy on successes and failures

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The Witte Programme: successful?

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	Created by sophie_pollard about 11 years ago