- The late 19th and early 20th centuries saw slow economic development in Russia compared to Western Europe and the US. Industry was more state-involved and agriculture remained underdeveloped. - By the early 1900s, Russia had become the 4th largest steel and iron producer and 2nd largest petroleum producer, though factories were technologically backward. However, economic growth was hampered by poor transportation infrastructure until improvements like railroads. - During World War 1, Russian industry focused on war materials but imports decreased due to its isolation. Agricultural production also declined as farmhands joined the army and horses were confiscated. Food rationing was introduced but shortages remained severe, exacerbating economic troubles.

1. Russian Economy

2. Russian Economy The late 19th and early 20th centuries were economically problematic in Russia. Technology and industry continued to develop more slowly than in the West (and Far East).

4. Russian Economy - Change Industry, in general, had greater state involvement than in Western Europe. But there was some private investment especially from abroad. 1850 - 1900 Russia's population doubled Fastest of all the major powers except for the United States.

5. Russian Economy Agriculturewas technologically underdeveloped. It remained in the hands of former serfs and former state peasants. They were 4/5 of the rural population.

6. Smaller farms and more people increased the amount of land used for agricultural development. But land was used more for gardens and fields of grain and less for grazing meadows than it had been in the past

7. Industrial growth was limited to the west of Russia

8. Russian Economy, c.1890 Label the economy fact boxes into ‘good economic news’ and ‘bad economic news’ Give a positive score to each good thing Give a negative score to each bad thing How does the Russian economy score overall in 1890?

9. Russian Economy – An improving picture

10. Russian Economy – An improving picture Better transportation = more efficient use of Russia's abundant natural resources. The railroad allowed shipment of grain to the West, This helped finance industrialisation.

11. Better Transport = More trade Gold Food Timber Iron

12. Better Transport = More trade Wealthy western markets Food Gold Iron Timber

13. Russian Economy High tariffs were introduced to protect new industries. Western investment in Russian industrialisation was encouraged As a result, nearly half of Russia's industrial businesses were foreign-owned. Tax Imports Foreign money

14. Russian Economy 1900: 4th in steel & iron production 2nd in petroleum production. Russian factories were typically enormous but technologically backward. Agriculture also lagged behind Western standards of productivity.

15. Read p.19 and answer these questions What campaign did Stolypin organise? Why was there an increase in strikes after 1910? How many workers were killed at the Lena Gold Fields in 1912? What prevented the number of strikes escalating?

16. Russian Economy Sergei Witte

17. Sergei Witte A Russian politicianand prime minister (1905- 06) He was the Tsar's most valued adviser on transport and economics. Achievements: sought foreign investment, masterminded the modernisation of Russian industry suggested the construction of the Trans-Siberian Railroad.

18. Look at the policies and effects on the handout and complete this table.

19. The Russian Economy 1905-1914

20. 1905-1914 Summary After the Russia-Japan war of 1905 the economic situation became worse. The peasants started to question the right of the aristocracy to rule. Many wanted change.

21. 1905-1914 Summary Hello, I’m back. I want some land please. Many peasants, burdened by high taxation, demanded land. Much of the land still belonged to the gentry.

22. 1906 Harvest To make matters worse, 1906 saw significantly reduced harvests. Wheat figures: 12.8 million metric tons in 1905 9.9 million in 1906

23. 1906 Harvest Oats: 12.0 million 8.8 million Potatoes: 27.6 million 25.1 million.

24. Prime Minister Stolypin tried to reduce tension. He told the Peasants' Bank to buy up land from nobles and sell portions of it off to peasants. This policy which was only partially successful.

25. In 7 out of 13 years between 1900 and 1913 expenditure was greater than income. Correctly dealing with figures is important in History. Calculate the total budget deficit. (Σrevenue – Σexpenditure)

27. Russian Economy 1914-1917

28. 1914-1917 Summary The Tsar wanted to ensure a supply of food and consumer goods. However, such goods became increasingly scarce. Industry focussed on war articles and imports decreased because of Russia's isolated location.

29. 1914-1917 Summary The production of Vodka was forbidden in order to save potatoes.

30. Food Rationing was introduced and a Price Fixing policy adopted. Ration coupons were not always effective as shop shelves were empty.

31. Agricultural production decreased for a number of reasons: many farmhands had been conscripted into the army many horses from the villages had been confiscated by the military forces. the fixed prices made it unattractive for farmers to grow grain.

32. Some of the potato harvest was used to clandestinely produce vodka. When large regions in the west were occupied by the enemy, the population was evacuated into Russia's hinterland. They had to be fed, providing an additional burden on the faltering economy.

33. The cost of the war to the Russian Empire c.1,700,000 dead 4,950,000 wounded 2,500,000 M.i.A Total losses: 9,150,000 out of a population of 158,000,000

34. Cost in Cash c. 40,000,000,000 roubles For comparison Russia's state revenue in 1913 amounted to 3,417,000,000 roubles. The war had been financed by both foreign and domestic credits as well as by printing additional money.

35. 1914-1917 Task Study the tables on the handout [Evans, D. Years of Russia & the USSR (2001) pp.170-171] What advantages did Russia have in WW1? What disadvantages did it have? In 1914 the British Foreign Secretary said ‘Russian resources are so great that in the long run Germany will be exhausted.’ How accurate is his assessment of Russia’s strength? (Write about 50 words)