answersLogoWhite

0

Witte believed the only way to modernise Russia and 'play catch-up' with the West was through State Capitalism (control of the economy by the government). The country needed to raise capital for investment in industry, which he did in several interlinking ways:

-large foreign loans:

brought money into the country.

-heavy tax and interest rates in Russia:

more money for the government

-Tariffs:

while bringing money into the country, Witte protected the small developing industries of Russia by limiting imports (but risked other countries doing the same to Russian goods in retaliation)

-1897, put Russian currency on Gold Standard:

this created financial stability and in turn encouraged huge foreign investment in Russia. Conversely, the higher-value roublle helped increase the prices of goods.

Witte's main method for raising the capital and modernisation would be the Trans-Siberian Railway, which from 1881 to 1900 increased from 13,000 to 33,000 miles. It was hoped it would encourage East to West migration of workers, to feed in to industry, however this did not happen. Instead, it helped growth and exports of Russia by making transportation of materials far easier. On the other hand, the growth in population compared with national output shows less production per head, and therefore less efficient production.

His policies did little for agriculture considering 80% of the population were rural peasants. It is thought he focused too much on heavy industry, neglecting others Ike light engineering. Finally, Russia became overly dependant on foreign loans (never good if a financial crisis were to occur and foreign loans have to be repaid). Tariffs making goods scarce, and heavy taxation meant prices for Russian consumers increased, whilst their wages stayed low. Workers had poor living and working conditions, and their discontent was severely repressed. Peasants' outdated farming methods led to less food for all. The increasing population gave peasants less and less land, and worsened food shortages.

User Avatar

Wiki User

13y ago

What else can I help you with?

Related Questions

What is the population of Wittes?

Wittes's population is 807.


How tall is Kathy Wittes?

Kathy Wittes is 5' 2".


What is the area of Wittes?

The area of Wittes is 3,920,000.0 square meters.


What has the author Glorianne Wittes written?

Glorianne Wittes has written: 'Helping your child to learn' -- subject(s): Behavior modification, Motivation in education, Psychology of Learning


When was Economic Policy Institute created?

Economic Policy Institute was created in 1986.


When was Contemporary Economic Policy created?

Contemporary Economic Policy was created in 1982.


Economic policy?

Economic policy concerns the way the government collects and spends money and regulates the market. Income tax rates are an example of economic policy.


What micro economic policy changes would you recomand to increase south Africa's export potential?

micro economic policy to increase S.A exports potential micro economic policy to increase S.A exports potential micro economic policy to increase S.A exports potential micro economic policy to increase S.A exports potential micro economic policy to increase S.A exports potential micro economic policy to increase S.A exports potential micro economic policy to increase S.A exports potential


What has the author William Kenneth Bellinger written?

William Kenneth Bellinger has written: 'The economic analysis of public policy' -- subject(s): Economic aspects, Economic aspects of Policy sciences, Economic aspects of Political planning, Economic policy, Policy sciences, Political planning


What is new economic policy 1991 and what are the causes which forced India to adopt new economic policy 1991?

what are the causes for the evolment of new economic policy of india 1991


When was Oxford Review of Economic Policy created?

Oxford Review of Economic Policy was created in 1985.


When was African Journal of Economic Policy created?

African Journal of Economic Policy was created in 1994.

Trending Questions
What is the plural word for dollar? Discuss the relationship between a businesss level of operations and it market share goals in terms of the macroenvironment Illustrate with the help of examples? What happened to the real estate market in the years between 2000 and 2008? What is the policy extending a nations authority over countries by economic polital or military means? What is the Index of Economic Freedom? Is the Resource or Financial Manager responsible for ensuring fund availability prior to purchase? What are the disadvantages of fair trade? What is a term that means a prolonged rise in the general price level of goods and services? What type of economic system does Vietnam have? Which factor of production is used by manufacturing firms or a physical location? 1 Give an example of a political factor that could discourage a business from engaging in international trade with a given country? Why are silver dimes worth more than silver nickels? What is the Value of a 1980 silver liberty bullion coin with a liberty head on front and eagle on the back? How much is a real 2 dollar bill worth these days? Why shouldn't we use gold-rather than coins and bills-as money for purchases we make every day? Why are rules protecting private property some of the most important rules in a free market system? What do economists mean when they say that price floors and ceilings stifle the rationing function of prices and distort resource allocation? What is productivity linked incentives? What is a 2.00 bill worth today? How much is 20000 hai muoi nghin dong in Indian rupees?