To What Extent Did the Russian Economy Improve in the Period 1894 to 1914?
The Russian economy is universally declared to have been a thoroughly backward prior to 1890s therefore it is highly likely that there was economic improvement in the given period; however the extent of this is difficult to define due to the varying manifestations of economic improvement and the independence with which they may occur. The finance minister during this period was Sergei Witte, and to him the majority of the improvements are credited, yet the improvement was not universal. Whether this was him personally or simply a product the awful conditions which the Russian economy rose from is to be decided.
In 1897, 82% of the Russian population were peasants, leading one to the believe that any economic improvement must be both partially caused by and result in improvements in this area. This is because generally the greater the economic improvement the greater the amount of people are involved in bringing it about and the greater the number of people it affects for the better. The situation in 1894 was a mass of peasants that owned small and mainly subsistence farms. This meant that they sold very little of their produce and therefore had very little money. This was bad for two reasons. Firstly if they sold little then the state would have very little to sell to other countries, meaning that no extra wealth was coming in to Russia. Secondly, if the peasants had little money than they would not be able to buy much. If we acknowledge John Keynes’ theory of demand as true, this lack of it can only be seen as a severe impediment to the Russian economy. To answer the question, one must therefore decide if either the peasants started producing enough to sell or if less people were peasants. There is evidence to suggest that between 1890 and 1910 there was an increase of 38 million tonnes of cereals produced. One could argue that this shows economic improvement because they were working the land more efficiently, and therefore selling more so getting richer, the
In 1897, 82% of the Russian population were peasants, leading one to the believe that any economic improvement must be both partially caused by and result in improvements in this area. This is because generally the greater the economic improvement the greater the amount of people are involved in bringing it about and the greater the number of people it affects for the better. The situation in 1894 was a mass of peasants that owned small and mainly subsistence farms. This meant that they sold very little of their produce and therefore had very little money. This was bad for two reasons. Firstly if they sold little then the state would have very little to sell to other countries, meaning that no extra wealth was coming in to Russia. Secondly, if the peasants had little money than they would not be able to buy much. If we acknowledge John Keynes’ theory of demand as true, this lack of it can only be seen as a severe impediment to the Russian economy. To answer the question, one must therefore decide if either the peasants started producing enough to sell or if less people were peasants. There is evidence to suggest that between 1890 and 1910 there was an increase of 38 million tonnes of cereals produced. One could argue that this shows economic improvement because they were working the land more efficiently, and therefore selling more so getting richer, the