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6.5. Economic development of Russia during an epoch of industrial revolution


The originality of development of industrial revolution in Russia was defined by action of set of factors:
1) poverty and illiteracy of the population;
2) necessity of the big initial investments for the production organisation;
3) serfdom preservation;
4) a special role of the state (industrialisation proceeds within the limits of a mobilisation way);
5) the British competitiveness both in the weak market, and on the potential external.
The state aspired to develop the industry, being guided by first of all the military purposes, therefore growth of investments in the heavy industry occurred at the expense of more widespread light industry and the agriculture applying trudozatratnye methods. Russia has appeared the unique country among the basic industrial countries which has undertaken industrialisation, not possessing strong agrarian sector.

Stages of development of industrial revolution in Russia
With 1804 on 1864 labour efficiency in the domestic industry has grown almost five times, despite availability of serf work. However overcoming of technological backwardness of the country rested against backwardness social, that was reflected in features of course of considered process.
Features of industrialisation in Russia:
¦ prevalence of civilian work in shape othodnichestva;
¦ disinterest in use of new technologies;
¦ cheapness of serf work;
¦ narrowness internal and a foreign market;
¦ absence of necessary capitals in the country;
¦ continuation of process of the initial capital;
¦ a strong role of the state in stimulation of development of production.
Changes in economy have influenced definition of a rate of the external economic policy. From beginning ХIХ century the Government repeatedly takes measures for activization industrial and sales efforts, pursuing thus the aims of replenishment of treasury and protection of the Russian industry. The state policy accepts strongly pronounced zapretitelno-protectionist character. It is confirmed with acceptance of some Custom duties 1810, 1816, 1819, 1850 and 1857 according to which the customs duties on imported and removed raw materials raised and importation of the equipment and finished goods exportation was encouraged. But protectionist character of the customs legislation did not answer needs of the developing state, since. Unlike the developed countries incomes of foreign trade went to Russia mainly for military needs and on unproductive consumption of ruling circles. Only in 60th The reorientation of a policy characterised by expansion of home market by an encouraging investment in the industry and railway building, and also rendering assistance to agriculture begins. Economic support of agriculture was carried out basically through the fiscal policy (decrease in taxes to production at the expense of uniform distribution of burden on all estates). Thus, development of national home market was braked by backwardness of agriculture. Besides, all European countries solved a problem of an agrarian overpopulation as a problem malozemelja, in Russia the availability of the free earths saved base for extensive type of development. To the middle of XIX century in Russia has objectively ripened the general structural crisis of feudal system. A main indicator of it the Crimean war 1853-1856 In the late fifties Russia was able to actually insolvent debtor.
The public debt has reached 1 billion Roubles, and budget gap has increased six times – with 52 to 307 million roubles. In a difficult condition there was also a credit system. In 1839 Minister of Finance E. Kankrin has conducted currency reform. It has been established, that 350 rbl. of folding money are equaled 100 rbl. by silver, and it meant devaluation of bank notes. They have been absolutely withdrawn from circulation and replaced by the bank notes freely exchanging on silver. But during the Crimean war the government resorted time and again to monetary issue, the rate of credit rouble constantly decreased, therefore the free exchange has been excellent.
In such conditions as the initiator of transformations the state that was reflected in distribution ekzogennogo a business cycle 50 – the middle of 90th has still acted At the same time transformations conducted in this period have played a special role, since. For the first time in the conditions of the country there were conditions for development of the mass free owner and creation of preconditions for transition from mobilisation type of development to innovative, that is to the process similar proceeding at this time in developed countries.
The innovative economic growth type represents the stable, repeating tendency of development of company on the basis of continuous and purposeful process of search, preparation and realisation of the innovations, allowing to raise efficiency of functioning of a social production, to increase degree of realisation of requirements of company and its members.
However transition to an innovative economic growth type proceeded in the conditions of traditional «revolutions from above».
Serfdom cancellation became the major link of reform of 60-70th. The contents of the given reform stated in Position on February, 19th, 1861, was reduced to the following: serfs appeared personally free without any repayment, they received a plot from the landowner, for what continued to leave corvee or a quitrent, that is became temporarily obliged. Peasants could redeem not only manor, but also under the mutual cross-agreement with the landowner and the field earth, using for this purpose the state loan. On termination of the repayment patrimonial supervision of the landowner over peasants ceased, their condition temporarily obliged came to an end, peasants passed in position of free proprietors. Relations between the landowner and peasants were mediated by a community which, in particular, collectively paid the redemption loan granted by the state within 49 years. Leaving a serfdom, peasants remained in a community, received known self-management and together bore duties before the state. In other words, reform was based on extension and preservation of semifeudal relations. The repayment was the original form of the feudal rent. It even was formally estimated from the quitrent sum: it was necessary to pay for a plot such sum which being is put in bank gives to the landowner in the form of percent obrochnyj payment. Therefore in the central areas of Russia where desjatina cost at usual purchase of 25 roubles, it managed to the peasant at the repayment in 60 roubles. The difference between a market value made feudal (in essence) the rent. Along with redemption payments peasants paid taxes to the local and central authorities. Numerous sections from a prereform plot compelled to lease of additional plots of the earth. The financial burden paralysed accumulation possibility, and frequent communal repartitions of the earths – enterprise, especially among prosperous peasants.
In oburzhuazivanii agrarian sector which became a main consequence of country reform, often mark similarity with Prussian by agriculture development. Similarity was valid, however there were differences.


Having begun with innovations in sphere of the state life decisive for agrarian Russia, the reforms which are conducted on a uniform plan, have extended on many spheres of a public life, having accepted complex character. For development of domestic economy reform of 1864 which promoted activization of activity of the basic manufacturers of manufactured goods for the population – peasants-handicraftsmen had special significance zemskaja. The researches carried out by a zemstvo have shown, that to number it is the most difficult razreshimyh handicraft industry problems their supply by raw materials, maintenance with the credit and production sales, weak technical training of handicraftsmen concerned. The exit has been found at first in the workshops organised by handicraft museums and sales items, then in transition to system of the artels satisfying requirements for the short-term credit in a network provincial and zemskih of cash desks, and also at the expense of means of private fund of S.T.Morozova.
The big role the reform of finance has played also. Till 1861 the credit system of the country has been presented by the state banks of noble family, advancing a credit to landowners on the security of manors, and the private bank buildings crediting the industry. In 1860 the National bank which up to the end of the century had no the right of an independent note issue has been created, and could replace only shabby denominations on new, accept contributions and issue loans, carry out purchase and sale of gold, silver, a foreign exchange and securities. It led to that, figuratively speaking, the country banking system executed a role of the car harnessed loshadmi. After reform of 1861 there was an association of state banks to the State Bank. During this period the vigorous activity of business banks begins. The first joint-stock business bank (St.-Petersburg) has opened on November, 1st, 1864, then in capital there was variety of commercial bank offices, in 1870 Banks have been formed Volzhsko-Kamsky, and then Azovo-Don. Besides it in economy reforms of more private character have been carried out: cancellation of wine payoffs and replacement with their uniform system of excises and patent fees (1863), attempts of restoration of value of rouble by money resources (1862–1863) and others.
Basic difference of reforms 60–70 from all previous became creation of legal warranties to businessmen from the state. They have been fixed in «Position about duties on the right of trade and other crafts» from January, 8th, 1863 which has put an end to an inequality of estates in the rights to employment chastnopredprinimatelskoj activity. The restrictions which have existed till 1917, were established for Jews, civil servants, priests of orthodox church, Protestant pastors, their wives and minor children. Military men, both soldiers, and officers, could attend to commercial activity only through representatives. Position has kept two merchant guilds, having cancelled the category «trading peasants». Introduction of an economic sign of division of industrial establishments on the technical equipment and number of workers became a serious step forward. Gildejsky certificates of the second category undertook holders of industrial establishments in whom there were cars with the steam or water engine or was more than 16 workers, and also the various sellers acting within a city or district. Gildejsky certificates of the first category were acquired by the negotiants working in all territory of Russia. Besides these guilds there was a category «the petty auction», and also "razvoznoj", "raznosnyj".
All indicated transformations did not differ sequence, but they have appeared rather significant for economy, since. Have marked the beginning of a stage of lifting of the market and infringement preryvnosti in model of economic development of the country. Clearing of a serfdom almost 2/5 population of the country has given a serious push to growth of the population which with 1860 for 1897 has grown on 52 million persons, mainly, at the expense of a natural increase. The tax of the basic agricultural crops constantly increased. Their productivity has raised on the average on 50 %, for comparison during this period in the European countries it has increased in 2–4 times. Changes occurring in agriculture promoted shift in economy structure, characteristic for a stage of transition of traditional agrarian company to industrial type of development and connected with gradual reduction of a share of agrarian sector in total amount of a national product. Serfdom cancellation has led, on the one hand, to transition of the industry to civilian work, with other – to a labour market grouping. It became one of the reasons of time recession, especially in the industries using work of serfs. Acceleration of industrial growth occurred after 1875, and then after some break in the late eighties of XIX century At the same time destiny of progressive transformations of Alexander II it has appeared enough difficult. After its  destruction on March, 1st, 1881 Alexander III, being afraid of revolutionary movement escalation, has conducted so-called «reforms inside out».

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A source: D.A. Shevchuk. Economic history. 2009

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