• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Outline and assess the effectiveness of Wittes economic reform When Sergei Witte became minister of finance in Russia in 1892 he recognised that the economy had to be modernised if Russia

Extracts from this document...

Introduction

Outline and assess the effectiveness of Wittes economic reform When Sergei Witte became minister of finance in Russia in 1892 he recognised that the economy had to be modernised if Russia was to become a world power on a par with the west. The Industrial Revolution that had taken place in the west had led to its massive economic growth and an increase in power and Empire building. Being able to buy cheap, raw materials like oil and coal from Russia fuelled part of the west's industrial revolution. Witte decided that Russia needed state Capitalism to modernise. He borrowed capital and encouraged investment from the west and large factories began to produce heavy industry like steel. ...read more.

Middle

Change was resisted and Witte had no support for his vision of a richer, more powerful, modernised Russia. There was also conflict with the military commanders who pushed their needs for transport and military hardware to the top of the economic agenda. These conflicts interfered with Wittes plans and so by the time of the Great Trade Recession at the turn of the century, critics could identify three major weaknesses in his economic reform. Witte paid To drive his economic reform through without support or interest from the Tsarist court or the government Witte (who was German) brought in many experienced foreign industrialist and capital from the west to manage and finance his projects. This was not at all popular with the Tsar or Russia who did not trust him. ...read more.

Conclusion

Despite the success of improved transport across Russia, boosting exports and foreign trade, Wittes programme of reform was hampered by the unwillingness of the Tsarist regime to consider any changes in the social structures of the country. Feudal systems hampered the development of a strong middle class. The Tsar and his ministers only wanted economic expansion as a means of strengthening Russia's military capability. Because of the high import tariffs, Russian consumers had to pay higher prices because the trader had to keep pace with the increased value of the Rouble. The very strategies that Witte introduced to strengthen the nation and protect Tsardom against the disruptive forces in Russian society were unsupported and unappreciated by the Tsar and his ministers, these factors meant that it was difficult for Witte to realise his economic miracle and the Tsar asked him to retire in 1903. ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Split Votes: A Nation Divided on the Marijuana/Drug Legalization Debate

    Economics is the study of people's choices. One premise of economics is that people naturally maximize their utility, regardless of their knowledge of the study. So the fact that the Church's argument fits into an economics model is not surprising.

  2. Industrial revolution in Russia

    Witte's background was as a railroad official, and he advocated rapid additions to the Russian network. Mileage doubled between 1895-1905, the additions including almost the whole of a line across Siberia that opened the vast resources of this region to industrial use.

  1. Retailing In India - A Government Policy Perspective

    consumers that reap the benefits from global industry restructuring, and consumers in the host countries that see their purchasing power and standards of living improve. The more competitive the environment, the more benefits FDI can bring - and the more benefits that are passed directly on to consumers.

  2. Chinese economy sets for soft landing in 2005.

    Meanwhile, the budget deficit faced by the Hong Kong government is not expected to have any immediate credit implications on its current foreign currency rating of A1 assigned, Moody's said. "We believe the Hong Kong government remains fairly strong in its position, despite running into budget deficits for the past

  1. Taxation Reform in Australia

    Horizontal equity is refers to the belief that all taxpayers of the same marginal rate should suffer an equal tax burden.

  2. Contrasting Economic Value Systems in Anton Chekhov's The Cherry Orchard

    The land-owning gentry were losing their wealth and finding themselves incapable of coping with the economic realities of the growing entrepreneurial capitalism. This actuality becomes particularly evident in the discussion between Madame Ranevsky, Gayef and Lopakhin at the beginning of Act Two, about the future of the cherry orchard.

  1. The Quest for Optimal Asset Allocation Strategies in Integrating Europe.

    The proper measure of risk for the local country portfolio is then no longer its standard deviation, but its beta with the world portfolio. The same asset i in an integrated market will yield a risk premium of where is the beta of asset i.

  2. Monetary policy of a globalised economy

    It affects investment and potential output. Fiscal policy today is employed mostly to affect long-term economic growth through its impact on national saving and incentives to work and save2. However we shall not deal with fiscal policy here. Monetary policy The second major instrument of macroeconomic policy for the government is monetary policy.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work