Czarist Russia
In the early czarist age/ pre-Revolutionary era Russia was a feudal land system and there was a growing gap between agricultural Russia and industrial Europe. Russia under the czars was growing out of the feudal system, but it was a slow process because the czars were afraid of losing power and control. The czars were just large landowners themselves, so they tried to resist turning Russia into an industrial capitalist state. However the czars did many things to start the process, they initiated all kinds of land reforms, such as the Stolypin reforms which weakened the communal agricultural land and allowed peasants to own small pieces of land. Allowing the private ownership of land allowed for some peasant families to become wealthy, and allowed them to use land as a commodity. Peasants could now buy and sell land to settle debts, and those that had to sell their land moved into the cities and started to create a labor force. Under the czars Russia was able extensively expand their railroad system. IN 1861 they had about 2000 kilometers of rail ,by 1913 they had increased the rail line to 70,000 kilometers. The expansion of the rail allowed for the Rus
Industry took advantage of their countries backwardness by adopting already existing technology instead of trying to create their own. Under both systems the countries agricultural and industrial output skyrocketed. Peasants were now free to sell their goods to whomever they wanted to, to lease land and to hire laborers. Foreign trade was reestablished and rose to an all time high of 44% in 1928 as opposed to the pre-war high of 8%. The government just wanted to be sure that if their plans for a market economy didn't work that the countries most important industries would still be okay. The taxes were about the same under both economies. They basically tried to create a free market that would be supported and still slightly controlled by the state. The last twenty years of the 19th century under the czars saw an impressive growth in the Russian economy and in the economic development. However under the czars there was a more encouraging of domestic demand while under NEP they encouraged cheaper foreign industrial products. Because the peasants were now free to sell to the state, cooperatives or to private markets nine-tenths of all retail trading posts were privatized by the end of 1922. One of the differences that made the NEP slightly more successful was at that time they were willing to go all the way and try to become a market society while the czars were holding back slightly. By 1928 agricultural and industry had risen to all time highs beating what was previously accomplished in the pre-war era. The industries that remained under government control were fuel, metallurgy, war industries, transportation, banking, and foreign trade. However even with the major increase Russia is still well behind the other European countries. The rail also helped in the transporting of grain and other agricultural outputs.
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