Slide 1Slide 2Slide 3Slide 4Slide 5Slide 6Slide 7Slide 8INDUSTRIALIZATION & MODERNIZATIONINDUSTRIALIZATION & MODERNIZATIONROOTS OF INDUSTRY Tsar Alexei’s reign low tech, manual labor mostly state-owned Peter the Great sped up production increased state’s role Catherine the Great great growth of industry but not competitive with WestINDUSTRIALIZATION & MODERNIZATION19th CENTURY INDUSTRY Steady growth new, Western machinery introduced But pace like pre-industrial Europe Emancipation as pre-condition for industrial growth But process of creating labor pool hindered by passport & obshchina systemsPrinting Press, the “Amerikanka”INDUSTRIALIZATION & MODERNIZATION19th CENTURY INDUSTRY Real growth at end of century  But free enterprise did not thrive: state control pervasive Class of entrepreneurs & industrialists finally developed Stigma of capitalism remained Much development dependant on foreign investment But Russian ventures also existedINDUSTRIALIZATION & MODERNIZATION19th CENTURY INDUSTRY Growth of PROLETARIAT  Working conditions bad Living conditions bad State passed protective legislation for women & children Less urbanization – many stayed tied to villages Still very small classINDUSTRIALIZATION & MODERNIZATION19th CENTURY INDUSTRY SERGEI WITTE: Finance Minister under Alex III & Nich II  Goal = stimulate industrial growth Tried to commit govt. resources to development Attracted foreign investment Supplied capital & removed restrictions on investmentINDUSTRIALIZATION & MODERNIZATION19th CENTURY INDUSTRY Growth of Railways  1890s: boom of construction  But not enough to cover Russia’s vast distances Funded by govt. with vodka revenues Also significant foreign investmentINDUSTRIALIZATION & MODERNIZATIONROLE OF THE STATE State regulated economy in very direct way  Protectionism Industrial Policies• state-run monopolies• price controls High taxes Factory & social