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Russian Economic Situation Before 1917 And Nowadays.

3145 words - 13 pages

IntroductionDuring all its rich history, Russia has always been a complex society with many paradoxes. Economically speaking, it took more especially its signification at the early of 20th century.At this time, industrial growth of the country was outpacing the world whereas agricultural performances were at a really poor level, as well in terms of profitability as in terms of peasant's way of life.Russia was also a land of newly liberated serfs, middle class revolutionaries, enlightened millionaires and reactionary nobles, under the absolute power of the last imperial family in Russia (belonging to Romanov dynasty), Tsar and Tsarina, Nicholas II and Alexandra.It became then obvious that such an economic situation should lead to a global revolution, what happened in 1917 with Bolsheviks.This crucial year in the Russian history meant the beginning of the very long tragic period that Soviets had to endure: Communism, which will strongly affect the Russian economy of the post-USSR.Consequently, it will be interesting in this report to compare the Russian economic situation of nowadays (after 1991) with the one of before 1917 (end of 19th century and beginning of 20th century). This will allow us to show how Russia succeeded (or not) his industrial development through different periods of its history, and how it managed to solve disrupts caused by the soviet period. So, after having described the economic period of Russia before communism with its pros and cons, we will speak about the new Russian capitalism and the differences or similarities with the past.Economic situation before 1917Following economic history of precedent centuries, the 19th century was still reducing Russia to a strong state protectionism and low economic performances.Although efforts were made in favor of merchants, entrepreneurs, the state power and the consequent absence of competition was too important to allow a real increase in economic development. Actually, the Tsar and his government ruled over the country with an autocratic rule, in supremacy, and were completely ignorant to the problems that their country faced. (especially towards an important category of population: peasantry)When he was elected, the tsar owned an absolute power on every sphere of life, including economic development. As a matter of fact, industrialization was mainly the result of military and political investments, a factor of limitation of the level of development.However, we can notice a significant growth in industrialization and technology expansion of western Russia (and thus urbanization) after the end of 1890's.Indeed, the state itself had embarked on a program of industrialization in order to better compete on the world stage. Count Sergei Witte played here a great role. As a minister of finance (really interested in foreign policy and at the origin of the golden standard's system), he was helping to increase the speed of Russia's industrial development through foreign investments and...

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