Economic progress in Russia in the years 1981-1982 Essay Example for Free

Economic progress in Russia in the stratums 1981-1982 raiseDespite frequent changes in policy, Russian and Soviet governments were spectacularly un winning in securing sustained frugal progress in the days 1881-1982. Assess the validity of this contestation.Between 1981 and 1982, Russia underwent huge changes, particularly the in economy. Russian history is well kn hold for its frequent changes in policy as the country faced revolutions, changes in regime, changes in leadership and not to mention its involvement in various conflicts. As a result, Russias economic policy was subject to major change apart from three key areas, industry, husbandry and the third sector. These three areas of the economy remained a constant in its invariably changing climate however, many historians soundless argue that Russias economy was winless and poorly managed despite its frequent change in policy. consequently begs the question, To what extent is this true?The tzarist regime, for man y Russians, was a period of economic instability as husbandry was seen as a secondary concern. Growth rate was not structured and egression rate beastly considerably amongst the late 1890s and 1905.1 Meanwhile, other economies expanded leaving Russia struggling to catch up and some historians see agriculture as a reason for Russias economic decline. For model, Carol. S. Leonard argued that Russias caryopsis merchandise per capita GDP was lagged far behind that of America in 1913.2 This argument shows how agriculture in Tsarist Russia wasnt dealt with in effect and as a result, the economy suffered.On the other hand, some historians be in possession of pointed out that agriculture in Russia during the late Tsarist years were not so destructive. One argument maintains that actually, Russias agriculture grew and developed quite substantially pre- revolution. For sample from 1890 to 1913, cereal production per capita increased by 35%3. Although this certify is hard to ignore, it is also difficult to turn a blind eye to the contrasting evidence which suggests that agriculture suffered under the late Tsarist regime and consequently, affected the economy as a whole. For exampleThere was very little investment in agriculture in Imperial Russia and this lead to grim yields and economic volatility when prices rose and felllack of investment in agriculture frequently caused impress prices to repeal which caused famines4Overall, although agriculture grew slightly during the Tsarist regime, ultimately it suffered gravidly as did the Russian mass. Looking at agriculture alone, Russias economy looked bleak however industry had slightly more success during this beat so perhaps the economy was not so bad after all.S J lee puts forward a simple statement The periods of intimately rapid growth were in the reign of Nicholas II (1894-1917) as a result of the economic reforms of Sergei Witte (1892-1903)5. This is easy to see, when one considers that in 1914, Russ ia enkindled 35 million loads of coal, ranking Russia fifth amongst the main producers.6 Building on Lees argument, there seems to be a lot of evidence pointing to Sergei Witte as the main reason for Russias industrial boom. Upon taking office, Witte raised big amounts of capital by securing a loan from France and raising taxes and tariffs and interest rates.7 However, it is the development of Russian rail shipway which Witte is perhaps most remembered for. Under his guidance the railway network grew from rough thirty one thousand km to well-nigh fifty three km worth of track.8With Witte at the helm, Russias industry continued to develop with growth rates comparing well next to those of the United States and Germany. Witte has ofttimes been credited with modernizing Russia to such a great extent that its industrial boom continued long after he left his post as Finance Minister in 1903. For example, in 1913, Russias steel production stood at 4.9 million deliberate tons next to F rances 4.7 million, with coal and iron not far behind.9On the other hand, Wittes industrialization policies were not always so successful. For example, between 1890 and 1899, Russias industrial growth stood at 8.0% whereas between 1900-06, it reduced to 1.4%10. His repoints of modernizing came with a heavy cost and it was consumers who had to pay the price. Taxes were raised but only for the lower classes, because the wealthier classes were spared from taxation although their money was needed for private capital. Tariffs also caused problems as, although they protected Russian industry, they added to the cost of living.11 Whatsmore, although some historians have credited Wittes decision to seek loans from foreign investors, some remain critical. This is because the interest added to the loans had to be pay in a secure medium meaning, in order to pay off their debts, Russia was squeeze to trade grain regularly, including during the famine of 1891.12Overall, although Witte make huge strides in modernizing the Russian economy, he was not entirely faultless. industry picked up, but there were still issues and it was the common man who had to pay. The economy still suffered, although, arguably, not as a great deal as it would have done without Witte. However, the tertiary sector also contributed to the economy.Although some historians critique Russias dependance of Western investors, these ties had corresponding benefits in the shape of trade. 13 Business also boomed within Russia with eight large banks emerge in 1899 which owned more than half the total bank capital. This provided free access for foreign capital, supreme important branches of the Russian economy, including the fuel and metallurgical industries. 14 Moreover, according to Robert Service, domestic industrialists and banks were thriving too.15 This argument can be braveed by the growth in towns and cities between 1897 and 1914. For example the nation in St Petersburg grew from 1ccc thousa nd (1987) to 2100 thousand (1914)16. This shows that the economic growth had a positive impact on society and the country was doing well under the Tsarist regime.However, although to the naked eye Russia seemed to be doing well, their growth wasnt so great. Compared to the other Great powers of the period, Russia was lagging far behind. Between 1894 and 1913, Austria-Hungary had a 79% increase in national income whereas Russia was lagging far behind with only a 50% increase17. This clearly demonstrates that Russias boilers suit topographic point was not so great and actually, Russian people did suffer.When Lenin came to power in 1917, he brought with him a change in regime and economic policy including the introduction of war communism. War communism aimed to interact the economy through state involvement. Rural areas were subjected to grain requisition which was forcibly removed by the military.18 This necessarily was unpopular and caused much suffering and peasants who stored their crops were often wrongfully prosecuted.It was not just agriculture which suffered. Factories were nationalized by November 1920 and were geared towards war production.19 Additionally, private trade was banned and rationing was introduced on consumer goods including food and clothing.War communism was, effectively a self destructive policy. Grain requisitioning meant more than three million people died of starvation by late 1922.20 Moreover, money lost its value and people got by through a system of barter. rising prices shot up and multiplied 1917 costs by four million in 1922. Additionally, in akinity to the growth in city population during the Tsarist regime, people fled the cities. For example in December 1920 the population in Petrograd fell by 57.5%21Lenin k sweet that it was date for a change. War communism caused more harm then good so Lenin came up with an alternative, the New Economic Policy (NEP). Peasants were allowed to sell grain for profit and they paid tax on what they produced rather than giving it up22.Things also changed industrially and in the tertiary sector. Businessmen could own small or medium sized businesses however large firms were still state owned.23 The NEP basically gave the people of Russia freedom and Lenin hoped that it would boost economic growth as well. However, in 1924, Lenin died and Stalin came to power. Stalin also brought new ideas and his own ways of modernizing the economy.In November 1927, Stalin introduced his policies of industrialisation and collectivisation with the aim of modernising the economy. They were supported by a series of five year plans, the first (1928-32) aimed to improve living standards and the second (1933-37) and third (1938-41) aimed to highlight and thus, amend, Russias weaknesses24.Industrialisation was relatively successful as by the late 1930s many workers conditions had improved and they had acquired better paid jobs and unemployment was almost non-existent. Accounts from the ti me support this viewGood progress was made4500 new factories, plants, mines and power post were commissioned, three times as many as the first Five-Year period25.On the other hand, industrialisation was harsh and lateness for work often led to employees getting the sack. Many prisoners also paid the price by working on the grand engineering projects and working in appalling and dangerous conditions. For example close to 100000 workers died building the Belmor Canal26.Collectivisation was ultimately unsuccessful and peasants were in a worse position than ever before. The concept of sharing farms and thus, sharing salary meant there wasnt enough money to go around and crop production fell too. For example Grain shortages, combined with continued forced procurements, led to campestral famine27 However, some people benefitted from collectivisation such as Bertha Malnick We have more than 600 hectaresour farmers have reinforced 70 new houses for themselves during the last few years28. However, it is reasonable to conclude overall that collectivisation was unsuccessful given the various sources which provide figures of those who died or badly suffered during Stalins reign. Stalin died in 1953 and Khrushchev took over. Khrushchev focused on DeStalinisation, distancing the USSR as far away from Stalin as possible.Khrushchev was keen to adopt a different economic policy with the aim of building on the countrys previous economic growth and amending its weaknesses and one way he did this was by abandoning the five year plans and starting a new, seven year plan (1959-65) which aimed to take avail of newly discovered mineral resources and fit in with industry29. Khrushchev pumped a lot of money into agriculture and overall 40% of investment was put into the neglected eastern regions of the USSR30.However, the seven year plan had similar flaws to the previous five year plans such as mistakes in resource distribution. Living standards got worse, the opposite to what Khru shchev had hoped to achieve. For example only five in one thousand citizens owned a car and in 1963, the USSR was forced to import grain from the capitalist west to compensate shortages.31There were successes during this time such as the rise in foreign trade however this cant compensate for the huge failures experienced during this time. Khrushchev made an honest attempt to improve the economy however his plans backfired and once again the country was left to light-headed up an economic mess. Eventually, Khrushchev was removed from power and in his place came Brezhnev who did little to change the economy.The era of Brezhnev has often been described as a period of economic stagnation but some historians believe that this is not fair. Like Khrushchev, Brezhnev wanted to focus on improving agriculture and living standards in Russia. Historians Gwyneth Hughes and Simon Welfare support this view saying by and by the terror of Stalins reign and the chaos of Khrushchevs, the Soviet Union was in for a period of stability, and that meant everyone kept their job and their perks for life.32 Brezhnev allowed farmers to work on state own plots which motivated them to produce as much as possible in order to sell the surplus33. This, in theory, should have been serious and shows that Brezhnev was trying to improve the economy through new methods however, he was not so lucky.In 1975, the USSR suffered some other poor harvest meaning Brezhnev had to increase foreign exports to keep everyone fed. This was just another disaster in Russia but Brezhnev did little to help. His aim to improve agriculture and living standards meant he neglected industry and production rates continued to rapidly fall34. However, arguably his biggest flaw was his inability to change the already ridged economy. Brezhnev had new ideas but couldnt fight the system and by the end of his reign, Russia had made little improvement. Historian Dmitri Volkognov outdo sums up the Brezhnev period sayingIf Len in and Stalin, and to some extent even Khrushchev, were able to enliven the moribund political orientation of Communism, it was quite beyond Brezhnev35.In conclusion, between 1881 and 1982, Russia experienced much hardship especially surrounding the economy. After analyzing this one hundred year period it is hard to deny that the statement Despite frequent changes in policy, Russian and Soviet governments were spectacularly unsuccessful in securing sustained economic progress in the years 1881-1992. The economy under the Tsarist regime had its faults and during and after the 1917 revolution, it was widely believed that the countrys economic situation would improve. However, from Lenin to Stalin and Khrushchev to Brezhnev, it seemed that no leader was able to sustain a long-lasting and successful economic policy. The economy grew as quickly as it declined and it has taken many years to make any significant progress since. Therefore, this statement is valid.________________1 Heineman n Advanced recital The Modernisation of Russia 1856-19852 Agricultural Productivity Growth in Russia 1861-1913. From Inertia to Ferment by Carol. S. Leonard3 The Penguin History of Modern Russia by Robert Service4 www.historymadefun.co.uk/Tsarism5 Overview from Russia and the USSR Autocracy and Dictatorship (questions and answers in History) by Stephen. J. Lee6 Stephen J Lee7 http//www.slideshare.net/russeltarr/tsar-nicholas-ii-and-industry8 The Industrialisation of Russia by M. Falkus9 http//www.portalus.ru/modules/english_russia10 M. Falkus11 A2 History OCR A Russia and its Rulers 1855-196412 A2 History OCR13 S. J Lee14 A History of the USSR15 Penguin History of Modern Russia16 M. Falkus17 The Making of the Revolution, 1881-190518 From Years of Russia and the USSR, 1851-1991 by Evans and Jenkins19 Evans and Jenkins20 The Russian Revolutions 1914-192421 Evans and Jenkins22 The USSR, Germany and the USA between the wars23 Russia and the USSR 1905-194124 The USSR, Germany and Russia between the wars25 A Soviet view of the second five year plan from History of the USSR by Y. Kukushkin26 Stalin and the Soviet parsimony27 European History 1848-1945 by T.A Morris28 Everyday Life in Russia by Bertha Malnick29 AQA A2 History Triumph and collapse Russia and the USSR 1941-1991 by John Laver Sally Waller30 Russia 1855- 1964 Flagship History by D. Murray and T. Morris31 The Soviet Economy 1917-80 by S J Lee32 Red Empire. The Forbidden History of the USSR by G. Hughes and S. Welfare33 www.ibguides.com/history/notes.ccom34 Years of Russia and the USSR, 1851-199135 The wage increase and Fall of the Soviet Empire by D.Volkognov