Early Industrialization Under the Tsars
Alexander II appointed Reutern as Minister of Finance, initiating a sensible approach to economic development:
- Focused on railway construction to stimulate the economy
- Encouraged foreign investment in Russian industry
- Oversaw a seven-fold increase in railway mileage from 1862-1878
- Expanded production in both traditional and newer industries
Example: Railway construction by private companies initially led to corruption, prompting greater state control. By 1911, 69% of railways were under public ownership.
Later finance ministers continued industrialization efforts:
- Bunge introduced the Peasant Land Bank in 1883 to support agricultural development
- Vyshnegradskii raised funds by increasing grain exports, though this contributed to the 1891 famine
Vocabulary: Proto-industrialization - The early stages of industrialization, often characterized by growth in rural manufacturing and increased commercialization of agriculture.





































