Question

How was the economy of Russia at the beginning of 20th century

Answer 1

Russia's Economy: 19th-20th Century  

After Czar Nicholas II accession to the throne in 1894, Russian industrialization increased drastically. This was due to a surge of French investments into the Russian economy. In addition to this, Russia adopted the Gold Standard in 1897, which also stimulated foreign investment.  

The country's economic advancements in this period can be seen through the evident rise in production and exportation. Between 1892 and 1905, Russia's mines grew from producing 6.9 million tons of coal to 18.7 million tons and Russia's industry grew faster than both Great Britain and Germany.  

Despite this progress, Russia trailed behind Western nations in their per-capita consumption. Beyond this, the country's population was steadily growing and the disparity between economic classes began to cause considerable social unrest.  

Soviet Economy: 1922 to 1991

Economic production, investment and consumption throughout the Soviet Union operated under state control. Decisions were made according to the intentions of the Communist Party. Annual economic plans were employed to translate economic policies into programs. State committees would formulate output targets throughout these planning periods, which were then refined into objectives for state industrial enterprises as well as state and collective farms.  

The pricing system was primarily used for accounting purposes throughout this period i.e. Prices for bread were below the cost of the wheat used to produce it. Additionally, Soviet industries obtained raw materials such as oil, natural gas and coal at prices below world market levels, which encouraged waste. Russia's economic reforms throughout the era of "perestroika" were especially demanding as the country tried to transition to a market economy.