To what extent was the Tsarist economy transformed between 1881 – 1905?

The torpor of the Russian economy compared to other European Great Powers was a prominent predicament to both Alexander III and Nicholas II. In order to sustain Russia’s Great Power status, both Tsars engaged in a policy of economic renewal between the years 1881 and 1095. Despite success in managing to proliferate economic growth rates, the attempts of economic reform between 1881 and 1905 weren’t sufficient in order to make Russia’s economy strong enough to fully maintain Russia’s ‘Great Power’ status as Russia still lagged behind the other Great Powers come 1905. (92)

The main quandary facing the Russian economy was its lack of industrial capacity and both Alexander III and Nicholas II endeavoured to invigorate Russia’s industrial competence through a policy of State Capitalism. Witte played a main role in attempting to overcome this vast hindrance. One of Witte’s main policies was to acquire capital to invest in the industry of which he executed through foreign loans and heavy taxes; through this Witte succeeded in creating the centrepiece of his system – the Trans-Siberian railway. This in turn would provide the communication system essential to exploit the economic potential of Russia by allowing the export of raw materials. Witte also had economic success with raw materials. Coal and oil increased by 150% and iron by 200%. With the accomplishment of the railway and the increase in raw materials, Russia was able to break through the poor internal communications that acted as a barrier to the growth of trade and, at face value, an influx in raw materials presented Russia with a real chance of maintaining its Great Power status. (176)

However, although Witte’s policies proved Russia with an immense economical spurt, the economic improvement relative to other Great Powers was less