Witte and Accelerated Industrialization
In the late 1800s, Russia's domestic backwardness and vulnerability in foreign affairs reached crisis proportions. At home a famine claimed a half-million lives in 1891, and activities by Japan and China near Russia's borders were perceived as threats
from abroad. In reaction, the regime was forced to adopt the ambitious but costly economic programs of Sergey Witte, the country's strong-willed minister of finance. Witte championed foreign loans, conversion to the gold standard, heavy taxation of the pe
asantry, accelerated development of heavy industry, and a trans-Siberian railroad. These policies were designed to modernize the country, secure the Russian Far East, and give Russia a commanding position with which to exploit the resources of China's nor
thern territories, Korea, and Siberia. This expansionist foreign policy was Russia's version of the imperialist logic displayed in the nineteenth century by other large countries with vast undeveloped territories such as the United States. In 1894 the acc
ession of the pliable Nicholas II upon the death of Alexander III gave Witte and other powerful ministers the opportunity to dominate the government.
Witte's policies had mixed results. In spite of a severe economic depression at the end of the century, Russia's coal, iron, steel, and oil production tripled between 1890 and 1900. Railroad mileage almost doubled, giving Russia the most track of any n
ation other than the United States. Yet Russian grain production and exports failed to rise significantly, and imports grew faster than exports. The state budget also more than doubled, absorbing some of the country's economic growth. Western historians d
iffer as to the merits of Witte's reforms; some believe that domestic industry, which did not benefit from subsidies or contracts, suffered a setback. Most analysts agree that the Trans-Siberian Railroad (which was completed from Moscow to Vladivostok in
1904) and the ventures into Manchuria and Korea were economic losses for Russia and a drain on the treasury. Certainly the financial costs of his reforms contributed to Witte's dismissal as minister of finance in 1903.
Radical Political Parties Develop
During the 1890s, Russia's industrial development led to a significant increase in the size of the urban bourgeoisie and the working class, setting the stage for a more dynamic political atmosphere and the development of radical parties. Because the st
ate and foreigners owned much of Russia's industry, the working class was comparatively stronger and the bourgeoisie comparatively weaker than in the West. The working class and peasants were the first to establish political parties because the nobility a
nd the wealthy bourgeoisie were politically timid. During the 1890s and early 1900s, abysmal living and working conditions, high taxes, and land hunger gave rise to more frequent strikes and agrarian disorders. These activities prompted the bourgeoisie of
various nationalities in the empire to develop a host of different parties, both liberal and conservative.
Socialists of different nationalities formed their own parties. Russian Poles, who had suffered significant administrative and educational Russification, founded the nationalistic Polish Socialist Party in Paris in 1892. That party's founders hoped tha
t it would help reunite a divided Poland with the territories held by Austria-Hungary, Germany, and Russia. In 1897 Jewish workers in Russia created the Bund (league or union), an organization that subsequently became popular in western Ukraine, Belorussi
a, Lithuania, and Russian Poland. The Russian Social Democratic Labor Party was established in 1898. The Finnish Social Democrats remained separate, but the Latvians and Georgians associated themselves with the Russian Social Democrats. Armenians, inspir
ed by both Russian and Balkan revolutionary traditions, were politically active in this period in Russia and in the Ottoman Empire. Politically minded Muslims living in Russia tended to be attracted to the pan-Islamic and pan-Turkic movements that were de
veloping in Egypt and the Ottoman Empire. Russians who fused the ideas of the old Populists and urban socialists formed Russia's largest radical movement, the United Socialist Revolutionary Party, which combined the standard Populist mix of propaganda and
Vladimir I. Ul'yanov was the most politically talented of the revolutionary socialists. In the 1890s, he labored to wean young radicals away from populism to Marxism. Exiled from 1895 to 1899 in Siberia, where he took the name Lenin from the mighty Sib
erian Lena River, he was the master tactician among the organizers of the Russian Social Democratic Labor Party. In December 1900, he founded the newspaper Iskra
(Spark). In his book What Is to Be Done?
(1902), Lenin developed the theory that a newspaper published abroad could aid in organizing a centralized revolutionary party to direct the overthrow of an autocratic government. He then worked to establish a tightly organized, highly disciplined party
to do so in Russia. At the Second Party Congress of the Russian Social Democratic Labor Party in 1903, he forced the Bund to walk out and induced a split between his majority Bolshevik (see Glossary) faction and the minority Menshevik (see Glossary) facti
on, which believed more in worker spontaneity than in strict organizational tactics. Lenin's concept of a revolutionary party and a worker-peasant alliance owed more to Tkachev and to the People's Will than to Karl Marx and Friedrich Engels, the developer
s of Marxism. Young Bolsheviks, such as Joseph V. Stalin and Nikolay Bukharin, looked to Lenin as their leader.
Data as of July 1996