The development of industry in the post-reform period is characterized by the emergence of new, capitalist relations. The abolition of serfdom and a set of reforms created the prerequisites for transformations in all spheres of the country's economic life. What was characteristic of the development of the post-reform industry in the Russian Empire is briefly described in this article.
Background of industrial development
At the end of the 19th century, the industrial revolution was almost completed. The Russian empire was building up its economic potential at a tremendous pace; industrial production grew seven times compared to the middle of the century. The main thing that was characteristic of the development of the post-reform industry is listed below:
- Cheap labor. In connection with the abolition of serfdom in the Russian Empire, many peasants appeared who had personal freedom, but did not have land ownership. In search of livelihoods, a mass of people moved to places where they could live and earn. So near large industrial enterprises, new cities arose.
- Numerous economic reforms that have made the country's economy more open and attractive to foreign investors.
- Successful application of the latest technological discoveries, the use of skills and knowledge of specialists from different countries.
- The most powerful state support, including financial support, of large domestic capital.
Foreign capital
Factories and factories were created with a significant quota of foreign capital, which was characteristic of the development of the post-reform industry. Shipbuilding, mining, chemical and engineering industries attracted German, French, Belgian and English capitalists. Food and light industry was more interested in domestic investors. State interests focused on the defense sector of the economy.
Geography of industrial regions
Most industrial enterprises concentrated in several parts of the country. Donbass, the north-west of Russia, the Urals and Baku became the main industrial regions of the Russian Empire. The rest of the districts continued to conduct agrarian and handicraft farming. Such geographical selectivity is explained by the simultaneous concentration of cheap labor, minerals and convenient logistics in these places, which means that production here promised to become super-profitable, which was typical for the development of the post-reform industry.
Post-Reform Results
The industrial revolution was almost completed by the 1880s. For one generation, there has been a transition from obsolete manufacturing to the factory process. Steam engines replaced manual labor. Dividing production into individual small operations has made technology less costly. Active construction of railways pushed to the creation of numerous joint-stock companies and commercial banks. Rail transport contributed to the development of trade and stimulated the state financial system.
By 1880, the Russian Empire took the first place in the world in terms of industrial growth. The post-reform industry, the active financial assistance of other countries and the use of discoveries in science and technology made it possible to maintain a high pace of economic development. And powerful state support made real even the most daring projects, such as the development of Siberia and the study of the Arctic regions of the Russian North.