Supportive political institutions were set in place with appropriate economic policy. Appropriate exchange rates and tariff levels were critical in the sphere of trade policy. Country tariff policies during this time and within this global liberal trade regime were systematically altered with industrialization levels. Tariff production of new industries was needed to initiate industrialization Other major players were large latecomers at the Organization for Economic Cooperation and Development or OECD to the Industrial Revolution were Germany, Italy, Japan and Russia. They all adopted an import substitution industrialization strategy (Alderman).
Growth since the Industrial Revolution has been capital and energy-intensive (Alderman 1995). Technological changes in industry have displaced labor and technology has been embedded in capital. Technology, therefore, has required high rates and levels of capital. Among the major players in global economy, the rate and structure of investment were closely linked with inter-country differences in their rates of economic growth. When domestic investment rates in these leading or major global players went down, their technological leadership also went down. The more dynamic countries took the lead from them. As a result, Great Britain handed world economic leadership to the United States from 1890 (Alderman).
Russia was behind the West and viewed as needing reform (Indian Springs 2006). It was thought to maintain the most powerful and large army and the largest population during the Industrial Revolution period. Yet there was no industrialization in Russia. Serfdom, not intellectual freedom, existed in it. Serfdom was abolished in 1861 and ended a major source of rural rebellion. But the abolition did not spark capitalist energies in Russia. The consequences of the Crimean War bared and proved Russia's weakness. There were spurts of growth in the 1860s but growth slowed down in the 1870s. In the 1890s, those spurts shot up again. This time, the government built railroads and allowed the expansion of the market. It offered incentives for the building of more businesses. It encouraged other industries....
But Russian workers lacked a comparably high standard of living with other major global economic players. They were vulnerable or open to radical ideas. Terrorist movements were a consequence to this open-ness. Russian students would enter peasant villages to secure their support. When villagers turned them away because they were younger, these students would become terrorists. Alexander II, Russia's reforming tsar, refused a representative government and somewhat proceeded with industrialization. He was considered the key leader who encouraged economic growth. Finance Minister Serge Witte believed that the industrial backwardness threatened Russia's power. He established high protective tariffs in an attempt at building Russian industry. He struggled to put the country on the "gold standard at par with the "civilized world" in the hope of strengthening Russian finances. He wanted Russia to catch up with the West. He encouraged those in the West to Russia to help industrialize it (Indian Springs).
Russia showed more aggressiveness in foreign affairs (Indian Springs 2006). In 1904, Russia wanted to acquire North Korea, but so did Japan. Japan attacked the Russian fleet at Port Arthur, sank it and declared war against Russia. Japan also destroyed Russia's second fleet. It later negotiated for peace with the Treaty of Port Smith (Indian Springs).
Bibliography
1. Adelman, Irma. The Genesis of the Current Global Economic System. The Long-Term Impact of Economic Development of Developed Countries on Developing Countries, 1995. http://are.berkeley.edu/~adelman/KEYNOTE.DOC
2. Indian Springs. The Age of Nationalism 1850-1914. www.Indiansprings.org/image/Ch_25.pdf" http://www.Indiansprings.org/image/Ch_25.pdf Accessed December 13, 2006
3. San Diego State University. This Big Era and the Three Essential Questions. World History for Us All, 2006. http//worldhistoryforusall.sdsu.edu/dev/eras/era7.htm
4. Science Museum, The. The Emergence of an Industrial and Urban Britain. Making the Modern World, 2004. http://www.makingthemodernworld.org.uk/learnng_modules/history/02.TU.02/?section=2
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