Russian Economies
A short economic history of Russia and the Soviet Union.
Traditional Economies of Russia
The economy of Russia historically relied upon its natural wealth, central trade position, and a massive underclass of peasant farmers. In the days of Kievan Rus, merchants flowed through its cities to find and sell goods from across the world. Riverways connected cities like Kiev and Novgorod to the trade routes of Constantinople, Samarkand, Baghdad, and other major hubs of civilization. Novgorod, a merchant republic to the north, was also a major partner of the Hanseatic League. The states of Kievan Rus traded in valuable goods like spices, silks, weapons, dyes, furs, honey, metals, glass, wax, grains, and jewelry. Its cities also fostered a healthy class of tradesmen known for fine metalworking and textiles.
The urban boyar class and feudal princes grew wealthy through the labors of a much larger population of peasants. Under the feudal system, farmers were tied to their estates by birth. They owed their landlord a certain amount of labor in exchange for land and protections. What began as a relatively equitable agreement grew more exploitative after the Tatar-Mongol invasions of the 13th century. Serfs needed the nobility for military protection and lost many rights in exchange. They could be bought, sold, and pressed into military service as their landowner saw fit. This continued until 1861, but freedom created more problems for the newly independent peasants.
At the same time, the tsarist government of the Russian Empire struggled to transition from a largely agrarian society to an industrial one. Its deficiencies on this front were made painfully obvious through a series of military defeats, including at the hands of Japan in 1905. The Empire lagged behind the economies of Europe, a fact that became increasingly obvious to its class of urban intellectuals. By the early 20th century, the lower classes of Russia were ready to try a new economic system. Although there was fragmented consensus on what that system would be, it resulted in the toppling of the Russian aristocracy in favor of a socialist, single-party state.
Economics of the Soviet Union
The Soviet economy organized on a principal of collective ownership. Instead of individuals owning their own land and earning wealth in whatever way they could, it sought to create a society that worked together for everyone's benefit. In the early years, it seized businesses, farms, and estates to be redistributed as state farms and industries. Committees nationalized any industry seen as essential for the nation’s future development. Despite seemingly good intentions, internal disputes, shaky modernization, and a violent revolution all worked against the Soviet economy. The Great Famine of the 1930s occurred during the transition from individual to industrial farming. A lack of effective response on the part of party leadership has led to accusations of genocide, particularly from Ukraine.
Although it emerged as a major world power following World War II, the Soviet Union faced persistent shortages, corruption, and lax organization throughout the 20th century. Despite these difficulties, it nonetheless raised the standard of living for many of its citizens. It also successfully modernized Russia into a foremost military and scientific competitor. Economic strata still existed within the Soviet Union. Rural areas tended to remain poor and agrarian, while skilled or dedicated workers could be rewarded beyond the basics of life. The nation possessed large oil reserves, which allowed it to remain independent during the Cold War era. Until 1988, it was the second-largest economy in the world.
Modern Russian Economics
The Russian Federation that followed sold much of its national industry to private buyers. This created a new class of oligarchs in the nation, who have gradually solidified their political and economic power. Russia's modern economy relies on industries like oil & gas, mining, forestry, manufacturing, agriculture, and military engineering. Its economy has experienced periods of growth and recession in the past few decades, including a recent downturn in 2015.
References
Bushkovitch, Paul. A Concise History of Russia. Cambridge University Press. 2012.
Moon, David. The Russian Peasantry 1600-1930: The World the Peasants Made. Routledge. 2014.
Rowland, Daniel Bruce. Medieval Russian Culture. University of California Press. 1984.
“The World Factbook: RUSSIA.” Central Intelligence Agency, Central Intelligence Agency, 29 May 2018, www.cia.gov/library/publications/the-world-factbook/geos/rs.html.
Vernadsky, George. Kievan Russia. Yale University Press. 1973.
Ziegler, Charles. The History of Russia. ABC-CLIO. 2009. test edit
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