The High Cost and the Gamble of the Witte System: A Chapter in the Industrialization of Russia*

Theodore H. Von Laue

The Journal of Economic History, 1953, vol. 13, issue 4, 425-448

Abstract: Students of the Five Year Plans are familiar with the overreach. Sing ambitions, the inflated claims, die disputed accomplishments, die misleading statistics, and the appalling human costs of “socialist industrialization” in Soviet Russia. They have generally ascribed these phenomena to Bolshevik dieory and practice. It comes as a surprise then to find die criticism of die early Five Year Plans foreshadowed, in almost identical terms, in die attacks made upon die earlier policy of rapid industrialization in Russia which is linked with the name of Sergei Witte, the Czarist Minister of Finance, 1891–1903. He, too, paraded seemingly impressive results and dubious figures, and he, too, was forced to exact dire sacrifices from popular welfare: Despite the profound dissimilarities between the Soviet system and die Witte era (they must go unstated here) there exists, it would seem, an underlying continuity, pointing to more fundamental necessities and profounder tragedies that backward countries widi strong nationalist and imperialist tendencies must face in die precipitous development of their resources. One special difference, however, should be noted in diis context. The distaste for die bitter fruits of forced industrialization, muted in Stalinist Russia, could frankly, although not entirely freely, be expressed in die eighteen nineties, when Witte's policies attained their full effect. The subsequent discussion of Witte's policies and their consequence is drawn from that public protest.

Date: 1953
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