Russia: Emancipation and Witte's Industrial Drive

Russia remained largely agricultural well into the 19th century, with most peasants bound as serfs. Defeat in the Crimean War (1853–1856) convinced Tsar Alexander II that Russia needed to modernize, and in 1861 he emancipated the serfs. Freed peasants, however, had to make redemption payments for land and often remained tied to village communes, which slowed movement to industry.

Rapid industrial growth came in the 1890s under Finance Minister Sergei Witte, who used high tariffs, state contracts, foreign loans and investment, especially from France, and placed Russia on the gold standard in 1897. Construction of the Trans-Siberian Railway began in 1891. Industrial output grew quickly, but workers faced harsh conditions and low pay in cities such as St Petersburg and Moscow.

Discontent among workers and peasants contributed to the revolution of 1905, showing how rapid, state-driven industrialization could create political instability.