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How Russia fell behind

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How Russia fell behind
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The 19th century was a time of industrial revolution, when Western European countries and the United States achieved a dramatic economic leap, far outpacing the rest of the world in industrial development. The Russian Empire remained on the periphery of this development, and this had a fatal impact on its future.

Railway construction was the driver of industrial development in the 19th century: it was railway orders that fueled the development of metallurgy and mechanical engineering. The victors in the Crimean War forced Russia to sharply reduce customs duties and open its domestic market to "free trade." The ideological expansion of the West brought to power a liberal government, effectively headed by Finance Minister M.Kh. Reitern. This was a time of rampant corruption, when even viable Russian enterprises were deprived of the opportunity to compete with foreign firms. Under these conditions, orders went to the West, and Russian industry stagnated. When the situation was understood and mistakes were corrected, it turned out that lost time could not be recovered.
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