Russian Revolution and Post-War Economic Crisis
The Fall of Tsarist Russia
Item 7.
Causes of the Crisis
The Russo-Japanese War, fought over control of Korea and Manchuria, led to significant Russian losses, including the sinking of the Russian fleet at Port Arthur. Tsar Nicholas II was forced to sign an unfavorable peace treaty with Japan. These events, coupled with existing social and economic problems, sparked widespread riots and unrest in Russia. The privileged classes' desire to continue the war, the creation of the Duma, the legalization of political parties, high social tensions, growing protests, and an economic crisis all contributed to the revolutionary atmosphere.
The 1905 Revolution
Strikes and protests intensified across various regions. The crew of the Potemkin battleship revolted, and the protests spread to industrial centers, leading to the formation of workers' councils known as Soviets. Leon Trotsky played a leading role in the St. Petersburg Soviet. Facing mounting pressure, the Tsar reluctantly accepted proposals and issued an imperial decree that recognized civil liberties, established a representative Duma, and stipulated that members would be elected by universal suffrage.
The End of the Tsarist Regime
Strikes and protests resurfaced in 1917 in St. Petersburg. The Tsar lost control as workers' strikes gained support from soldiers. Soviets expanded to include soldiers' assemblies. The Duma, controlled by liberals and Mensheviks, pressured the Tsar to abdicate. A provisional government was formed, with Alexander Kerensky as prime minister, through an agreement between the Soviet and the Duma.
Post-War Economic Turmoil
Item 8.
Economic Instability
Post-war governments attempted to revert to pre-war economic practices, but the situation had fundamentally changed. Depleted gold reserves forced the production of banknotes, leading to economic disorder and the abandonment of the gold standard. The war had caused widespread destruction and fragmented economic spaces. War expenses led to currency crises, with states burdened by debt and runaway inflation. This instability fueled communist sentiments.
The Dawes Plan
Germany's inability to manage war reparations had a significant negative impact on the European economy. The Dawes Plan, aimed at revising these conditions, facilitated economic recovery in Europe. Key measures included restructuring the Reichsmark, reconsidering the terms imposed by the Treaty of Versailles, and providing loans to Germany.
The Crash of 1929
In the spring of 1929, the economy began to show signs of strain, with price declines followed by rapid recoveries. Different solutions were considered: warning of the risk of stock market collapse, raising interest rates (which would harm small investors), or inaction. Ultimately, the latter course was chosen.
The Great Depression
The Wall Street crash triggered a chain reaction that affected all economic sectors. Economic difficulties caused banks to cease lending and demand repayment of debts. A decline in consumer confidence led to an immediate drop in demand. Falling output and rising unemployment plagued the agricultural sector, which faced bankruptcy due to lower prices and reduced demand. This crisis nearly led to the collapse of the capitalist system.