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Industrial Revolution

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At the beginning of the XX century social and economic development of Kazakhstan was followed by existing difficult processes of modernization connected with the resettlement movement, development of the commerce and industry capital, and colonial policy of the Russian government. Agrarian development of the region made the most vital issue in social and economic and political development of Kazakhstan, while, for example, in Britain and Netherlands cotton textiles and cotton sectors were quickly developing. The bulk of the Kazakh population by the beginning of the XX century went in for cattle breeding. The traditional way, which historically developed in Kazakhstan in the conditions of penetration of the capitalist relations, were taken into the consideration by the Russian Empire. The Russian government gradually began to regard Kazakhstan as the region for carrying out country colonization that was shown in resettlement policy, settling of steppes by new immigrants from other Russian provinces. This time is also recognized as colonial expansion in Western Europe: North America was divided between Britain, France and Spain, most Latin countries were ruled by Spain and Portugal.

The development of productive forces in post-reform years and formation of the whole Russian market influenced distribution of the capitalist relations in national regions of the empire. In the 30-50th years of the XIX century certain areas with rich natural resources come to light, and coal mining, ores, salt, lead accrues every year. From 60th years of the XIX century the Russian industrialists began to allocate the funds for the organization industrial in such region rich with minerals in Kazakhstan. Fast development of natural riches, development of the monetary and commodity relations opened a way for the organization of banks and credit institutions. Offices of the state banks arose in the economic and cultural centers in Uralsk (1862), Petropavlovsk (1881), Semipalatinsk (1887), Omsk (1895). Lately 57 Siberian offices were opened in Kazakhstan. The important place in economic life of edge was taken by "The Russian commerce and industry bank". The offices were organized in the cities of Kazakhstan at the beginning of the XX century.

High Noon

The capitalist relations influencing the Kazakh villages, settlements of Russians and Ukrainian peasants had escalating impact on volume in the contents of trade every year. Influence of the Russian trade capital on life of the remote Kazakh villages was expanded by economic communications and barter between the central regions of the empire and the colonial region. Trade of scotomas and its transformation process into the goods that were expected to be provided for end users was noticeable. But trade wasn't connected only with cattle. In the first half of the XX century, in a large number products of textile production of the central industrial regions were delivered. Development of Kazakhstan’s economy and implementation process of capitalism in that period were characterized by instability and sharp differences both in economy and in policy issues. The considered period of history of Kazakhstan is eventful and it was influenced further process of nomadic society. The development of capitalism in Western Europe began to accelerate around 1870, while in Kazakhstan it happened only after acquiring independence.

The Turmoil

The First World War, which broke out in 1914, brought innumerable calamities to the people of Kazakhstan as to the entire people of Russian Empire and its neighbors. Looking back to the history, the First World War was the first biggest war that the entire world has ever seen. During the war, everything starting from social and ethical issues to global economy and financial issues changed completely. Whole economy of Kazakhstan began to decline. Livestock, fodder and agricultural produce were requisitioned from the Kazakhs. Taxes and levies of all kinds were increased. Moreover, the First World War did not finish, and a lot of new global issues started: the February and the October Revolutions that are known for the entire world began. It was a critical point in a Russian Empire’s life. According to the history of Kazakhstan, after the rebellion of October 1917 the Bolsheviks ignored the ethnic differences of the people and created Kirghiz Autonomous Socialist Kazakhstan in present-day Kyrgyzstan.

Annexation was followed by aggressive efforts to restructure Kazakh life. Considered the last great nomadic people, many Kazakhs had continued to live a migratory existence through the 1920s. Even those who opted for farming often viewed the activity as an adjunct to animal husbandry, cultivating crops to provide winter-feed for herds. Stalin, however, ordered collectivization and, in 1928, instituted a five-year plan designed to accomplish the task. Implementation was quick and brutal. Herds were seized, particularly those belonging to rich peasants (bays), and farms collectivized. Rather than relinquish their flocks to the state, many Kazakhs simply killed their animals. Mass starvation followed. Hundreds of thousands died in the process while others left the country. The size of herds and meat production would not again reach pre-collectivization levels for a generation.

"The devastation, poverty, and impoverishment" – thus Lenin assessed the situation of the country of Kazakhstan after the Civil War of 1917. The war brought to the Kazakhstan devastation and ruin: a) out of 307 of nationalized enterprises in Kazakhstan were 250 inactive; b) compared with 1913, oil production in Kazakhstan fell by 4 times, Karaganda coal - 5 times, and the extraction of copper ore ceased entirely; c) out of the 147 wells in Emba oil fields, only eight were suitable for use; d) railroads were idle due to lack of fuel and the destruction of roads; the share of industry in the gross national product in 1920 amounted to 6, 3%; e) it declined the Kazakhstan's agriculture. In the Ural provinces acreage decreased by more than two times in Seven Rivers - almost 3 times; f) significantly reduced the number of cattle: with 29.9 million to 16.3 million. In order to eradicate those problems Lenin proposed the New Economic Policy. It was the anti-crisis program, the essence of which was the re-creation of a mixed economy and the use of organizational and technical expertise of the capitalists, while maintaining "the commanding heights" in the hands of the Bolshevik government.


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