ABSTRACT
The state had made a beginning with the emancipation of the serfs and other reforms to stimulate and give greater scope to the economic energies of its citizens. The Crimean defeat had driven home the fact of Russia's back-wardness which contrasted so sharply with her standing and even more with her pretensions as a great power. By curbing consumption, imports, and state expenditures he wanted to create the budgetary surpluses and gold reserves that would encourage domestic and foreign investment in Russian industry. The service of the foreign debt and the outflow of profits were the negative sides of a relationship which could only be a partial remedy for Russia's shortage of capital and contributed to the uneven development of her economy. Social, ethnic, and geographical diversity made it difficult for Russia's growing capitalist class to develop a common political outlook and positions.
