ABSTRACT
Did the Russian state help or hinder economic development in the pre-Soviet era? According to the classic formulation of Alexander Gerschenkron (1965), the Tsarist state stepped in, in an attempt to overcome Russia’s backwardness. This entailed state credit and guarantees for industry, protective tariffs, and the borrowing of foreign technology. Significantly, Gerschenkron and other scholars have also viewed the state as using tax policies to siphon resources from agriculture to support industry. In part, this was done through the institution of the peasant commune, which also fostered restrictions on labour mobility out of agriculture and reduced incentives to improve land holdings. The result was rural stagnation – both in living standards and in agricultural productivity growth.
