Railway Network Development and the «Big Economic Breakthrough» in Russia

Abstract

Rail transport has a very significant impact on development of the economy and society. The objective of the study described in the article is to identify, using the methods of historical and statistical analysis, the relationship between development of the Russian railway network and the «big economic breakthrough» that took place from 1885 to 1914 and brought the country to a fundamentally higher level of development.The analysis begins with a review of the previous period of 1861–1884, during which cardinal institutional changes were carried out and a large-scale railway network was created that connected all the main economic regions of the European part of Russia. Due to this, even then high rates of industrial growth were ensured, but the growth was very volatile.It has been revealed that during the period of the «big economic breakthrough» it was possible not only to accelerate, but also to increase sustainability of economic development. These results were based on a significant level of availability of railway infrastructure for population already reached by the beginning of the «big economic breakthrough», allowing continuing dynamic development of railway transport and achieving growing intensity of employment of the railway network. The synergy of institutional and transport infrastructure development was of great importance. Due to this, the Russian economy during the period of the «big economic breakthrough» became the world record holder in terms of growth in industrial production and labour productivity, while a significant increase in the human development index was also achieved.Thus, the study of the relationship between development of the railway network and the «big economic breakthrough» in Russia at the end of 19th – the beginning of 20th century has shown the importance of the synergy of institutional and infrastructural and transport development for successful economic and social modernisation and demonstrated the key role that railway transport in this process.