The economic revolution of Alexander III: from free trade to protectionism

Abstract

The article is devoted to the consideration of the circumstances of the transition to protectionism in the reign of Alexander III. In the 1860s and 1870s, the “free trade"policy of finance minister M.Kh. Reitern led to the stagnation of heavy industry and lagging behind western countries. The protest of Slavophile business circles against “free trade" was conveyed to the heir to the throne, Alexander Alexandrovich, through professor I.K. Babst. In 1881, the heir became the Emperor Alexander III, Pobedonostsev - his closest adviser, and Katkov -“the mouthpiece" of the new political course. The industrialists gained the right to vote, in 1882, a large Trade and Industrial Congress was convened, which demanded the introduction of protective duties. After a long period of pressure on the liberal minister of finance N.Kh. Bunge (and his resignation), duties were introduced that ensured the accelerated development of Russian heavy industry and partially overcome the backlog.