MERCANTILISM

Mercantilism is the doctrine that economic activity, especially foreign trade, should be directed to unifying and strengthening state power. Though some mercantilist writers emphasized the accumulation of gold and silver by artificial trade surpluses, this "bullionist" version was not dominant in Russia.

The greatest of the Russian enlightened despots, Peter the Great, was eager to borrow the best of Western practice in order to modernize his vast country and to expand its power north and south. Toward this end, the tsar emulated successful Swedish reforms by establishing a regular bureaucracy and unifying measures. Peter brought in Western artisans to help design his new capital at St. Petersburg. He granted monopolies for fiscal purposes on salt, vodka, and metals, while developing workshops for luxury products. Skeptical of private entrepreneurs, he set up state-owned shipyards, arsenals, foundries, mines, and factories. Serfs were assigned to some of these. Like the state-sponsored enterprises of Prussia, however, most of these failed within a few decades.

Tsar Peter instituted many new taxes, raising revenues some five times, not counting the servile labor impressed to build the northern capital, canals, and roads. Like Henry VIII of England, he confiscated church lands and treasure for secular purposes. He also tried to unify internal tolls, something accomplished only in 1753.

Foreign trade was a small, and rather late, concern of Peter's. That function remained mostly in the hands of foreigners. To protect the industries in his domains, he forbade the import of woolen textiles and needles. In addition, he forbade the export of gold and insisted that increased import duties be paid in specie (coin).

See also: economy, tsarist; foreign trade; peter i

bibliography

Gerschenkron, Alexander. (1970). Europe in the Russian Mirror. London: Cambridge University Press.

Spechler, Martin C. (2001). "Nationalism and Economic History." In Encyclopedia of Nationalism, vol. 1, ed. Alexander Motyl. New York: Academic Press, pp. 219-235.

Spechler, Martin C. (1990). Perspectives in Economic Thought. New York: McGraw-Hill.

Martin C. Spechler