Economic Aspects
Under Russian rule, Transcaucasia had taken a noticeable step forward economically, though not on the scale of economical development in Europe during the 19th century. Hence, prior to the outbreak of the First World War, the population in Transcaucasia enjoyed a significantly standard of living than their neighbours, Persia, Western Armenia and Asian Turkey.
Several factors contributed to this significant progress: the order established by Russian rule; the impressive communication network they had established (roads, rail roads and harbours); and the wider freedom allowing for individual achievements during the 19th century, which formed the fundament and driving force of development.
Agricultural development, however, ground to a halt under the Russian system, where power in the newly conquered areas lay with large holding farmers. Despite the abolishment of slavery in Transcaucasiain 1870, the confiscation of the lands farmed by peasants, in favour of powerful farmers, aggravated the situation. The Georgian, Armenian and Tatar nobility owned a large part of these lands, forcing peasants to rent farming plots, decreasing productivity in comparison to small landowners. 18
The improvement of communication facilities partly atoned for the unproductive system, increasing exports, in particular cattle, crops, wine and silk. By the end of the 19th century, local consumption had increased along with the increasing population, reducing the export of crops, and replaced instead by the export of cotton from a burgeoning number of cotton farms. At the same time, the expansion of the railroad system in Russia opened new possibilities to export short-lived goods such as different fruits including grapes.
From an industrial perspective, oil extraction provided the bulk of commerce, especially in Baku. 19 Otherwise, Transcaucasian productivity was limited to handicrafts, the mining industry and some areas in the food industry. When the oil industry boomed internationally, the name of Baku was often forgotten, despite making Russia a bigger oil producer than even the USA until the beginning of the 20th century. 20 The oil industry in Baku developed surprisingly without any external involvement or investment other than that of the Noble families, but succeeded solely on the cooperation of Russians, Georgians, Tatars, and of course, Armenians. Armenian engineers, labourers, craftsmen and specialists, especially those from Zangezour and Karabakh, left the mountainous areas for the bustle of the oilfields, helping to establish the oil industry in Russia.
|
