The role of foreign capital and foreign entrepreneurship in Russia

Before the second half of the 19th century Russia's long-term external debts were caused by the usage of domestic savings for unproductive expenditures such as security, government institutions, and the interests of the nobility. After the catastrophic defeat of the Russian army in the Crimean War, the government developed a policy for the development of the national economy, in particular industry, by attracting foreign capital in various ways. By the beginning of the 20th century Russia had become a middle-level capitalist country, and the positive role of foreign capital in the development of Russian industry is undeniable.