An eminent scholar, surveying a century of Russian and Soviet development, once remarked that ‘it always was a “political” economic history’. This epigrammatical statement reflected the widely held view that the tsarist state actively promoted Russian economic development for geo-political purposes. The old regime, conscious of the disparity between its diplomatic pretensions and relative economic weakness, aimed to build a modern industrial economy. Russian industrialization and tsarist foreign policy were closely intertwined, as the regime sought to enhance the international status and influence which it forfeited in the years following the Crimean War. The pursuit of international prestige went hand in hand with a programme for rapid industrial development, which laid the foundations for economic and military security.

A generation after Gerschenkron wrote the words quoted above, many aspects of Russia's ‘political’ economic history remain contentious or unresolved. Scholars who disagree about key aspects of Russian history nevertheless agree that the tsarist state exercised a decisive influence over the course of economic development. But exactly what role the state played in the process of economic development and by whom economic policy was formulated are questions which still await thorough examination. The implications of a powerful state for private entrepreneurial initiative have attracted some attention, but many aspects of business policy, entrepreneurial practice and industrial performance remain unclear. The connection between foreign and defence policy, on the one hand, and industrial development, on the other, is opaque.