Activities of Mikhail Reutern: The Trust Factor
https://doi.org/10.18288/1994-5124-2021-2-118-135
Abstract
This article analyses the career path of Mikhail Khristoforovich Reutern (Michael Graf von Reutern), Russia’s Finance Minister from 1862 to 1878. The article proves that trust was an important success factor in Reutern’s economic and financial policy, as can be seen at various phases of his activities. The future minister was part of the group of officials close to Grand Duke Konstantin Nikolayevich, who played a significant role in the implementation of the Emancipation Reform of 1861. Being a member of the Financial Commission, Reutern took an active part in working out the conditions for peasants’ plots buyout, which enabled him, with the support of Konstantin Nikolayevich, to become Finance Minister. Reutern could establish order in the budget sphere and to carry out the financial reform, largely due to Emperor Alexander II’s support. Particular attention is paid to the economic aspect of the Emperor’s foreign policy. While attempting to cut budget spending, Reutern had to come into conflict with War Minister Dmitry Alekseуevich Milyutin, who needed funds for a war reform—both Ministers then had to appeal to Alexander II. The article highlights a period in the mid-1870s, when the situation in the Balkans seriously worsened and Alexander II was inclining toward declaring war on Turkey. Having failed to convince the Emperor in the war’s inappropriateness, Reutern resigned; however, Alexander II asked him to remain, and thus he only left the position of Minister after the end of the war. Major factors of success in Reutern’s activity were not only his correct strategy for overcoming the crisis in the Russian economy, but also the “vertical” of trust created by him, which implied the Emperor’s trust in Reutern, Reutern’s trust in the Emperor, and also mutual trust between Reutern and his subordinates. The appendix features the first publication of Reutern’s farewell speech of July 14, 1878 to the Ministry officials on the occasion of his retirement as well as of a brief essay on his departure from Saint Petersburg.
About the Author
A. A. BELYKH
Russian Presidential Academy of National Economy and Public Administration
Russian Federation
Russian Federation
Andrei A. BELYKH, Dr. Sci. (Econ)
82, Vernadskogo pr., Moscow, 119571
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Review
For citations:
BELYKH A.A. Activities of Mikhail Reutern: The Trust Factor. Economic Policy. 2021;16(2):118–135. (In Russ.) https://doi.org/10.18288/1994-5124-2021-2-118-135
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