Features of Development of the Raw Material Sector of the Economy in the Zabaikalsk Territory during the Period of Existence of the Far Eastern Republic (1920-1922)

Abstract

The article analyzed understudied state policy of the government of Far Eastern Republic aimed at state monopolization of the areas of harvesting, storage and trade of fur and raw materials in the Transbaikal region. The research conducted a comprehensive analysis of legislative enactments that evolved from strictly prohibitive measures against free trade operations of fur-raw material market to cancellation of the restrictions. The author analyzed government regulations, the consequences of the ban of the free trade of raw materials and their free export abroad. All kinds of fur, medicinal-technical raw materials and raw materials of other origin, obtained from domestic breeds of animals were subject to those state regulations. This policy had very limited effect due to the absence of an extensive branch of the executive power on the ground and unwillingness of the population to obey the laws that infringed on their trade rights. With entry into force of various kinds of bans, the black market of the fur-raw material operations flourished. Along the border with China the smuggling did not stop. The attempt to deal with the criminal phenomenon failed because the customs was in a poorly organized state. Eventually the government and the Council of Ministers of the Republic realized that the existing regulations hindered the development of the raw materials sector of the economy and lead to public discontent. They eventually reversed the monopoly law and a number of related enactments and reintroduced free trade of furs and raw materials. The author concluded that this emergency policy was flawed. Due to the general lack of preparation of the executive branch of government, legislative measures aimed at the state monopolization of the commodity market failed to bring under state control the procurement system and the most important counter-currency. As a result, the market returned to free trade relations.