Concentration of Production in Russia

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In Russia, as in all capitalist countries, concentration of production is going on, i.e., its concentration to an ever greater extent in a small number of large and very large undertakings.

Under the capitalist system, every undertaking is entirely dependent on the market. In view of this dependence, the larger the undertaking, the more cheaply it can sell its product. A big capitalist buys raw materials more cheaply and expends them more economically; he uses better machinery, etc. Small proprietors, on the other hand, are ruined and go under. Production becomes more and more concentrated in the hands of a few millionaires. Millionaires generally increase their power still more through joint-stock companies, which put in their hands the capital of middle proprietors and “small fry”.

Here are data, for example, on the factory industry in Russia for 1910 compared with 1901:

Groups of establishments by number of workers	Number of establishments		Number of workers (thousands)
	1901	1910	1901	1910
Up to 50 . . .	12,740	9,909	244	220
51 to 101 . . . .	2,428	2,201	171	159
101 ” 500 . . . .	2,288	2,213	492	508
501 ” 1,000 . . . .	403	433	269	303
Over 1,000 . . . .	243	324	526	713
Total . . . .	18,102	15,080	1,702	1,903

Such is generally the situation in all capitalist countries. The number of small establishments is decreasing; the petty bourgeoisie, the small proprietors, are ruined and go under; they join the ranks of office employees, and sometimes of the proletariat.

The number of very large undertakings is growing fast, their share in production as a whole increasing still more.

From 1901 to 1910 the number of large factories employing over 1,000 workers each increased almost 50 per cent—from 243 to 324.

In 1901 they had about half a million (528,000) workers, or less than one-third of the total number, whereas in 1910 the figure exceeded 700,000, which is more than one-third of the total.

The bigger factories choke the small ones and concentrate production more and more. Ever greater numbers of workers are brought together in a few undertakings, but the whole pro fit from the labour of the combined millions of workers goes to a handful of millionaires.