Harriman Manganese Concession

Definition

The Harriman manganese concession was a significant agreement established in the early 1920s, allowing American businessman W. Averell Harriman to exploit manganese resources in the Soviet Union. This concession played a crucial role during the New Economic Policy (NEP), highlighting the Soviet Union's shift towards limited capitalism and foreign investment as a means of economic recovery following the Russian Civil War.

5 Must Know Facts For Your Next Test

1. The Harriman manganese concession was signed in 1921 as part of the Soviet government's efforts to attract foreign investment and expertise during the NEP.
2. Manganese was essential for steel production, and this concession aimed to provide the Soviet Union with much-needed materials for industrial growth.
3. The deal symbolized a significant thaw in U.S.-Soviet relations, reflecting mutual interest in economic cooperation despite ideological differences.
4. Harriman's involvement was part of a broader trend where foreign businesses engaged with the Soviet economy, seeking profitable opportunities amid its transformation.
5. The concession ultimately faced challenges due to political instability, economic issues in the USSR, and shifting priorities under later leadership.

Review Questions

• How did the Harriman manganese concession illustrate the changes brought about by the New Economic Policy (NEP) in the Soviet Union?
  • The Harriman manganese concession exemplified the NEP's strategy to revitalize the Soviet economy by inviting foreign investment and expertise. It marked a significant shift from previous policies that rejected capitalist practices, as it allowed an American businessman to operate within the USSR. This engagement with foreign capitalists indicated a pragmatic approach by Soviet leadership to recover economically and industrially following years of civil strife.
• Analyze how W. Averell Harriman's role in the manganese concession impacted U.S.-Soviet relations during the early 1920s.
  • W. Averell Harriman's involvement in the manganese concession facilitated a rare instance of collaboration between American business interests and the Soviet government during a period marked by ideological conflict. His ability to secure this concession indicated a willingness on both sides to pursue economic benefits despite political differences. This partnership laid groundwork for future economic exchanges and showcased how international relations could adapt in response to practical needs.
• Evaluate the long-term implications of foreign concessions like Harriman's on the development of Soviet industry and its global economic standing.
  • The long-term implications of concessions like Harriman's were significant for Soviet industrial development and its integration into the global economy. While initially providing access to critical resources and technology, these agreements also exposed vulnerabilities within Soviet planning and priorities. As leaders shifted away from NEP policies, some foreign enterprises faced increasing restrictions, leading to a complex legacy that influenced how the USSR interacted with foreign powers in subsequent decades and shaped its industrialization efforts.

Related terms

New Economic Policy (NEP): A policy introduced by Lenin in 1921, allowing some private enterprise and foreign investment to stimulate the Soviet economy after the devastation of war communism.

W. Averell Harriman: An American businessman and politician, known for his role in facilitating U.S.-Soviet economic relations during the early 20th century, particularly through ventures like the manganese concession.

Soviet Foreign Trade: The economic exchanges between the Soviet Union and other countries, which became increasingly important during the NEP as the USSR sought to recover economically through international partnerships.