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The Great Northern War required unprecedented economic resources and Peter needed new revenue streams to pay for his reforms and his wars. The government was in a dire financial position because of Peter’s lavish expenditure. To raise money, Peter monopolized the salt, vodka and coal industries. Peter devised many ways to raise revenue even a tax on beards that caused an uproar among traditional Russians. The Tsar was persuaded that he needed to engage in major taxation reform. The solution was a new poll tax, that replaced all other taxes. The tax burden on the poorer orders increased dramatically. Peter introduced many new technologies into his country from the west and they helped to boost the economy.
However, the country remained agrarian and private enterprise was stymied by the vast state monopolies and heavy taxation. Peter did begin the process of industrialization in his country when he set up state-workshops in the cities and towns. To boost Russian manufacturers also pursued proto-protectionist trade policies, placing heavy tariffs on imports and trade to maintain a favorable environment for Russian-made goods. Peter did not really modernize the Russian economy as he tightly controlled it and the country’s economy, as a result, did not fundamentally change .<ref> Robert K. Massie, Peter the Great: His Life and World (London, Random House Publishing Group, 2012), p. 22</ref>.
====Administrative Reforms====
