While listening to a presentation by Alice Snell from Taleo, I was inspired to write about whether diversity had an impact on Russia’s wealth and growth during Catherine the Great’s reign. Alice shared information about a recent research study that links diversity with increased sales revenues, profits and customers.
Catherine the Great is an interesting leader who took a country which was not well regarded among the current world powers and raised the status of Russia to a new level of prestige around the globe. Most of her biographies have emphasized her colorful personal life and the mystery surrounding her rise to power. When Catherine rose to power in 1762, Russia had a large deficit of 7 million rubles left by her predecessor and was a country behind the times. Catherine was not Russian born and had adapted well to a new culture, religion and language.
Actions taken to encourage diversity
- Sponsored Russians to study abroad at the best universities
- Encouraged immigrants from various countries with different religious backgrounds to settle in Russia. In exchange she offered interest free loans, tax breaks and freedom of worship.
- She corresponded with the best minds of the time including Thomas Jefferson and Voltaire.
- Events were set up between different faith groups to encourage dialogue and common ground.
Outcomes during her reign
- During her reign St. Petersburg became one of the major cultural centers of Europe.
- Russia’s exports to China rose from zero at the beginning of her reign to 1,806,000 rubles in 1781 bringing customs/excise revenue of 600,000 rubles.
- Three years into her reign, Catherine had repaid three fourths of the debt from her predecessor’s reign and turned the budget deficit into a surplus of 5,000,000 rubles.
Catherine remained an autocrat during her reign. There are many who still suffered in Russia and her actions did not always align with her words. Regardless of these contradictions, I believe that at least in part the success of Russia was due to the influx of immigrants, new ideas, and the exchange of cultural ideas from various parts of the world.
Your Insights and Thoughts
- Do you have examples of organizations that have thrived or failed because of diversity?
- What are some of the challenges that an organization might face when first embracing diversity?
{ 1 comment… read it below or add one }
One of the best examples of diversity is in the U.S. military- first racially, then gender. The next challenge is embracing homosexual members by repealing the “don’t ask – don’t tell” policy. I believe the historical trend has been led by government then the private sector, often through litigation. As far as I can tell many systems begin with inherent bigotry and institutionalized discrimination. Then leadership shifts the paradigm, followed by resistance, then eventually acceptance. I cannot think of a single example where diversity has ultimately harmed an organization. Thanks Marguerite- one of the best yet.