Nikolai von Bunge

His Excellency Nikolai von Bunge
Portrait of N.H. Bunge, 1887
Chairman of the Committee of Ministers of the Russian Empire
In office 31 December [O.S. 21 December] 1886 – 15 June [O.S. 3 June] 1895
Monarch	Alexander III
Preceded by	Ernst Rudolf von Trautvetter
Succeeded by	Ivan Durnovo
Minister of Finance
In office 7 July [O.S. 19 May] 1881 – 31 December [O.S. 21 December] 1886
Monarch	Alexander III
Prime Minister	Carl Bildt
Preceded by	Alexander Abaza
Succeeded by	Ivan Vyshnegradsky
Senior sport offices Deputy Minister of Finance In office 27 October [O.S. 17 October] 1880 – 27 April [O.S. 6 May] 1881
Rector of St.Vladimir Kiev University
In office 1859–1880
Monarch	Alexander II
Preceded by	Aleksandr Matveyev
Succeeded by	Konstantin Feofilaktov
Personal details
Born	23 November [O.S. 11 November] 1823 Kiev in Ukraine, Russian Empire
Died	14 June [O.S. 3 June] 1895 (aged 69) Pushkin, Saint Petersburg Governorate, Russian Empire
Political party	Reformism
Other political affiliations	Progressivism
Parents	Christian Gottlieb von Bunge Katharina von Gebner
Residence	Imperial Court Residence
Alma mater	Taras Shevchenko National University of Kyiv*Russian Academy of Sciences
Occupation	Statesman economist politician rector academic

Nikolai Karl Paul von Bunge (23 November [O.S. 11 November] 1823 – 15 June [O.S. 3 June] 1895) was a German-Russian economist, academic and statesman who served as the minister of finance of the Russian Empire from 1881 to 1886. He is known as the preeminent architect of Russian capitalism under the reign of Alexander III

Early life (1823–1847)

Bunge was born on 23 November [O.S. 11 November] 1823 in Kyiv, Russia Empire. He was the second son of imperial physician Christian Gottlieb von Bunge, a specialist in pediatric diseases, and his second wife Katharina von Gebner. On his father’s side of the family he was a descendent of the Lutheran Bunge family of East Prussian origin, and was a second generation of the Kievan branch. His grandfather, Georg Friedrich Bunge moved from the Stallupönen to Kiev sometime in the 18th century.

He graduated with a gold medal from the First Kyiv Gymnasium and later completed the Faculty of Law at St. Vladimir University in 1845, earning a Candidate of Law degree.

In 1847, he obtained a Master’s degree in State Law with his dissertation “A Study of the Principles of Peter the Great’s Commercial Legislation.” He earned a Doctorate in Political Science in 1850 with his dissertation “The Theory of Credit.”

Academia

Early years in academia (1845–1859)

On 31 October 1845, Bunge began teaching laws of state administration at the Nizhyn Lyceum of Prince Bezborodko. He became a professor on 19 December 1847 and served until 31 October 1850, lecturing on finance and financial law. In 1850, he was also appointed acting adjunct professor at St. Vladimir University in the Department of Political Economy and Statistics. In 1852, he defended his dissertation “On the Theory of Credit,” earning a Doctorate in Political Science and was confirmed as an extraordinary professor. On March 26, 1854, he became an ordinary professor. In 1858, he also began lecturing on financial legislation at the university.

Later years in academia (1859–1895)

On 4 December 1859, Bunge was elected a corresponding member of the Russian Academy of Sciences.

Bunge served his first tenure as rector of Kiev University from 1859 to 1862. From 1863 to 1864, Bunge was the deputy grand tutor and thought financial theory and political economy to Tsarevich Nicholas Alexandrovich, the son of Alexander II. In 1869, he became an ordinary professor in the Department of Police Law at St. Vladimir University effectively teaching economic policy. Bunge served his second term as rector of Kiev University from 1870 to 1875, and a third term from 1878 to 1880 after which he took a break from academia.

He returned to academia in 1887 and lectured on political economy, statistics, and finance to Grand Duke Nicholas Alexandrovich, the future Emperor Nicholas II, until 1889.

On 13 March 1890, Bunge was appointed full academician in the section of historical and political sciences (political economy and statistics) of the Russian Academy of Sciences.

Ministry of Finance (1861–1881)

In addition to his academic career, he headed the Kyiv branch of the State Bank of the Russian Empire and led the Kyiv Mutual Credit Society. On 23 April 1861, he was granted the rank of Actual State Councillor.

Bunge was a professor of the Kiev University, of which he served as a dean between 1859 and 1880, when he was summoned to St. Petersburg to become a deputy minister and then (since 1881) Minister of Finance. Five years later, he became Chairman of the Cabinet of Ministers, the highest position in the civil administration of the Russian Empire.

Bunge undertook a number of reforms with the aim of modernizing the Russian economy. He consolidated the banking system of the Empire and founded the Peasants' Land Bank (1882) which helped peasants to purchase land. He introduced important tax law changes which seriously reduced the tax burden of the peasantry. The head tax was abolished and the inheritance tax was introduced.

Bunge's policies towards the Russian industries were extremely protectionist. He promoted the construction of railways and spearheaded the first Russian labour laws, some of them aimed at reducing child labour.

However, in 1887 under pressure of conservative deputies, accusing him of incompetence and incapability to overcome the budgeted deficit, N.K. Bunge resigned.