History of Russia deficit required borrowing, primarily from Amsterdam; five percent of the budget was allocated to debt payments. Paper money was issued to pay for expensive wars, thus causing inflation. For its spending, Russia obtained a large and glorious army, a very large and complex bureaucracy, and a splendid court that rivaled Paris and London. However, the government was living far beyond its means, and 18th-century Russia remained "a poor, backward, overwhelmingly agricultural, and illiterate country." Peter I was succeeded by his second wife, Catherine I (1725–1727), who was merely a figurehead for a powerful group of high officials, then by his
Peter III of Russia Europe had taken. He fought corruption within government, established public litigation and abolished the secret police — a repressive organ started under Peter I – and intended to expose it as betrayer of the state for its mercilessness and torture methods. Catherine recreated this institution, and it remained present in Russia thereon. Peter established obligatory education for aristocrats; all aristocrats had to provide their children with education and report it to the senate. Furthermore, in some cities technical schools were established for middle and lower class children. Peter began the reorganization and modernization of the Russian army. One of his