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
Catherine the Great to colonise Alaska, establishing Russian America. Catherine reformed the administration of Russian guberniyas, and many new cities and towns were founded on her orders. An admirer of Peter the Great, Catherine continued to modernise Russia along Western European lines. However, military conscription and the economy continued to depend on serfdom, and the increasing demands of the state and private landowners led to increased levels of reliance on serfs. This was one of the chief reasons behind several rebellions, including the large-scale Pugachev's Rebellion of cossacks and peasants. The period of Catherine the Great's rule, the Catherinian Era, is considered the