Final answer:
The management of the Russian-America Company by Baranov faced significant challenges due to Russia's rigid social structure and the economic dislocations from World War I and the subsequent civil war. The reluctance of the nobility to lose their privileges and the inadequate response to industrialization needs were pivotal problems in this period.
Step-by-step explanation:
The two main problems Alexander Baranov had in managing the Russian-America Company were primarily attributed to the social and political challenges stemming from Russia's industrialization. A major issue was Russia’s rigid social structure, where the society, dominated by landowning nobles, resisted any change that threatened their privilege. Additionally, the small middle class could not effect substantial reform and the majority of serfs, including peasants, were effectively enslaved by their landowner masters. This structure contributed to economic stagnation and limited institutional change.
With the outbreak of World War I and the subsequent civil war, Russia experienced economic dislocation. Industrial and agricultural production plummeted, unemployment soared, and the economy faced bankruptcy. Lenin introduced the New Economic Policy (NEP) in 1921 to address these issues, which although kept government control over the economy, reintroduced some capitalistic elements to alleviate hardship and address discontent among Russian people.
Russia’s failure to keep pace with industrial advancements became evident during the war, as the country struggled with insufficient rail infrastructure, inadequate arms production, and low troop morale due to a lack of equipment. This highlighted the critical need for further industrialization and modernization within Russia, which was impeded by a desire to maintain autocratic rule that limited reforms.